shong1's Profile
Author's Posts
November 12, 2008
New Conforming Agency Loan Limits
The new conforming agency loan limits are as follows on locks starting on November 14, 2008 until 12/31/2009:
1-unit - $625,500
2-unit - $800,775
3-unit - $967,950
4-unit - $1,202,925
Guidelines as far as loan to value, credit, and debt to income requirements will be out later this week.
sunny_hong@countrywide.com
October 21, 2008
30 year jumbo
In case anyone is looking for a jumbo 30 year fixed mortgage above $729,750, we have rates that are completely blowing every major lender away. Not saying this will last forever but we have it now. If you would like a rate quote for a single unit residence then please email me your purchase price, loan amount, and property. sunny_hong@countrywide.com
October 9, 2008
Chase and Wells ending jumbo conforming early
Im trying to verify this information. Will update once I find out.
http://ny.therealdeal.com/articles/chase-wells-set-early-date-for-jumbo-loan-closings
Updated On 10/08/08 at 03:44PM
Chase, Wells set early date for jumbo loan closings
By Adam Pincus
Home buyers using two of the nation's top lenders are losing a mortgage sweetener a month early, following a decision by two large banks to alter some loan deadlines.
JPMorgan Chase and Wells Fargo have moved up by four weeks to December 1 the deadline for borrowers to close on jumbo conforming loans, thereby limiting lending options available to already pinched home buyers, in high-priced areas such as New York City.
Chase and Wells Fargo announced the decision about a month ago, according to three brokers. The two lenders did not respond to requests for comment.
The move affects buyers of homes and apartments between about $1 million and $3 million seeking a loan in the jumbo category, which is between $417,000 and $729,750.
In March, the federal government raised the upper limit for jumbo loans from $417,000 to as high as $729,750 in certain areas including New York City in order to stimulate home sales.
The increased limit, which remains in effect until December 31 for most lenders and will then likely drop to $625,000, was part of a national economic stimulus package signed in February by President George Bush, allowing banks to sell larger loans to Fannie Mae and Freddie Mac, thereby freeing up the lenders' capital.
Out of the 216 mortgages published on the city's Department of Finance Web site over the past week, Chase wrote 31 mortgages and JPMorgan wrote 40, according to a count by The Real Deal. Sixteen of Chase’s mortgages and 12 of JPMorgan’s were between $417,000 and $729,750, the records showed, making them eligible for the jumbo conforming loan.
The change does not make it impossible for home buyers to get the large mortgages, but it does make them more costly, brokers said.
Melissa Cohn, president of Manhattan Mortgage Company, said the shorter time was not scuttling deals.
Mortgage broker Thomas Wiggin, president of Thomas Funding Group, said the earlier date set by the banks would impact buyers closing on deals over the duration of the year, who make a late decision to seek a larger mortgage.
“If at the last second [buyers] want to close under higher numbers it will be a problem and they will have to find another lender to do the deal,” he said.
Wiggin added that he believed the banks moved the date up to be sure the loans were completed by December 31 so that they could be sold to Fannie Mae or Freddie Mac and not remain as loans on the banks' balance sheets.
sunny_hong@countrywide.com
October 5, 2008
JUMBO FIXED vs ARMs
As a result from the Bank of America and Countrywide merger, we decided to aggressively price jumbo fixed loans and steer away from ARMs.
I decided to post this because of all the requests for refinancing I have been getting after only a few months of closing at 5/1 ARMs. When you can get a jumbo 30 year fixed in the mid 6% range with 0 points it is worth considering. The 5/1 ARM rates may be appealing but it isnt worth the risk unless you are absolutely positive that you can sell within 5 years. Some will agrue against me and they may have a valid point. If the spread betwen the jumbo 5/1 arm and 30 year fixed is a lot then it may be worth considering. However, the spread has narrowed. If the place you are buying is going to be your home, go with a fixed product. There are the occasional few that might be better off with an ARM. But for the majority, fixed is the way to go.
We can finance 90% up to $729,750, 80% up to 1.5M, and 75% up to 3M.
Sunny Hong
Author's Comments
FHA approval for a condo takes about 60-90 days. But it really depends on how fast the necessary documents are submitted. Also, dont forget FHA requires that the building is 51% sold to owner occupants. SO even with FHA approval, if the building isnt 51% sold to owner occupants then you can not close. May I ask which development?sunny.hong@bankofamerica.com
Posted by: shong1 at July 23, 2009 10:03 PM in response to Waiting on FHA approval
Cris, whether you choose an FHA loan or FNMA loan should depend on several factors. One that stands out immediately is the down payment youre looking to put. If youre looking to 20% down then typically a FNMA loan makes sense assuming your loan limits are under 729,750. 20% on a conventional FNMA helps you avoid MI. Not the case with FHA. Also, you have to consider what type of property youre looking to buy. If its a condo then you have to make sure the buildng is FHA approved. Rates have been very similiar between the 2 types of programs. Rate is important but you must first see which is better suited for you. sunny.hong@bankofamerica.com
Posted by: shong1 at June 26, 2009 1:14 AM in response to FHA Loan
A key component people tend to forget with 3-4 family home financing through FHA is that the house has to be self sufficient. What I mean by that is 85% of the monthly rental income on all 3 units or 4 units(even if youre living in one) has to cover your total montly mortgage, taxes, and insurance. sunny.hong@bankofamerica.com
Posted by: shong1 at June 4, 2009 1:19 AM in response to Is this mortgage possible?
An origination fee is a fee charged that the mortgage broker keeps for whatever reason they choose. They can say it coves bank fees or its for their services. A discount point is a fee paid to buydown your rate. Both are tax deductible. But whether youre charged an origination or discount point, you have compare apples to apples. What is the rate that is being offered and what are the total points youre paying? sunny.hong@bankofamerica.com
Posted by: shong1 at June 4, 2009 1:11 AM in response to Loan Origination Fee
I'm almost sure it will be impossible for a loan on a 3 family home with 25k down at a 600k purchase price. The reason I say this is because FHA will be your only chance. However, to qualify for FHA on 3-4 family homes, 85% of the total monthly rental income must be higher than your PITI (mortgage principal and interest, taxes and insurance). You may want to look into a 2 family homes instead. For 3-4 families homes on FHA, the home has to carry itself and it doesnt matter if you make 70k or 700k. sunny.hong@bankofamerica.com
Posted by: shong1 at April 26, 2009 12:48 AM in response to Will a mortage ever be offered @
Certainly 90% financing on coops and condos have been tough because of PMI. But Im seeing lots of 85% approvals.
sunny_hon@countrywide.com
Posted by: shong1 at April 6, 2009 11:31 PM in response to I am looking 90% financing
Countrywide/Bank of America has already begun lowering jumbo rates. A couple of times this year our jumbo 30 year fixed hit high 5s up to 1.5M and low 6s up to 3M. Currently, we can lend 80% up to 1.5M and 75% up to 3M. Timing is key in this market. Rates may go low one day but it can easily go right back up. sunny_hong@countrywide.com
Posted by: shong1 at March 22, 2009 10:09 PM in response to Jumbo Loan news
FHA has increased the loans limits for single families to $729,750. They are still $625,500 for conventional conforming loans. We're all very anxious for the increase at the banks as well. I will let you know when it is officially announced. Im thinking in April. sunny_hong@countrywide.com
Posted by: shong1 at March 20, 2009 1:35 AM in response to Conforming Loan Limits
We'll certainly finance 80% up to 1M on a 2 family. At pretty competitive rates as well.
sunny_hong@countrywide.com
Posted by: shong1 at March 18, 2009 2:59 AM in response to Tips on obtaining jumbo mortgage
For the 5 boroughs, the 2009 agency conforming limits are as follows (and subject to change in 2010):
1 unit - $625,500
2 units - $800,775
3 units - $967,950
4 units - $1,202,925
The regular conforming limits still apply as follows:
1 unit - $417,000
2 units - $533,850
3 units - $645,300
4 units - $801,950
Currently, the 2009 agency limits are allowed only on 1 unit homes for conventional Fannie and Freddie loans (although this it may apply to 2-4 family homes soon).
However, the 2009 limits are allowed for FHA financing for all types (1-4 family).
Anything above the 2009 agency conforming limits are considered jumbo or non-conforming.
Hope this helps.
sunny_hong@countrywide.com
Posted by: shong1 at January 18, 2009 7:22 PM in response to Jumbo Limits-Worth Refinancing?
Well, the thing is you just named pretty much every major bank that's still standing. Do you need more options? If you find a solid coop with strong financials then you shouldnt have a problem finding a lender to lend. sunny_hong@countrywide.com
Posted by: shong1 at January 5, 2009 2:23 PM in response to Mortgages for a co-op apt?
I think we have one of the best 30 year jumbo rates out there.
Here is what we can do for 1 unit jumbos:
75% up to 3M
80% up to 1.5M
85% up to $625,500
Loan above 1M require 12 month PITI reserves.
And our 30 year fixed rates are better than any of our ARMs.
Generally, 30 year fixed rates have been in the low-high 6% range depending on credit, down payment, and 1 point or 0 points.
I do not like to disclose rates in forums but you can feel free to email me your scenario.
sunny_hong@countrywide.com
Posted by: shong1 at December 14, 2008 1:37 AM in response to Jumbo Mortgages?
leela, for your scenario you can easily get a rate in the low 6% range with 0 points assuming your finances are sound and you have good credit. sunny_hong@countrywide.com
Posted by: shong1 at November 26, 2008 9:44 PM in response to where to get the best mortgage rate?
This is actually pretty common. Of course your friend will be liable for payment of mortgage. Im not sure how much your yearly income is but if you are saying that the rental income more or less pays your housing expenses then you shouldnt have to be reporting too much income. Unless you have lots of other monthly obligations. How high was your debt service ratio? Also, you may have good credit but you better make sure your friend has good credit as well. Banks go off the lower of the two. And does she own a property herself? That may cause problems. What is your expected down payment? sunny_hong@countrywide.com
Posted by: shong1 at November 10, 2008 12:47 AM in response to Using a co-borrower on a Mortgage
As far as financing, you will either have to purchase it as a 1 family and then make the changes to a 2 family afterwards. Or you can finance the renovation costs and finance as a 2 family with a 203k. You will need to talk to an expediter about the changes. Yes, anything on title can certainly cause headaches in the future. You should make sure these are things that can be fixed or removed. sunny_hong@countrywide.com
Posted by: shong1 at October 26, 2008 9:19 PM in response to Questions: Changing C of O from 1-fam to 2-fam
helppls...you can feel free to email me your purchase price, loan amount, and type of property. Remember, I said "jumbo" 30 year fixed mortgages (above $729,750). Although our regular 30 year is pretty competitive as well. sunny_hong@countrywide.com
Posted by: shong1 at October 23, 2008 12:58 PM in response to 30 year jumbo
=) This is all in fun. But really, we do have great jumbo 30 year products. Why so serious??
Posted by: shong1 at October 23, 2008 12:51 AM in response to 30 year jumbo
Sorry but I'm not doing this for entertainment Adam. I'm sorry some of you feel that way about CW. However, we are now a Bank of America company. I take my career seriously and I work for CW/BOA because they help me service my clients. Everyone knows that CW was the poster child of the falling mortgage market but it was a lot of lenders,realtors,lawyers, and buyers out there to blame. Not just one bank. I understand where you're coming about the cw and enron analogy. But then let's be fair and say that doing business with a mortgage broker is like doing business with a used car salesman. Right now, we do have the best jumbo fixed rates compared to our competitors, Chase and Wells Fargo. Sorry, I don't consider mortgage brokers/middlemen as being a competitor. Mortgage brokers are a dying breed. I've been there and done that. Banks, large banks, are what the future hold. I apologize if I have offended anyone. Adam, when your company shuts down, you can feel free to join BofA. Just let me know. Seriously.
Posted by: shong1 at October 23, 2008 12:01 AM in response to 30 year jumbo
As far as Citimortgage goes, I know they are cutting away from wholesale but retail? They just hired a few people I know for retail mortgage.
Posted by: shong1 at October 9, 2008 2:36 PM in response to Chase and Wells ending jumbo conforming early
If the article above it true then those that are looking for jumbo conforming loans above 417k and up to $729,750 will not be able to obtain a mortgage from Chase or Wells after December 1. The regular deadline for the jumbo conforming rates are December 31. But it looks like theyre cutting a month off. This affects people that have loan amounts between 417k and $729,750 from getting a pretty competitive 30 year fixed rate. They would have to get a regular jumbo loan. Other banks may follow suit as well. After Dec. 31, the loan limits should be $625,500 on conforming loans.
Posted by: shong1 at October 9, 2008 2:34 PM in response to Chase and Wells ending jumbo conforming early
Is this home going to be your primary residence or investment? If this is the home you plan to live in then you should do an analysis comparing your current housing payment. Also you have a 2nd unit so find out what market rent you will be able to receive and how likely it is to rent and how soon. Have you already qualified for a mortgage? Everything now is negotiable and re-negotiable. sunny_hong@countrywide.com
Posted by: shong1 at October 8, 2008 3:31 PM in response to cold feet? entering contract-negotiating?
Salty, we can lock your interest rate for up to 2 years. Of course there are costs associated depnding on the period of lock. However, we do offer a free float down option if rates drop from your inital lock 60 days prior to closing. Is the building offering contracts currently? sunny_hong@countrywide.com
Posted by: shong1 at October 5, 2008 9:08 PM in response to Condo Conversions on Butler Place - Grand Army Plaza
Are you sure those are the only 2 reasons? Does your income qualify you for the mortgage and all other monthly liabilities? No matter how distressed the area is , that shouldnt be the reason your loan is being denied with a 704 credit. The only thing I can think of is that your debt to income ratio is too high. sunny_hong@countrywide.com
Posted by: shong1 at September 30, 2008 9:19 PM in response to Mortgage Advice
Remember a HELOC is adjustable. Whatever rate you lock in at is only temporary. If its going to go up, its going to go up even after you lock. Besides, where are you getting 9.35% heloc rates? Is your LTV high? sunny_hong@countrywide.com
Posted by: shong1 at September 30, 2008 12:01 AM in response to Help! should I lock in my HELOC????
Souds like you would fit perfectly under the FHA 203k. We can finance 97% plus renovation costs. Or you can finance 85% or 90% and do a conventional loan. We have loans available with no PMI so you wll have no issues with any MI companies. On conventional loans, we go down to as low as 620 fico but of course your rate wouldnt be as good as someone who has a 720+. sunny_hong@countrywide.com
Posted by: shong1 at September 29, 2008 11:58 PM in response to Mortgage Advice
bkred - I will try to answer to the best of my knowledge. As far as I know, I believe your building has to be at least 50% closed before the tax abatement goes into effect. So if you get a tax bill for the full amount then you should pay for it. I dont think you get the tax you paid back. And unfortunately, I dont think you can do anything to expedite the process. You should review your offering plan and read what it says about the abatement or have your attorney look through it.
Posted by: shong1 at September 22, 2008 11:10 PM in response to 421a Abatement Advice_2nd Try
bge1970 - you may feel free feel to email me with any specific questions yu may have. Since you are purchasing a 2 family home you will also be able to use 75% o th amret rent for the second unit as rental income. Depending on your situation you may be able to get a conventional loan as opposed to FHA. The determining factors are down payment and loan amount. Do your parents curently own their own home?
Posted by: shong1 at September 20, 2008 2:28 PM in response to parents as co-borrowers
You can absolutely use your parents as co-borrowers. Of course you will then be qualified based on your total combined income but also based on your total combined liabilities. Everyone's scenario is different. I'm sure you did your due diligence and you need your parents income. But perhaps not? Also, you mention investment property rates? Are you looking to purchase an investment property? Sunny_hong@countrywide.com
Posted by: shong1 at September 20, 2008 2:10 AM in response to parents as co-borrowers
Here is some clarification on conforming, jumbo, and conforming agency jumbo. Anything 417k or under is conforming. Anything above 417k is jumbo. However, temporarily there is a program until the end of this year for loans between 417,001 to 729,750 to qualify under the conforming agency jumbo loan program. The rates are slightly higher than the conforming but lower than your standard jumbo.
Julier, I work for the bank. In this market, I think it is advantageous to go directly with the bank because of all the uncertainty in the market. At the end of the day mortgage brokers are middlemen. The banks they deal with can change a loan on them on a flip of a switch. I have been on the broker side and sometimes rates can be lower. But if you work with a top producing loan officer from a bank, they should be able to get you a pretty competitive rate as well. As far as the CEMA to avoid repaying mortgage tax, you can do that with almost any lender, doesnt have to be Chase.
You have a 5.5% but only good for 3 years. If you can lock into something like 5.75% for 30 years then I would say go for it. Anyone that tells you where mortgage rates are going doesnt know anything. No one knows. Im sure you want he best rate possible but now is not the time to get greedy. What will you do if rates go back up and you never find an opportunity to refinance at a low rate? Sure you will have 5.5% for 3 years then it will go up. You will probably see lots of volatility in rates the next few weeks and 5.5% is not out of the question but when was the last time we saw the 30 year fixed that low? But if rates hit 5.5% I will be sure to post it. Just my thoughts.
sunny_hong@countrywide.com
Posted by: shong1 at September 11, 2008 1:13 AM in response to Will Jumbo Rates go down further?
Interest only options arent bad at all. Its actually a great product for some. I closed for a resident doctor. In 2 years his pay will triple and in the meantime he needs his payments low. And you can always make extra payments to your principal.
Posted by: shong1 at September 10, 2008 12:40 AM in response to Interest Rates Are Awesome
If those that are in contract arent locking in rates today then theyre making a big mistake. 30 years fixed rates at 5.75%. Rates are going to be volatile and timing is key. With rates this low there is only one way for it to go. And in a worst case scenario you can "float down" if rates drop. sunny_hong@countrywide.com
Posted by: shong1 at September 10, 2008 12:36 AM in response to Interest Rates Are Awesome
CEMAs are well worth it. If you tell me which lender has your current mortgage, I can tell you if they will allow the CEMA and what their average turn time is. Couple of years ago CEMAs took a pretty long time but are done relatively quickly if it is handled by someone experienced. sunny_hong@countrywide.com
Posted by: shong1 at September 10, 2008 12:29 AM in response to Mortgage Tax on a Refinance
To go stated income you must be looking to put don at least 20%. You must also be able to show reserves in your bank account after you down payment and closing costs. We still have "stated" loan programs availabe. Of course your credit must be excellent as well. There are no promises with stated income loans. The reasonability factor has to be there. sunny_hong@coutrywide.com
Posted by: shong1 at August 26, 2008 12:00 AM in response to Stated Income Mortgage
Pierre, this sounds like a renovation loan. There are loans for situations like this. My only concern is the c of o as 6 family. Are your inentions to keep it as a 6? If you intend to convert it back to a 4 or 2 then we should be able to finance. sunny_hong@countrywide.com
Posted by: shong1 at August 20, 2008 10:42 AM in response to Appraisal & C of O
Responses to Author's Forum Comments
Are you saying that I'm not honest? I'm sorry hannible but you have no grounds to insult me. I continue to give free advice on all topics mortgage without sugar coating anything. I think that is as honest as you are going to get.
Posted by: Adam Dahill at December 15, 2008 11:16 AM in response to Jumbo Mortgages?
Anyone does no income check mortgages?
joeny2mo@yahoo.com
Posted by: joeny2mo at December 15, 2008 5:49 PM in response to Jumbo Mortgages?
Anyone does no income check mortgages?
joeny2mo@yahoo.com
Posted by: joeny2mo at December 15, 2008 6:13 PM in response to Jumbo Mortgages?
Adam,
Come on, dude. There's nothing wrong with it, but you're not just giving "free advice."
You're clearly here to try and drum up some business in the slowest housing market in years.
Posted by: IronBalls at December 18, 2008 10:48 AM in response to Jumbo Mortgages?
HSBC
Posted by: denton at January 5, 2009 2:57 PM in response to Mortgages for a co-op apt?
It's a little more complicated than that. I just bought into a 4 unit co-op and had a problem getting a loan. I have great credit and strong income compared to the mortgage amount, but couldn't find a lender willing to lend into a 4 unit deal. I was told if it were 5 units or more, or if was a condo, it wouldn't have been a problem. And this includes Chase, Citi, Wells, Astoria Financial, and National Financial. In the end, Citi was able to help us b/c the seller had a Citi mortgage. Citi was willing to lend on condition that our mortgage was wired directly back to Citibank to pay off the seller's mortgage. It's all about risk exposure to the bank. If you're looking for a mortgage, I highly recommend Euguene Lee at Apple Mortgage - 917 796-1160).
Posted by: jessenyc at January 5, 2009 3:12 PM in response to Mortgages for a co-op apt?
Actually, we're selling our co-op, and what we're finding is that banks now follow Fannie Mae or Freddie Mac guidelines when issuing mortgages -- and I mean, they follow those guidelines to the letter. In those guidelines, it states that co-ops must have an insurance carrier with an "A" rating or higher, according to a major ratings agency. Our co-op's insurance carrier is rated "A-," so, as things currently stand, our buyer is unable to get a mortgage with, it appears, any major bank. You're right jessenyc: it's now all about reducing risk exposure for the banks. Also, the rules are different for condos or other types of properties. In this case, Fannie Mae only requires an "A-" rating or higher for properties other than co-ops.
Posted by: jxc187 at January 5, 2009 3:26 PM in response to Mortgages for a co-op apt?
Gotcha, yeah it's tough right now on both sides. Our first mortgage broker actually advised me to walk away from the purchase b/c of the difficulty getting a mortgage for a co-op right now (i.e. we'd have the same problem selling as you and our seller had - no one can get a mortgage so we might not be able to sell it if we had to in a few years). Good luck, hopefully things will pick up again soon!
Posted by: jessenyc at January 5, 2009 3:42 PM in response to Mortgages for a co-op apt?
Wow. I would talk to a mortgage broker with extensive experience with New York City coops.
Posted by: mopar at January 5, 2009 7:14 PM in response to Mortgages for a co-op apt?
While Mopar is right---when I was first shopping for a mortgage for a coop purchase, I got a lot of curious responses from bankers who didn't do much business in the NYC coop market---the situation has changed enough that even EXPERIENCED coop mortgage brokers are figuring out the new requirements which have changed and continue to do so. But, it sounds as though going through the seller's bank is a good get around. Good luck!
Posted by: Minmin at January 6, 2009 1:25 PM in response to Mortgages for a co-op apt?
We will need 51% owner occupancy. 80% owner occupancy in coops with 20 or less units. Also, if there are any rented units then we will want a 'rents received vs. maintenance paid' analysis. sunny.hong@bankofamerica.com
Posted by: shong1 at September 2, 2009 11:53 PM in response to "Owner-occupied" coop units