target rate

In UK they launched capability for UK shoppers to pay for products or services using cash by loading money into their Amazon UK account. In US they launched Amazon Cash which operates the same way.

They’ve reported they have made over 3 billion in small business loans since 2011. Amazon lending is made for simple up and coming small businesses to efficiently get a business loans. By becoming a bank they could save over a quarter of a billion dollar in credit card interchange fees.

According to a recent study they could capture more than 70 million US customers if they became a bank, becoming the 3d largest bank in the US. The same report suggests one quarter of Alexa users would utilize the banking platform.

So the question is? Is that a bad thing? They recently announced a partnership with Rocket Loans to do mortgages and they are in talks with JP Morgan regarding partnership for banking activities.

We all agree that Amazon does an incredible job of delivering products. So much so that many retailers like book stores, video stores and retail giants (Sears) are not able to sustain their brick and mortar businesses. Would the same be true for Real Estate and Banking services? Please call me with your loan scenario…before it’s too late.

To discuss your confidential loan scenario please click this link to schedule an appointment (Click Here) 

Are we in line for another bubble burst? Real Estate prices have increased substantially the last two years and many experts predict we might be due for a regression.   Mortgage Rates have increased and probably will continue to rise. The average 30 year mortgage is now about 4.25% and likely to rise.

The US housing industry is in the crosshairs of President Donald Trump’s planned tariffs steel and aluminum.

The National Association of Homebuilders was among several trade organizations that spoke out against the tariffs, or import taxes. That’s because higher steel costs would raise construction costs for its members, which could eventuallycould be passed on to homebuyers.

The construction industry is no stranger to tariffs. In April 2017, Trump slapped the first tariffs of his presidency on five Canadian lumber companies, ranging from between 3% to 24%. The tariffs were in response to Canada’s restrictions on the import of US dairy products.

Lumber prices have gained 31% since then, according to Bloomberg data. And now, homebuilders may have to add higher steel costs to the mix.

As things stand, they’re unable to meet demand for housing, and this imbalance has driven a shortage of affordable housing in many major cities.

Of course, by driving construction pricing higher this could increase the shortage of new housing developments which in turn would mean that Real Estate prices are not going to burst but instead rise higher.  Lack of inventory could push values higher.

To discuss your confidential loan scenario please CLICK HERE or email Mitch@TargetRate.com

To discuss your confidential loan scenario please click this link to schedule an appointment (Click Here) 

Program is a true stated income for purchase or R/T Refinance.  Please email your scenario.  For Cash-Out Refinances please email scenario for further discussion.

To discuss your confidential loan scenario please click this link to schedule an appointment (Click Here) 

• Stated Income program.
• Rate starts at 4.75%. APR 5.13%
• Rates lower on modified Stated with CPA letter and VOE.
• 7/1 ARM. 
• Available for purchase or R/T Refinance.
• Owner/Investor or Units are acceptable.
• Condos are acceptable.
• Maximum loan size is 2.5MM
• Minimum FICO is 700

Stated income loans used to be very common but then they went away as banks could not sell these loans on Wall Street.  The Mortgage meltdown ended the Stated Program but they are finally back. We have two programs to choose from. One is a true stated where we don’t request any income documentation.  Income information is still required to declare.  The second program requires a CPA or Accountant letter and/or a VOE from your job.  Borrowers who have both VOE and stated income. 

To discuss your confidential loan scenario please click this link to schedule an appointment (Click Here) 

FHFA Raises Conforming Loan Limit to $453k

Loan limits were frozen in place at $417,000 for 10 long years after the housing bust, but were finally raised on January 1 of 2017.  Rapidly increasing home prices have now allowed the Federal Housing Finance Agency (FHFA) to increase them again for 2018.

The maximum conforming loan limits for mortgages eligible to be acquired by Fannie Mae and Freddie Mac (the GSEs) in most of the U.S. starting on January 1 will be $453,100, an increase from $424,100 in 2017.  The Veterans Administration and FHA are expected to follow suit, raising limits for their own loans.

The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit for the GSEs be adjusted each year to reflect the change in the average U.S. home price.  FHFA published its third quarter House Price Index (HPI) earlier today showing the average U.S. home value has increased by 6.8 percent since the third quarter of 2016. Therefore, the baseline maximum conforming loan limit has been increased by 6.8 percent as well.

Not every borrower will be subject to the baseline limit. Where the local median home value is more than 115 percent of that limit, HERA allows higher limits, with a ceiling of 150 percent of the baseline limit. This will make the new ceiling in high-cost areas $679,650, that is 150 percent of $453,100.  Some areas will have limits falling between those two numbers, as shown in the heat map below and in a complete county-by-county list of loan limits here.

There are additional provisions allowing for different limits in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.  In these areas, the baseline loan limit will be $679,650 for one-unit properties, but FHFA says some specific locations may have even higher limits.

Properties with multiple units will have baseline limits of $580,150 for two-family properties, $701,250 for three units, and $871,450 for four units. High cost areas will have maximum limits of $870,225, $1,051,875, and $1,307,175 respectively.

Second mortgage loan limits have been raised to $225,550 with a limit of $339,825 in Alaska, Guam, Hawaii and the Virgin Islands.

To discuss your confidential loan scenario please schedule an appointment with Mitch Lichterman by CLICK HERE.