With the recent federal discount rate cut, mortgage rates and programs are stablizing.  In addition, new legislation for FHA purchase and refinance transactions  will offer consumers mortgage programs with attractive rates and features.  Maximum FHA financing for purchase transactions is 97% of the lesser of appraised value or purchase price.  Maximum financing for refinances is 95% based on appraised value.  FHA requires appraisals to be made by a FHA approved appraiser who has performed additional course work and passed additional examinations. FHA does not make mortgages directly to consumers but through sponsored mortgage brokers and lenders that  meet certain qualifications.  Then each broker/lender may adopt their own policy regarding certain FHA guidelines.  For instance, FHA allows the financing of manufactured housing for double-wides and above which meet certain criteria.  However, a large majority of FHA brokers/lenders choose not to finance manufactured housing.  There is no need to worry on this issue. Windsor Capitaol Mortgage has FHA programs for manufactured housing. In June 2007, Windsor Capital Mortgage was voted by Broker Magazine as #2 Broker in the U.S. in mortgage production and service.  Our Newland, NC office is licensed  for statewide real estate financing  of  FHA ,conventional and jumbo residential and commercial loans in NC, FL and TN. ...read more

Recent news reports and headlines have been reporting that certain sub-prime mortgage lenders have placed borrowers in home loan programs in which interest rates increased at a rapid pace whereby borrowers are unable to pay increased payments. In order to understand how this situation was created, you have to understand what a sub-prime mortgage consists of and  in comparison, alternative mortgage financing. There are basically 2 types of mortgage financing.  Prime and Sub-Prime.   Prime - Borrowers with good credit histories, acceptable credit scores,  a low debt to income  ratio, sufficient down payments and full documentation qualification are able to obtain the best interest rates and mortgage programs. Sub-Prime - Borrowers with less than perfect credit, low credit scores, a high debt to income ratio, little to no down payment and opt to document their employment and income by alternative means, i.e., Stated Income/Stated Assets or No Doc  programs, pay higher interest rates and have fewer options to offset the negatives and/or reduced documentation associated with the features listed. While "teaser interest rates" can appear to be attractive, it is important to know and consider how future adjustments can affect future payments and one's ability to pay any increases.  Unfortunately, it appears that the impact of future increases in sub-prime mortgages was not fully understood by many who obtained these sub-prime mortgages.    In addition, the borrowers were qualified at the initial start rate instead of the maximum interest rate, thereby creating an unrealistic qualification of borrowers' ability to pay future adjustments in payments. In many instances, the only way borrowers could qualify was at a low teaser rate and initial payment.  With periodic adjustments capped within reason, this situation allows borrowers to rebuild their credit.  The danger arises when there are no realistic adjustments or periodic caps in place to protect borrowers in future adjustments. ...read more