If you are a buyer in Cardiff, Encinitas, Carlsbad, or Vista, you may want to think about moving fast to look for a property while interest rates are still historically low. According to the California Association of Realtors, mortgage rates in 2010 are expected to rise. Early in 2009, the Federal Reserve announced plans to purchase debt and mortgage-backed securities from Fannie Mae and Freddie Mac to help lower interest rates for consumers and spur homebuying. As a result, rates on 30-year fixed rate mortgages fell to the historic lows we are still seeing today.  However, the Fed’s asset purchase program is scheduled to expire at the end of the first quarter of 2010, and a lack of private demand for mortgage-backed securities could lead to a rise in rates.

Besides the rise in rates, buyers must also be aware  that no-down-payment loans are practically non-existent right now. If not, most lenders require borrowers to put down at least 10 percent, if not more, to secure a loan. These down payments protect the lender and are also beneficial to the buyers. The higher the down payment, the lower the loan amount and the lower the monthly payment.

So, now is the time if you are a buyer who is thinking about buying a property. Interest rates are low, and there is still an $8000 federal tax credit in place for first-time buyers, and a $6500 federal tax credit for move-up buyers. Think about buying now!

The VA will nolonger add condo approvals to their approved list based upon an FHA project approval.  The VA must fully review the entire project to issue an approval. The process to add the condo project to the approved list typically takes 45 days and requires cooperation of the management company/Board of the HOA.

FHA spot condo approvals are still available for case numbers assigned before January 31, 2010.  Approvals for any condos issued more than 2 years ago are no expired.  Starting February 1, 2010, full reviews and approvals are valid for two years.

To issue approval for a condo project, the FHA is looking for the following criteria to be met:

• 50% owner occupancy within the complex
• Enough reserves to fund 10% of the current budget
• No more than 15% of the units are more than 30 days delinquent in paying their fees
• No current/pending litigation

The U.S. Department of Housing and Urban Development (HUD) just implemented new rules that will standardize the way loan information is presented to the consumer and help them make a better decision about the lender who is best for them.

New Federal rules mandate a standard, three-page Good Faith Estimate that urges consumers to shop around for the best loan and helps them compare lenders’ offerings. These rules are an update of the Real Estate Settlement Procedures Act, known as RESPA.

One difficulty of shopping for mortgages is that the lender with the lowest rates often isn’t offering the best deal. High lender fees can wipe out the benefits of low rates.

To address those problems, the new estimate form requires lenders to wrap all the fees they control into one origination charge. That lets you easily compare one lender’s fees with another’s. Experts recommend that borrowers focus on two items as they shop: the interest rate and the adjusted origination charge, which includes any points paid to lower the rate.

Good Faith Estimates have been around for a long time, but there was no standard format. Under the new rules, lenders and mortgage brokers are required to give consumers the standard estimate forms within three days of receiving a loan application. Lenders are not allowed to increase the origination fee from the estimate.

Will all this make a big difference? Experts think the new rules will definitely help, but they may not be a cure-all.