FHA loans are government-backed mortgages insured by the Federal Housing Administration, designed to make homeownership more accessible, especially for first-time buyers and those with limited savings or lower credit scores. FHA loans allow for lower down payments, as little as 3.5% with more flexible credit requirements compared to conventional loans. Because the FHA insures the lender against losses, banks and mortgage companies are more willing to extend financing to borrowers who might not meet stricter conventional standards. FHA loans are more flexible working with grants and other downpayment assistance programs. In some cases, you can use a FHA Mortgage and downpayment assistance to purchase your new home with zero down payment.  However, FHA loans require both an upfront mortgage insurance premium (UFMIP) and ongoing monthly mortgage insurance, which increases the overall cost. Despite this, they remain a popular option for buyers looking to enter the housing market with modest savings or less-than-perfect credit. If you are looking for your new home and you do not think you have enough cash to close or have concerns about your credit score, an FHA loan may be the best option.

Mortgage rates have been steadily improving over the past months. You are looking to buy your new home, but mortgage rates are not low enough to get you the mortgage payment with which you are comfortable. There is a solution that will provide the lower payment you are looking for. A temporary mortgage buydown is a financing tool that allows borrowers to reduce their interest rate for the first one to three years of the loan, making the initial monthly payments more affordable. The most common structures are 2-1 or 3-2-1 buydowns, where the rate is lowered by a set percentage in the early years before returning to the full note rate for the remainder of the mortgage. The cost of the buydown—often paid by the seller, builder, or lender—is placed in an escrow account and used to subsidize the borrower’s payments during the buydown period. This strategy can help buyers ease into homeownership or offset affordability challenges in a high-rate environment. Additional benefit FDM provides is a Free Refinance. You can enjoy the benefits of the lower payment with a temporary buydown, and when mortgage rates improve, FDM will refinance your mortgage to a lower rate. Even better! All remaining funds in the buydown payment escrow account are applied to your mortgage reducing your mortgage balance.

Mortgage rates have been steadily improving over the past months. You are looking to buy your new home, but mortgage rates are not low enough to get you the mortgage payment with which you are comfortable. There is a solution that will provide the lower payment you are looking for. A temporary mortgage buydown is a financing tool that allows borrowers to reduce their interest rate for the first one to three years of the loan, making the initial monthly payments more affordable. The most common structures are 2-1 or 3-2-1 buydowns, where the rate is lowered by a set percentage in the early years before returning to the full note rate for the remainder of the mortgage. The cost of the buydown—often paid by the seller, builder, or lender—is placed in an escrow account and used to subsidize the borrower’s payments during the buydown period. This strategy can help buyers ease into homeownership or offset affordability challenges in a high-rate environment. Additional benefit FDM provides is a Free Refinance. You can enjoy the benefits of the lower payment with a temporary buydown, and when mortgage rates improve, FDM will refinance your mortgage to a lower rate. Even better! All remaining funds in the buydown payment escrow account are applied to your mortgage reducing your mortgage balance.

A cash-out refinance can be a powerful financial tool for homeowners looking to unlock the equity in their property. Unlike a traditional refinance, which simply replaces an old loan with a new one (often at a lower interest rate), a cash-out refinance allows the borrower to take out a larger loan and receive the difference in cash. This money can then be used for a wide variety of purposes, giving homeowners both flexibility and financial leverage. One of the biggest benefits is the ability to access funds at an interest rate that is typically much lower than credit cards or personal loans. Homeowners often use the cash to consolidate high-interest debt, which can lower their monthly payments and free up cash flow. It can also be a smart way to fund home improvements or renovations that may increase the property’s long-term value. A cash-out refinance lets you borrow against your own asset at a cost-effective rate. Another advantage is the potential for tax benefits. While the rules vary depending on how the funds are used, interest on mortgage debt may be deductible if the money is applied to “substantial improvements” of the home. In addition, for those looking to invest in real estate, education, or even starting a business, tapping into home equity provides a lump sum of capital without the need for separate financing. Of course, a cash-out refinance also resets the terms of the mortgage, which can allow borrowers to secure a lower interest rate or extend their repayment period. This can make monthly payments more manageable while still providing access to cash. When used strategically, it’s not just about borrowing money, it’s about using home equity as a tool to strengthen financial stability and achieve bigger goals. Inventory Challenges In 2025

An adjustable-rate mortgage (ARM) can be a smart choice for buyers who want lower initial monthly payments and plan to move, refinance, or pay off their loan before the rate adjusts. Because ARMs typically start with a lower interest rate than fixed-rate mortgages, they can make homeownership more affordable in the short term, freeing up cash for other expenses or investments. This option can also benefit buyers who expect their income to grow over time, as they can take advantage of the lower upfront costs while preparing for potential future adjustments. In a high-interest-rate environment, an ARM offers flexibility and the opportunity to lock in savings during the early years of homeownership.

FDM’s Easy Home Equity Line is a simple low risk way to access funds hidden in your house. Property values have increased significantly over the past years. •    Are you struggling with Credit Card payments and other consumer debt? •    Do you want to make improvements to your current home? •    Would you like to make other investments including buying an investment property or second home?

The FDM Easy Home Equity Line can help you access these funds in a matter of days. This program is available for your primary home, second home or an investment property. If you need funds for any reason, FDM has the solution. The process is simple. Contact your FDM Mortgage Professional to complete a simple online application. The FDM team will complete a quick analysis to determine how much you qualify for. This process will not impact your credit score, and you can have the funds in a little as 8 days. Fast, Affordable and Easy!

The final days of summer are fast approaching. One way to have an endless summer is by buying a second home. A second home mortgage is a loan taken out to purchase a vacation property or another residence separate from your primary home. Lenders treat these loans differently from mortgages on a main residence, since the risk is higher—borrowers are more likely to prioritize payments on their primary home if financial challenges arise. Because of this added risk, interest rates on second home mortgages are usually slightly higher, and the requirements can be more stringent. To qualify for a second home mortgage, lenders typically require a strong credit score, a stable income, and a larger down payment—often at least 10–20%. They will also review your debt-to-income ratio (DTI) more closely to ensure you can comfortably afford both mortgage payments, plus taxes, insurance, and maintenance costs for two homes. Some loan programs, like conventional mortgages backed by Fannie Mae and Freddie Mac, allow financing for second homes, but government-backed loans such as FHA, VA, or USDA are generally limited to primary residences. When considering a second home, it’s important to distinguish it from an investment property. A second home is intended for personal use, such as a vacation home or a family retreat. Lenders may restrict how often you can rent it out, whereas investment properties are purchased specifically to generate rental income. The difference matters because investment property mortgages come with even stricter requirements and higher interest rates.

VA loans are a unique home financing option created to honor and support U.S. military service members, veterans, and eligible surviving spouses. Administered by the Department of Veterans Affairs but issued through private lenders, these loans offer benefits that can be difficult to find in conventional mortgages. Key Features and Benefits: No Down Payment – Qualified borrowers can finance 100% of the home’s value without needing to save a large lump sum. VA Loans have no loan limit! No Private Mortgage Insurance (PMI) – Unlike many low-down-payment loans, VA loans don’t require PMI, saving borrowers hundreds per month. Competitive Interest Rates – Lenders often offer lower rates compared to conventional loans because the VA guarantees a portion of the mortgage. Flexible Credit Requirements – While lenders set their own standards, VA loans generally allow for lower minimum credit scores than conventional financing. VA loans offer 100% financing. Limits on Closing Costs – The VA restricts certain fees lenders can charge and allows sellers to contribute toward closing expenses. One-Time VA Funding Fee – Most borrowers pay this fee (which can be financed into the loan) to keep the program running, though it’s waived for those with service-related disabilities. More Flexibility: VA Loans allow for interested parties to actually pay off debt on behalf of the veteran in some cases. Eligibility generally depends on your length and type of military service. Once earned, the benefit can be used multiple times and is not a one-time perk. VA loans can be used to buy a primary residence, build a new home, refinance an existing mortgage, or even make certain home improvements. If you would like to learn more about VA Loans, or a side-by-side comparison of VA loans vs. FHA and conventional loans so you can see exactly where VA loans stand out, contact an FDM Mortgage Professional Today.

Self-Employed borrowers have unique challenges. Documenting the actual income needed to qualify for a mortgage is not always readily available.  A bank statement loan can be a valuable option for self-employed individuals, freelancers, or small business owners who may not have traditional W-2 income but still have strong cash flow. Instead of relying on tax returns or pay stubs, lenders use 12 to 24 months of personal or business bank statements to assess income, offering more flexibility in qualification. This type of loan allows borrowers to showcase their real earning potential without the deductions and write-offs that often reduce taxable income on paper. Bank statement loans can make homeownership accessible to creditworthy borrowers who might otherwise be overlooked by conventional mortgage standards. If you are a small business owner, FDM is ready to assist you! Fed Week

An FHA mortgage is a great option for first-time homebuyers or anyone with less-than-perfect credit who wants to make homeownership more accessible. With down payments as low as 3.5%, flexible credit requirements, and higher debt-to-income limits, FHA loans offer a more forgiving path to buying a home. FHA loans are often combined with Grant programs and other Down Payment Assistance Programs to lower down payment requirements. FHA loans also include benefits like assumable loan terms and renovation financing options through programs like the FHA 203(k). FHA Loans also makes it easier to refinance when mortgage rates move lower through the Streamline Refinance Program. For many buyers, an FHA loan is a smart, affordable step toward owning a home.

A 15-Year mortgage offers several compelling benefits for homeowners seeking long-term financial stability. The most significant advantage is substantial interest savings because the loan is paid off in half the time as a 30-Year mortgage. Borrowers pay far less interest over the life of the loan. Additionally, 15-Year mortgages have lower interest rates further reduce costs. Monthly payments are higher than a 30-Year mortgage, but equity builds much faster, giving homeowners more financial flexibility. For disciplined borrowers who can manage the higher monthly mortgage payments a 15-Year mortgage is a powerful tool for wealth-building and debt free homeownership.

More affordable and safe. Fixed Rate Mortgages have been stubbornly hovering around 7%. This makes buying your new home seem unaffordable. The general thought process in the market is that mortgage rates will move lower in the near future. This is making many prospective buyers wait. The problem is waiting will end up costing you more money. When mortgage rates fall, home prices rise eliminating any savings you thought you would have. There is a program that is safe and affordable that can help you buy today. The 5/1 ARM. The biggest appeal of a 5-year ARM is the lower initial interest rate, often significantly below that of a 30-year fixed mortgage. This can mean lower monthly payments and greater affordability upfront. A 5/1 ARM is a smart fit for buyers who plan to move, sell, or refinance within five years. Why pay for a 30-year fixed rate if you will not stay that long? With lower initial payments, borrowers can free up cash for renovations, investments, or other financial goals during the fixed-rate period. The reduced rate on a 5-year ARM can increase a borrower’s purchasing power, allowing them to qualify for a more expensive home or afford a more competitive offer. If rates drop or stay stable, many borrowers refinance before the adjustment period starts—potentially locking in another low rate or switching to a fixed mortgage. When mortgage rates are high but expected to fall in the future, a 5-year ARM lets borrowers avoid locking into long-term high interest while retaining flexibility. A 5/1 ARM may be just the right product for today.

If you are looking to buy your dream home or refinancing your current mortgage to a lower rate, the question most often asked is what happens if rates get better? This one question stops many buyers from taking action which ends up costing them thousands of dollars. What causes most buyers to wait? The name of the product. We see 30-Year Fixed Rate Mortgage, and mentally think we are tied to this decision for 30-years. The reality is that mortgages are a flexible financial tool. The average life of the 30-Year Mortgage is 7-years! If you are looking to refinance your mortgage and are saving money each month, you should refinance today. If you are saving $300.00 per month but you decide to wait until rates get better, if rates take 7 months for mortgage rates to get lower you lost $2,100.00 in savings. The most effective strategy is to refinance now saving money each month. When mortgage rates improve, FDM will refinance you to lower rates for free. Save now and save later! If you are looking to buy, the market is in your favor. When mortgage rates improve, more buyers enter the market. More buyers mean more competition for homes, pushing prices higher. What you save in lower interest rates you lose in the sales price increase. The most effective strategy is to buy now locking the lower sales price. When mortgage rates improve FDM will refinance you to lower rates for free. Learn how to effectively use a mortgage as the flexible financial tool it is. The FDM Free Refinance Program will refinance you loan for free with no lender fees!

Where you are looking to live may make a difference in your interest rate. The FDM Community Loan Program is designed to spur homeownership in targeted Census Tracts. Increased rates of homeownership creates stronger community ties leading to lower crime rates. Increased rates of homeownership also leads to improved civic engagement, increased investment in the community and support for the local schools. The FDM Community Loan Program offers mortgage interest rates up to a full 1.0% below market rates. There are no income limits or 1st time buyer requirements. The FDM Community Loan Program is based on Census Tract only fostering homeownership in these markets. Before you make an offer for your new home, contact your FDM Mortgage Professional to determine if the property qualifies for the FDM Community Loan Program. A below market rate may be available.

The market is getting better for buyers, and that perfect home you were wishing for just came on the market. The problem is you need to sell your home before you can buy your new home. This is a catch-22! The market has shifted in favor of buyers, which is great for you as a buyer, but not when you have to sell your home first! FDM has the solution. The FDM Buy Before You Sell program will bridge the sale of your new home, with a guaranteed purchase of your current home. FDM will advance you the equity in your current home so you can buy your new home before you sell your current home. The FDM Buy Before You Sell Program is better than a bridge loan. There are no monthly payments. If you cannot sell your home, the Buy Before You Sell Program has already agreed to buy your home at a negotiated price! If you are looking for your new home in this market, do not let having to sell your current home delay you! The FDM Buy Before You Sell Program lets you take advantage of today’s buyer’s market without having to sell your home first!

Buying a home over $5,000,000.00 with VA financing at 100% is now possible for eligible veterans and service members who have full VA loan entitlement! In fact, the team at FDM just closed a 100% financing VA loan used to purchase a $5,500,000.00 new home! Thanks to changes in VA loan rules, there is no longer a cap on loan amounts, meaning qualified buyers can finance the entire purchase price—even for multi-million-dollar properties—without a down payment. This benefit makes luxury homeownership more accessible, especially in high-cost areas, and can result in significant savings compared to conventional jumbo loans, which often require large down payments and private mortgage insurance. As long as the borrower has sufficient income, credit, and entitlement, VA loans can be used to purchase homes well above traditional lending limits. If you are a Veteran and are looking in the luxury home market, please contact your FDM Mortgage VA Loan Expert today to see how your Veteran’s Benefits can help you find that special home. You served to protect us. Let us serve you!

Condominiums have become a larger segment of the market. Some buyers find condominiums a more affordable option. Some buyers choose a condominium as a lifestyle choice. The amenities available are attractive, and the maintenance of a condominium is often much easier than a single-family home. The hidden challenge is finding a mortgage for a condominium is not easy. A mortgage for a condominium is broken into two parts. Part 1: You may qualify for a mortgage for the sales price. Your credit, income and assets all qualify for the mortgage amount you need. Did you meet those criteria? Yes, then great! Now, Part 2: Even when you qualify for the mortgage, the Condominium Project requires approval. Did you know that, Fannie Mae, Freddie Mac, FHA, and VA all have different rules for Condominium Project Approval? What is the CPM? What is the mandatory Condominium Questionnaire? Did you know the Condominium Budget needs to be approved? There are other factors that are reviewed: Investor concentration. What percentage of units are owned by investors? Single entity ownership. Does one single entity own more than 10% of the total units? How many owners are delinquent paying their Condominium Fees? The structural integrity of the Condominium Project is reviewed via a mandatory Structural Addendum that the Homeowner’s Association completes. Even when you qualify for a mortgage for a Condominium the mortgage may not be approved. The Condominium Project approval is completely separate. This is where the experience of your mortgage team matters. The FDM team of Mortgage Professionals are experts in Condominium financing. If you are ready to make an offer on a Condominium, please contact your FDM Mortgage Professional before you make an offer. Let the FDM team help you determine if the Condominium Project can be approved.

The question often asked is if I buy today, what happens if rates get better? The longer-term forecast is for mortgage rates to improve as we head into the later part of 2025. So, the question regarding what happens if rates improve in the future is certainly appropriate. Unfortunately, many homebuyers who believe rates will improve decide to delay their purchase until rates get better. This is the opposite of the correct approach in this market. Waiting for lower rates will end up costing more money! When mortgage rates improve, and they will, more prospective buyers enter the market. When more buyers enter the market the law of supply and demand comes into play pushing sales prices back up. Yes, the mortgage rate is lower, but you paid more for the property. Your mortgage payment may even be higher than the mortgage payment if you bought at today’s rates. The best strategy is to buy your home today, and when rates improve take advantage of the FDM Free Refinance to refinance your mortgage to the lower rate. The FDM Free Refinance allows you the opportunity to refinance with zero lender fees. You can buy today when the market Is more favorable to buyers. Then refinance without lender fees when mortgage rates improve, and benefit from the increased values when rates drop. Ask your FDM Mortgage Professional about the FDM Free Refinance Program today.

The recent move to the highest mortgage rates in three weeks has created uncertainty for many buyers. With rates going up can we really afford a new home right now? FDM has a program to make your monthly mortgage payments lower. FDM’s Mortgage Power Program allows you to reduce your mortgage payment rate down a full two percent for one-year saving you money each month. For example, if your mortgage rate is 6.8%, You can lower your first-year mortgage payment rate to 4.8% for a full year. Your mortgage rate is 6.8%, but your first-year mortgage payment is based on a 4.8% payment rate. After the first year your mortgage payment rate remains one percent lower than the note rate. For example, if your mortgage rate is 6.8%, your second-year mortgage payment rate is 5.8% for a full year. This is a fantastic way for you to lower your monthly payment while you ease into homeownership. When mortgage rates improve, FDM will refinance to your mortgage for free. Move quickly to take advantage of today’s lower rates. Contact your FDM Mortgage Professional today and ask about the FDM’s Mortgage Power Program and how you can lower your mortgage payment rate by 2%. “You Must Have Balance”

More listings are coming on the market. Some markets are shifting to buyers markets. We have not seen this for the past several years. This is a great time to buy.  What if you have found the not quite right home, but in the just right place?  FDM has the solution. If you have found the perfect place, but the home is not quite right the FHA limited 203K is the answer. The FHA limited 203K program allows you to purchase your new home with a reduced downpayment, and provides up to $75,000.00 for renovations to help you turn a not quite right to a just right. Need a new kitchen? Need updated bathrooms? New floors? New deck?  New appliances? The FHA Limited 203K is the solution.  FDM professionals are experts in the FHA 203K Program. Before you say no to the perfect place contact FDM to help make the perfect home!

If you are a home buyer looking for a home, and are not a United States citizen, you will need to find your new home and apply for a mortgage prior to May 25, 2025 if you are looking for a FHA Loan.  G-4, EAD, TPS, Asylum, ITIN?  It does not matter what your visa or immigration status is. FHA’s new Revisions to Residency Requirements in Mortgagee Letter  2025-09 removes the Non-Permanent Resident Aliens section in the FHA guidelines eliminating the eligibility for Non-Permanent Resident Aliens for a FHA Mortgage. Effective for FHA Case Numbers on or after May 25, 2025 only United State citizens and Permanent Resident Aliens (Green Card Holders) are eligible for FHA Loans.  If you are a Non-Permanent Resident Alien looking for a home, you need to act quickly. The FDM team are experts in what Visa’s and EAD’s are eligible for FHA financing. If you are a Non-Permanent Resident Alien and currently have a FHA Loan, contact FDM Immediately. FDM may be able to lower your mortgage rate with a FHA Streamline Refinance. You must complete your FHA Refinance Application prior to May 25, 2025.  FDM is ready to assist you. Please contact your FDM Mortgage Professional before it is too late.

The Trump Administration announced it will resume collection efforts on defaulted student loans for the first time in five years. The change will affect 5.3 million student loan borrowers who went into to default before the COVID Pandemic.  Technically, a borrower is considered in default when they fail to make a payment for at least 270-Days.  Even more borrowers are delinquent on their payments and may be headed toward default. According to data provided by the Department of Education, 2.9 million borrowers are 61-90 days late on their loan payments. Another 4 million are in “late-stage delinquency,” have been reported to the credit bureaus and are quickly approaching default. The collection efforts go into effect May 5, 2025, and can actions such as wage garnishment up to 15% of the borrowers disposable income or recovery of tax refund. The changes announced can impact your mortgage qualification.  Your credit score may be change, and not for the better. How does the Student Loan Payment impact your mortgage qualification? Did you know that Fannie Mae, Freddie Mac, FHA and VA all have different guidelines for Student Loans? Are you in Student Loan Deferment? Do you have an Income Based Repayment Plan (IBR)? What payment is reflected on your credit report? All of these things matter. If you are looking to buy your new home, and have a Student Loan, please contact a FDM Mortgage Professional to determine if the recent Student Loan repayment announcement will impact you.

Right in time for the Spring Market!  Spring is the traditional start of Real Estate Market buying season. The financial market turmoil is hitting just when you starting to look for your new home. Mortgage rates are all over the place. How can I look for a home that I can afford when I do not know what the mortgage rate will be? FDM can help. The FDM Purchase Power Program is a fully underwritten preapproval with a 120-Day Lock and Shop.  FDM will lock in your interest rate today so you can shop for your house knowing what your mortgage rate and what your mortgage payment will be! The FDM Purchase Power Program will also give you an advantage when making an offer.  The FDM Purchase Power turns your offer into a cash equivalent offer. The only items needed are the title, which is required on a cash deal as well, and the appraisal. You can make an offer with confidence  knowing you are approved and your mortgage rate is protected. Ask your FDM Mortgage Professional how to help your client compete with cash offers! Find a home the loan is done!

Last week saw a relative calming of the market. Mortgage rates and treasury yields improved during the week. This was driven in part by lighter trading volume, which occurs when the markets are closed. The Bond Market closed early on Thursday  remaining closed on Friday in observance of Good Friday. Traders will normally take off in advance of the holiday market closures and lighter trading volume ensues. The markets are back to normal trading volumes.  Volatility is back!  The Bond Market and Stock Market both have a lot to digest. Investors are still weighing concerns about the  announced tariffs. The lack of a tariff deal, any tariff deal,  is concerning the market. It does not need to be a deal with China, which  is the most important deal to make, investors just want to se a deal made. It appears the tariff issue is here for a while. Are the tariffs inflationary, recessionary, or will they drive stagflation? The ongoing rhetoric between President Trump and Fed Chair Powell is added to the mix of traders concerns. President Trump urged Fed Chair Powell to lower rates. President Trump is pushing Fed Chair Powell to follow the European Central Bank, which lowered rates last week,  and lower rates immediately.  Fed Chair Powell last week sounded the alarm on growth and inflation risks as a result of the tariffs. Therefore, it does not look like the Fed is budging. The increasing tension is causing shock waves across multiple markets. The Stock Market sold off.  The dollar reached levels not seen in three years. Gold spiked to a record high above $3,400.00 per ounce.  U.S. Treasury yields are moving back up. We can expect this to be the driving force behind the market moves across all markets.

The turmoil over the announced United States tariffs on over 75 countries worldwide has sent the markets into a whirlwind.  We have seen the Stock Market and Bond Markets both with a Jekyll and Hyde response. First the Stock Market is up, then it is down, then up and then down. The Bond Market has reacted the same. Yields are up, then yields are down, then yields are up again. The Stock Market and Bond Market do not like uncertainty. Are we entering Trade War? How will other countries respond? How will China respond? Will they increase their current tariffs on U.S. imports?   Are the tariffs inflationary? Will the tariffs push a worldwide recession? Will we enter a period of “stagflation” similar to the late seventies? This uncertainty created the combined market volatility. This volatility has spooked investors and homebuyers alike. Before we panic, we need to remember that tariffs on U.S products creating significant trade imbalances are in place in all of these countries. The U.S. tariffs are “reciprocal” in nature, meaning the United States has placed tariffs on these countries similar to the tariffs on U.S. goods. This is an effort to “balance”  trade.  This will create uncertainty as countries come to the negotiating table with the U.S. This will eventually settle the markets.  If you have money in the Stock Market, do not panic. If you are looking to buy your new home, this is still a great time to buy! Do not let the tariff noise create turmoil in your own finances.

IMPORTANT & BREAKING – The Department of Housing & Urban Development, insurer of FHA loans, has announced that effective May 25, 2025, Non-Permanent Residents of the US will no longer be able to take advantage of the benefits afforded by FHA loans. Still the most popular loan option amongst first-time homebuyers, this action will severely limit many of our neighbors’ options to become proud new homeowners this year.   There’s still time for our Non-resident peers to qualify for FHA loans, but only until May 25th. Tell your neighbors, tell your friends! FDM is your FHA specialist and we’re working overtime to ensure that all eligible borrowers make the cutoff. Fidelity Direct Mortgage remains committed to equal and equitable lending for all and will stop at nothing to ensure that “No FDM Borrower Will Ever Be Left Behind.”

On March 26, 2025, HUD issued Mortgagee Letter 2025-9 Revisions to Residency Requirements fundamentally changing the rules for Non-Permanent Resident Aliens access to FHA loans. Basically, after May 25, 2025, Non-Permanent Resident Aliens will no longer be eligible for FHA financing. If you are a Non-Permanent Resident Alien, and are in the United States under certain Visa’s, EAD or TPS Status, you can apply for an FHA loan prior to May 25, 2025. What happens if you cannot act prior to May 25th? FDM has a solution. FDM offers special financing for multiple Visa types and immigration status. The FDM team are experts working with clients with various immigration status. Even if you do not qualify for FHA or Conventional Financing. If you are unsure of your VISA, TPS or EAD status, please contact your FDM Mortgage Professional today. We can help.

Was it the weather? Was it an increase in mortgage rates? It is hard to determine exactly what caused it, but the NAR announced January Pending Home Sales plunged to a record low. Did the coldest January in 25-years keep buyers out of the market? Did mortgage rates popping back over 7% discourage buyers? Was it a combination? Whatever cause the January Pending Home Sales to plunge is actually good news if you are looking to buy. Listing inventory increased again up 26.7% compared to the previous month. The slowing market has Sellers looking to make a deal. Fewer Buyers mean less competition for your dream house.  The short term trend has shifted to Buyers. Seller Closing Costs assistance is back. Price Reductions are happening. This is the perfect time to buy. In order to take advantage of the current market Buyers  have to move quick. As the Winter thaws buyers return to the market and the advantage shifts back to the seller.

The FHLBank Grant Programs are open.  FDM has FHLBank Down Payment Assistance available for qualified buyers. The FHLBank Affordable Housing Program (AHP) offers $17,500.00 in Down Payment Assistance to First-Time Buyers. The FHLBank Community Partners Program offers First Responders, Veterans, Active Duty Military and School Employees $20,000.00 in Down Payment Assistance. The FHLBank Workforce Housing Plus Program offers $15,000.00 in Down Payment Assistance. The Down Payment Assistance for each of these programs may be completely forgiven and not paid back.  FDM has a competitive advantage compared to banks in this product. The FHLBank Program fill up quickly.  Encourage your clients to see if they qualify for one of the FHLBank Programs today.

On Wednesday, January 29, 2025 the FOMC will meet for the first time in 2025. The Fed cut rates three consecutive meetings at the end of 2024.  The Federal Funds Rate is down a full 1.0% from where it was in early September.  The FOMC cut rates three time, but mortgage rates went up each time. Why? The mortgage market expected these moves by the Fed already building each rate cut into mortgage bond pricing.  The FOMC started interest rate cuts in September, but mortgage rates moved in the opposite direction. The Federal Funds Rate immediately impacts short term borrowing.  For consumers Credit Card rates, automobile loans rates , Home Equity Lines of Credit Rates will move lower after the Fed moves. Mortgage rates work differently. The average mortgage rate has been over 6% for over two-years. They have remained stubbornly above 6%, reaching over 7% again at the end of the year,  even with Fed rate cuts,  prompting some to say “Sixes are the new normal”. Mortgage rates are closely aligned to U.S. Government Bonds particularly the U.S 10-Year Treasury Bond. Inflation concerns remain elevated. Inflation has not abated as quickly as hoped keeping demand for longer term bonds weak. The FOMC meets again the 27th. What is the Fed expected to do? Based on the Fed Futures Market no rate cut is expected. In fact, according to the Fed Futures Market, we will not a see a Fed Rate cut until June. Inflationary pressures remain keeping mortgage rates elevated. We have seen mortgage rates drift lower over the past week, which is a good sign, but not the sign of a major shift to lower rates. We expect interest rate volatility for the near future. Contact your FDM Investment Specialist today for more details.

The new Fannie Mae and Freddie Mac Loan Limits are in effect. The 2025 Conforming Loan limit is $806,500.00, a 5.2% increase from 2024. The 2025 High-Cost Area Loan Limits increased to $1,209,750.00. How do higher Conforming Loan Limits help me? There is a big difference between “Agency loans”, which by definition are loans meeting Fannie Mae or Freddie Mac Guidelines, and Jumbo Loans. Jumbo loans are often called “Non-Agency Loans.”   Agency loans have lower interest rates than Jumbo loans. Agency loans are generally easier to qualify for. Agency loans are more flexible with Debt-to-Income Qualifying Ratios and have lower credit score requirements. Agency loans allow for a higher loan to value, which means a lower down payment. If you have been searching for your new home limited to Conforming Loan Limits, due to loan qualification, your market opportunity has been expanded by $39,950.00 in 2025.  If you were looking in the $800,000.00 price range, your mortgage rate just got lower. The increased Conforming Loan Limits just made homeownership a litlle more affordable in 2025. Contact your FDM Mortgage Professional today to see how the new Conforming Loan Limits can help you. Complaint Policy Customer Reviews Fidelity Direct Mortgage, LLC No FDM Borrower Left Behind! 438 North Frederick Avenue, Suite 315, Gaithersburg, MD 20877 Direct:  (301) 869-6000 | (866) 527-8052  |  contact@fdmhome.com Fidelity Direct Mortgage, LLC