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mortgage guidelines: FHA Raises Mortgage Insurance Premium effective 4/18/11 - 02/14/11 02:48 PM
In another attempt to help the housing industry, FHA will be raising it's mortgage insurance premium by 25 basis points effective with case numbers issued on 04/18/11. While that may not seem like much, on a $100,000 loan amount, that is an extra $20.83 per month. While that may not seem like much, when you add it to the 35 basis point increase last year and you have an annual premium that is more than double what it used to be. That translates into a real decrease in purchasing power for most first time homebuyers.
Just when you thought we were … (3 comments)
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mortgage guidelines: Lender's - Learn Your Job or Get Lost! - 01/18/11 08:46 PM
As a mortgage lender since 1991, I had to learn the technical skills essential to do my job. You see back then there was no automated underwriting. The borrower had to have a down payment, income and show an acceptable credit history that indicated their likeliness to repay. All of this had to be documented.
Trust me, I screwed up many deals in my early years because I didn't know what I was doing or didn't look at the documentation I had. I learned from my mistakes and didn't make the same mistake twice. More importantly, I didn't blame anyone … (0 comments)
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mortgage guidelines: Conventional 3% Down - First Time Homebuyers - 04/28/10 08:25 PM
If your tired of dealing with all of the added hurdles associated with an FHA mortgage, First Place Bank is pleased to announce the return of the 3% down conventional mortgage. Not all borrowers will qualify for this program, but here are the basic parameters:
First Time Homebuyers Only Minimum Credit Score of 700 for all borrowers Debt to Income ratio not to exceed 45% if credit score is greater than 740 Debt to Income ratio not to exceed 41% if credit score is 700-739 Borrower must have 2 months of payments in reserves after closing Borrower's 3% down payment must … (1 comments)
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mortgage guidelines: Investment Property Financing - 08/27/09 11:02 AM
Ok, I have to admit, it has been far too long since I have updated my blog. I do a lot of freelance writing for www.mortgagecurrentcy.com and that is where I havd dedicated most of my time. Not to mention, they actually pay me for my articles :)
If your like me, you are sick and tired of lenders who tell clients and agents the wrong information because they DO NOT know the right information. As part of my duties for www.mortgagecurrentcy.com I write an Ask The Experts Column. I recently had a subscriber who had an underwriter fight with him in regards … (0 comments)
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mortgage guidelines: End of Seller Funded Down Payment Assistance - 08/01/08 12:49 PM
With the end of most conventional financing programs that allowed for 100% financing seller funded down payment assistance programs combined with FHA loans rapidly grew in popularity as it was one of the few ways potential homebuyers were able to purchase a home without having a down payment. With the Presidents signature on the recent housing bill, Seller Down Payment assistance programs are likely to be eliminated. While there is buzz that the DPA's have another piece of legislation in the works that would continue to allow their use, there is no such legislation that has been passed yet.
So what … (0 comments)
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mortgage guidelines: Financing New Condo Projects - Part 1 - 07/09/08 09:18 PM
For those of you who market new condo projects you may have noticed that it is becoming ever increasingly difficult to obtain financing for those clients who need a mortgage.
So why the sudden change or difficulty in obtaining financing? With market conditions being unfavorable Fannie Mae and Freddie Mac have put in place more stringent guidelines for condominium projects. In the past, projects that were only partially completed could often still qualify for conventional mortgage financing. This is true even though the project was still subject to additional phases and may not have been turned over to the homeowners association.
… (0 comments)
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mortgage guidelines: Financing Investment Property - 07/03/08 11:15 PM
I have recently run into a string of borrowers who have been turned down by lender after lender for the purchase of investment property. These borrowers are generally investors who have accumulated multiple properties (many within the last couple of years). So what is the common problem these borrowers are running into that is stopping them from getting approval? Simply put, their lenders inexperience. Did I just say that out loud?All of these borrowers are borrowers with credit scores in excess of 720, documentable income as well as verified cash for their down payments. So why wouldn't a lender want to … (0 comments)
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mortgage guidelines: FHA and Credit Scores - 07/03/08 10:41 PM
In the past, credit scores really didn't have much of an impact on an FHA loan. For the most part, there was no minimum credit score and pricing for FHA loans for the most part was one size fits all. Those days are about to change with FHA. Beginning the middle of July, FHA has new requirements for FHA loans in regards to credit scores and Mortgage Insurance Premium (MIP) cost.
FHA will now begin to tier MIP cost based on the borrowers credit score. The higher the score, the lower the cost, the lower the score the higher the cost. For … (0 comments)
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mortgage guidelines: End of Down Payment Assistance for FHA? - 07/03/08 10:30 PM
For many of us, the use of Down Payment assistance programs such as Ameridream, Nehemiah, Neighborhood Gold, etc. has become a common way to help homebuyers achieve homeownership with little to no cash investment.
Last year, HUD took aim at these seller funded down payment assistance programs in an attempt to put an end to them. In the opinion of HUD (backed by their research) these programs have led to an increase in foreclosures and borrowers who use them tend to default at a rate greater than those that have the minimum 3% cash investment. The DPA providers sued HUD in … (0 comments)
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mortgage guidelines: Fannie Mae's New National Downpayment Minimum - 05/18/08 04:13 PM
Just this past week, Fannie Mae rolled out a new initiative to set a minimum required down payment that applies to all area's nationwide. Even those markets where a property is deemed to be in a declining market. Before we all start to jump and shout, it is important to realize that this comes with some strings attached.
The nationwide downpayment is tied to the release of Fannie Mae's Desktop Underwriter version 7.0. It is expected that this new system will be a lot tougher to get an approval under. So even though the downpayment requirements may have been relaxed, it will still be … (0 comments)
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mortgage guidelines: Decling Markets - The end of the World? pt 2. - 01/19/08 01:16 PM
As I shared in my first post, I definitely do not think that declining markets are the end of the world. In all honesty, I believe it can actually open the market to new potential buyers who may not have been able to buy previously. Low interest rates, coupled with low sales prices create a great opportunity for entry level buyers. This will hopefully help to create some resales and feed on up the chain.
I wanted to answer some of the questions I mentioned at the bottom of my last post. So here goes:Where are the declining markets?The answer to … (0 comments)
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mortgage guidelines: Declining Markets - The end of the World? - 01/19/08 08:48 AM
Absolutely not! Even though my catchy headline (I should stop thinking so highly of my writing ability) would have you think that the sky is falling and the world is ending, the truth is it is not. There are still many ways for a buyer to purchase with a limited down payment and still get a great deal on a mortgage. It is more important then ever to understand what a declining market is and how to work around them to continue to serve your clients.Declining markets may pose an additional hurdle for some homebuyers who have little to nothing for … (5 comments)
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Dan Moralez
Grand Rapids,
MI
More about me…
First Place Bank
Address: 4175 Parkway Place, Grandville, MI, 49418
Office Phone: (616) 931-4629
Cell Phone: (616) 931-4629
Email Me
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