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FHA closing cost limits - when seller has FHA loan and needs short sale. - 10/27/09 06:12 AM
If your seller has an FHA loan and needs a short sale to obtain clear title, the max the seller can contribute towards closing costs for the new buyer is 1% of the purchase price.
Normally, the seller can pay up to 6% towards closing/prepaids.
Again, be sure you know as much about the seller and their situation as possible when making an offer. It's getting tricky out there and you don't need to find out about this rule 1 week prior to closing!
Feel free to refer me to your buyers, as there won't be any surprises at my settlements … (2 comments)

New Flipping Rules for Rural Housing Loans - 10/27/09 06:05 AM
More and more, lenders will be asking very specific questions up front questions about the seller of a property. Particularly, how long has the seller been on title.  Here are the newest rules:
Rural & Conventional Financing - Seller must have owned property for 6 months. FHA Financing - Seller must have owned property for 90 days. There are some exceptions, but lenders are getting very picky. FHA is getting picker due to early payment defaults rising as the shear number of borrowers choose FHA loans.
 
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Rural Housing Loans strong on Maryland's Eastern Shore - 10/27/09 06:01 AM
If you or your buyer is looking for homes anywhere on the Eastern Shore of Maryland, a Rural Housing Loan is a great option.  There are some metropolitian areas, for example, within the city limits of Salisbury that are not eligible.  This is a 100% loan.  There are strict income, housing and debt to income ratios to keep in mind.  The housing ratio cannot exceed 29% of gross income.  Total debt to income cannot exceed 41%.  On this program, I can structure a loan so that the seller pays closing costs and buy is out of pocket $500 in earnest money.
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Molly Lionberger

Salisbury, MD

More about me…

Address: 128 Carolyn Ave, Salisbury, MD, 21804

Office Phone: (443) 523-5599

Cell Phone: (443) 523-5599

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The purpose of my blog is to provide mortgage industry information that will help homebuyers obtain the best financing for their individual needs and to help realtors close more deals. Knowledge is power. With the changing of the rules within the mortgage industry, it is more important than ever for realtors to know basic credit guideline rules.


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