fha: No Equity No Problem for This FHA Program
- 01/07/12 03:31 AM
Calling all FHA mortgage holders who want to take advantage of the historical low interest rate environment that the government has facilitated for us. FHA has an amazing opportunity for current FHA customers to dramatically reduce their monthly payment and skip a month on your payment, it's called the FHA Streamline Refinance. This program will provide you the vehicle to obtain the historical low rates that are available right now. According to the many rate sheets I see on a daily basis, FHA fixed rates have been under 4% for a 30yr fixed rate. If you have fixed rate over 5% this … (2 comments)
fha: FHA Back in the Jumbo Lending Game as of Nov. 18th
- 11/15/11 09:32 AM
People looking to get pre-approved for a FHA refinance or a purchase just maybe in store for a surprise. FHA has announced as of November 18th. The House and the Senate have decided to restore the $729,750 loan limit on FHA insured mortgage for another two years. As far as Fannie Mae and Freddie Mac mortgage limits go, they have decided to leave that maximum loan limit unchanged at $625,500. FHA loan limits are designated by county so in the hundreds of counties the law makers are essentially raising the local benchmark to 125% of the median house price from 115%. … (0 comments)
fha: The Mortgage Buddy Reviews the October 1st Changes to Home Financing Part 1
- 10/02/11 07:35 AM
The world of mortgage financing has been changing over the past few years as a result of the credit crisis of late 2008. October 1st marks the next chapter to these changes. The pendulum of regulation has gone from the free for all of the middle 2000s, when it was debatable if you actually needed a pulse to get financing, to the current time, when you need a mortgage professional like The Mortgage Buddy to be thoroughly educated on the ever revolving door of underwriting guideline changes. It can be a frustrating time for real estate professionals and their clients. It sometimes seems like loan … (0 comments)
fha: FHA Condo Event for Management Companies, LOs, and Condo Residents
- 09/27/11 06:13 AM
Hi Everyone, This is a bit of a follow-up from my last "Refresher on the FHA Condo Approval Process". I'm on the board of trustees for my condo association and this fantastic informational webinar was brought to my attention. I think this is great for property managers, loan officers, and residents. FHA lending has significant benefits in this market, and having your condo FHA approved and certainly add value and appeal to your complex.
Paul K. Mengert, CMCA, PCAM and HOAcruise.com are hosting a webinar featuring a discussion nationally known experts on the recent changes to FHA guidelines for manager certifications. … (1 comments)
fha: FHA Gift Funds Refresher from The Mortgage Buddy
- 09/21/11 03:43 PM
Hi everyone. I hope the Activerain community is finishing up the month strong, don't forget to keep orginating every day no matter what. The Mortgage Buddy just wanted to blast out a few FHA Gift Funds underwriting guideline refreshers. I know these can be stumbling blocks sometimes, so hopefully this well assist you in side-stepping any issues.
An outright gift of the cash investment is acceptable if the donor is a relative of the borrower, the borrower’s employer or labor union, a charitable organization, a governmental agency or public entity that has a program to provide home ownership assistance to low- … (3 comments)
fha: A Plan to Improve the Housing Market & Reduce the National Debt.... Please Add Your Thoughts
- 09/05/11 08:35 AM
A Mortgage Buddy Brainstorming Creation This just in: The housing market is in trouble, unemployment is high, we can't figure out the debt issues, and Washington politicians appear to be more concerned about positioning themselves for the next election, than working on making the difficult decisions. What I'm not going to do is read another post or write another blog full of negative commentary. We can all point fingers and say I can't believe this or that, but that doesn't solve anything. Let's rally ideas and people around possible solutions and put pressure on these politicians to make some changes. Over the past week I … (5 comments)
fha: Rent Credit as a Source of the 3.5% FHA Required Down-payment
- 08/16/11 03:43 PM
This is the second installment of utilizing all of the approved FHA guidelines available. I mentioned yesterday http://actvra.in/gSf I want to make everyone aware of the many ways they can help their client with creative ways for coming up with the 3.5% down-payment required on a FHA purchase. Yesterday we talked about "sweat equity". Today we are going to discuss "rent credit".
Rent Credit as Described By FHA Guidelines: The cumulative amount of rental payments that exceed the appraiser's estimate of fair market rent may be considered accumulation of the borrower's cash investment. The endorsement package must include the rent with option … (1 comments)
fha: Using "Sweat Equity" to Fund Your FHA Down Payment
- 08/15/11 07:51 AM
So many times we hear excuses why things won't work, and it's our job to present options that do work This week I'm going to be showcasing different ways to meet your the 3.5% FHA mandatory requirement for down payment. There are many ways that we all know about but in a world of higher commodity prices and less in our paychecks, it's becoming harder and harder to save money to buy a home. My hope is that we can think outside the box and work to increase home ownership for hard working Americans who just can't save as easily. All of the … (6 comments)
The table below describes the requirements for the transfer of gift funds. … (3 comments)
fha: We Just Signed Up Our 3rd Lender for Below 600 Credit FHA
- 04/23/11 07:56 AM
In today's competitive mortgage market having a wide variety of products is so important for servicing clients and building referral relationships. I'm lucky to have a company that holds true to this belief. I hear so many stories from fellow loan officers that work for companies that have strict FHA credit score cutoffs of 620 or even 640. That type of limitations can leave a lot of potential business on the table. It's so refreshing being able to speak with real estate agents and tell them that I have the ability to close more transactions for them because I'm not … (1 comments)
fha: FHA: MIP Changes Coming in a Few Days Here is What You Need To Know
- 04/13/11 08:20 AM
FHA is changing their Mortgage Insurance Premium Guidelines in just a few days. This is so important to understand because it could effect the amount of home a prospective home buyer could potentially afford. It could be the difference of $5,000 on a purchase price. So make sure you loan officer is keeping themselves updated on the changing industry. Here is what the change will look like
FHA has to make these changes in order to generate more revenue so they can cover their capital reserve requirements as laid out by the FDIC.
… (0 comments)
fha: FHA Multi Family Guidelines to Remember
- 04/12/11 04:18 PM
The FHA quarterly guideline book is like a holy book for loan originators and processors. Buried within those pages are the hear and soul of today's mortgage market. It's the key to a smooth or in some cases not so smooth underwriting process. It can be the key to home ownership, but it is also something that can trip up even the most seasoned loan officer. As a loan officer it's so important to study my craft and stay up on changing guidelines and new FHA regulations. I want to touch base on a few FHA guidelines for everyone to … (2 comments)
fha: FHA 203k Purchase Refresher-What's Eligible? What Isn't?
- 04/06/11 07:45 AM
I just wanted to do a quick blast for everyone so they have a refresher of the fantastic FHA 203k Streamline loan. This is a great opportunity to but a owner occupied fixer upper and use the bank's money. When evaluating the property it's crucial to keep in mind what is an eligible improvement and what isn't. Examples of Eligible Repairs: Repair/Replacement of roofs, gutters, and downspouts Repair/Replacement/Upgrade of existing heating, ventilation, and air conditioning systems Repair/Replacement of plumbing and electrical systems Repair/Replacement of flooring, however the repair of sub-floors is not because it is considered structural Minor remodeling such as … (4 comments)
fha: Understanding What FHA Compensating Factors Are Will Help You Close More Transactions
- 04/01/11 06:46 AM
Most us of are familiar with what DTI stands for, for those who don't it's Debt to Income Ratio. In a simple explanation it's your monthly debt as it compares to your monthly income. A Standard FHA DTI recommendation is 31/43%. to have a higher debt to income ration does not disqualify you from a loan it just requires we demonstrate "Compensation Factors". There is no specific number of compensating factors that must be used, but the factors must support the approval of the loan. Any "compensating factor" used to justify mortgage approval must be supported by documentation. The Following is … (1 comments)
fha: A Successful Purchase Story for March
- 03/31/11 03:06 PM
A successful purchase story for March.I am privileged enough to work with several great Realtors with several different companies. I want to share the experience I had this past month with Vee Somoulaylack from the Hill Team Associates of Keller Williams in Worcester, MA. Vee called me a few days into March and told she had a client who was having a little trouble getting his financed secured. It turns out this gentleman was really being yanked around by his mortgage professional and now they had a signed purchase and sales agreement and didn't have financing in place and the closing … (4 comments)
fha: Answering Questions from a Real Estate Seminar One Day at a Time
- 02/24/11 04:32 AM
Answering Questions from a Real Estate Seminar One Day at a Time As I continue to give a blogging recap of the seminar I was a part of I want to touch base on another question that the attendees to the meeting had. "I hear there are going to be some changes to FHA what does that mean to me as a first time home buyer?" This question was asked to me last week and I did my best to thoroughly answer it. As many of you may have heard, FHA like many other government agencies is running low on cash … (2 comments)
I'm sure many of us are familiar with the FHA 203k renovation loan, a fantastic mortgage product for purchases and refinances but from what I'm hearing not many real estate professionals are aware of Fannie Mae's renovation loan product called the Fannie Mae HomeStyle loan. In this market there is a growing amount of people who are thinking about buying that "fixer upper", but they don't want it to be their primary home. Instead, they want to buy a "fixer upper" for a second home or investment … (4 comments)
fha: I Was a Contributor at a Real Estate Seminar and Learned This About Today's Buyers
- 02/17/11 03:49 AM
I Was a Contributor at a Real Estate Seminar and Learned This About Today's Buyers I have been spending a lot of time this winter meeting with local agents, business groups, and holding industry education seminars for investors and first time home buyers. The purpose behind this focused business plan is to build new referral partners and get an understanding as to the challenges that are facing so many involved in the home buying process in 2010-2011. What I'm finding out is a few of different things. 1. The real estate agents who are embracing technology and the challenges of todays' market are building their … (8 comments)
The above is a chart that FHA underwriters use to determine the amount of money refunded at the time of a FHA to FHA refinance. FHA charges an upfront MIP (mortgage insurance premium) amount. That MIP amount depends on when the FHA case number was requested. This amount is calculated as a percentage of the loan amount. As of October 2010 the % is 1% of the total loan amount. FHA will refund a percentage of that upfront MIP in the refinance. The shorter the home owner has had the current FHA loan the higher the refund amount. This amount … (9 comments)
I decided to start writing this blog to be an education resource to my referral partners and my clients. We live in a new world of mortgage lending in which we need to be up to date on the changing underwriting guidlines and mortgage products offered. It's through these updates that we will all be able to provide our clients with the customer service they derserve and expect. It's my belief that this industry insight is what will take our business to the next level.
Education = Confidence
Calling all FHA mortgage holders who want to take advantage of the historical low interest rate environment that the government has facilitated for us. FHA has an amazing opportunity for current FHA customers to dramatically reduce their monthly payment and skip a month on your payment, it's called the FHA Streamline Refinance. This program will provide you the vehicle to obtain the historical low rates that are available right now. According to the many rate sheets I see on a daily basis, FHA fixed rates have been under 4% for a 30yr fixed rate. If you have fixed rate over 5% this … (2 comments)
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