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housing law: Reverse Mortgage Limit Increased for FHA HECM - 10/23/08 08:29 PM
The Housing and Economic Recovery Act, the housing bill, passed in July provided for increased loan limits to $417,000 for FHA's Reverse Mortgage, the HECM. The bill called for the limit to be increased to equal the Freddie Mac limit for a single family home.
FHA has interpreted this provision by setting a single, national loan limit of $417,000. This new limit was expected to be effective November 1, 2008, but several lenders have been authorized to process and close HECM loans at the higher limit effective immediately.
This is exciting news for many of the nation's seniors, opening the availability of … (2 comments)

housing law: FHA Loan to Value guidelines - new down payment amount - 09/11/08 10:05 PM
FHA today released information about the implementation of the higher down payment requirement that was established with the new housing law.
The old down payment was 3%, and allowed certain of the buyer paid closing costs to be used to meet the down payment requirements. In many cases the actual loan to value could be 97.75%, if the buyer paid closing costs in the amount of at least .75% of the sales price.
The new guidelines institute a higher down payment requirement of 3.5% and remove the consideration of buyer paid closing costs.
The maximum loan to value for FHA purchases … (8 comments)

housing law: FHA announces mortgage insurance premiums - 08/27/08 04:25 PM
The first of a series of expected mortgagee letters from FHA on their implementation of the new Housing Law came out this afternoon.
FHA has announced the new upfront and monthly mortgage insurance premiums that will replace the existing premiums that were tiered based on credit risk.
The new premiums are the same for all credit levels, but they are higher than the premiums used to be before the tiered MI pricing went into effect on July 14.
Confusing isn't it.
The new upfront mortgage insurance premium is 1.75% for purchase money and all full credit qualifying loans.
For streamline refinance … (6 comments)

housing law: FHA Foreclosure Assistance - Hope for HomeOwners part of Housing Bill - 08/12/08 08:24 PM
The new Hope for Home Owners was passed recently as part of the foreclosure assistance in the new Housing Law, Housing and Economic Recovery Act of 2008.  Last week FHA held a phone conference regarding the changes to FHA lending enacted by the new Housing Law, and this part of the new law was discussed. In an earlier post the changes to FHA down payment requirements was discussed.
Loan procedures and specific qualifications have not been published yet. FHA indicated that guidance would be issued soon in new mortgagee letters.
Under the program, many homeowners who are struggling with mortgages that they cannot afford will be … (3 comments)

housing law: Housing Law HUD implementation - conference call August 4 - 08/04/08 07:25 PM
This afternoon HUD held a conference call to address questions about the new Housing Law and HUD's plans to implement the many changes.
The new minimum investment for purchases is 3.5%. It is flat for all loan amounts. The maximum LTV is now 100%, but this includes the base loan amount and the upfront mortgage insurance premium. The way the calculations work, the 100% maximum LTV is not an impacting number. With a 3.5% down payment and the maximum UFMIP cap expected to be set at 3%, the LTV calculated with the base loan plus the UPMIP will never reach 100% LTV.
… (5 comments)

 
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Richard Smith FHA VA Rural Development in TN GA

Chattanooga, TN

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Address: 1961 Northpoint Blvd, Suite 110, Chattanooga, TN, 37343

Office Phone: (423) 280-0345

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