fha: RENTERS: Down Payments are lower than you think
- 04/24/23 08:11 AM
Educate yourself, you probably need less money than you think
Are you renting a home? Would you like to own your own home? What is holding you back?
According to a recent survey done by the National Association of Realtors:
Only 11% of current renters know they can purchase a home with 5 % or Less as a down payment.
A WHOPPING 89% got the answer wrong thinking you need more than a 5% down payment.
Scarier yet: Almost 45% of renters believe you need to put at least 20% down to buy a home.
Is this misconception keeping you from purchasing a home?
You probably can get … (2 comments)
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fha: FHA UPDATE: Significant Reduction in Mortgage insurance
- 02/28/23 08:56 AM
FHA Loans Just got MUCH more affordable
After years of being one of the more expensive options for mortgage insurance this is welcome news. In many cases FHA will now be the less expensive option for mortgage insurance for low down payment borrowers vs conventional mortgages.
The typical 3.5% down FHA loan will see the Monthly Mortgage Insurance Premium dropping from .85 to .55. (for loans under $726,200)
What does that all mean in English?
In my market a typical FHA borrower will likely have a $400,000 mortgage. Prior to this change the MIP would cost about $283/month and after the change it will be … (4 comments)
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fha: FHA Adjusts appraisal requirements for COVID-19
- 04/01/20 09:01 AM
I discussed Covid 19 appraisal issues in my previous blogs about Conventional andd VA appraisals here: https://activerain.com/droplet/5mMF
and here: https://activerain.com/droplet/5mMD
We now have guidance for FHA as well:
FHA Mortgagee letter 2020-05 provides guidance regarding:
Appraisal Requirements Re-verification of Employment/Income requirements
APPRAISAL OPTIONS
Effective date: Immediately for appraisals completed on or before May 17, 2020 Traditional appraisal required in the following transaction types. An Exterior or Desktop appraisal is not permitted All cash out refinances All New Construction All Construction to Perm financing All 203K transactions Purchase Transactions Traditional appraisal - OR Exterior Only appraisal – (unless new construction, construction to perm or build on own land … (0 comments)
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fha: FHA: Big news for Condominium Financing
- 08/15/19 12:25 PM
Yesterday FHA issued a press release about financing condos.
While the Mortgagee letter that will give us the details is not available yet, (purported to be released next week) we do know that the Full Condo Approval will go away as of October 15th.
If memory serves- I t was about 7 or 8 yrs ago that FHA removed the ability to do spot approvals for condominiums, opting for full project approvals that could be expensive for smaller associations, and avoided by others for numerous (often silly and bigoted) reasons.
The Spot approval is coming back! This means that FHA lenders will be able to get a … (0 comments)
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fha: Limited funds keeping you from buying a home?
- 05/30/19 08:45 AM
In my 30+ year career down payment and closing costs have always been the #1 problem in getting a person qualified for a mortgage.
I have spoken to countless people over the years that could easily afford a huge payment but never saved a penny. So if you are reading this in anticipation of buying a home in the future- don't forget to pay yourself first!
If you are limited in funds there are ways to structure deals and get into homes with little to no money of your own.
For closing costs the most popular option that will help, and can work with … (0 comments)
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fha: FHA DPA- Significant Changes effective NOW
- 04/22/19 01:28 PM
FHA Update. ML 2019-06
As of April 18, 2019 FHA has made SIGNIFICANT changes to guidelines for ANY type of down payment assistance programs (DPA) Including all "government entities"
this effectively eliminates the Cheona Fund effective immediately.
All other Government Entity Down Payment Assistance programs: For case numbers issued on and after April 18, 2019, any funds for the borrower’s minimum requirement investment (MRI) that come from any government entity, in any form, is subject to the requirements of this ML. The ML places significant legal requirements on the various government entity to proof their ability to meet FHA requirements. It appears, FHA did not … (2 comments)
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fha: FHA Changes Could Make it Harder to Get Approved
- 03/18/19 10:48 AM
FHA has made some significant changes to its Total Scorecard in DU effective with case numbers issued as of today, March 18, 2019.
FHA Info # 19-07 was issued last week with this announcement. While FHA has not provided any specific guidance as to exactly what the changes of the Total Scorecard engine will be, it is anticipated that the combination of lower FICO's with Higher Ratios will result in less approvals from automated underwriting engines.
A quote from the above mentioned Info letter:
"Today, the Federal Housing Administration (FHA) is announcing that it is taking initial steps to better mitigate the increasing risks … (2 comments)
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fha: Can I buy furniture before I close on my home?
- 01/16/19 07:40 AM
Over the years I have had this question asked in so many ways.... Furniture is a common one, and a client just asked me that one yesterday. While guidelines continue to evolve it is important to understand what is happening in the mortgage world and what we do as lenders, often behind the scenes. As I mentioned in a previous blog with FHA changes this will be a concern for conventional loans, not just FHA
In answer to the above title- That answer is almost always a hard "NO!" Wait till after you close for numerous reasons.
For one- at closing you will sign … (2 comments)
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fha: Government Shutdown: Can you close if you work for the Government?
- 01/08/19 02:55 PM
You work for Uncle Sam... You are not receiving a pay check and you are buying a home. NOW WHAT?
There is some good news here for most home buyers. If you are buying a home and financing with any agency loan (effectively Fannie, Freddie, Ginny- FHA, VA, Conventional, USDA) You will be OK. The vast majority of Mortgages typically fall into the agency products listed above.
With Agency products, you remain eligible even if not receiving pay. As a lender, we will still need to complete pre-closing verification of employment and we cannot know of any specific reason why you would not … (2 comments)
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fha: Home Buying Rules #6: Mortgage Insurance
- 10/23/18 09:32 AM
As I mentioned in my previous blog I will be adding to this series to help buyers with there mortgage applications and to better understand the "why?" since the mortgage world can be a very unfamiliar place. So far we have covered Income, Employment, Assets, Credit and the House.
Home Buying Rules #6: Mortgage Insurance
There are numerous forms of mortgage insurance. Most of you have probably heard of PMI which is an abbreviation of Private Mortgage Insurance, this is just one of many options for MI. Keep in mind that mortgage insurance insures the lender against your default and only allows you to put … (0 comments)
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fha: Conventional Loans have become the "Go-to" for qualifying
- 02/08/18 10:10 AM
While each of these bullet points are a topic unto themselves, I though it would be important to touch upon the positive changes we have seen over the past year that have made it easier to be approved for a mortgage. We have seen the reversal of some guidelines originally implemented during the financial crisis. With property values and loan performance at more stable levels, the “over the top” requirements as a result of the crisis are being re-evaluated. FannieMae is leading the way with Freddie closely following and GNMA lagging behind a bit:
Student Loan Debt:
¨ Income Based repayment is OK, even … (2 comments)
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fha: 2018 FHA and VA Loan Limits
- 12/07/17 12:58 PM
FHA and VA Loan limits have just been released
Late November Fannie and Freddie announced the new conforming limits - you can read about them here: 2018 Conforming Limits VA “loan limits” for 2018 have been announced and are the same as the agency conforming limits as previously published
The chart below shows the FHA Loan limits for both high and low cost areas for 1-4 family homes:
Since I am licensed in NJ that is where I will focus in on the details for NJ.
While most of NJ does fall into the High cost area ( as represented in the chart below) There are a … (1 comments)
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fha: Home Financing For Disaster Relief: FHA 203(h)
- 10/11/17 07:41 AM
Displaced due to a natural disaster? This program can help you get into a home
Most people have heard of the FHA as a way to finance a home with a low down payment. The standard FHA purchase is an FHA 203b and the Rehab FHA is a 203K - But I bet you most are not aware of the FHA 203(h).
This has been a year where many counties in many states have been designated as disaster areas by the Federal Government. There are predictions that many people displaced by these storms will relocate to different states.
203(h) to the Rescue. If you have a … (0 comments)
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fha: Renovation Loans: Find the perfect location & create the perfect home.
- 03/17/17 11:24 AM
In most of New Jersey and in many parts of the country there is an inventory shortage in the housing market. This has caused problems for buyers and created a sellers’ market. Buyers want great houses in great locations. Even great houses in not-so-great locations are getting plenty of attention as the inventory drought continues with no apparent end in sight.
This goes against the three rules of Real Estate: Location Location Location. Buyers want new and shiny, and are overlooking homes that may be in the perfect neighborhood because they are dated, tired or missing something on their wish list.
Fortunately … (3 comments)
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fha: HUD Rescinds FHA MIP Drop
- 01/23/17 09:12 AM
The Department of Housing and Urban Development announced it suspended the reduction of Mortgage Insurance Premiums, effective immediately.
HUD sent out an announcement just an hour after President Trump was sworn in on Friday, stating that the cuts have been suspended indefinitely.
The letter stated that the FHA will issue a subsequent Mortgagee Letter at a later date should this policy change.
“FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the letter stated. “As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market … (0 comments)
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fha: FHA MIP Reduction May Be Taken Away By Trump Administration
- 01/18/17 08:56 AM
In my Blog posted last week I provided details for the change in the FHA Mortgage insurance, their is a strong possibility that will NOT happen
The MBA of America just sent out a notice that:
THERE IS A STRONG CHANCE THAT WHEN DONALD TRUMP TAKES OFFICE HE MAY "ROLL BACK" THE NEWLY ANNOUNCED FHA MIP REDUCTIONS
Yes you read that correctly.
We don’t know if it will definitely happen – although for MBA to send out this notice it has a strong probability. We don’t know when it will happen. We don’t know how it would impact pipeline loans if it did happen. MBA feels it … (4 comments)
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fha: FHA Loan Limits for 2017
- 01/16/17 12:41 PM
With prices increasing we have loan limits climbing as well. For FHA this is based on where you are buying.
If your home is in a "Low Cost Area" Here are your limits":
If you are in a "High Cost Area" (Most of NJ, where I am licensed, falls into the High Cost Area):
These may not be huge increases, but they certainly show improvement in the Real Estate world. The limits are rising because the Median Price of homes is climbing.
Yet another reason to buy in 2017- Prices are climbing!
Have a great week.
Rob
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office:
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I … (2 comments)
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fha: FHA loans -THEY ARE BACK
- 01/11/17 08:31 AM
UNFORTUNATELY THIS PENDING CHANGE WAS RESCINDED BY HUD 1/20/2017
Well, that title may be a little deceiving, they never really left, they just were too expensive for the past few years- and because of this we have been opting for Conventional loans more often than FHA.
FHA's first Mortgagee Letter of the year (ML2017-01) announced a significant reduction in FHA's Monthly Mortgage Insurance Premium, this change is effective for loans funding on and after January 27, 2017.
Here is the pretty chart:
Outside of the mortgage world this may be confusing, so lets put some real world numbers together:
If you were borrowing $200,000 and had the 3.5% … (2 comments)
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fha: Time to RE-Qualify
- 01/19/15 05:27 AM
I wrote a similar post in 2013 when we saw a big jump up in interest rates and mortgage insurance was climbing for FHA loans, I am happy to report that this is the positive swing to RE-Qualifying.
We certainly have the gift of low interest rates for the beginning of 2015.
What a great excuse to pick up the phone and reconnect with clients you have had out house hunting over the past 12 months- Let them know that Interest rates are down significantly and Mortgage insurance has dropped for many as well. I have noticed over the past few … (2 comments)
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fha: FHA Montly Mortgage Insurance Premium is Dropping!
- 01/07/15 02:18 AM
Finally, some good news from our friends in Washington.
We expect to hear from POTUS tomorrow announcing the drop in FHA's MIP.
Currently the Monthly Mortgage insurance premium is 1.35%, it will be dropping to .85%.
To put that into perspective for a $200,000 loan:
Currently the monthly MIP cost- $225.00/month
After the change: $141.67/month
That is a savings of $83/month, or in this case $1,000 per year. Great news for our low down payment buyers.
Have a great week
Rob
Robert Rauf
Mortgage Loan Originator NMLS ID# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868
RRauf@HomeBridge.com
www.RobertRauf.com
… (1 comments)
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Educate yourself, you probably need less money than you think
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