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)
fha changes: 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)
fha changes: 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)
fha changes: 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)
fha changes: 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)
fha changes: 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)
fha changes: 10 More Days to Get Your FHA Case Number to Lock In the Old MIP Rates
- 03/18/13 04:22 AM
April 1, 2013 is when the new MIP kicks in for borrowers. While the 10 Basis Point increase doesn't seem like much, it will increase the monthly MIP payment from $208.33 to $225.00/month on a $200,000 loan. That $16.66/month is better in our client's pockets than in the FHA's! I would strongly advise getting case numbers by the end of next week to avoid the increase.
FHA has also advised that case numbers cannot be transferred from one borrower to another. Therefore in the case of a purchase, you could not secure a case number for one borrower and … (6 comments)
fha changes: FHA Changes for 2013- MIP Increase 4/1 and More.
- 02/06/13 02:11 AM
Here is the next round of FHA changes based on Mortgagee letter 2013-4 dated January 31, 2013. The vast majority of FHA loans will have higher mortgage insurance as of April 1, 2013. 1. Increased the length of time that the annual MIP (paid monthly) can be charged. For the “typical” FHA loan, the monthly MI will now be charged over the life on the loan, but in some instances it will be 11 years. Please refer to the chart below for details. This is effective with case numbers issued on and after 6/3/13. 2. Removed the exception for the annual … (4 comments)
FHA issued clarification today regarding disputed accounts on a borrower's credit report. As you will note below, FHA requires that whenever a disputed account exists on the credit report, the file must be downgraded to a manual underwrite, unless one of the 3 exceptions listed below exist. This does impact pipeline loans (as they indicated this is a "clarification" and not a new guideline), so you will need to review any loans that currently have disputes on the report where you had an Approved Eligible finding. If the credit report reveals that the borrower is disputing any credit accounts, … (2 comments)
I wish I could figure out a better way to add a PDF to my blog... Not very pretty, but above is the latest news! Yes we can approve an FHA loan with Scores as low as 600. There are restrictions for the lower scores such as: 2 months reserves Payment shock must be less than 50% (and there needs to be a verifiable housing history for rent or mortgage) No "Major" Derogatory on the credit report in the past 24 months strict ratios It is a move in the right Direction and another tool for your tool box … (5 comments)
fha changes: Mortgage Mayhem: More FHA Changes on the way.
- 02/15/11 03:45 AM
Mortgage Mayhem: More FHA Changes on the way. Attention FHA buyers: Make note of this, you have the ability to lock in a lower payment NOW! Last week we heard from the Secretary of HUD that there would be an increase in the Monthly Mortgage Insurance premium for FHA Loans. Yesterday's Mortgagee Letter 2011-10 made it official. As of April we will have a Monthly Mortgage insurance Premium that is 25 basis points higher across the board for all FHA loans. Here is a pretty little chart that was provided in the letter:
While 25bps doesn't sound like a lot, … (2 comments)
fha changes: Lakewood NJ FHA Approved Condo List and Expiration Dates
- 01/13/11 09:22 AM
As you are probably aware, Most FHA Condo Approvals Expired in December 2010. HUD came out and extended many approval dates into 2011. It is important if you are working with condo buyers to be aware of these dates. If your buyers apply for a mortgage and get an FHA case number prior to these dates they will be able to be approved for FHA Financing. After these dates the Projects will require a FULL FHA approval in order to close an FHA Mortgage. These full approvals are expensive and lenders will not be able to do them on an individual … (1 comments)
fha changes: Brick Township NJ FHA Condo Approvals and Their Expiration Dates
- 01/13/11 08:13 AM
As you are probably aware, Most FHA Condo Approvals Expired in December 2010. HUD came out and extended many approval dates into 2011. It is important if you are working with condo buyers to be aware of these dates. If your buyers apply for a mortgage and get an FHA case number prior to these dates they will be able to be approved for FHA Financing. After these dates the Projects will require a FULL FHA approval in order to close an FHA Mortgage. These full approvals are expensive and lenders will not be able to do them on an … (0 comments)
fha changes: IMPORTANT REMINDER: FHA UFMIP changes, Get your Case Number NOW.
- 03/26/10 07:42 AM
Keep in mind that the Up Front Mortgage Insurance Premium changes on April 5th. The change will not keep anyone from being able to get a loan, it will only increase a payment by less than $6 on a $200,000 loan.. But if we can save a client a few bucks, we should! It is important to get any deals together quickly so that a case number can be assigned prior to April 5, 2010. Here is a snippet straight from HUD: Lenders should make every effort to order case numbers early in the week of March 29, 2010, since … (4 comments)
;)
;)
;)
