FHA premiums are going up Sep 7. The upfront premium (added to the loan amount) will DECREASE from 2.25% to 1.00%. The annual premium (1/12th added to te monthly payments) will INCREASE from 0.55% to 0.90%. A quick calculation tells us the break even (equivalent)  is approx 3.5 years. More below. Read more. ///  Jumbo rates are jaw dropping low, as low as 2.75% and 3.35% for 3/1 and 5/1 ARMS /// Make it a good week folks. - Paul
 
FHA vs Conventional vs Portfolio
"FHA" is a loan insured by the Federal Housing Administration, "Conventional" is a loan that is not underwritten by a government agency, and "Portfolio" is a loan that is underwritten based on unique lender criteria, is kept as an investment, and is not sold in the secondary market.
The FHA MI premium increase makes conventional loans more attractive: No upfront premium, and a lower annual premium (rarely over 0.65%). The choice is not that simple because the underwriting criteria different, and for private MI you need a 680 score. There are other implications, but I'll wait until the details are out. And then there is the Portfolio option. NO MI, max 90% LTV, only 620 Fico needed. Rates: 0.50-1.25% higher. 720 score for best rate. If nothing else, the choices are less likely to be self-evident and need to be carefully evaluated.
 
Where is the appraiser?
I get the question often because it gives the impression that a loan is delayed for some reason. We used to order the appraisal AT TIME OF APPLICATION. Due to the (many) regulatory changes this year, the appraisal is now ordered AT TIME OF ORIGINATION, when all documentation is in place for underwriting. No delays...
 
Where will prices rebound most by state?
A housing market rebound seems tenuous following the expiration of the home buyer tax credit, and consumer confidence remains weak due to lackluster employment, but David Stiff, chief economist at Fiserv, says the bottom is near. Read more 
 
Available
- Formal same day approvals (subject to verifications)
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Homepath, other loans 
- No PMI financing to 90% LTV, $900,000
- Helocs (1st and 2nds) to 85% LTV
- Jumbo loans to $10MM
- 30-day closes (45-days for FHA)
- Condo (Fannie/FHA) certifications
- Sub 620 Fico loans
- 50-70% LTV stated income loans (600-700 Fico needed)
- 95% LTV Fannie Mae condo loans (exception basis)
- Loans for non-residents
- 203K and other rehab/renovation loans
- Non-warrantable property loans
- Home Equity Conversion Mortgages (Reverse mortgages)
- Commercial loans
 

I can be reached at 800-405-0676 (direct), or email. 

 ________________________________________
  
"Reach high, for stars lie hidden in your soul.
Dream deep, for every dream precedes the goal."
 
Posted by Paul Luykx on 08/08/2010 09:46 AM   Comments (2)   FHA Changes in the ActiveRain Channel   fha, no mi, mi, mortgage insurance, appraisal  
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2 Comments on FHA premiums up Sep 7 - Jaw dropping Jumbo rates - No MI loans to 90% LTV - Where's the appraiser?

AUG
08
2010

I really think this FHA move is not good.  Upfront means out of the way.  The increase in the monthly MI is going to hurt the consumer.  Won't if affect the DTI?
9:59am • #1

Yes, it will affect DTI because it essentially adds say 0.35% to the rate, which at today's rate means a roughly 5-10% increase in the mortgage payment, depending on the scenario.

 
Paul Luykx
12:57pm • #2


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