Government loan changes effective October 1st, will bring some tricks and some treats (in the spirit of Halloween)

Trick or Treat?

Photo from Vegnews.com

FHA Loans will have lower sales price limits in the Washington DC Metro Area from $729,750 to a $625,000 for a single family home purchase.  This decrease is definitey a trick as many homebuyers will find it difficult to find purchase money loans for larger size homes and sales prices with lower down payments. 

Here is a list of counties affected from the HUD mortgagee letter in May. 

USDA Loans are a trick and treat. USDA is lowering its upfront financed guarantee from 3.50% to 2.00% but it has now added monthly mortgage insurance, which the no mortgage insurance was a great feature of this zero money down home loan. This is still a great loan product for buyers in "rural areas", but it will cost slightly more on a monthly basis. 

Veteran Home Loans are the treat of the bunch as the VA funding fee for VA Loans is set to decrease from 2.15% to 1.40% for first time users of the VA Home Loan Benefit. And from 3.30% to 2.80% for susbsequent use of the loan.This is great news for Veterans and active duty military looking to purchase a home with no money down in the Washington DC Metro Area.

Contact your Woodbridge FHA and VA Loan Lender @ 703-497-3936, I promise we make the mortgage process not so SPOOKY!

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Learn more about FHA and VA Loans in Virginia and Maryland.

Contact Markita Aldridge- Woods at (703) 497-3936 or via email for custom tailored mortgage solutions.

 

 

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47 Comments on Government Loan Changes Effective October 1st

20 Most Recent Comments Displayed Show All

OCT
02
2011
230,422 Points 1 Featured Post

Our loan limit here is $429K I think. Don't do many FHA loans here. Lots of VA and conventional. it is just getting harder to get financing no matter which program. Needs to change.
10:29am • #28
639,267 Points 39 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

☔ Markita, thanks for sharing the new changes that took place this month.  I like your analogy!  Congrats on a well deserved 5 Featured Posts

Pamela
10:46am • #29
111,058 Points 1 Featured Post

Thanks for getting it all on one fine post.  I've reblogged for our area.  all three, FHA, USDA and VA are important in our market.   
10:53am • #30
137,403 Points 1 Featured Post Outside Blog Attended Rain Camp

Markita  - Thanks for the updates on the financing changes.  Great info for agents to have.
11:15am • #31

Thanks for Sharing!!   I particularly am pleased to see the HUD document attached with the MAP!  boy it tells a story doesnt it!
11:42am • #32
3 Featured Posts Called Shot Master

Thank you for sharing. A needed update.
11:54am • #33
112,173 Points

Good Post Markita!

The Gov't just can't leave anything alone!

Then they wonder why there is still a housing crises!

 
1:05pm • #34
196,237 Points Outside Blog

Regardless of circumstances securing financing has been and shall remain difficult for most buyers until the fed is fixed. 
1:07pm • #35
1,024,211 Points 15 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Great and timely post.  Thanks for the information and have a great weekend.
1:36pm • #36
Outside Blog

FYI - the reduced VA funding fee change has been delayed becauae the President has not signed the legislation. According to my lender, it will go into effect the ealier of November 17 or the date the Presdient signs it
4:00pm • #37
702,257 Points 39 Featured Posts Outside Blog Called Shot Master

Yep, there are many people all upset about the lowering of those limits. I'm not sure that for a 729K home 3.5% down is the way to go? Is there really a market for it or are they just offering it? I've never had one EVER.
4:09pm • #38
200,553 Points 1 Featured Post Called Shot Master

Timely reminders about some upcoming changes in the mortgage industry.
4:27pm • #39
133,914 Points

Seems like Congress is playing games again - they just passed new legislation that will keep the VAFF at previous levels though November 17th - and will be effective as soon as the president signs it.  This means the announced lower fees might only be in effect for a very short time, and maybe not at all :{

This last minute craziness is, well, driving me crazy!  Need I mention the games with Flood Insurance... ?!!

Jana
6:08pm • #40
126,125 Points 4 Featured Posts Outside Blog

Ah...they kept telling us this was going to happen and I'm glad some buyers were on top of the news with open ears. For those that weren't, well, if they find the house of their dreams, rates are still low;)
6:41pm • #41
124,250 Points 3 Featured Posts

Thank you for posting. The VA portion of this is good news and will hopefully have a positive impact on local housing markets.
7:17pm • #42
315,207 Points 2 Featured Posts Attended Rain Camp Called Shot Master

VA announced on Friday that the Funding Fee reduction will not go into effect until November 18, 2011. 
8:49pm • #43
120,736 Points 9 Featured Posts Outside Blog Attended Rain Camp

Thanks for everyones comments and I learned as stated above the VA Funding Fee decrease has been delayed until November 17th nonetheless it is still a "treat" for Veterans and active duty military looking to purchase a home. 

 

While mostly all other loan types have had stricter guidelines and increases in fees, VA loans have remained unchanged for credit guidelines and found a way to decrease costs.
11:02pm • #44
OCT
03
2011

Good to hear on the va loans. I have a va buyer now.
12:34am • #45
556,102 Points 31 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Markita,

Good post on the intricacies of the changes that just happened.

We do not always keep up on each detail of each loan.

Thanks

Phil
5:44am • #46
197,051 Points 2 Featured Posts Localism Sponsor Hit Router Called Shot Master

Thanks for the update.  The USDA loan is a very important option here in my rural market.
10:37am • #47

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Markita Woods Queen of Mortgages FHA, VA, Conventional, USDA Loans

Woodbridge, VA

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