fha: USDA Mortgages and Risk Based Pricing
- 07/08/09 08:37 AM
Risk Based Pricing is a term now used by mortgage lenders to refer to how mortgage loans are Priced.
A mortgage with a higher risk to the bank has a higher price, or interest rate. A loan with a lower risk of default for the back, has a better price / rate.
There are several factors that currently make up the "risk" matrix. Here are a few of the items that might affect the rate:
Borrower Credit Score and Capacity to make payments (Debt to Income Ratio/ DTI) Property Condition and Location Documentation Type (did you provide income documentation and asset … (2 comments)
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fha: Add HUD / FHA as a Friend on Facebook?
- 03/24/09 07:09 AM
Okay- so many of you already know this...
But the Federal Housing Administration (yep, FHA) now has a page on Facebook!
AND! If that wasn't cool enough (I mean you can leave questions on their WALL!) you can also follow them on Twitter!
Say what you might about Obama plans - but having access to information has never been this easy! Look at the Fianancial Stability Plan! (click here) and The Making Homes Affordable Details (click here)!
Website designers are BUSY in Washington - and I like it!
… (6 comments)
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fha: First Time Homebuyers! Get Your $8000 Piece of the Bailout!
- 03/03/09 02:10 AM
There is a silver lining to all of this Bailout Business (thank goodness!) and it applies all First Time Homebuyers! In the recent stimulus package, Congress, and President Obama wrote in a $8000 Tax Credit for First Time Homebuyer's who purchase a home between January 1, 2009 and December 1, 2009 (that's right, the actual law says DECEMBER ONE, so you need to close by November 30, 2009!)
The actual Credit is $8,000 or 10% of the purchase price, whichever is less. It is a CREDIT. This is much different than a Tax Deduction. If your total tax liability came to $6,000, but you … (22 comments)
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fha: Why Credit Scores are Getting Tighter in NC
- 02/23/09 02:33 AM
Since the beginning of the year, subtle but significant changes made their way into the underwriting guidelines in NC, and credit score requirements have been changing! As we are all learning, each market seems to be somewhat "dis jointed" when it comes to home values, and jobs - therefore we've seen some underwriting guidelines "tailored" to a geographic area.
Credit Score requirements are getting tighter, and this could be triggered by appraisal problems. There are "guidelines" and then there are the "Golden Rule" guidelines. FHA, VA and USDA do not make mortgage loans, they INSURE them (just like a PMI company) … (2 comments)
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fha: What is in the House Stimulus Bill 01/28/2009
- 01/29/09 01:23 AM
This is only part of what the Homebuilders and NAR were looking for - but having the FHA limits here going back up will help... especially when you look at the new PMI guidelines that are coming out. (For information on the Genworth changes announced yesterday, click here going to minimum credit score of 700 in many markets)
Last night, the U.S. House of Representative passed H.R. 1, the Economic Recovery Package, by a 244 to 188 vote. The bill contains a number of issues critical to REALTORS® and the industry, including the extension, until the end of 2009, of all … (5 comments)
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fha: If Your Score is Less than 620 - Interest Rates Are Going UP!
- 01/09/09 05:44 AM
Just received an update from a MAJOR investor that credit scores less than 620 are going to be priced SIGNIFICANTLY higher beginning Monday, January 12, 2009.
This is significant for folks who are purchasing, and using USDA or FHA/VA financing tools. The "hits" for scores between 600 and 620 today are .25. Meaning that it costs us almost a quarter of a discount point more to do a loan with those scores. In most cases, this means we can still get a rate of 5% for these folks.
According to the news bulletin, the new cost for doing a government loan … (12 comments)
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fha: FHA Loan Limits Wake County 2009
- 01/05/09 06:58 AM
If you are trying to sell a $300,000 home in Wake County, NC - you just lost the opportunity to sell to hundreds of buyers.
The FHA loan limit in Wake County changed January 1, 2009 from $295,000 to $271,050... then it changed BACK to the $295,000 level 2 months later!
FHA offers buyers one of the most flexible programs available, 3.5% downpayment, minimal "pmi," understanding credit history requirements and GIFT FUNDS are allowed!
(If you are a buyer, check out this website for more FHA info)
If you have questions about how this loan limit change affects you, please call us! Steve … (8 comments)
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fha: How Mortgage Rates Work Now
- 12/22/08 05:21 AM
In the "old days" (before the government had to get involved in lending), rates, and yield spread worked just like a ruler. A rate of 5%, might be "even" - meaning the broker charged a 1% origination fee (which they share with their company), and that was what they earned. A rate of 5.125% would pay them slightly more, a rate of 5.25% paid more (so you didn't charge an origination fee at this rate), 5.375 paid more, and at 5.5% you were earning enough, in most cases to pay part or all of the closing costs on the loan. It … (7 comments)
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fha: Problems Refinancing from Conventional Loan to a Government Loan
- 12/09/08 03:47 AM
For fun an giggles, let's say you bought a property in Feb. of 2008. You got a Heck of a Deal - and you purchased the home for $237,000. The appraisal in February was for $245,000 (and the appraiser thinks it's worth more now). The loan in February was a conventional 100% Community Reinvestment loan (those are no longer available). Your credit is good, you qualify, and since your rate is currently 6.875% - you'd like to refinance.
BAD NEWS! If you are in North Carolina, and you want to refinance you must wait until February of 2009, because there are no … (1 comments)
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fha: Change in Business Plans - Take out Fear of Financing (ASAP!)
- 11/12/08 01:11 AM
This is one of those NO BRAINER wake up calls we all need. I just finished Accountability Coaching - and they reminded me that I need 12 to 20 Exposures every day... not to my real estate partners, but to the PUBLIC. Writing notes, sending personal emails - reminding folks what I do.
Then I should have 3 presentations to Real Estate Partners A DAY... reminding them what I do, and helping them with their marketing!
Well, if you're a real estate partner that I meet in the next few weeks - this is going to be part of what we … (10 comments)
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fha: FHA Loan Limits Change in the Triangle 1/1/09
- 11/10/08 04:44 AM
EDIT! These loan limits CHANGED AGAIN on 2/24/2009. FHA limits as of THAT date in Wake County are now back to $295,000
According to the calculations done by HUD, and released in their recent Mortgagee Letter, the maximum FHA loan limits in Wake County will be $271,050 effective January 1, 2009.
If you are considering a purchase, you need to act soon, so that you can CLOSE BEFORE THE END OF THE YEAR.
Not only will the FHA loan limits be going DOWN from the current $295,000 - the amount of money needed for downpayment is going UP!
ALSO effective January 1st - the FHA … (11 comments)
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fha: The $7500 Downpayment Gift
- 11/07/08 04:16 AM
Maybe you heard that Uncle Sam, who has been giving money out to just about EVERYBODY lately, has a check waiting for you... if you buy a house before next summer!
What is it? How does it work?
This is a tax credit and not tax deduction. It is a true dollar for dollar reduction on taxes owed.
The credit can result in a true tax refund! If, for example, you were to get back zero on your 2008 taxes and you qualify for the full $7,500 credit, you would then receive a tax refund for $7,500.
The tax credit is … (9 comments)
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fha: FHA Mortgage Program is AWFUL!
- 10/20/08 08:11 AM
Use to be, I could get all the business I wanted just concentrating on my referral partners in Cary. With business such as it is, I now find myself heading further out to hook up with borrowers and referral partners. I've been listening to CNBC as the market works it's way up and down.
Maybe you've listened to XM too and heard the fella' who says, "It's the Biggest No Brainer In the History of Earth!"
The guy on XM now has a newer ad out about the Mortgage Bailout Bill. Click here and see if you think he might be … (17 comments)
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fha: When FHA Requires Cash Reserves
- 08/25/08 08:41 AM
We all know that FHA is going to require 3.5% downpayment in a few weeks (January 1) - but did you know that in some circumstances they also require the borrower to have two months of cash reserves?
If a borrower is applying for FHA financing and is relying on a NTMCR, (nontraditional credit), FHA Commissioner Brian D. Montgomery writes:
"Borrowers should have two months of cash reserves following mortgage loan settlement from their own funds (no cash gifts from any source should be counted in the cash reserves for borrowers in this catagory)."
As a general rule, if you're applying for … (2 comments)
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fha: NAHB Looking For Grassroots Effort
- 06/17/08 01:36 AM
The National Association of Homebuilders believes we need an Emergency Stimulus Bill... afterall, housing starts are at the lowest since 1991 (and as Tanta notes "completions followed starts off the cliff...).
The package, according to NAHB needs to include a "temporary tax credit for HomeBuyers," and, in thier Online Newsletter, they urge all members to contact their Representatives as part of a ground swell grassroots efforts. Apparently CTX has already sent 6000 letters!
"At the top of the list of provisions that are needed, he said, is a temporary home buyer tax credit to stimulate home buying and reduce excess inventory. To maximize … (3 comments)
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fha: Compensating Factors and FHA
- 06/10/08 12:25 PM
I was at a seminar today that reminded me of one of my favorite things about FHA...
the 5th C of Credit! We've all heard about the other 4 C's.
Cash: How much can you put into the property, how much have you saved? Credit: Do you have a credit history? If not, FHA will accept some non-traditional credit. Do you have a spotless credit history? If not, FHA might still be willing to insure your loan! Collateral: Do you have a property FHA wants to insure? Character: Have you moved 8 times in the last 3 years? Do you have … (3 comments)
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fha: Lessons of Leadership
- 05/20/08 05:37 AM
The Cary YMCA recently passed the baton from one group of leaders to another... the most interesting part was that these leaders were anywhere from 12 to 17 years old. The YMCA has a wonderful Leaders Club program for Middle and High School Students that creates interaction with over 75 students who volunteer each week and work to be leaders among their peers. We loved the banquet, and the intereaction we've had with our daughter through this program. I want to share their creed, and encourage parents with students who live in a community with a Y to explore the Leaders … (8 comments)
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fha: Commodities Market and Rates
- 04/18/08 08:36 AM
I'm Still on the prowl for lower mortgage interest rates... If you've read this blog before, you know that I think George Soros is one of the smartest guys in the room. Goerge was back in the news today helping me understand what happened to rates this week!
According to Bloomburg, "Billionaire George Soros said the boom in commodities is still in a "growth phase'' after prices for oil, wheat and gold rose to records.
"You have a generalized commodity bubble due to commodities having become an asset class that institutions use to an increasing extent,'' Soros said today at an … (5 comments)
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fha: New Law Allows More Brokers To Close FHA Loans
- 12/19/07 04:51 AM
Per conversations with members of Dole's staff - understand the following is accurate.
H.R. 1852 cleared House of Representatives mid-September. This legislation, loosely referred to as FHA Reform, is included in Dodd's Bill S.2338. Now that both the House and the Senate have FHA legislation, senior members of both the House and the Senate are able to take their respective versions into conference committee to work out the differences between the bills. Members in both the House and the Senate will want to keep certain provisions from H.R. 1852 in the final bill they will send to the President. It is important to remember … (6 comments)
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fha: Fed Guidelines on Subprime
- 12/19/07 01:00 AM
Not everyone is happy about the apparent "light touch" the Fed had in issuing guidelines yesterday regarding SubPrime Mortgages...
… (2 comments)
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Risk Based Pricing is a term now used by mortgage lenders to refer to how mortgage loans are Priced.
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