fha: FHA Changes 9/14/15 - are you still approved? - 09/23/15 11:13 PM
FHA made some substantial changes to the underwriting guidelines that went into effect with FHA Case Numbers assigned after 9/14/15.  If you are a buyer that is "pre-qualified or pre-approved", now is the time to confirm with your Mortgage Loan Originator that you are still pre-qualified or pre-approved if you have not yet made your purchase.
The biggest change that will impact these pre-qualification for most first time home buyers is the position regarding student loans.  Now, regardless of deferment, the payment must be included in the debt to income ratio (DTI).  If no payment is listed on the credit report, an estimated payment … (3 comments)

fha: My New Announcement - May 2015 - 05/11/15 03:54 AM
I am pleased to announce that I have joined CrossCountry Mortgage this month. 
Whether you  or your clients are looking to purchase their first home, buy a luxury hone or are looking to invest in real estate as a part of their portfolio, I can help with all of these transactions.   We offer a broad portfolio of mortgage products that allow us to match the client's need.  Some of the specialty products we offer include:
*Bank Statement for self employed borrowers
*Construction to perm for clients interested in building a new home
*No-doc investment loans
 
In addition we offer all of the traditional mortgage products such as:
*Conventional … (5 comments)

fha: Second Chance for Homeowner's after a foreclosure or short sale - 12/08/13 08:37 AM
Second Chance for Homeowner's after a foreclosure or short sale. Yes there is hope but it will take some time.  The amount of time before another purchase can be made will be determined by the type of financing, the amount of your down payment and your CREDIT SCORE!
A foreclosure and sometimes a short sale can negatively impact your credit score by as much as 200 points.  It is going to take time to recover.  Remember there is no quick fix.  The best way to increase your credit score is by maintaining a perfect payment history and managing your account balances. … (7 comments)

fha: Dear Home Buyer, You'll Need to Save a Little More - 11/13/13 10:19 AM

Dear Home Buyer, you'll Need to Save a Little More for your down payment if you making a home purchase using conventional financing starting next week.  Yes, the minimum requirement is changing from 3% to 5% for this loan product.
So now for the $200,000 home purchase, your down payment will increase from $6000 to $10,000.  Now, please remember that any time your down payment is less than 20% your mortgage will require the mortgage insurance.  These premiums will be determined by the amount of your down payment and your credit score.  The lower your credit score, the higher the … (5 comments)

fha: Second Chance Mortgage - 09/15/13 09:13 AM

Wouldn't everyone like a second chance?  The Second Chance Mortgage is a program designed for individuals that have experienced an ecomonic hardship that resulting the loss of their home or filing a bankruptcy.  This is an FHA mortgage product that will help give many a second chance at homeownership.
Here are the basic requirements:
An economic event resulting in a loss of at least 20% of their income that last for more than 6 months. Maintained good credit prior to the ecomonic loss Has reestablished credit Has an 12 month rental history that is documented by canceled rent checks No … (45 comments)

fha: Verification of Rent - Do's and Don'ts - 06/23/13 11:11 AM
The verification of rent is a vital piece of the mortgage qualification procedure.  There have been many changes in the underwriting process for a mortgage.  If you want to borrow money, you have to prove you have a satisfactory payment history.  This applies to more than an application for a mortgage.  It applies to applications for car loan, or credit cards.
In the mortgage process, it doesn't matter if it is a conventional mortgage, FHA mortgage, VA mortgage or USDA mortgage, it is most important to show on time payments for your housing.  If you rent from an apartment complex, it can be … (44 comments)

fha: Verification of Employment Required - 06/23/13 10:47 AM
A Verification of Employment is required when you are applying for a mortgage.  It does not matter if it is a conventional mortgage, FHA mortgage, VA mortgage or USDA mortgage.  What most buyers don't know as that this may be checked more than once during the process.  It may checked before the underwriter reviews the file and again just before closing.
I like to make buyers aware of this since their assistance may be required to expedite the information.  In the last 30 days I have had two closing that were almost delayed because the buyer's employer would not respond to … (4 comments)

fha: How Much Money Do I Need to Buy a Home? - 05/19/13 09:48 AM
How much money do I need to buy a home?  Well, the simple answer is it will depend. 
The first question that needs to be answered is which financing program you are applying for.  Each program has their own minimum down payment requirements.  For example, the FHA mortgage will require a 3.5% down payment whereas, the USDA loan is a 100% financing program that does not require a down payment.  The conventional Homepath program only requires a minimum of 3%.  And of course, I can't forget the $100 down HUD program for the purchase of a HUD foreclosure.
Now that we have … (4 comments)

fha: FHA Renovation Loans - Consultant vs. Streamline - 05/13/13 10:06 AM
FHA Renovation loans are available in two different formats, streamline and consultant.  The consultant loan allows for more extensive repairs.  The streamline program caps the repairs at $35,000. 
 
The advantage of the FHA renovation loan, is that the underwriting criteria including credit, down payment, income and reserves are the same for the standard FHA 203(b) loan.  Please remember that in order to use the FHA program, the borrower must intend to occupy the home as their primary residence.
 
 
 
 
Here is the list of eligible and ineligible repairs for the Consultant Loans:
 
 
 

… (6 comments)

fha: High Credit Score Doesn't Guarantee Mortgage Approval - 11/05/12 10:40 AM
A high credit score doesn't guarantee mortgage approval, but having a good score will at least get you past the first hurdle.  Lately, that is how I have been viewing the mortgage process, a series of hurdles on the way to finish line (closing table).  
 
Depending on the financing program, a high credit score may be more closely scrutinized if there aren't many trade lines.  A trade line is the number of open and active accounts that are shown on the credit report.  It may be necessary to supplement the credit report by showing other types of accounts being … (10 comments)

fha: Is It Too Late to Refinance??? - 08/26/12 11:48 AM
Is it too late to refinance?  Maybe, maybe not.  Being able to refinance now depends on the type of mortgage you have on your home and if your account in good standing.

Here are the options:

FHA mortgage – This program allows for a streamline refinance to a lower interest rate without an appraisal.  This can be a huge benefit if your home has lost equity. 
 
FannieMae – A mortgage owned by FannieMae may be eligible for the DU Refi Plus program if it was originated prior to 2009 even if your mortgage is more than the … (4 comments)

fha: Atlanta Home Buyers need to know...Part 3 - 07/06/12 12:56 PM
Atlanta home buyers need to know just how important it is to maintain your financial status during the home buying process. 
Atlanta home buyers will be asked to disclose their assets on the mortgage application.  An asset can be a checking account, savings account, a 401(k), IRA, pension, stocks or bonds. In essence, any account that is currently held in cash or can easily be converted to cash.    
 
As part of your mortgage application and documentation, we are going to ask you for the last two statements for all of your asset accounts.  This is the same for … (0 comments)

fha: FAQ #9 Can I finance a house that needs repairs? - 06/08/12 12:35 PM
 FAQ #9 Can I finance a house that needs repairs?
 
Can I finance a house that needs repairs?  This is probably the second most asked question by many home buyers.   Why?  Many of the homes available in the marketplace are in need of substantial repairs. 
 
There are many cases homes where the HVAC units may need to be replaced because they have been removed, kitchens have been stripped of cabinets and appliances and even electrical fixtures are also missing.
 
The options for financing a home in need of repairs will depend if the property is for a … (6 comments)

fha: FAQ #4 How much can I qualify for if I want to buy real estate? - 06/03/12 08:51 AM
FAQ #4  How much can I qualify for if I want to buy real estate?
 
Have you every heard the expression, “That is a loaded question!”  If every there was one, that is it. 
 
How much you can qualify for will depend on the property type, meaning is the application for  a primary residence, second home or investment property? 
 
It will also depend on the type of financing program you decide on, is it conventional, FHA, VA, USDA or Jumbo.
 
In addition, the total amount of any other outstanding liabilities including any child support or … (6 comments)

fha: From a caterpillar to a butterfly - renovation loans - 05/08/12 04:35 AM
From a caterpillar to a butterfly is the best analogy for the purchase of a home in need of repairs when the home buyer uses one of programs designed to cover these repair costs.  There are three programs that may be available depending on the buyer's qualification, they are:
FHA 203 (k)
Homepath Renovation Loan
Homestyle Renovation Loan
This loan product allows for the costs of repairs, improvements, appliances, etc. to be built into the financing of the home. Repairs such as:
Carpeting
Cabinetry
Heating/Air Conditioning units
Painting
Roof repair or replacement
Windows
Appliances
There are some restrictions that should be noted:
… (18 comments)

fha: A Hugely Successful Day - 04/28/12 10:50 PM
Everyone has their own definition of success.  This past week, for me it was two closings for two first time home buyers.  
Each transaction was slightly different.  The first was a short sale where we waiting for 8 weeks for the bank to approve the short sale.  Once we had approval, it was 19 days to closing!  The compliments at the closing table were overwhelming.  The second was an FHA purchase with some repair issues that included potential lead base paint and consequently we encountered a few delays.  Even with the delays, everyone had smiles on their face as they … (9 comments)

fha: Credit History Is Necessary - 04/22/12 02:10 PM
There have been many changes in the underwriting process for a mortgage.  If you want to borrow money, you have to prove you have a satisfactory payment history.  This applies to applications for a mortgage, car loan, or credit cards.
In the mortgage process, the most important is showing on time payments for your housing.  If you rent from an apartment complex, it can be documented with a verification of rent.  If you rent from an individual, you must be able to document that payment history,  Ideally, payment by check is preferably, at minimum would be by money order.  The worst is … (12 comments)

fha: FHA Collections Policy Changes Delayed - 04/11/12 12:01 PM
This spring there will be many changes affecting the FHA mortgage program.  As of April 9, 2012, the Upfront MIP will increase to 1.75% for loans with a 3.5% down payment; and 1.2% for loans with a 5% down payment.  The maximum loan amount is still determined by county statistics.  You can check for the limit for your county by going to the HUD website County Loan Amounts.
 
Good news for home buyers that have not made their purchase if they have a collection on their credit report.  There was to be a significant change in policy regarding outstanding collections … (2 comments)

fha: Did you hear? FHA is making changes in June - 03/08/12 01:45 AM
Yesterday I wrote a blog about FHA changes taking place in April 2012.  
  Did you hear? FHA is making changes in April
Well, just when you thought it was over, there are changes coming in June 2012 too.


Effective June 11, 2012, there will be additional MIP increases on loans >= $625,500. There are a limited number of counties where loans are allowed to be at or above this limit. In GA the only county is Greene County that this would affect. More information will be provided as we get closer to that time frame. If you have … (3 comments)

fha: Did you hear? FHA is making changes in April - 03/07/12 05:42 AM
Yes, they are changing again!  This change goes into effect on FHA case numbers ordered on April 9, 2012.  Buyers should consider this if they are ready, willing and able to purchase now. 
The change is the Upfront MIP is going to 1.75% from 1% of the loan amount.  As an example, a $200,000 loan will now have a UFMIP payment of $3500 vs. $2000 now.
I can tell you from past experience, waiting until the last minute is NOT a good idea.  The system was so bogged down,  it took much longer for the numbers to issue.  You don't … (5 comments)