al: Fannie Mae Eliminates 3% Down Mortgages
- 01/12/14 03:45 AM
In November 2013, Fannie Mae increased the minimum required down payment from 3% to at least 5% down on Primary Residences. This change was due in part to Qualified Mortgage and Ability to Repay regulations that went into effect on January 10, 2014.
The 5% minimum down payment requirement applies both to HomePath® and regular Conventional mortgages. HomeStyle® Renovation mortgages already required a 5% minimum down payment.
… (3 comments)
al: FHA 90 Day Flip Rule Extended Until December 31, 2014
- 01/11/14 09:05 AM
As a reminder, HUD has announced that the 90 Day Flip Waiver for FHA mortgages has been extended once again. On January 15, 2009, HUD announced a waiver to its restriction of a borrower being able to obtain FHA financing on a property that had been acquired by the seller in the 90 days preceding the sales contract date.
The initial Flip Waiver took effect on February 1, 2010. The expiration date of the initial Flip Waiver was set as 12 months from its start date. That originally had the waiver set to expire on January 31, 2011. Prior to the … (1 comments)
al: Why Your Pre-Approval Isn't Real
- 01/11/14 09:01 AM
The topic of a Borrower or Real Estate Agent requesting a Pre-Approval instead of a Pre-Qualification comes up quite frequently. The terms have been used so interchangeably for so many years now, so it is bound to lead to confusion. In today's market, you will most likely not be getting a true Pre-Approval letter though. Instead, a Pre-Qualification will be given to the Borrower.
Most lenders quit issuing true Pre-Approvals several years ago for a variety of reasons. One main reason for the change was to be in compliance with applicable Federal laws. RESPA laws that govern the GFE changed January 1, 2010 . When that … (9 comments)
al: Happy New Year's Day
- 01/01/14 06:24 AM
Happy New Year's Day from Prospect Mortgage. Wishing you a great 2014!!!!
We look forward to being your resource for all of your mortgage needs in 2014 and beyond. … (1 comments)
al: Prospect Mortgage Exclusive - Alabama HomePath Program 11-20 Financed
- 09/15/12 02:47 AM
A brand new Fannie Mae HomePath® opportunity is now available to Alabama investors. The Fannie Mae HomePath® loan program has now been expanded to allow up to a total of 20 financed properties (including those currently being financed) under an exclusive Prospect Mortgage loan program. No other lender in the country can offer this special financing to AL buyers.
Only Prospect Mortgage gives you the opportunity to capitalize on both the below-market prices of foreclosures owned by Fannie Mae and the ability to carry financing on up to 20 investment properties for each investor. Most loan programs allow only four to … (0 comments)
al: Refinance Today… Even If You Are Underwater on Your Alabama Mortgage!
- 07/10/12 11:57 AM
If you are underwater on your Alabama mortgage, owing more on your loan balance than your home is worth right now; you may be able to refinance to a lower interest rate under the Federal Housing Finance Agency’s Home Affordable Refinance Program (HARP). Refinancing now, while rates are at historic lows, may save you money each month on your mortgage payment! Loan-to-value ratios have recently been eliminated, meaning that it doesn’t matter how underwater you are on your mortgage!
To qualify for an Alabama HARP 2.0 refinance, borrowers must meet the following criteria: The mortgage must have been owned or guaranteed by … (0 comments)
· Name/address of seller’s mortgage company · Name, contact phone#, and job title for the seller’s lender representative · Property address · Sales price · Seller contribution amount toward closing costs/pre-paids · Borrower’s name(s) · Expiration date of approval letter
If your short sale approval letter does not contain all of the above information, you may have a challenge with your mortgage approval.
al: HUD Expands Identity of Interest Definition for FHA Mortgages
- 03/06/12 12:57 AM
For all FHA mortgages, HUD recently revised its Family Member definition for Identity of Interest. The definition of a family member, for purposes of Identity of Interest transactions has been expanded to include: · Brother, stepbrother · Sister, stepsister · Uncle · Aunt
These changes are in addition to the previous definitions including:
· Child, parent or grandparent · Spouse · Legally adopted son or daughter, including a child who is placed with the borrower by an authorized agency for legal adoption · Foster child
An identity of interest transaction is a … (2 comments)
al: REBuildUSA Partners With Lowe's for FHA 203K Renovation Mortgages
- 01/25/12 12:11 PM
REBuildUSA has partnered with Lowe's Home Improvement Stores to assit home buyers and home owners. An FHA 203K loan allows you to purchase or refinance and renovate a home in one easy loan. Your loan is based on the after-improved value – what the house will be worth once the renovations are complete.
There are no costs to you to enjoy the convenience and time saving benefits of REbuildUSA™. As your 203K Renovation Lending Specialist, I will help you understand all the features of the loanI look forward to answering your questions about the loan program and guiding … (1 comments)
al: HUD Extends FHA 90 Day Flip Waiver Until December 31, 2012
- 12/26/11 02:53 PM
As anticipated, HUD has announced that the 90 Day Flip Waiver for FHA mortgages has been extended once again. On January 15, 2009, HUD announced a waiver to its restriction of a borrower being able to obtain FHA financing on a property that had been acquired by the seller in the 90 days preceding the sales contract date. The inital waiver took effect on February 1, 2010. The expiration date of the waiver was set as 12 months from its starting date. That originally had waiver set to expire on January 31, 2011. HUD issued an extension through December 31, 2011. The 2nd extension is now … (12 comments)
The Federal Housing Finance Agency (FHFA) has announced 2012 conforming loan limits. The agency base conforming and high-cost area loan limits will remain at the existing 2011 levels through December 31, 2012. The only county to see an increase is Fairfield County, Connecticut.
The base conforming loan limit remain at its current level ($417,000 for 1-unit properties in the contiguous United States). Some high-cost areas of the country can exceed the $417,000 limit though. For those areas, the current maximum high-cost limit is $625,500 for a 1-unit single-family property in the … (2 comments)
The Federal Housing Finance Agency (FHFA) has announced 2012 conforming loan limits. The agency base conforming and high-cost area loan limits will remain at the existing 2011 levels through December 31, 2012. The only county to see an increase is Fairfield County, Connecticut.
The base conforming loan limit remain at its current level ($417,000 for 1-unit properties in the contiguous United States). Some high-cost areas of the country can exceed the $417,000 limit though. For those areas, the current maximum high-cost limit is $625,500 for a 1-unit single-family property in the … (2 comments)
al: Tips to Successfully Obtaining a Mortgage in Today's Lending Environment
- 10/16/11 02:23 AM
With today's tightened lending guidelines, it is critical for buyers and agents to understand what it needed to successfully obtain mortgage financing today. This post was inspired by Buyer frustrated over the mortgage process in Key West Florida. written by Elizabeth Birmingham. In it, she brings up a lot of today's challenges faced by buyers and agents. By being better educated, agents can also do their part to lessen the negative impact. Many of the issues that she mentioned below are there for very valid reasons given the current state of the real estate market. 1. Bad Credit scores are now between 620 and 660. The bank usually … (10 comments)
al: Bank of America to Exit Retail Mortgage Lending in Six States
- 10/07/11 05:33 AM
Yesterday, Bank of America, the 3rd largest retail mortgage lender in the country, announced its decision to exit retail mortgage lending in six states. Citing low mortgage volume, Bank of America will exit retail mortgage lending in the six states of Alabama, Alaska, Montana, Nebraska, Wisconsin, and Wyoming. National Mortgage News confirmed the announcement with a Bank of America representative. The bank said that it will continue to serve customers in those six states with its online and telesales divisions. Bank of America's retail exit comes only days after the company announced that it will soon close its correspondent mortgage lending division. The company ranks as the 2nd … (11 comments)
al: USDA Mortgage Closings on HOLD Until Funding Has Been Restored
- 10/06/11 03:25 PM
Under USDA’s fiscal calendar, annual USDA funding for fiscal year 2011 expired as of September 30, 2011. Until such time as new funding is authorized, USDA offices will not be able to issue conditional commitments. Most lenders will continue to originate and process USDA loans. Actual closings will not occur on these USDA loans until such time as funding is restored and a commitment has been issued by the USDA office. Loans currently approved with a previous commitment issued may be closed as scheduled and will not be impacted. … (6 comments)
al: HVCC and It's Influence on Today's Appraisal Standards
- 09/04/11 06:59 AM
The Home Valuation Code of Conduct (HVCC) was implemented in May 1, 2009 by the Federal Housing Finance Agency (FHFA). It was designed as an attempt to improve the independence of appraisers. It contained provisions that prohibit lenders and third parties from influencing appraisals to arrive at a certain value. According to NAR, the HVCC establishes standards on solicitation, selection, compensation, conflicts of interest and appraiser independence. Mortgage brokers and real estate agents are prohibited from selecting appraisers. Lenders are permitted to use “in house” staff appraisers to conduct appraisals. However, the loan production staff is prohibited from: 1) Selecting, retaining, recommending, or influencing the … (8 comments)
al: FHA 203(k) Maximum Loan Amount
- 08/30/11 02:33 PM
The FHA 203(k) maximum loan amount is the lesser of: Purchase price (or “as is” value for refinances) plus rehabilitation costs OR 110% of “After Improved” valueTIMES The LTV factor (96.5% for a purchase) or less the allowable down payment ($100) for a HUD REO Property NOT TO EXCEED Maximum county loan limit for the local area
… (0 comments)
al: The End of PMI.....Soon All Conventional Mortgages Will Require 20% Down
- 08/21/11 11:47 AM
Is the end of Private Mortgage Insurance for conventional mortgages near? The question begs to be answered after recent events of the last few weeks. On Friday, the New York Stock Exchange delisted The PMI Group, Inc. Later in the day, they were informed that August 19, 2011 was their last day to issue new MI policies. This comes after the August 3, 2011 announcement from Republic Mortgage Insurance Company (RMIC) that they will cease issues new MI policies on August 31, 2011. That is after Fannie Mae announced on July 27, 2011 that they would no longer purchase any mortgages with MI issued by RMIC. Freddie Mac … (6 comments)
al: Why Do Lenders Prefer a Short Sale Over a Foreclosure???
- 08/13/11 03:25 PM
Why do lenders prefer a short sale over a foreclosure is a common question asked by buyers and sellers. The reason all comes down to money. Any home owner that does a short sale or has a property go into foreclosure ends up costing their mortgage company a lot of money. When a seller does a short sale, it ends up costing the lender about 20-30% less than if they have to foreclosure. Maintaining a foreclosed property is an expensive understanding for a mortgage company. The legal fees associated with a foreclosure can be costly for the lender. They also have … (15 comments)
In November 2013, Fannie Mae increased the minimum required down payment from 3% to at least 5% down on Primary Residences. This change was due in part to Qualified Mortgage and Ability to Repay regulations that went into effect on January 10, 2014.
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