ga: Can I Finance Mortgage Payments Into My FHA 203K Mortgage? - 03/10/11 01:46 PM
The answer to this question is yes.   With a Consultant FHA 203K Renovation mortgage, HUD allows for up to 6 months of PITI to be financed into your new FHA 203K mortgage.  This allows borrowers the ability to more easily maintain two homes for a brief period of time. 
The maximum number of months depends on how long the HUD Consultant indicates that the property will be uninhabitable due to the renovations.  This means that the number will vary between 1-6 months depending upon the complexity of the project.
For minor to light renovations, you might expect 1-2 months to be escrowed.  If the … (2 comments)

ga: HUD Temporary Flipping Waiver Extended Until December 31, 2011 for FHA Mortgages - 03/10/11 01:05 PM
HUD has announced that its temporary waiver of the 90-day flipping restriction is now in effect until December 31, 2011.  There are no changes to the Flip Waiver that was previously issued. 
The Flip Waiver is still subject to certain conditions.  In order to be eligible for FHA financing, the mortgages must meet these conditions to take advantage of the waiver.  The complete text of the waiver extension, including conditions the waiver is limited to, is available on the HUD website.
Some of the Flip-Waiver provisions include:
1. The amount of the Rehab/Repair may not be added as part of the Seller's acquisition costs.2. 2nd … (2 comments)

ga: Georgia Dream Program Changes - Effective March 1, 2011 - 03/06/11 01:51 PM
The GA Department of Community Affairs has announced some changes to its Georgia Dream down payment assistance program guidelines.  The changes are effective on March 1, 2011.  Some of the highlights are listed below.
Household Income Limitations
For homes purchased in the Atlanta MSA:Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, Dekalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding or Walton Counties
Your total household income based on the number of people living in the home can be no more than:
One to Two persons $71,000Three or more persons $82,000
… (2 comments)

ga: Freddie Mac Reduces Maximum Loan to Value - 03/05/11 02:36 PM
On March 1, 2011, Freddie Mac announced that it will be lowering its maximum loan to value.  The reduction will be effective with all Freddie Mac conventional mortgages with a settlement date on or after June 1, 2011. 
Maximum financing requirement lowered to 95% LTV/TLTV/HTLTV Only exception will be Relief Refinance Mortgages Home Possible Mortgages will also be reduced to 95% The change will not be overly impactful as mortgage insurance over 95% LTV is still difficult to obtain for conventional mortgages. 
 
 
 
 
… (4 comments)

ga: Can I Close on an FHA Mortgage If the Utilities Are Off? - 03/05/11 12:59 PM
 Can I close on an FHA Mortgage if the utilities are off?
The typical answer is no.  All traditional FHA mortgages require that all utilities must be on at the time of the appraisal inspection.  It is also required that all related systems are functioning properly at the visit.
However, the FHA 203K Renovation mortgage does not require that utilities be on for the appraisal to be acceptable.  With many foreclosed properties, all utilities may not be able to be turned on.  This is often due to missing/stolen wiring, copper pipes, HVAC unit.  When the utilities are off, the normal 10% Contingency Fee … (2 comments)

ga: Does Your Georgia 203K Lender Have an In-house Draw Department???? - 03/05/11 12:16 PM
Does your 203K lender have an in-house Draw Department????
This is one very important question that most Georgia buyers and real estate agents fail to ask when comparing mortgage companies that offer FHA 203K Renovation mortgage program.  There are many mortgage companies who do "offer" FHA 203K mortgages.  Most often, they only offer the Streamline version of the program.  Very few also offer the Consultant version of the program.  Surprisingly, even less of them actually have an in-house draw department.  In fact, there are only a handful of 203K lenders with an in-house draw department.
Why is this important, you might ask????
It is … (0 comments)

ga: Prospect Mortgage - #2 Volume FHA 203K Renovation Lender for 2010 - 02/27/11 03:14 AM
The US Department of Housing and Development has released its FHA 203K Endorsement Report.  It is for the Fiscal Year ending September 30, 2010.  In the period of October 1, 2009 - September 30, 2010, HUD ranks Prospect Mortgage as the #2 volume FHA 203K lender in the country.  For the 2010 Fiscal Year, Prospect Mortgage closed 928 FHA 203K Renovation mortgages.  A total of 22,491 FHA 203K loans were endorsed by HUD in the 2010 Fiscal Year by all mortgage companies.
The most shocking data comes from the number of companies that closed less than 5 of these loans.  In Atlanta … (7 comments)

ga: Free Yogurt on March 3rd - Pinkberry Buckhead - 02/22/11 02:05 PM
The new Pinkberry in Buckhead is celebrating their grand opening on Thursday, March 3rd.  For the occasion, they are giving away free yogurt that day. 
Pinkberry flavors include:
Original Blood Orange (seasonal) Chocolate (seasonal) Coconut (seasonal) Mango (seasonal) Pomegranate (seasonal) Stop by from 6 pm - 10 pm on March 3, 2011 and get your free yogurt. 
3637 Peachtree Rd, Atlanta, GA 30319
The new Buckhead location will be the third Pinkberry in Georgia.  It joins locations at Akers Mill in Atlanta and Merchant's Walk in Marietta.
Be sure to check out more deals with the Atlanta Bargain Hunter at ajc.com. 
 
 
 

… (3 comments)

ga: Legoland Discovery Center To Join Phipps Plaza - 02/20/11 05:53 AM
LEGOLAND Discovery Center has announced plans for a Phipps Plaza location in Atlanta.  The 32,000 square foot attraction is slated to open in March 2012.  It will join mall anchors Saks Fifth Avenue, Nordstom, and Belk.  The upscale mall is also home to high end retailers Barney's New York CO-OP, Giorgio Armani, Gucci, Hugo Boss Tiffany & Co, and Versace. 
Other LEGOLAND Discovery Center locations in the US can be found in Chicago and Dallas/Forth Worth.  Internationally, there are Manchester, England and Berlin and Duisburg, Germany locations.  A LEGOLAND California Park is located in Carlsbad, California.  A LEGOLAND Florida Park in Winter Haven, Florida is set to open in October 2011.  
Construction will … (2 comments)

ga: HUD Announces Changes to FHA Mortgage Insurance Premiums - Effective April 18, 2011 - 02/14/11 01:29 PM
On February 14, 2011, HUD announced that it will adjust its FHA Mortgage Insurance Premiums effective April 18, 2011.  This change is outlined in HUD Mortgage Letter 11-10.  It will increase monthly premiums by 25 basis points on that day. 

In order to obtain the lower MI premium, the FHA Case number must be assigned on or before April 17, 2011.  Since that date is a Sunday, the last business day will April 15, 2011......Tax Day.  Coincidence maybe????
These changes all take effect just 6 months after HUD's last mortgage insurance premium change.  The Upfront Mortgage Insurance Premiums will remain unchanged at this … (8 comments)

ga: When Can I Get My Draw on My FHA 203K Consultant Mortgage? - 02/13/11 03:22 PM
When can I get my draw funds disbursed on my FHA 203K Consultant mortgage?  This is one very critical question that most borrowers fail to think about and ask upfront. 
When doing an FHA 203K Consultant Renovation mortgage, one very important aspect that many fail to consider is the draw process.  Once you have closed on your FHA 203K mortgage, your draw funds will need to be disbursed so that your contractor can be paid.  The Consultant 203K program does not allow for any of the renovation costs to be paid out up front prior to the work being completed. 
How the mortgage company handles that … (7 comments)

ga: When Can I Get My Draw on My FHA 203K Streamline Mortgage? - 02/13/11 03:05 PM
When can I get my draw funds disbursed on my FHA 203K Streamline mortgage?  This is one very critical question that most borrowers fail to think about and ask upfront. 
When doing an FHA 203K Streamline Renovation mortgage, one very important aspect that many fail to consider is the draw process.  Once you have closed on your FHA 203K mortgage, your draw funds will need to be disbursed so that your contractor can be paid.  The Streamline 203K program allows for up to 50% of the renovation costs to be paid out up front prior to the work being completed. 
How the mortgage company … (2 comments)

ga: FHA 203K Renovation Mortgage Flow - 02/13/11 05:27 AM
FHA 203K Renovation Mortgage Flow

When using an FHA 203K Renovation mortgage to purchase a home, there is a flow that needs to be followed.  When the proper course is followed, the FHA 203K approval process goes much smoother.
 

For all of your FHA 203K financing needs, call (404) 591-2453.
 
… (2 comments)

ga: Why Do I Need a Letter of Explanation? - 02/11/11 02:56 PM

In today's ever changing lending environment, there are still underwriting requirements that many borrowers do not understand the need for.  Letters of explanation have become much more commonplace in today's mortgage approval process in the last 3 years.  A letter of explanation can be required to explain a variety of issues. 
Some of the most common needs for a letter of explanation are:
Credit inquiries Derogatory items or late payments on credit report Previous bankruptcy Previous foreclosure Job gap Living rent free Motivation to purchase a new home when current home has not been sold Large deposits These letters give the … (0 comments)

ga: Can I Write a Personal Check at Closing? - 02/11/11 02:40 PM
Can I write a personal check at closing?
The usual answer to this question is no.  Most closing attorneys/title companies can/will only accept a personal check for a few hundred dollars.  The typical maximum is around $500 or $1,000.  Funds for a real estate closing typically need to be in the form of a certified or cashier's check or wired to the closing attorney's escrow account. 
Sometimes, the closing agent for foreclosure properties will be located out of state.  In this situation, a wire will be required.  The use of a check in this case will cause a delay in the funding of the transaction.
Knowing … (2 comments)

ga: 580+ FICO FHA Lending Makes a Comeback - 01/31/11 02:10 PM
Yes, it is true.  FHA mortgages for 580+ FICO borrowers are making a comeback.  In the last 2-3 years, the minimum credit score requirement for FHA loans has changed many times. 
Just a few short years ago, there was no minimum credit score required for an FHA mortgage.  Soon, most all mortgage companies began requiring a 580+ minimum FICO.  A while later, that minimum score requirement was raised to 620+.  Last October, many lenders went to a 640+ FICO on all FHA mortgages. 
All of these changes were in response to the Secondary Mortgage market.  While the Secondary Market in general has … (6 comments)

ga: Real Estate Agents - Fact or Fiction.... Learn the Underwriting Requirements of 2011 - 01/04/11 03:17 PM
As we begin 2011, underwriting guidelines remain the tightest that many in the mortgage and real estate industries have seen in recent years.  Today's rules/requirements echo those of the pre-2000 era.  Given that a great number of today's players in the real estate industry have been in the industry less than 10 years, many simply cannot understand these changes.  For those who have been in the business longer, many of those have forgotten the old days when today's guidelines were common practice.  Every still has the 2005-2006 era stuck in their head.  That is now what is know as HISTORY.  It's … (14 comments)

ga: How Much Money Do I Need to Bring to Closing? - 01/02/11 06:08 AM
How Much Money Do I Need to Bring to Closing? 
This is a question that gets asked early on with every closing.  The reality is that its too early to have an exact amount.  At the time of your loan application, you are provided with an estimate that details your total estimated settlement charges.  This is your best estimate that is available. 
The lender fees from the estimate should not change.  Once the actual closing attorney/title company fees are available, they will then be updated on the estimate.  The closing attorney/title company will also provide the actual property tax amount.  It is … (6 comments)

ga: What Is An Underwriting Guideline Overlay? - 01/01/11 05:23 AM
Why does it sometimes seem that underwriting guidelines vary from mortgage company to mortgage company?  Well, it is because, sometimes they do.  Each agency (Fannie Mae, Freddie Mac, FHA, VA, USDA) sets the minimum guidelines for the approval of a mortgage that they will back if it defaults.  An overlay is when a mortgage lender adds an additional restriction to their guidelines.  One huge misconception is that
There are many types of overlays.  Some of the most common include:

When an Underwriter makes a condition that someone doesn't agree with, they are not just doing it because they want to.  There is a valid reason behind it. 
… (2 comments)

ga: Fannie Mae Announces Increased Mortgage Rate Pricing Adjustments Effective Spring 2011 - 12/27/10 03:23 AM
On December 23, 2010, Fannie Mae announced an increase to its mortgage pricing structure.  This new pricing is effective with mortgage loans with purchase and mortgage backed securities delivery dates after April 1, 2011.  You can expect to see all mortgage lenders implement these pricing changes in February or March in anticipation of the April 1st deadline. 
With this change, even 740+ borrowers will see the cost of their mortgage rates rise.  Currently, Fannie Mae views 740+ as the top tier and does not have any credit score pricing add-ons for those borrowers.  Those borrowers will soon see a .25% pricing hit for all LTV's … (5 comments)