fha mortgage: HUD to announce changes to FHA Mortgages Tomorrow (1/20/10)
- 01/19/10 02:38 PM
This was sent to us by Eric Egenhoefer, President of Waterstone Mortgage Corporation: FHA tomorrow will announce a series of changes designed to protect the federal agency that has emerged as the cornerstone of the mortgage market as the housing sector wobbles toward recovery. On the whole, mortgage lenders will find the new rules painful but necessary. The problem is that for the past 4 years, FHA was an "anything goes" environment. So they have a lot of catching up to do in terms of tightening up the rules. What makes this hard: With FHA hovering around … (1 comments)
fha mortgage: USDA 100% Financing, No Down Payment, Rates Back at 5.5% No Points/No Origination Fee
- 10/06/08 05:12 AM
Today's rates on a USDA Rural Housing loan are at 5.5% again with no points, no origination fee. There is a 2% financed funding fee but no monthly mortgage insurance. What does this mean to a person who is currently renting? They can buy a home at a sales price of $155,400 and have a payment less than $900, not including taxes and insurance. This $900 payment does include the financing of the 2% fee. Here are the sales prices that can be purchased to keep principle, interest and financed funding fee under a renter's current rent; these figures do not … (1 comments)
fha mortgage: USDA Rural Housing Loans (Mortgages) are Alive and Well!
- 09/15/08 05:45 AM
While many mortgage loan products are being scaled back due to associated credit risk, the USDA Rural Housing loan is still allowing borrowers to finance 100% AND THEN SOME to buy their homes. The USDA Rural Housing loan works a lot like a VA loan with a couple of differences that are beneficial to buyers with little or no cash on hand. A VA loan has a 2.15% funding fee for the first use; USDA loans have a 2% funding fee for all uses (in both the VA and USDA loan, the funding fee can be added to the loan amount … (1 comments)
fha mortgage: WORKING WITH THE RIGHT MORTGAGE LENDER SAVES YOUR CLIENTS MONEY!
- 08/31/08 06:23 AM
In this changing mortgage environment, there are occasions when a Loan Officer will get a call from a Realtor about helping their buyer secure a mortgage on a property they are buying and the Loan Officer is unable to do the deal for any number of reasons: they are not signed up with FHA or USDA Rural Housing, it is a condotel unit and there aren't many condotel investors left, etc. Recently, I have seen two different scenarios of the above that are NOT IN YOUR CLIENT'S BEST INTEREST: (1) the Loan Officer tries to convince the buyer to get a different loan … (3 comments)
fha mortgage: Buying a Home with TRULY NO MONEY DOWN!
- 08/31/08 05:29 AM
A Rural Housing loan is actually less costly than an FHA loan or a VA loan, in most cases. It also does NOT require the buyer to be a first time homebuyer. And a Rural Housing loan may allow a buyer to get in with NO MONEY WHATSOEVER - as the seller can pay all of their closing costs, including the escrows and prepaid insurance and taxes or, if the appraisal is sufficient, they can finance those costs the seller is unwilling to pay into their loan amount! For most of our clients, we get their EMD money back for them … (3 comments)
fha mortgage: Credit Score and FHA Loans
- 08/28/08 08:50 AM
FHA has no minimum credit score for buyers using this program. However, most investors have a minimum score requirement of 580. We have two investors who will go below this: one will go as low as 560 and one will go as low as 500. However, there has to be a credit explanation letter with extenuating circumstances as to why the credit score is as low as it is in order to be approved. Currently, FHA has different Mortgage Insurance costs depending on a buyer's credit score. We also work with a credit repair specialist who helped write the FICO model … (3 comments)
1.75% - Purchases and Qualifying Refinances1.5% - Streamlined Refinances3.0% - FHA Secure (Delinquent Borrowers) Annual MIP - 0.55% - over 90% LTV greater than 15 year term0.50% - less than or equal to 90% LTV greater than 15 year term Prior to July 14, 2008, the Up Front MIP was 1.5% and the Annual MIP was .50% in all cases; due to higher risk, they have changed how they charge MIP.
This was sent to us by Eric Egenhoefer, President of Waterstone Mortgage Corporation:;)
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