fha: FHA waives 2nd appraisal requirement for Bay Area - 11/28/09 04:37 AM

Effective immediately, FHA has rescinded the second appraisal requirements for properties located in San Jose and rest of the Bay Area (Considered declining markets). For Bay area borrowers where loan amounts can generally exceed $417,000 2nd appraisal requirement was a problem on 2 counts:
Increased fees towards appraisal (2 appraisals hence double the fees) Danger of loan getting declined or loan amount reduced if the value of the second appraisal came lower at the last moment The 2nd problem was a bigger risk if the borrower had removed his/her appraisal or loan contingency. It could potentially result into loss of earnest … (0 comments)

fha: Update to FHA San Jose Condo Approval Process - 11/12/09 03:36 AM

This update contains the temporary changes to the FHA Condo Approval Process for San Jose and rest of the Bay Area as outlined in Mortgage Letter 2009-46 B.
Here are the 6 things you need to know about these changes:
1. These temporary changes are effective on December 7th, 2009 through December 31st 2010; except for Spot Loan Approvals.
2. Spot Loan Approvals will be eliminated as of February 1st, 2010.
3. FHA loan concentration may be increased to 100% if the following criteria are met: a. Project construction has been 100% complete for at least 1 year, b. All units have … (0 comments)

fha: Get ready for 90 day escrow on a San Jose condo with FHA Financing - 10/12/09 12:54 PM

If you are planning to buy a Condo in San Jose or other parts of the state and planning to get an FHA loan keep reading. FHA has made some major changes to their condo guidelines and they go into effect of Nov 2nd, 2009. Some of the highlights:
Currently lots of condominium projects in the bay area is approved by FHA. However, any project approved prior to October 1, 2008 loses it's pre-approval and must re-apply. To find a list of approved projects, visit the HUD link https://entp.hud.gov/idapp/html/condlook.cfm. Make sure under approval method pick the option - "HRAP/DELRAP". Thats the new … (0 comments)

fha: FHA announces changes to 203 (k) Streamline Refinancing for San Jose - 09/21/09 05:02 PM

FHA recently tightened the credit standards for it's Streamline Refinancing Program for San Jose and rest of the Bay Area. So if you currently have an FHA loan and want to refinance into another FHA loan, you will be subjected to new parameters starting January 1, 2010. Below are the highlights per FHA mortgagee letter issued on 9/18/2009.
A. Seasoning
At the time of loan application, the borrower must have made at least 6 payments on the FHA-insured mortgage being refinanced.
B. Payment History
1) For mortgages with less than a 12 months payment history, the borrower must have made all mortgage payments … (0 comments)

fha: FHA implementing HVCC as of January 1, 2010 - 09/20/09 05:43 PM

It's finally happening. When I received the mortgagee letter yesterday from HUD, I must say I was stunned. Only few weeks back FHA commissioner had mentioned that he had no intention of implementing HVCC for FHA insured mortgages. But of all the changes that were announced to tighten the credit standards I personally think that this change is most critical and far-reaching.
Here are the highlights:
Mortgage brokers and commission based lender staff are prohibited from ordering appraisals. FHA does not require the use of Appraisal Management Companies or other third party providers, but does require that lenders take responsibility to assure … (1 comments)

fha: First HVCC, then MDIA and now DRASTIC changes to FHA - 09/20/09 05:41 PM

Federal Housing Administration (FHA), which insures lenders against losses on home mortgages, announced a series of changes that will have far-reaching impact on the housing market of San Jose, the entire San Francisco Bay Area and rest of the country.
Background -
The agency confirmed that, as of Sept. 30, it would fall short of a legal requirement that it maintain supplementary reserves of 2% of the loans it insures. Those reserves supplement a fund that provides for projected claims over the next 30 years. The extra capital cushion last year was about 3%, down from 6.4% in 2007. Falling … (1 comments)

fha: Buying a Condo in Bay Area - It won't be easy getting a mortgage! - 07/20/09 04:28 AM
A lot of surge in current Bay Area real estate market is being driven by First Time HomeBuyers. Some sources estimate that they now account for 50% of the market. A lot of First Time HomeBuyers end up buying condominiums since it fits into their budget. In this market of low property prices, you may be able to buy a condo for almost the same mortgage payment as the rent that you are paying. However, in last few months Fannie Mae & Freddie Mac have implemented lot of new guidelines for condos which will make getting a mortgage very tough. Lets … (0 comments)

fha: 6 Myths of FHA Lending - What's True What's Not! - 07/06/09 05:11 AM
Though FHA Lending now represents more than 30% of mortgages, there are still a lot of misconceptions that both real estate agents and the First Time Home Buyers have about this program. All the myths that I have listed below have been raised to me numerous times. I finally decided to post a blog on this so that I can clarify this to a much larger audience.
1. It takes longer to close an FHA Loan- Towards the 2nd half of last year when FHA loans started exploding, most of the lenders were caught off guard. They did not have enough trained … (5 comments)

fha: FHA vs Conventional Loans. Which one is better? - 07/01/09 03:44 AM
If you are asking the question - FHA vs Conventional Loans, which one is better? You are not alone. I was speaking at an FHA seminar for real estate agents in Fremont, CA recently. The topic was "How FHA loans are playing a big part in qualifying more First Time Home Buyers". At the end of the presentation, I was asked this question - "Are FHA loans really better than conventional". I had similar questions asked by Buyers and Real Estate agents in other forums too.
There is no black & white answer to it - because it all depends on … (3 comments)