The buying public would sure be better off if all lenders were like Rebekah!
Staying on top of loan program changes has to be an extreme challenge, but by doing it she's making her clients' lives easier.
My hat is off to Rebekah!
October 1st brings 4 BIG changes to FHA, VA and USDA loan guidelines that offer two pre-Halloween tricks and two delicious treats for VA homebuyers.
VA Funding Fee Reduction – TREAT!
This is a real treat for any eligible current or ex VA service member! As of October 1, 2011 the VA funding fee will be reduced for all first time and subsequent users. The benefit to Active Duty Military in Colorado Springs, Colorado as well as Reserve and members of the National Guard is a significant reduction in the VA funding fee.
The amount of the VA funding fee required will depend on whether or not you have used your VA eligibility before, how much money you are putting down on the home and the term of your loan. It is also reliant on whether you served as active duty, the reserves or in the National Guard.
VA Loan Limits Extended – TREAT!
The Department of Veteran Affairs has extended loan limits through 2011 offering temporary relief to concerns that VA Loan Limits would be slashed in counties across Colorado. Current loan limits were set to expire as of September 30, 2011 and could have seen limits tumble along with FHA loan limits. The extension runs through All Colorado counties except those listed as “high cost” currently allow for loan amounts up to $417,000. This means that loan limits in El Paso, Teller, Denver and Pueblo counties remain unchanged.
VA loan limits do vary based on county and there are 7 counties in Colorado that fall into the high limit category. To determine what the VA loan limit is in your county, visit the U.S. Department of Veterans Affairs and view their loan limit guidelines. If your county is not listed, the official VA loan limit is automatically set at $417,000.
FHA Loan Limits Reduced October 1st – TRICK!
Congress extended FHA loan limits in 2009, 2010, and again in 2011 but now finds that the limits exceed necessary levels. The reduction in loan limits would not only affect high cost areas, but FHA, Fannie Mae & Freddie Mac loan limits across the state of Colorado.
Colorado is an area that will be severely impacted by the change as FHA loan limits drop anywhere from $50,000 - $153,000 depending on the county.
The FHA loan limits are determined not only by state, but county as well. Each year, HUD sets the FHA loan limits for all 50 states. Check your 2011 FHA Loan Limits.
USDA RD Guarantee Fee Changes October 1st – TRICK!
The USDA guarantee fee changes effective on any loans obligated on or after October 1, 2011. The fees for the Single Family Housing Guaranteed Loan Program will include both a new monthly fee as well as the traditional upfront fee. What this means is that if you have a loan currently in process, your loan is NOT obligated by USDA until a complete application package has been submitted by your approved lender.
The new fees are as follows:
With all of these guideline changes there is no doubt in my mind that chaos will ensue. Unfortunately, lenders that failed to obligate loans prior to October 1st will be required to re-disclose the new fees. I foresee delays and unhappy buyers as lenders scramble to adhere to these changes.
I suggest contacting your Loan Officer immediately with any questions or concerns!
Trick or Treat? Don’t Get Pranked by these 4 Loan Guideline Changes! was written by Rebekah Radice
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T: 719.387.1368 | Email: firstname.lastname@example.org | Website: http://rebekahradice.com |CO & NMLS Licensee: LMB100010938 & 288596 | Benchmark Mortgage dba Ark-La-Tek Financial Services, LLC | 12 E. Kiowa |Colorado Springs, CO 80903
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