Government Loan Changes Effective October 1st

By
Mortgage and Lending with Fairway Independent Mortgage NMLS #196099
https://activerain.com/droplet/kvz

Government loan changes effective October 1st, will bring some tricks and some treats (in the spirit of Halloween)

 Trick or Treat?

Photo from Vegnews.com

FHA Loans will have lower sales price limits in the Washington DC Metro Area from $729,750 to a $625,000 for a single family home purchase.  This decrease is definitey a trick as many homebuyers will find it difficult to find purchase money loans for larger size homes and sales prices with lower down payments. 

Here is a list of counties affected from the HUD mortgagee letter in May. 

USDA Loans are a trick and treat. USDA is lowering its upfront financed guarantee from 3.50% to 2.00% but it has now added monthly mortgage insurance, which the no mortgage insurance was a great feature of this zero money down home loan. This is still a great loan product for buyers in "rural areas", but it will cost slightly more on a monthly basis. 

Veteran Home Loans are the treat of the bunch as the VA funding fee for VA Loans is set to decrease from 2.15% to 1.40% for first time users of the VA Home Loan Benefit. And from 3.30% to 2.80% for susbsequent use of the loan.This is great news for Veterans and active duty military looking to purchase a home with no money down in the Washington DC Metro Area.

Contact your Woodbridge FHA and VA Loan Lender @ 703-497-3936, I promise we make the mortgage process not so SPOOKY!

close

Re-Blogged 7 times:

Re-Blogged By Re-Blogged At
  1. Cheryl Ritchie 10/01/2011 12:06 AM
  2. Peggy James 10/01/2011 01:12 AM
  3. Beverly Femia 10/02/2011 03:51 AM
  4. Karen Steed 10/02/2011 04:17 AM
  5. Gene Riemenschneider 10/02/2011 06:37 AM
  6. Daniel H. Fisher 10/02/2011 09:31 AM
  7. Mary Macy 10/02/2011 09:49 AM
Topic:
Lending / Financial
Location:
Virginia Prince William County Woodbridge
Groups:
Military Relocations
VIRGINIA
Local Expert
Responsible Mortgage Lenders
Women And Their Business Hear The Roar
Tags:
fha loans
government loans
va home loans

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Rainmaker
614,242
Bill Reddington
Re/max Southern Realty - Destin, FL
Destin Florida Real Estate

Our loan limit here is $429K I think. Don't do many FHA loans here. Lots of VA and conventional. it is just getting harder to get financing no matter which program. Needs to change.

Oct 02, 2011 03:29 AM #28
Ambassador
696,596
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Markita, thanks for sharing the new changes that took place this month.  I like your analogy!  Congrats on a well deserved 5 Featured Posts

Pamela

Oct 02, 2011 03:46 AM #29
Rainer
117,810
Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

Thanks for getting it all on one fine post.  I've reblogged for our area.  all three, FHA, USDA and VA are important in our market.   

Oct 02, 2011 03:53 AM #30
Rainmaker
179,667
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty

Markita  - Thanks for the updates on the financing changes.  Great info for agents to have.

Oct 02, 2011 04:15 AM #31
Rainer
69,042
Gloria Matthews
Principal Property Brokers - Vancouver, WA
MAKING CLARK COUNTY HOME

Thanks for Sharing!!   I particularly am pleased to see the HUD document attached with the MAP!  boy it tells a story doesnt it!

Oct 02, 2011 04:42 AM #32
Rainer
58,256
Juan Bassett
Long & Foster - Germantown, MD
GRI

Thank you for sharing. A needed update.

Oct 02, 2011 04:54 AM #33
Rainmaker
193,502
Ben Yost - 303-587-4297
First Time Home Buyer, Mortgage Rates, Pre-Approval - Denver, CO
FHA, VA, Conventional - Mortgage Loans in De

Good Post Markita!

The Gov't just can't leave anything alone!

Then they wonder why there is still a housing crises!

 

Oct 02, 2011 06:05 AM #34
Rainer
452,219
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Regardless of circumstances securing financing has been and shall remain difficult for most buyers until the fed is fixed. 

Oct 02, 2011 06:07 AM #35
Rainmaker
1,430,900
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Great and timely post.  Thanks for the information and have a great weekend.

Oct 02, 2011 06:36 AM #36
Rainer
34,255
Phil Amodeo ABR,CRS,e-PRO,SFR
C21 Scheetz - Carmel, IN
Carmel, Fishers, Geist, Indianapolis North

FYI - the reduced VA funding fee change has been delayed becauae the President has not signed the legislation. According to my lender, it will go into effect the ealier of November 17 or the date the Presdient signs it

Oct 02, 2011 09:00 AM #37
Rainmaker
1,430,924
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Yep, there are many people all upset about the lowering of those limits. I'm not sure that for a 729K home 3.5% down is the way to go? Is there really a market for it or are they just offering it? I've never had one EVER.

Oct 02, 2011 09:09 AM #38
Rainer
245,775
Daniel H. Fisher
www.FisherHermanRealty.com (704) 617-3544 - Charlotte, NC
MCRP - Charlotte Real Estate, NC or SC

Timely reminders about some upcoming changes in the mortgage industry.

Oct 02, 2011 09:27 AM #39
Rainer
338,207
Jana Holmstrup
Jana Holmstrup - CEO - Kings Mortgage Services, Inc. - Visalia, CA

Seems like Congress is playing games again - they just passed new legislation that will keep the VAFF at previous levels though November 17th - and will be effective as soon as the president signs it.  This means the announced lower fees might only be in effect for a very short time, and maybe not at all :{

This last minute craziness is, well, driving me crazy!  Need I mention the games with Flood Insurance... ?!!

Jana

Oct 02, 2011 11:08 AM #40
Rainmaker
245,483
Elisa Uribe Realtor #01427070
Golden Gate Sotheby's International - Oakland, CA
California Homes for Sale in the East Bay

Ah...they kept telling us this was going to happen and I'm glad some buyers were on top of the news with open ears. For those that weren't, well, if they find the house of their dreams, rates are still low;)

Oct 02, 2011 11:41 AM #41
Rainer
125,379
Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572
CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents - Monument, CO
Angel Realty, LLC

Thank you for posting. The VA portion of this is good news and will hopefully have a positive impact on local housing markets.

Oct 02, 2011 12:17 PM #42
Rainmaker
388,476
Rodney Mason
On Q Financial - Atlanta, GA
FHA 203(k) & HomeStyle Renovation-AL,FL,GA, SC, TN

VA announced on Friday that the Funding Fee reduction will not go into effect until November 18, 2011

Oct 02, 2011 01:49 PM #43
Rainmaker
144,599
Markita Woods NMLS#196099
Fairway Independent Mortgage - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

Thanks for everyones comments and I learned as stated above the VA Funding Fee decrease has been delayed until November 17th nonetheless it is still a "treat" for Veterans and active duty military looking to purchase a home. 

 

While mostly all other loan types have had stricter guidelines and increases in fees, VA loans have remained unchanged for credit guidelines and found a way to decrease costs.

Oct 02, 2011 04:02 PM #44
Rainer
16,791
Terry Gerling
Ultimate Realty - Saint Louis, MO

Good to hear on the va loans. I have a va buyer now.

Oct 02, 2011 05:34 PM #45
Rainmaker
589,415
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Markita,

Good post on the intricacies of the changes that just happened.

We do not always keep up on each detail of each loan.

Thanks

Phil

Oct 02, 2011 10:44 PM #46
Rainmaker
361,577
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

Thanks for the update.  The USDA loan is a very important option here in my rural market.

Oct 03, 2011 03:37 AM #47
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Rainmaker
144,599

Markita Woods NMLS#196099

Queen of Mortgages - FHA, VA, Conventional, USDA
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