FHA
FHA is INCREASING the upfront mortgage insurance premium in April
February 28, 2012 by Financemyhome · Leave a Comment
I just got the news flash. It is going from 1% to 1.75%. Also, the allowed seller contribution to a buyer’s closing costs MAY decrease to 3% from 6%. The closing cost contribution change is still up for discussion. FHA loans have kept this market moving along. Now, with these changes, it is yet another obstacle getting in the way of a housing recovery. Why don’t they ask me? I’d be happy to tell them how to fix the housing crisis from a “boots on the ground” perspective.
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FHA
FHA UPDATE ON “Flipping”
January 7, 2012 by Financemyhome · Leave a Comment
90-Day Seasoning Waiver ExpandedThis update from FHA was released late last week as an industry email without a corresponding Mortgagee Letter and contains information about FHA’s policies regarding the waiver of the 90-day seasoning required for sellers.
Here are the 6 things you need to know:
1. The extension is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA.
2. Investors continue to be exempt from the 90-day seasoning rule.
3. All transactions must be arms-length.
4. No identity of interest can exist between buyer and seller.
5. If sale price is 20% or more of the seller’s acquisition cost, the lender must:
a) provide supporting documentation and/or a second appraisal and
b) order an inspection of the property and provide it to the buyer.
6. The waiver is limited to forward mortgages only.
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FHA
Insured Conventional Loan Vs FHA-Which Is Better
April 21, 2011 by Financemyhome · Leave a Comment
There are many factors that go into a loan decision-credit scores, down payment, debt ratios, etc. One big question is whether you should consider buying a home with an insured conventional loan using 5% down or applying for an FHA loan with 3.5% down. The information below might make that decision easier. In fact, if FHA continues to raise the cost of their monthly mortgage insurance-known as MIP-the decision may start to favor conventional loans with PMI-private mortgage insurance. Remember, everyone’s situation is different. This information just gives you one more way to look at financing your purchase.
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FHA
Gifts and Grants can be considered towards borrowers funds on certain 3% down conventional loans
March 14, 2011 by Financemyhome · Leave a Comment
Yes, you read that right. I just got an email today from a leading mortgage insurance company that is willing to underwrite this loan. You will need at 740 or better score. But, what an opportunity. In many ways, this is like FHA, but with a little higher credit threshold. The KEY difference, besides credit score, is the lack of an upfront MI (mortgage insurance) premium and as well as a smaller required monthly premium. This product could be a game changer for the MI company and conventional loans.
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FHA
FHA Upfront MIP Increasing to 2.25%
April 5, 2010 by Financemyhome · Leave a Comment
Due to an increase in foreclosures, FHA finds itself needing to increase the cost of mortgage insurance. The upfront MIP is increasing from 1.75% to 2.25%. FHA allows borrowers to purchase a home with 3.5% down. The borrowers using FHA often don’t have a lot of reserves or ability to put more down. The lack of financial resources coupled with a shaky economy has led to an increase in foreclosures. The insurance premiums are used to cover the mortgage losses. The monthly insurance cost of .55% of the loan will remain the same.
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