All articles in FHA Loans

Conventional 3% Down Mortgages 27 FAQ’s

Frequently Asked Questions and Answers to the new Conventional 97% Mortgage.

Is the Conventional 97 a government-backed mortgage program?

Yes, the Conventional 97 mortgage program is backed by the government. It’s offered via Fannie Mae only. The program is not available via Freddie Mac, nor is it available via the Federal Housing Administration (FHA), Department of Veterans Affairs (VA) or the U.S. Department of Agriculture (USDA).

Continue reading Conventional 3% Down Mortgages 27 FAQ’s

How much will the new FHA MIP Rules change save me?

Surprisingly, one of the brightest spots of the president’s State of the Union Address last night which might have received a standing ovation from both sides of the aisle barely received a passing mention!

The bright shining spot in his speech was the president’s recent directive to HUD regarding the FHA Annual Mortgage Insurance Premium. Effective January 26, 2015 the FHA is decreasing the annual mortgage insurance premium [MIP] from 1.35% to 0.85% benefiting most FHA loans issued since May 31, 2009 Continue reading How much will the new FHA MIP Rules change save me?

FAQ – The Government has reopened, for now; how is my mortgage affected?

After a 15 day government shutdown that seems to have accomplished little else  except forcing the federal government to admit they have to create a budget and soon, the Fed has opened for business. So now what? 

Internal Revenue Service

The IRS has already resumed processing the IRS Request for Transcript of Tax Return (4506t), a requirement of all loans today. The IRS has also resumed processing audits (joy).

Conventional, FHA Loans & VA Loans
As stated in a previous post, most Conventional, FHA Loans & VA Loans loans were not impacted by the government shutdown except for as stated above. Continue reading FAQ – The Government has reopened, for now; how is my mortgage affected?

FAQ – How Will a Government Shut-down Delay My Mortgage Loan Application?

faqThere’s been a lot of rhetoric coming from both sides of the congressional aisles these days; from Democratic and Republican parties and even a few in between. But  recently the media has begun reporting government shutdown fallacies as facts. I’ve stayed out of this very heated political discussion for obvious reasons, but when a client recently sent me this article Shutdown impact: Tourists, homebuyers hit quickly from of all places the Associated Press, I just had to respond.

Answer(s)

Continue reading FAQ – How Will a Government Shut-down Delay My Mortgage Loan Application?

FAQ – FHA ‘Back to Work; Extenuating Circumstances’ Explained

Normally HUD Mortgage Letters are pretty boring stuff but the FHA recently made headlines when they issued the HUD Mortgagee letter 13-26 dated 08/15/2013 with the subject ‘Back to Work – Extenuating Circumstances’.

This 15 page letter outlines how the FHA plans to make exceptions that will allow borrowers with troubled past related to the economic malaise commonly called the Great Recession, to reenter the market in a shorter time-frame. Continue reading FAQ – FHA ‘Back to Work; Extenuating Circumstances’ Explained

What’s a Streamlined FHA 203(k) Rehab Loan good for?

What Is a Streamlined FHA 203k Loan?

This loan can help you buy and repair a fixer-upper or what is sometimes called a Handyman special

FHA 203k loans are loans that are insured  by the Federal Housing Administration The federal government designed these loans to encourage lenders to fund seemingly risky home purchases. Risky, because they are homes that either don’t meet HUD standards for occupancy and are in need of major renovation or simply need some updating but the updates are causing the homes to fall short of market expectations.

FHA 203k loans raleigh nc
Your source for Raleigh-Cary area FHA 203(k) loans

A Streamlined 203(k)  FHA 203k loans is  designed for houses that are sorely in need of non-structural TLC. The loan covers not only the cost of the property but also the cost of necessary home repairs. The down payment requirement is low, 3.5% in Wake County and the maximum loan is 110% of the after improvement value or $295,000 the lesser of the two. Homeowners whose homes need improvement can also refinance with these loans. A vast range of repairs, including room additions, bathroom remodeling, roofing, and flooring and air conditioning systems can be funded with these loans. Continue reading What’s a Streamlined FHA 203(k) Rehab Loan good for?

FAQ – What is an FHA 203(k) loan good for?

FHA 203k loans raleigh nc
Your source for Raleigh-Cary area FHA 203(k) loans

What Is an FHA 203k Loan?

This loan can help you buy and repair a fixer-upper or what is sometimes called a Handyman special

FHA 203k loans are loans that are insured  by the Federal Housing Administration The federal government designed these loans to encourage lenders to fund seemingly risky home purchases. Risky, because they are homes that either don’t meet HUD standards for occupancy and are in need of major renovation or simply need some updating but the updates are causing the homes to fall short of market expectations.

There are two types of FHA 203(k) Rehab loans.

Traditional 203(k)

Streamlined 203(k)

Continue reading FAQ – What is an FHA 203(k) loan good for?

Private Mortgage Insurance helps lead the way in the Housing Recovery

Private Mortgage Insurers leading the way in housing recovery

Here's a link to Ricardo Cobos's mobile tool kit for mortgages: http://raleigh.mortgagemapp.com/mobile
Example of how PMI stretches your home-buying dollar.

 

One of the earliest indicators of the housing meltdown which began in 2007 was that issuers of Private Mortgage Insurance (PMI) began to contract their underwriting guidelines for issuing PMI policies.  In fact, so bad was the meltdown that many PMI companies either stopped issuing policies altogether while some were even forced file for bankruptcy protection. Continue reading Private Mortgage Insurance helps lead the way in the Housing Recovery