Credit Score for FHA Mortgage

March 17, 2013 by 4 Comments

You're a Smart Chick! Buy a Home!Wouldn’t it be FUN to own a home?  Your own backyard, your own bedroom you can paint anyway you want? AND… get cash back from Uncle Sam?!  Minimum credit score requirements for FHA Loans in NC are pretty low, and you can get a down payment GIFT or Assistance from the State of NC to buy a house!

The most important thing to remember is that you need a 12 month history of making payments on time.  If you are currently behind on ANY credit card, or car payments (or RENT!) catch them up!  Get a second job, call your parents, clip coupons, only pay cash – make Birthday Presents… borrow clothes from your girlfriend… BUT GET THEM CAUGHT UP!

Once you get that on track, look at how many Credit Cards you have.  Revolving Credit is going to be the FASTEST way to get your scores higher.  Secured Credit Cards might be the answer for you – or you might want to see if you can get added to a family member’s credit card account. [Read more...]

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FHA PMI Rates and Duration Changes 2013

February 14, 2013 by 4 Comments

FHA pmi ratesEffective April 1, 2013 these are the new FHA PMI Rates.  In general, the FHA PMI Rates 2013 will only be slightly higher than last year.  There are two kinds of FHA PMI Insurance.  To calculate your FHA PMI Premium – take your Loan Amount and multiply it by the UFPMI rate (which will likely be 1.75%).  Add that PMI Dollar Figure to your loan amount.  That’s what your principal and Insurance is going to be based upon.

Then that that TOTAL Loan Amount (including your Upfront PMI) and multiply that by the Annual FHA PMI Rate.  Divide that number by 12.  You will have THAT amount added to your Principal and Interest Payment with loans that have case numbers pulled after the end of March 2013.

Additionally, you will note that the new effective annual FHA PMI rates for loans with an LTV of less than or equal to 78 percent and with terms of up to 15 years have gone from ZERO to .45%. The new annual FHA PMI changes ONLY for these loans is effective for case numbers assigned on or after June 3, 2013.   Section 248 (Indian Reservations) will not be affected by this change.

Are you ready to do a FHA Streamline Refinance? We offer the cheapest mortgage rates available! Call Steve and Eleanor Thorne 919 649 5058

Term > 15 Years
Base Loan Amount

LTV

 Effective Annual PMI UFPMI
≤$625,500 ≤ 95.00% April 1, 2013 1.30 % 1.75%
≤$625,500 > 95.00% April 1, 2013 1.35 % 1.75%
Above $625,500 ≤95.00% April 1, 2013 1.50% 1.75%
Above $625,500 > 95.00% April 1, 2013 1.55% 1.75%
NOTE! Guideline Change. NO MATTER What the LTV is, there is a FHA PMI fee

Term > 15 Years
Base Loan Amount

LTV

 Effective Annual PMI UFPMI
≤$625,500 ≤ 90.00% April 1, 2013

.45%

 1.75%
≤$625,500 > 90.00% April 1, 2013

.70%

 1.75%
Above $625,500 ≤ 90.00% April 1, 2013

.70%

 1.75%
Above $625,500 > 90.00% April 1, 2013

.90%

 1.75%
Exception: New Streamline Refinances previously endorsed on or before May 31,2009
Base Loan Amount

LTV

 Effective Annual PMI UFPMI
Any Amount

Any

 June 11, 2012

.55%

 .01%

Note that FHA has also issued guidance regarding how long FHA PMI will be on the loan. Effective June 3, 2013 the following will be in effect:

Previous and New FHA Annual PMI Duration
Term

LTV

 Effective Previous New
≤ 15 yrs ≤ 78 April 1, 2013 No annual MIP 11 years
≤ 15 yrs > 78 – 90.00 April 1, 2013 Cancelled at 78% LTV 11 years
≤ 15 yrs > 90.00 April 1, 2013 Cancelled at 78% LTV Loan term
> 15 yrs ≤ 78 April 1, 2013 5 years 11 years
> 15 yrs > 78 – 90.00 April 1, 2013

Cancelled at 78% LTV & 5 yrs

 11 years
> 15 yrs > 90.00% April 1, 2013

Cancelled at 78% LTV & 5 yrs

 Loan Term

Are you ready to do a FHA Streamline Refinance? We offer the cheapest mortgage rates available! Call Steve Thorne 919 649 5058

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Panel Tells Congress FHA Should be 5% Downpayment

February 8, 2013 by Leave a Comment

fha_pmi ratesLast fall FHA reported to Congress that they had a loss on their books, mostly from the loans made between 2005 and 2009. This is not surprising, and to create a situation where they would not need to ask Congress for more funds – FHA Announced two changes to FHA PMI that will go into effect later this month.

An independent (conservative) panel which included Director Julia Gordon of Housing Finance and Policy at the Center for American Progress, spoke to the House Financial Services Committee this week:

Similarly, real estate professor Anthony Sanders with George Mason University said there needs to be a shrinkage of the government’s footprint in housing.

With the FHA’s share of mortgage originations at more than 25%, it’s time for the agency to shrink back to its previous size, such as in 2003 when it’s market share stood at 10%, Sanders said.

Thus, to protect households and taxpayers Sanders encouraged a FICO-score floor of 660 for FHA-insured loans. Additionally, the FHA should adjust to a minimum down payment of 5% and also lower the loan limit to $625,000 and eventually to $350,000, Sanders asserted. Finally, the agency should lower the insurance coverage to 80%, the professor suggested.

“All these measures can serve to reduce the FHA’s substantial, high-risk footprint in the mortgage market,” Sanders told the Committee. [Read more...]

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FHA Loans Asheville Buncombe County NC

February 7, 2013 by Leave a Comment

FHA Loans asheville ncFHA Sales Price Limit for MSA Asheville, NC

Buncombe County, NC

  • One Family Dwelling:  $303,750
  • Two Family Dwelling:  $388,850
  • Three Family Dwelling:  $470,000

If you are interested in purchasing a Quadraplex, please call us for more details.  While this is a great investment strategy for some, there are many details that we will need to go over with you.

Maximum Income Limits in Asheville, NC [Read more...]

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FHA Healthy Homes Initiatives

February 5, 2013 by Leave a Comment

you can buy a home!FHA announced a new initiative that could change some property guidelines later this year.  With the new Healthy Homes Initiatives the program hopes to:

The overall vision for the Strategy is to reduce the number of American homes with residential health and safety hazards, achieved through five goals:

1)      Establish healthy homes recommendations

2)      Encourage adoption of healthy homes recommendations

3)      Create and support training and workforce development to address health hazards in housing

4)      Educate the public about healthy homes [Read more...]

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FHA Streamline Refinance of Investment Property

January 10, 2013 by 4 Comments

home in ralieghFHA Mortgage Loans are generally only available to folks who are going to live in the property – the EXCEPTION is if you already own the home, and you want to refinance it.  If you purchased a home with a FHA mortgage, then moved out, and are renting it (so now it’s Investment property) you might be eligible for a Streamline Refinance.  

We can close a  FHA Streamline Refinance of Investment Property.

Obviously, the benefit of the FHA Streamline is greater for folks who purchased the home, and have a loan that was endorsed by FHA prior to June 1, 2009.

UPDATE:  There’s a possible good news for folks who have a FHA Loan that was endorsed AFTER June 1, 2009.
[Read more...]

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Financing A Condo in Raleigh

January 5, 2013 by Leave a Comment

first time homebuyer programIf you have been to Downtown Raleigh in the past 12 months, you might be surprised how many Condos have sprung up!  It’s one of the most interesting and explosive markets in this area – and it’s not just a “condo” market isolated to Downtown Raleigh!  Condominium projects are part of virtually all large planned development areas now, including projects in Apex, Cary, Midtown and North Raleigh.

These projects are also very popular in Charlotte, Wilmington, Chapel Hill, Greensboro and Asheville.  One of the interesting financing “rules” to remember with Condos is that “Second Homes” are difficult to finance outside of a “resort” area.  So, if you are purchasing a condo in Charlotte, for instance, because you have family there – or you want to purchase a condo in Chapel Hill, because you have children going to school there – or you like to come back for sporting events – you might be treated like an INVESTOR and be required to make a larger down payment!

Getting a Mortgage on a Condo can be difficult – especially if the ratio of “renters” to “owners” in the building you really love is particularly high, or the project was recently in bankruptcy, and the Homeowners Association is not re-established. 

Sometimes a VA Loan or a FHA Loan are the best options for purchasing a Condominium in NC. FHA requires Condominium Projects be approved by FHA.  In days gone by, we could approve a project, or do a “spot” approval for just one or two units in a building.  That’s no longer an option.   [Read more...]

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Is FHA Going to Change the Endorsement Date For Streamlines?

December 10, 2012 by Leave a Comment

FHA Streamline RefinanceWe’ve gotten tons of questions from folks about the possibility that FHA is going to change the date for their “really really really” low FHA Streamline Program – allowing folks with Endorsement dates after the June 1, 2009 date to qualify for lower FHA PMI rates.

FHA mortgage rates are making new, all-time lows while — at the same time — FHA PMI rates are gearing up for an increase.  This  combination has fueled a spike in FHA refinance applications nationwide.

The Mortgage Bankers Association members reported that in September 2012, more than 54,000 FHA Streamline Refinance applications came in – more than double the number from one year ago.

For homeowners with existing FHA home loans, the timing is right to refinance via the FHA Streamline Refinance. Falling mortgage rates have offset rising FHA PMI rates for many folks…  But that’s where the “rub” comes in for some folks who are wanting to do a streamline refinance – who have an endorsement date after June 1, 2009, and want to take advantage of a lower interest rate. 

UPDATE: There could be good news this summer for folks who want to Streamline Refinance, take advantage of the program with lower FHA PMI rates, but have a FHA loan Endorsed AFTER June 1, 2009.
[Read more...]

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FHA PMI Changes Drop Off Period

December 5, 2012 by 2 Comments

you can buy a home!With FHA being underwater – they decided to make some changes to the way they allow FHA PMI to drop off of the mortgage.   Frankly, of their options… this is MUCH cheaper, than raise FHA PMI rates by a ton in 2013.  

In their message to Congress, they noted:

Reverse a policy made in a prior Administration to cancel required premium payments (read:  FHA PMI) after a certain period that effectively meant that while FHA’s 100% insurance guarantee remained in effect for the 30-year life of a loan, borrowers were only required to pay premiums for less than ten years.  FHA has been left without premiums to cover losses on loans held beyond the period for which it collects premiums.  This change will apply to new loans.

As it currently stands, if you currently have an FHA mortgage, the FHA PMI  that you pay monthly is still set to drop off (cancel) once your principal balance reaches 78% of the loan to value and a minimum of 60 mortgage payments have been made. (this is important – we have people ask us all the time if they can just pay the mortgage down to 78% – no you have to pay in for the full 5 years). [Read more...]

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FHA Says Okay to Buy a Flip

December 4, 2012 by Leave a Comment

get married buy a houseOur son recently purchased his first home – and it was a home someone purchased, fixed and decided to Flip.  Being in his 20′s, he had no time or knowledge to fix the issues with the house by himself, and the “fixed up Flip was PERFECT for him!  Traditionally, FHA made a home buyer wait at least 9o days after a property changed hands before it was eligible for a new FHA loan.

Last week, FHA realized that this type of property is still one of the important choices available to home buyers - and extended a rule that made it much easier to purchase a “flipped” property and take advantage of the FHA program.  Makes sense… think of it this way – a home goes into Foreclosure, the bank takes the home… and with the “traditional” FHA Flip Rule, no one could buy the home for ANOTHER 90 days! [Read more...]

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