Tiered Pricing and FHA Loans

August 30, 2009 by Leave a Comment

There are many many rules that define who many discount points we can charge, or how much money we can earn in commissions in North Carolina.  But FHA has ADDITIONAL rules regarding pricing.

FHA’s Tiered Pricing Rules  FHA’s Tiered Pricing Rules prohibit a lender from charging higher prices (discount points) for low balance loans than the lender charges for higher balance loans. A lender’s customary lending practices may not provide for a variation of more than two discount points (2.00%) charged on its FHA mortgages within a geographic area. In addition, any variation within two points must be based on actual variations in fees or costs to the lender to make the loan. Mortgagee Letter 1994-16 provides guidance to lenders with respect to tiered pricing rules. Additional guidance regarding pricing with respect to overages and yield spread premiums can be found in Mortgagee Letters 1994-43 and 2001-26.

If you are considering purchasing a home in Cary, NC with FHA financing, please contact Steve and Eleanor Thorne, we have the best rates!  919-649-5058

Filed Under: FHA Mortgage Loans, First Time Home Buyer Tagged With: , , ,

First Time Homebuyers – Rates Going Up

August 11, 2009 by Leave a Comment

Time to BuyWe talk to First Time HomeBuyer’s everyday that tell us, “We’re Looking!”  Well – here’s my advice… HURRY UP!!

The Tax Credit is going to “go away” at the end of November… and everybody is telling you NOW is the right time to buy – and that’s a FINE reason… But I think there’s ANOTHER incentive.

I wrote recently about the fact that rates are NOT getting below 5%. The Fed is meeting today- and there’s likely to be a statement tomorrow that they are NOT going to “prop” up the mortgage backed security market after September when the program is scheduled to end. 

The FED has been purchasing mortgage backed securities, and because of that – well, the more they buy, the lower rates go.  So as they’ve given no indication they will continue purchases, rates have started heading up! 

FIRST TIME HOMEBUYERS!  NOW is the time to purchase a home! You can use the USDA home loan program in NC (it’s a 100% loan!),  or FHA or VA (you wouldn’t believe the number of Vets that FORGET this great benefit!)!  Call us, Steve and Eleanor Thorne, to help you with qualifying for a new home!… we have the lowest mortgage rates!

Filed Under: FHA Mortgage Loans, First Time Home Buyer, USDA Home Loans, VA Mortgage Loans Tagged With: , , , , , , , , , , , , ,

Stated Income FHA Loans

July 14, 2008 by 2 Comments

barbieCan you just “state” your income at whatever you think would make it easier to qualify and get an FHA loan… no.

FHA requires documentation – and that might be why there’s no need for an FHA BAILOUT.  In all seriousness, FHA is not a “publically” traded company like Bear Stearns or Fannie Mae or IndyMac – but still the point is that they have pretty strict guidelines.

Those guidelines state that if you want to borrow money that is insured by FHA – you need to document your income… and you will need enough income to qualify to make the payments on all of your obligations.

We’ve had at LEAST one borrower a week apply for a loan that was not legally seperated.  This means they were still OBLIGATED on the note for the home they owned with their spouse – even though they are still living with that person. (These guys might need to see a good divorce attorney !)

They wanted to just “state” their income.  That won’t work for an FHA loan.  For a conventional loan with a SISA - you would need at least 25% down and a 720 credit score.

If you have questions about purchasing a new home in Cary, NC- call Steve and Eleanor Thorne 919.649.5058

Filed Under: FHA Mortgage Loans Tagged With: , , , , , , , , , , ,