FHA Loans Raleigh, Cary Apex NC

October 24, 2012 by Leave a Comment

FHA Loans are not just for First Time Home Buyers – but they are only reserved for Owner Occupied Properties, and they come with some restrictions, including maximum income limits per county in NC. Below find specific information regarding FHA loans and First Time Home Buyer Programs available in Raleigh, Cary and Apex, NC
raliegh nc fha loans

FHA Sales Price Limit for MSA Raleigh, Cary, Apex  27513

Wake County, NC

  • One Family Dwelling:  $295,000
  • Two Family Dwelling:  $377,650
  • Three Family Dwelling:  $456,500

If you are interested in purchasing a Quadraplex in the Raleigh metro area, 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. [Read more...]

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FHA Says: Pay Off Disputes Over $999

March 27, 2012 by 1 Comment

pay off collectionsFHA Announced a BIG Change that will take place this summer.  According to the FHA Mortgagee Letter 2012-3, beginning July 1, borrowers with ongoing credit disputes totaling more than $1,000 will have trouble getting an FHA Mortgage loan.  (This date has been revised and HUD is seeking comments on the ruling)

This is a HUGE change, because for the last 20 plus years, you could pretty easily get an FHA mortgage, without paying off medical collections.  Now, even if you have 740 credit scores – if your total disputed accounts add up to $1000 or more… all collections and disputed accounts will need to show payment arrangements, and on time payments for these accounts must be documented for at least 3 months.

The rule marks a significant belt-tightening of the FHA guidelines.  Before this rule,  our Bank Underwriter could determine if any of the borrower’s outstanding debts should impact the approval of the FHA-backed mortgage.  One New Home Builder estimated that this could affect as much as 65% of the buyers in their community.

It is unclear what documentation the FHA Underwriters will accept to show that the account is being paid as agreed.  Meaning that, some underwriters might want the payments to show on the credit report (not accepting cancelled checks) and others might want an additional statement from the collection agency, or an updated credit report.  FHA gives guidance on all 3 ways to verify the accounts, but each Bank will likely create their own Underwriting Guidelines for this new ruling. (See Page 3 Mortgagee Letter 2012-3)

[Read more...]

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FHA Short Seller + FHA Buyer = Restrictions

January 28, 2011 by Leave a Comment

FHA has specific rules when it comes to purchasing a home that is in Pre-Foreclosure with a FHA mortgage on it.  FHA doesn’t make mortgage loans, they Insure them – and so as the Insuring Agency (kinda’ like a PMI company) they get to set the rules!  In those Pre-Foreclosure, Short Sale transactions, they set out what fees CAN be included from the Seller, and which fees can not.

Pre Foreclosure Seller Fees per FHA

The process for purchasing a FHA Short Sale is similar to other short sale situations in that the HUD-1 must have prior approval.

The item people need to realize, though, is that if the buyer is obtaining a FHA mortgage,  the Seller can only pay up to 1% of the Buyer’s First Mortgage Amount.

We don’t have that many of these cases in the Raleigh, Holly Springs, Cary, Apex area – but when we do, the buyer needs to remember that they will probably need a little more cash upfront for the purchase.

If you are considering a mortgage loan in North Carolina, and you want more details on FHA  Mortgage Loan Guidelines – please call Steve and Eleanor Thorne, FHA Mortgage Loan Specialists!  We have over 20 years of experience providing homebuyers with the BEST mortgage rates available!

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FHA Refinance, A Streamlined Process in NC

January 20, 2011 by Leave a Comment

Homeowner’s who currently have FHA mortgages might want to check with us to see if now is the right time to refinance. Fannie Mae and Freddie Mac are changing their guidelines at the beginning of April – and we believe all mortgage loans could be more expensive because of this.

Many of the people we talk to in NC with FHA refinance questions want to know how a Second Mortgage might change their ability to refinance. If you have a 2nd mortgage (or any junior liens like a Home Equity Loan HELOC) older than twelve months old then this would be considered a regular refinance and could not be done as a streamline refinance.  If you have a second mortgage or Equity Line that is LESS than 12 months old it still might not work as a Streamline,  and you need to call us with all of the details.

Some Key FHA streamline changes in the last 18 months in North Carolina: [Read more...]

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FHA Appraisal NC Changes Effective1/1/2010

September 25, 2009 by Leave a Comment

FHA Announced this week that it will make some “proceedural” changes to the appraisal process at the beginning of the year.  They hope that the changes will, in some cases,

“help to expedite loan closing when a borrower decides to transfer their application to another lender during the transaction process.  The changes also ensure that lenders are not obtaining second appraisals solely for the purpose of getting a higher value or eliminating required repairs.”

When a borrower (who is in process) moves their FHA loan from one lender to another, the original lender is required to move the FHA Case number to the new lender.  At that time, most lenders will require a NEW appraisal.  FHA wants to discourage this, and says you can only order a 2nd appraisal under limited circumstances.

These circumstances include:

  • The DE Underwriter for the second lender found material defects with the original appraisal. 
  • The original appraiser is on the second lender’s exclusionary list. 
  •  The first lender failed to provide a copy of the appraisal in a timely
    manner, which causes potential harm to the borrower for events outside of the borrower’s control. These events include rate lock expiration, purchase contract deadlines and foreclosure proceedings.
  • In all cases the lender must document the loan file regarding the reason for the second appraisal and both copies of the appraisal reports must be retained in the case binder.

In addition to THESE changes – FHA also announced that they will be changing procedures for ordering FHA appraisals, which move them firmly closer to the HVCC ruling that Fannie and Freddie adopted earlier this year. 

 FHA will prohibit appraisals ordered by mortgage brokers or borrowers, in addition to the current restriction of real estate agents’ involvement in the appraisal order process.  Does this mean that a Broker can not order an appraisal?  No.  It simply means that they can not SPEAK to the appraiser, and it will be ordered on a rotation basis, OR ASSIGNED by the LENDER.  This process has worked POORLY for the consumer (IMHO) and I’m sad that FHA took this position.  But – these are the rules, and we will work with them!

If you are looking for a FHA Mortgage in Cary, considering a purchase in Raleigh, or refinance in Johnston County, call Steve and Eleanor Thorne!  We know all of the mortgage program details, and we have the LOWEST Mortgage Rates in NC!!

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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

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Let FHA Help You Relocate!

March 10, 2008 by Leave a Comment

FHA allows folks to only have one FHA mortgage at a time, unless… you meet one of these 4 exceptions.

1. Relocations: FHA says that “if the borrower is relocating and re-establishing residency in another area not within reasonable commuting distance from the current principal residence.”
The employment can be voluntary, meaning that your employer does not need to mandate the relocation for you to qualify for this exception.

2.  If your Family Size Increases!: FHA says you can get another FHA loan (without paying the first one off) “if the number of legal dependents increases to the point that the present house no longer meets the family’s needs.”  A new appraisal will need to be ordered and the existing FHA mortgage must be below 70% of the appraised value.

3. Vacating a Jointly-Owned Property: If you are getting a divorce (for instance) and your spouse will continue to occupy the existing property that has an FHA mortgage on it – FHA says you can get another FHA loan.  Because of their common sense underwriting guidelines, this could be a big boost in a difficult situation! K

4. “Kiddie Condos”: Kiddie Condos are not just for children, and they are not limited to Condominiums – it’s just a term commonly used in the mortgage industry to describe a Non-Occupying Co-Borrower.  FHA says, “a non-occupying co-borrower on proeprty being purchased with an FHA-insured mortgage as a prncipal residence by other family members, may have a joint interest in that property as well as in a principal residence of their own with a FHA-insured mortgage).

    FHA prohibits investor loans of any kind – and these exceptions should not be used to aquire rental property.

    If you have questions about FHA loans contact Steve and Eleanor Thorne with Connect With Us on Facebook!  Call us at 919-649-5058

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    We’re Growing!

    February 21, 2008 by Leave a Comment

    NC FHA Expert is a blog site devoted to teaching homebuyers about various first time homebuying options and strategies.

    This blog is connected to STEVETHORNEONLINE.COM which is the official site for Steve and Eleanor Thorne, producing loan officers for Connect With Us on Facebook, Inc.  Steve and Eleanor live in Cary, NC and have been involved in the real estate and mortgage business in North Carolina for over 20 years.

    They are currently expanding their online offerings through NC FHA Expert, SteveThorneOnline, Connect With Us on Facebook and a site devoted to helping consumers improve their credit scores (ostentatiously so that they can purchase a home), How to Improve My Score.com.  As if all of THAT online material was not enough – you can also learn more about Eleanor at http://activerain.com/eleanor

    We hope you’ll stop back by one of our other sites, learn more about the homebuying process, and contact us for a pre-qualification.  It doesn’t cost a dime to dream – or to find out if you can purchase a home right now!  Call us today!

    Steve and Eleanor Thorne

    Connect With Us on Facebook, Inc

    919-649-5058

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