FHA PMI Changes 4/18/2011 – Again

February 16, 2011 By 5 Comments

On February 27, 2012, FHA Announced that they will change the FHA PMI rates, again, on April 2012.  The rates listed below will be in effect until the end of March, 2012.

There are currently two types of Mortgage Insurance or PMI associated with every FHA loan we make.

Up Front Mortgage Insurance Premium (sometimes referred to as UFMIP):  The current rate on this premium is currently 1 percent of the loan amount.  At THIS TIME, if you sell the property or refinance it – you will NOT get a refund of the fee as you did in year’s past.

Annual or MONTHLY Mortgage Insurance (I’ve seen it referred to both ways because the borrower will pay for it MONTHLY – but it’s calculated on an annual basis):  The NEW rate for this FHA Mortgage Insurance Premium varies depending upon your down payment – and the length of your loan [Read more...]

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans Tagged With: , , , , , , , ,

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!

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans Tagged With: , , , , , , , , , , ,

FHA Guidelines About Using Rental Income in NC

December 8, 2010 By Leave a Comment

If you are moving to North Carolina, and you are going to rent your current home, there are a couple of things you should know about qualifying for an FHA Mortgage Loan for your new house. If you qualify for both payments – then it’s a pretty easy deal. If you need to count some of the income from your current residence it gets a little more tricky.

FHA Guidelines state that the rental income can not be counted, unless we can prove that you have at least a 25% equity stake in the home you are going to rent out. Too many people are buying a new home, and simply walking away from the one they couldn’t sell.

There is an EXCEPTION however:

If the borrower is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance…

AND a properly executed lease agreement (that is, a lease signed by the borrower and the lessee) of at least one year’s duration after the loan is closed, and we have a copy of a cancelled check for the security deposit, evidence of the first month’s rent

THEN we can count the rental income. ALL mortgage programs (not just FHA) only give you 75% of the rental income as credit… So, if you rent the property out for $1000 we will only be giving you $750 of income to use to qualify for your new home.

So let’s say that your “old” home has a TOTAL payment (taxes, ins, everything) of $1500. You are able to rent it for $1000. In this case, we would be counting $750 as a monthly debt for you.

If you are relocating, and getting a new job, please read these FHA Guidelines about documenting your income.  If you have questions about purchasing a home in NC using FHA financing, please call Steve and Eleanor Thorne Mortgage Banker in Cary , 919-649-5058.

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans Tagged With: , , , , , , , , , ,

Profile of 2009 – 2010 First Time Home Buyer

November 9, 2010 By Leave a Comment

The National Association of Realtors released information about First Time Home Buyers last week that showed some interesting trends!

  • 93 percent of those surveyed in 2009 – 2010 reported that they purchased using one of the first-time buyer tax credits. (Who’s surprised??? Nope, we’re not surprised either!)
  • Ninety-five percent chose a fixed-rate mortgage.
  • The median age of first-time buyers was 30 and the median income was $59,900. (This part was a little surprising!) The typical first-time buyer purchased a 1,540 square foot home costing $152,000 (bet they were keeping their total payments under the $1000 mark)
  • First-time buyers who made a downpayment used a variety of sources: 74 percent used savings, 38 percent received a gift (or a loan) from a friend or relative, (READ:  their parents) Eight percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds.
  • Women accounted for 1 in 5 purchases, and single Males made the largest leap in the survey ever – which was attributed to the tax [Read more...]

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: First Time Home Buyer Tagged With: , , , , , , , , , , , , ,

FHA and VA Mortgage Loan Guidelines Waiting Periods

October 25, 2010 By 2 Comments

If you’re like millions of American’s the last couple of years have been tough.  People who have lost their jobs, or their houses, or their business didn’t just wake up one morning and say, “Oh, instead of making my payments, I think I’ll take a trip to Belize!” They never imagined they would be one of “those people” with bill collectors and “dings” on their credit.

Well, the good news is that your credit score is really just a snap shot of the last 24 months. Yes, missed payments will stay on your credit file for 7 years – but their IMPACT on your credit is greatly diminished after 24 months. (If one person on the loan has good credit, and one person has “poor” credit click here). [Read more...]

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans, VA Mortgage Loans Tagged With: , , , , , , , , , , , , ,

Raleigh One of the Smartest Cities in America!

October 4, 2010 By Leave a Comment

We keep getting good news about Raleigh / Cary! In the past month we’ve been named as the first place to most likely see appreciation in Real Estate, one of the best places to Retire, One of the best areas for Single Rich folks and now… one of the BRAINIEST Cities in America!

According to new Census Bureau data, the national average for cities with people 25 years or older who have bachelor’s, master’s, professional school or doctorate degrees is less than 25%… In Raleigh, that concentration is at 42.4% putting us at number 4 on the list!

“There’s a very high correlation between earnings and educational attainment,” said Todd Gabe, an economics professor at the University of Maine.

Cary currently trends at number 13 on the fastest area in the country for Job Growth!

According to CNN Money, Wake  County is one of the nation’s leader in a high-tech and biotech jobs.

Wake County is home to Research Triangle Park, the country’s largest industrial park, where IBM has extensive operations, employing 11,000, along with GlaxoSmithKline, Cisco Systems, and SAS Institute.

Even though there are more than 160 companies in RTP, the lion’s share of Wake County’s jobs come from the public sector. The lion’s share of local jobs are with the state government or the public school system. North Carolina State University and the county are also major players.

If you are considering a home purchase in Raleigh or Cary NC – call Steve and Eleanor Thorne, 919-649-5058.  Professional Mortgage Planners with over 20 years experience. We have the best FHA, VA and Conventional mortgage rates and the lowest fees available!

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: Housing News Tagged With: , , , , , , , , , , ,

FHA Adding Capital Fast Enough?

September 27, 2010 By Leave a Comment

David Stevens, the head of FHA answered questions last week about weather or not his agency would need a “Bailout” from taxpayers. FHA doesn”t make loans, but they insure them, and with so many people without jobs, and properties being foreclosed on… that insurance fund has been tapped into pretty hard.

That’s one of the reasons FHA requested a change in the way MIP is charged.  Those latest, changes go into effect next week.

“If the fund has not gone negative and continues to remain positive it will be thanks to the quick actions of this committee and Congress giving us more authority and actions of this administration,” Commissioner David Stevens said in response to a question at a hearing of the House of Representatives Financial Services Committee.

He went on to tell the Committee:

The FHA is “running on its own. It is financially sound. It is below the minimum capital requirement, so we need to increase that capital but it is not (now) requiring a bailout. We will know more when the actuarial study is complete,” later this fall.

If you are considering a FHA Mortgage Loan in NC, call Steve and Eleanor Thorne, NC FHA Experts 919-649-5058  These changes could definitely make a little less attractive for some folks considering a FHA Streamline Refinance

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans Tagged With: , , , , , , , , ,

Are Mobile Homes Back on the Radar?

September 3, 2010 By Leave a Comment

FHFA is the Government body that is in charge of just about everything when it comes to regulating FNMA and Freddie Mac. They set out new guidelines and goals for the Agencies this week.

One of the suggestions on the table is for FNMA and FHLMC to offer more financing choices for Mobile Homes in as a way that they can meet their “goals” set by the overseeing agency.

The benchmark goals established could be seen as “production goals” your boss or company sets for you. FHFA  expressed these benchmarks as “minimum goal-qualifying mortgage”  percentages  of each type of home purchase or refinance mortgages acquired by the Enterprises.  They are:

  • 27 percent for the low-income home purchase goal;
  • 8 percent for the very low-income family home purchase goal;
  • A percentage to be set annually by FHFA for the low-income/high minority/disaster areas home purchase goal (with a sub-goal of 13 percent to measure acquisitions in low-income/high minority areas only); and
  • 21 percent for the low-income family refinance goal.

HERA requires that FHFA consider seven factors in setting the single-family housing goals:

  • national housing needs;
  • economic, housing and demographic conditions including expected market developments;
  • the performance and effort of the Enterprises toward achieving the housing goals in previous years;
  • the ability of the Enterprise to lead the industry in making mortgage credit available;
  • such other reliable mortgage data as may be available;
  • the size of the purchase money conventional mortgage market or refinance market serving each of the types of families described, relative to the size of the overall purchase and refinance markets;
  • The need to maintain the sound financial condition of the Enterprises.

Now when you look at HOW FNMA and Freddie are going to achieve this – Mobile Homes pop into my mind! It is very difficult to get a USDA Home Loan or FHA Mortgage Loan on a manufactured home.

If you are considering a home purchase, or want to know if you qualify for a new home, call Steve and Eleanor Thorne, 919-649-5058 we know the market, we know the products and we have the best rates!

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans, Housing News Tagged With: , , , , , , ,

Property Requirements on FHA

August 26, 2010 By Leave a Comment

We’ve talked to several people in the last couple of days who want to purchase homes using FHA’s 3.5% down payment program… and they are trying to purchase some “unusual” properties. (Click here for more on 2010 Appraisal Requirements)

Here are some GENERAL notes:

  • FHA 203K loans: These loans are “construction loans” that FHA makes.  If you have a $100,000 property… and you make $30,000 in repairs, you need to make a downpayment of 3.5% of $130,000.  Now there’s more to the program – but the main thing to remember is that FHA IS FOR OWNER OCCUPIED LOANS ONLY.  If you are not going to live in the property – it’s not going to work.
  • TRI-PLEX:  An FHA loan on a TriPlex means that there are 3 units TOGETHER on one foundation… not 40 acres with 3 buildings on it.  I know that’s confusing, but that’s the way FHA rules on what a Tri-Plex is.
  • Property with more value in the LAND than the house. This probably isn’t going to work.  FHA is in the business of making HOME loans.  They don’t really like deals with more value in the LAND (then they consider it a LAND loan).  I personally refer those folks to their local USDA Home Loan office, to see if they can help them.
  • Underground Homes, Log Cabins, Geodesic Domes, Mobile Homes, and Tree Houses:  It’s really hard to get FHA to make loans on these properties.  If you have a NEWER Manufactured Home, in NC BB&T might be a good place to start… if it’s older, and on a permanent foundation – we recommend starting with Wells Fargo.  That’s not to say that you can’t finance any of these kinds of property with FHA… just that you need to be in an AREA where there are recently sold, similar properties for comparable sales.

If you are considering a home loan in NC, and you want to get a FHA Mortgage Loan, Call Steve and Eleanor Thorne, FHA Experts 919-649-5058

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans Tagged With: , , , , ,

One Borrower Has Income One Borrower Has Credit Score

August 18, 2010 By Leave a Comment

When one borrower has most of the income… the other borrower has good credit scores… there ARE options for purchasing a home. Look at the question we had yesterday:

“We want to purchase a home, and I want to know if we can get it.  My husband currently has a mid credit score of 538,  and mine is 678.   He makes about 52,000 and I make 25,000.  I’m still in graduate school full time.  We saved  $4,000 for closing cost so far.  We want the house by the end of October 2010 Can we get a loan?”

Option 1:

Purchase a home using FHA, and have a non-owner occupied co-borrower on the loan with the borrower who has good credit scores. If you know that you can make the payments on your own, then having a parent, or other family member, on the loan will not be a burden to them.  After you’ve made 12 months of payments (and by all account mortgage interest rates will still be low a year from now) you can refinance the loan and take the family member(s) off. [Read more...]

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans, First Time Home Buyer Tagged With: , , , , , , , , , , , , , , ,
« Older Posts
Newer Posts »