It’s been rumored for several months that due to raising default rate – FHA was in “trouble.”
Last week, FHA made several announcements that will ROCK the mortgage lending world again!
Affecting the borrower, will be tighter rules on “FHA streamlined” refinances. These refinances are for FHA to FHA loans, and prior to these announcements, if you had been making your payments on time… FHA didn’t really want to update income / employment history. Well, that’s all rumored to be changing…. FOR NOW, the main changes to the Streamline loans has to do with number of months you must have the loan prior to refinancing. For details, read here.
The BIGGEST CHANGE, however, IMHO is the change to networth requirements for lenders who want to do business with FHA. It went from $250,000 (liquid) to $1,000,000. This is a WHOPPING big number – and it means only BIG players will be selling directly to FHA. Watch for MANY smaller shops, that are already getting gobbled up… to continue in that path!
WOW! A MILLION DOLLARS LIQUID just to do business with FHA. That’s a big number.
If you are considering a new home in Raleigh, or refinancing in Cary, NC – contact Steve and Eleanor Thorne. 919-649-5058
LENDERS WERE UPPED TO $1 MIL.
BROKERS WERE RELEASED FROM MINIMUMS AND CAN ORIGINATE LOANS FOR LENDERS WITHOUT APPLYING DIRECTLY TO FHA FOR APPROVAL, THUS ALLOWING MORE BROKERS TO FIND LOANS FOR FHA AND GET MORE PEOPLE IN HOMES.