Learn How You Will Be Affected By FHA Home Loan Changes
Announced FHA Policy Changes:
Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
Update the combination of FICO scores and down payments for new borrowers.
New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
Reduce allowable seller concessions from 6% to 3%
The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
Increase enforcement on FHA lenders
Publicly report lender performance rankings to complement currently available Neighborhood Watch data – Will be available on the HUD website on February 1.
This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
Legislative authority permitting HUD maximum flexibility to establish separate “areas” for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches
Duration : 0:1:8
Only 3% down payment required on this CalSTRS home purchase only program. No Private Mortgage Insurance makes this program a hands down winner when compared to FHA
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Getting a home loan and how to understand different loans in this free video on real estate and bank loans.
Some of the advantages of FHA financing include: Low 3.5% down payment; sellers can contribute 6% of the sales price towards your transaction; you can receive down payment assistance in the form of a gift from a close family member; co-borrowers can help you qualify; there are no required cash reserves; you may qualify for assistance from state and local housing authorities; you can qualify even if you had a prior foreclosure three or more years ago. Loan limits to $729,750.
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There are 3 new changes going on in the world of FHA home loans that have been passed down by HUD. Robert, of The Robert and Brian Team @ Realty Executives shares with you exactly what these 3 changes are. One of them goes into effect Feb 1, 2010. These 3 changes have to due with the 90 day flip rule, mortgage insurance premiums, and minimum FICO scores. All things that could possibly affect you, if you’re planning on utilizing FHA financing in your next Santa Clarita real estate transaction.
30 minute approvals for FHA home loans.
http://www.goapplyfha.com has a quick online FHA loan application. You can apply for your FHA loan to purchase or refinance your current home loan. The FHA Mortgage application is quick and easy. Call 1.888.415.2000
http://www.cherrycreekloans.com. Who qualifies for a California FHA home loan under new FHA guidelines for California? Get answers about FHA loan limits, the small down payment requirements, and more