Register Real Estate Advisors

Congress reinstated the FHA loan limits through 2013 at 125% of local area median home prices, up to a maximum of $729,750 in the highest cost markets.  The floor will remain at $271,050.  The loan limits for Fannie Mae- and Freddie Mac-backed mortgages will remain at 115% of local area median home prices, up to $625,500.

For a limited time HUD owned homes are eligible for special $100 down financing from FHA.

Friends, we have a home buyers perfect storm of home affordability.

1. HUD home pricing is always below market value.
2. The current FHA rates are hovering around the 4% range for a 30 year fixed rate.
3. $100 DOWN. LIMITED TIME!!!!

Contact me today to take advantage of this program. 713.828.6449 or jay@rrea.com

ANN ARBOR, Mich. (CMPS Institute) – The Federal Housing Administration (FHA) is giving homeowners and buyers until Oct. 4 to lock in a low monthly insurance premium on FHA loans, according to Gibran Nicholas of the CMPS Institute, which trains and certifies mortgage bankers and brokers.
After that, the monthly insurance premiums on FHA loans will increase by over 63 percent.
A homebuyer purchasing a $200,000 home using a $193,000 FHA mortgage before Oct. 4 would pay an insurance premium of $88.46 per month. If the same homebuyer waits until after, the insurance premium would jump to $148.01.
Although the upfront mortgage insurance premium is going down, “the real impact to the homebuyer is actually a net increase in their out-of-pocket costs because the monthly premium is going up by 63 percent,” Nicholas said.
“Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket,” he said. “On the other hand, the increase in the monthly premiums will be paid right out of the homebuyer’s pocket with their mortgage payment each month.”

WASHINGTON, D.C. (Realtor.org) – The Federal Housing Administration (FHA) yesterday relaxed what is known as the “anti-flipping rule.”  FHA now provides mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.  The change was made to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, said FHA Commissioner David H. Stevens.

FHA loans continue to be the loan of choice for the majority of first time home buyers, however, there is an upward trend where non first time home buyers are utilizing the FHA mortgage loan option as well.   FHA fixed rate mortgages (15, 20, 25 or 30 year terms) offer a low down payment and provide the security of a fixed payment.  FHA financing is primarily used by customers with limited funds to close, requiring a minimum investment of 3.5% into the transaction. Conventional Loans require a minimum investment of 5%.  FHA loans is also more forgiving of credit challenges. Customers finding credit limitations with conventional financing may find a solid alternative through FHA. 

 Additional Benefits of FHA loans over Conventional Loans

• Borrowers 3.5% down payment contribution can be gift funds.
• You can obtain a better interest rate with lower credit scores.
• Up to 6% seller concession toward borrowers closing costs.
• Student loans are not counted in the ratios if deferred for 12 months.
• FHA Mortgage Insurance is much lower than Conventional PMI.
• FHA loans are assumable.

 Based upon the thorough review of a loan scenario will determine whether an FHA loan or Conventional loan meets the borrowers specific mortgage loan needs.  Unlike the past, FHA loans are much easier to do and should always be considered as a viable option for potential borrowers that want to limit the amount of funds they put into a real estate transaction. 

“Looking out for your best interest far more than just a fixed rate,”  Terry Traylor.  Call me today for a Mortgage Pre-Approval (713.705.1244) for your next home or visit my website at www.abmmtg.com.

What it means to homebuyers

The Housing and Economic Recovery Act of 2008 will introduce changes in the mortgage industry which will also affect the housing market.  Here is a brief summary of the new legislation and what it means to homebuyers.

Purpose of the legislation:

• Make it easier to buy or sell a home
• Slow down the rate of foreclosures
• Ensure the financial stability of Fannie Mae and Freddie Mac

Highlights:

• Higher permanent loan limits for conventional, FHA and VA Loans (effective January 1, 2009)
• Tax credit for first-time homebuyers – up to $7,500 in the purchase year, for homes purchased between April 9, 2008 and July 1, 2009.
• Modernization of FHA loan programs – including a 3.5% minimum down payment (effective January 1, 2009)
• Fannie Mae and Freddie Mac get a financial boost from the U.S. Treasury, and they will have a new regulator with broader authority
• FHA “HOPE” Rescue Plan – refinancing for homeowners at risk of foreclosure

What this means to homebuyers:

The higher loan limits could help buyers obtain more affordable financing; however, the effects will vary by geographical location – so ask your Mortgage Adviser for details.  Since the new permanent limits are less aggressive than the “conforming plus” limits that expire on December 31, 2008, buyers must act soon to take advantage of current higher limits.

The initial cash savings from the tax credit may be very attractive to many first-time homebuyers; however, buyers must act soon to take advantage of the tax credit by closing on a new home before July 1, 2009.

Help for Fannie Mae and Freddie Mac makes it easier to buy or sell a home by boosting investor and consumer confidence in the housing market.  The FHA “HOPE” Rescue Program may help some homeowners avoid foreclosure, potentially reducing the inventory of homes entering the market.  This is good news for everyone.

What it means to homebuyers

The Housing & Economic Recovery Act of 2008 introduced changes in the mortgage industry that affected the housing market. Below is a brief summary of the legislation & what it means for homebuyers.

Purpose of the legislation:

• Make it easier to buy or sell a home
• Slow down the rate of foreclosures
• Ensure the financial stability of Fannie Mae & Freddie Mac

Highlights:

• Higher permanent loan limits for conventional, FHA, & VA Loans
• Tax credit for first-time homebuyers – up to $7500 in the purchase year, for homes purchased between April 9, 2008 and July 1, 2009
• Modernization of FHA Loan Programs – including a 3.5% minimum down payment
• Fannie Mae & Freddie Mac get a financial boost from the U.S. Treasury, & they will have a new regulator with broader authority
• FHA “HOPE” Rescue Plan – refinancing for homeowners at risk of foreclosure

What this means to homebuyers:

The higher loan limits could help buyers obtain more affordable financing; however, the effects will vary by geographical location – so ask your local Mortgage Adviser for details. Since the new permanent limits are less aggressive than the “conforming plus” limits that expired on December 31, 2008, buyers must act soon to take advantage of current higher limits.

The initial cash savings from the tax credit may be very atractive to many first-time homebuyers; however, buyers must act soon to take advantage of the tax credit by closing on a new home before July 1, 2009.

Help for Fannie Mae & Freddie Mac makes it easier to buy or sell a home by boosting investor & consumer confidence in the housing market. THe FHA “HOPE” Rescue Program may help some homeowners avoid foreclosure, potentially reducing the inventory of homes entering the market. This is good news for everyone.

Contact your Coldwell Banker REALTOR to learn more.