Register Real Estate Advisors » FHA Loans

New FHA Mortgage Rules Take Effect

Shannon Register, Broker/Owner — Sat, 07 Apr 2012 02:20:25 +0000

SAN ANTONIO (San Antonio Express-News) – New Federal Housing Administration (FHA) rules will effect many first-time homebuyers as well as many current homeowners.

One rule, which took effect yesterday, disqualifies first-time homebuyers with more than $1,000 in medical or other collections from getting an FHA-backed loan. To qualify for the loan, the buyer must pay off the debt or show that three months of payments have been made.

Meanwhile, all homeowners who have FHA loans will have to pay more in mortgage insurance starting next Monday.

They’ll have to pay 1.25 percent of their mortgage balance annually, up from 1.15 percent previously. And up-front mortgage insurance, which is paid at closing, will increase from 1 percent to 1.75 percent of the loan.

"New FHA Mortgage Rules Take Effect" was brought to you by the outstanding agents at Register Real Estate Advisors.

FHA’s 203(K) Programs Easily Compared

Shannon Register, Broker/Owner — Fri, 02 Mar 2012 20:47:15 +0000

The Federal Housing Authority (FHA) offers two (2) types of home-improvement loans for homebuyers:

FHA’s 203(k): This program allows qualified homebuyers to roll the costs of major improvements and upgrades into their home mortgages. A 203(k) loan begins with a feasibility study, overseen by an approved consultant. During this process, the consultant determines whether the improvements would be justified upon completion. (Luxury items and improvements that do not become a permanent part of the real property are not eligible as a cost of the home’s rehab.) Along with the lender, the consultant monitors the project’s progress and performs a final inspection upon completion. Escrow is then closed out, and any remainder is paid down against principal; and,
FHA’s Streamline 203(k): FHA’s Streamline 203(k) Buy & Repair Mortgage is an ideal program for clients in need of minor cosmetic repairs on their potential new home. With a Streamline 203(k) mortgage, the rehab cost is calculated into the original loan balance, resulting in one loan. The mortgage balance can exceed the purchase price of the property. The appraiser or home inspector will compile a list of recommended repairs/improvements. Unlike the Major 203(k) program, Streamline 203(k) eliminates the need for a consultant and consultant’s fees.

Following are charts which compare the program highlights and the ineligible and eligible repairs and improvements under FHA’s 203(k) Buy & Repair Mortgage and FHA’s Streamline 203(k) Buy & Repair Mortgage:

*Program Highlights:*
	*203(k)*	*203(k) Streamline*
May be used for purchase or refinance of one-to-four (single-family), owner- occupied residences	*	*
Fixed-rate mortgage available	*	*
Reduces financing costs with one mortgage and only one set of closing costs	*
$5,000 minimum requirement for eligible improvements on the existing structures of the property	*
No minimum loan balance required		*
Maximum $35,000 total rehab cost		*
For less complex projects that require no plans or specs		*
Property must be at least one year old		*
Property must be occupied within 30 days of closing		*
Work must commence within 30 days from closing		*
Work must be completed within six months		*

Ineligible Improvements & Repairs:
	*203(k)*	*203(k) Streamline*
Barbeque pit	*	*
Exterior hot tub or gazebo	*	*
Sauna or spa	*	*
Outdoor fireplace or hearth	*	*
Photo mural	*	*
Installation of a new swimming pool	*	*
Television antenna or satellite dish	*	*
Landscaping or yard work		*
Major remodeling		*
Moving a load-bearing wall		*
Room additions		*
Fixing structural damage		*

Eligible Improvements & Repairs:
	*203(k)*	*203(k) Streamline*
Structural repairs or alterations and reconstruction (i.e., installation of additional bathroom(2), repair termite damage, etc.	*
Major site improvements that enhance property value; fencing, new walks and driveways and general landscape work may be eligible, but cannot be include in the first $5,000 requirement	*
Roofing, gutters and downspouts	*	*
Accessibility improvements for persons with disabilities	*	*
Reconditioning or replacement of plumbing, heating, air conditioning and electrical systems	*	*
Energy conservation and efficiency improvements, including weather stripping, insulation, and new windows and doors	*	*
Installation of well and/or septic system	*	*
Improved functionality and modernization (i.e., remodeled bathrooms or kitchen)	*
Minor kitchen and bath remodels, including new kitchen appliances		*
Elimination of health and safety hazards (i.e., stabilizing or removing lead-based paint)	*	*
Changes for aesthetic appeal and elimination of obsolescence (i.e., new exterior siding, covered porch, decks, patios, stair railings, etc.)	*	*
Flooring: carpet, tile, wood, etc.	*	*
Related fixtures and general painting also may be eligible, but cannot be included in the $5,000 requirement	*
Interior and exterior painting		*

"FHA’s 203(K) Programs Easily Compared" was brought to you by the outstanding agents at Register Real Estate Advisors.

Thinking About Buying a Home?

Jay Richardson, Realtor — Fri, 02 Mar 2012 04:22:29 +0000

Have you been thinking of buying a home? Excellent, I can help.

Are you waiting to see what happens with home prices? With so many foreclosures and short sales out there still having a negative impact on pricing there may never be a better time to buy.

Are you waiting to see what is going to happen with interest rates? They are staying historically low. Just this morning a lender told me that FHA has a 3.75% interest on a thirty year mortgage. Wow! In my lifetime I have seen the interest rates as high 20%… And now as low as 3.75%

Are you waiting for something to else happen?

Wait no more…

Here is some other news from the FHA, unfortunately, it’s not good.

The Federal Housing Administration will raise mortgage insurance premiums this April in order to repair the health of its emergency fund.

The FHA upfront mortgage insurance premium will increase to 1.75% from 1% of the base home loan amount. This will apply regardless of the term or loan-to-value ratio beginning in April. In addition, the annual mortgage insurance premium will increase by 10 basis points for loans under the $271,050 limit for single family homes in our area.

On a typical FHA 30 yr, $150,000 loan, these changes will increase the monthly payment around $18/month and add $1125 to the balance of the loan.

Call me, text me, email me, message me… Lets talk about your next home.

"Thinking About Buying a Home?" was brought to you by the outstanding agents at Register Real Estate Advisors.

FHA Loan Limits

Shannon Register, Broker/Owner — Wed, 14 Dec 2011 20:28:11 +0000

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.

"FHA Loan Limits" was brought to you by the outstanding agents at Register Real Estate Advisors.

HUD Homes Just Got More Affordable!

Jay Richardson, Realtor — Wed, 02 Nov 2011 06:01:26 +0000

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.

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

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

"HUD Homes Just Got More Affordable!" was brought to you by the outstanding agents at Register Real Estate Advisors.

FHA Insurance Premium Changing

Shannon Register, Broker/Owner — Mon, 13 Sep 2010 04:10:33 +0000

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.”

"FHA Insurance Premium Changing" was brought to you by the outstanding agents at Register Real Estate Advisors.

FHA Flips Anti-Flipping Rule

Shannon Register, Broker/Owner — Wed, 10 Feb 2010 05:04:02 +0000

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 Flips Anti-Flipping Rule" was brought to you by the outstanding agents at Register Real Estate Advisors.

FHA Loans vs. Conventional Loans

Guest — Fri, 06 Nov 2009 22:03:07 +0000

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.

"FHA Loans vs. Conventional Loans" was brought to you by the outstanding agents at Register Real Estate Advisors.

The Housing and Economic Recovery Act of 2008

Shannon Register, Broker/Owner — Fri, 16 Jan 2009 05:49:14 +0000

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.

"The Housing and Economic Recovery Act of 2008" was brought to you by the outstanding agents at Register Real Estate Advisors.

The Housing & Economic Recovery Act of 2008

Shannon Register, Broker/Owner — Fri, 16 Jan 2009 02:43:53 +0000

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.

"The Housing & Economic Recovery Act of 2008" was brought to you by the outstanding agents at Register Real Estate Advisors.