Archive for Mortgage Q & A
FHA Mortgage Insurance Changes Coming
Posted by: | CommentsAugust 12, 2010
FHA News - FHA recently announced that they are revamping the Mortgage insurance structure for FHA loans. Originally to start in Sept, 2010 it is now set to change on Oct 4, 2010. The Up Front Mortgage Insurance Premium (was 2.25%) will be reduced to 1% BUT the monthly premium (was .55% annually) is now increasing to .85% and .90% (depending on certain qualifying factors). Congress recently authorized the FHA to increase fees to a max of 1.55% for the monthly factor. FHA has elected to use lesser for now. Bottom line, buyers payment will go up.
The following is taken from the FHA Press Release…
“Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010. Over this past week, the industry responded with support of the new fee structure, but voiced strong concern about having system changes ready in time to meet the original September 7, 2010 deadline. Since these system changes impact regulatory disclosures, lenders expressed they must have the additional time to implement and test systems. FHA took this feedback seriously and has accommodated the need for additional time.”
Mortgage Loans and a Builder Trade
Posted by: | CommentsAug 02, 2010
In the Metropolitan Kansas City area it appears that home values above $300,000 have taken the hardest hit in reference to loss of value. It gets even worse if you go into the Jumbo market which includes mortgage loan amounts starting at $417,001.
As a result of the downward move in values, the opportunity to capitalize on this market shift encourages some homeowners to approach builders about “real estate trades” instead of trying to sell the existing home themselves.
Here is the main hurdle a homeowner will face when considering a builder trade……………. Read More→
Last Minute Closing Issues
Posted by: | CommentsMay 22, 2010
The First Time Homebuye Tax Credit came to an end on April 30, 2010. The month ended with record numbers of new mortgage applications because the new nationwide mortgage guidelines dictate that an application doesn’t officially begin until there is a property determined. This huge influx of applications has slowly gone through the “documentation and processing” stage and is quickly resulting in extended delays in actual underwriting decisions.
Mortgage Loans: HUD’s Closing Cost Booklet
Posted by: | Comments05/11/2010
It is common knowledge in the real estate industry that the new required HUD Good Faith Estimate of Costs in conjunction with the final HUD Settlement Statement that is required in most real estate purchases is very confusing. I have been handling my own closings since 1992 and repetition creates a standard presentation. The new procedures have caused me to stumble through the explanation of these documents a few times.
Surprisingly, HUD’s booklet “Shopping for you Home Loan” is actually a pretty good explanation of the forms. Here is a link for you to copy to your desktop that will take you directly to a pdf file of the document. I encourage all realtors to send this link to every client when they contact you about buying or selling a home. It will help them understand the documents to come. http://bit.ly/HUDcosts
