fha: FHA MI CHANGES JUNE 2013 BUYER BEWARE - 04/30/13 06:53 AM
FHA MI CHANGES JUNE 2013 BUYER BEWARE
 
JUNE 3, 2013 will bring big changes to FHA. Real estate agents and home buyers need to be aware of how the changes in FHA will impact a home purchase. FHA for a long time has been a go to loan program for first time home buyers in particular. Higher debt to income, lower credit scores and higher loan to value loans, plus the fact down payment funds may be a gift or grant all are reasons to look at FHA.
In the past the fact FHA had an up front mortgage insurance … (2 comments)

fha: GOOD NEWS FOR FHA STREAMLINE REFINANCES - 03/07/12 10:55 AM
GOOD NEWS FOR FHA STREAMLINE REFINANCES
Some good news for FHA refinances IF the loan was done prior to June 2009.
 One of the problems in refinancing FHA loans to lower rates has been FHA has greatly increased MIP fees over the last few years. When trying to do a refinance it was a bit of a challenge for a borrower to justify paying higher up front MIP fees and or substantially higher monthly MIP fees. As a result many FHA refi's fell by the wayside.
With an announcement this week that FHA will offer streamline refinances with a very nominal .01% … (1 comments)

fha: FHA MORTGAGE INSURANCE PREMIUM INCREASE COMING IN APRIL - 02/27/12 03:13 PM
FHA MORTGAGE INSURANCE PREMIUM INCREASE COMING IN APRIL
I can remember going years without FHA MI changes. FHA continues to struggle with defaults. Although the loans originated in the last two years have lower default levels, FHA still is not in a good place financially due to foreclosures. They announced the following change today.  There was a period of time when the low monthly mortgage insurance made a lot of sense for a borrower to go FHA. It will not be so based on this change.
FHA Mortgage Increase Premium Announcement
FHA has just announced they are raising insurance premiums as follows … (1 comments)

fha: FHA Proposes Changes to Seller Paid Contributions - 02/27/12 11:44 AM
FHA Proposes Changes to Seller Paid Contributions
FHA Proposed Rule on Seller Concessions
Yesterday, HUD published a request for comments (due in 30 days, by March 26) on their revised changes to policies for seller concessions. The new proposal is to limit seller concessions as follows:
Reduces the amount of permitted seller concessions to 3% or $6,000, whichever is greater; Further limits seller concessions to never exceed the borrower's actual closing costs; Redefines what can be considered as acceptable closing costs to be paid by seller concessions to: closing costs, prepaid items, discount points, up-front MIP, and any interest rate buydown. … (2 comments)

fha: FHA MORTGAGE INSURANCE RISING AGAIN - 02/14/12 11:13 AM
FHA MORTGAGE INSURANCE RISING AGAIN
I just received a communication from one of my lenders Obama has submitted his budget to Congress. Included in this budge are two rate increases for FHA. They are as follows:
10 basis point increase in annual premium for single family forward mortgages (1.25% annual premium) 25 basis point additional increase for loans above $625,500  (1.5% annual premium) When will these increases be implemented?
  The Budget indicates these changes will be implemented "soon".  When the 25 basis point increase in the annual premium was implemented last year (from 90 bps to 115 bps), the Mortgagee … (0 comments)

fha: SHOULD FHA INCREASE MINIMUM DOWN PAYMENT? - 05/31/11 03:46 PM
SHOULD FHA INCREASE MINIMUM DOWN PAYMENT?
There is a plan being floated in the senate to increase the down payment for FHA loans to a minimum 5%. The concern is that the FHA's reserves have gotten dangerously low following the wave of foreclosures at the height of the housing crisis
FHA has undergone a lot of changes over the last year or so. When the ill conceived HVCC ruling took effect for appraisals it pushed a lot of loans to the FHA pipeline because for a time FHA was exempt from having to order appraisals blindly. During this time, FHA was the … (0 comments)

fha: SHOULD FHA BE THE ONLY GAME IN TOWN? - 03/23/10 10:09 AM
SHOULD FHA BE THE ONLY GAME IN TOWN?   Nearly every time I think of FHA, the thought creeps into my mind that there is something wrong with this picture.
 With housing being in the dumps, Fannie and Freddie tightened up guidelines  by increased fees for credit scores, loan to value, occupancy, property type. A long menu of changes along with most importantly requiring the use of Appraisal Management Companies to order appraisals.
 
FHA, which had sunk to a low level of usage over the last few years because of all the options available with a conventional loan, has risen up as … (0 comments)