Ready Bell Home Loans @ Mason McDuffie Mortgage » Mortgage Programs

FHA News: Mortgage Insurance to increase

readybell — Sun, 20 Feb 2011 19:25:05 +0000

FHA NEWS

As of April 18^th, 2011 FHA will once again be INCREASING their monthly mortgage insurance premiums. What this will look like in $

Example: $400,000 loan, less than 5% down, 30 year loan

Current monthly Mortgage Insurance: $300

New April 18^th monthly Mortgage Insurance : $366.67

That is over a 20% increase!

That is an additional $800 per year in this scenario.

I would strongly suggest you

1) Have your borrowers qualified under upcoming changes and explore other loan programs

2) Encourage your FHA buyers to get serious now. They will need to be in contract prior to April 18^th to avoid these changes.

Struggling with your mortgage? Start here

readybell — Sat, 15 Jan 2011 16:57:59 +0000

Remember those interactive stories where your answers alter the story and affect the ending? Well, apparently marketing at Fannie Mae is really into them.

Fannie Mae has created a new interactive video where you control the outcome of the story based on your answers. It basically lets you role play through your financial situation. I played with it for awhile and it does actually have some solid points. It is at least a different way to look at your financial situation and thankfully they are honest. Check it out
http://www.knowyouroptions.com/ways-home

I would recommend this for Realtors to send past clients to if that client is now in trouble. It answers the questions in a safe, non threatening way and the entire website is a resource that will help your clients.

How to take advantage of Todays great rates when you have less than 20% equity in your home without paying mortgage insurance

readybell — Sat, 13 Nov 2010 15:50:13 +0000

How to take advantage of Toady’s great rates when you have less than 20% equity in your home without paying mortgage insurance. Part One

Many people feel that if they have less then 20% equity in their home they cannot refinance without paying mortgage insurance thus defeating any savings from refinancing. They are often told this by loan consultants or brokers. This is not always true. Let me demonstrate

FHA 15 year fixed:
If you owe $90,000 on a $100,000 home and you only have one loan, your loan to value is 90%. Under FHA guidelines if you are refinancing or purchasing a home and you do a 15year fixed as long as your loan to value is below 90% you DO NOT PAY MONTHLY MORTGAGE INSURANCE. You would pay the 1 percent upfront fee for FHA that is financed into the loan but no mortgage insurance. With rates as low as 3.875% with no points this can be a life saver for borrowers who want to get a low rate and pay their loan down quicker but lack sufficient equity to go conventional without mortgage insurance. This is also great for borrowers with lackluster credit. FHA does not penalize you with a higher rate is your credit is less than perfect.

New Loan Program. Only 1/2% down on FHA.

readybell — Fri, 12 Nov 2010 15:44:53 +0000

.5% down on FHA loan. Yes, that is right only .5% down

We have a new loan we are very excited about. Everything great except you are a little short on the downpayment or closing costs? Check this out

This is a great program for borrowers who need help with the down payment or closing costs.

Brief overview: This loan is sponsored by the CRHMFA Homebuyers Fund and administered by the National Homebuyers fund to assist low to moderate California residents to purchase homes. Low to moderate income in Sonoma and Marin is over 100,000 per year!
The program offers a 3% grant towards down payment or closing costs.

Rules about Grant Funds:

· May not exceed 3% of the first mortgage loan amount

· Proceeds may be used only for down payment or closing costs

· No cash back to borrower

· This is a grant. There is no recapture and no second lien attached to the property. The grant is easy to get. We basically reserve the funds not like some grants that are daunting and time consuming

Borrower Eligibility: Basic FHA+

· Owner occupied only. No non occupant co borrowers

· Income limits. Income cannot exceed CHF income limits for the county property is located in.

Check limits at http://www.nhfloan.org/programs/CHF_Platinum/Platinum_IncomeLimits.pdf

Other Notes:

· Single Family only

· 30 year fixed only

· Loan cannot exceed $417,000

· Rates are higher then normal FHA.

We are happy to see if your clients qualify for this program or to answer any questions you may have.

Let us know how we can help

Jennifer Ready 707-478-0637

FHA loan update; Need 640 credit score for most lenders

readybell — Thu, 11 Nov 2010 15:42:52 +0000

In the past few weeks we have seen one bank after another raise their minimum credit score on FHA to 640. Two weeks ago we had 7 main lenders that would allow 620 credit scores.
Today = zero
Why are lenders tighten up while the economy is recovering (as per some media reports)?

Welcome to a preview of 2011. The hushed word on the street is we will see FHA and Freddie Mac tighten up more and Fannie Mae may loosen up a bit. One hand giveth and the other taketh away.

Bottom line: Credit is crucial and will continue to be so for 2011

FHA VS Homepath

readybell — Wed, 22 Sep 2010 18:35:05 +0000

FHA (with new rules) VS Homepath

In a prior blog I discussed how FHA was changing October 4th and how this would affect monthly payments. For reference check out FHA Oct4th. These changes will make Homepath more competitive with FHA. Prior to October 4th FHA beat Homepath in monthly payment due to Homepath’s higher rates. As of October 4th Homepath is competitive.

NEW AS OF OCTOBER 4TH FHA Cost:
Purchase Price: $400,000
3.5% down: $14,000
1% upfront MI fee: $4000 Total Loan amount: $389,860
Principal and interest: $1997.14 (rate est 4.375% no points)
Taxes (estimated): $322
Insurance (estimated): $80
Mortgage Insurance: $287.52
Total Monthly payment: $2686.66

HOMEPATH has no mortgage insurance
Purchase Price: $400,000
3% down: $12,000 down
Total Loan amount: $388,000
est interest 5.125% with one point
Principal and interest: $ 2112.61
Taxes (estimated): $322
Insurance (estimated): $80
Total Monthly payment: $2514.61

FHA new COSTS. What this means

readybell — Wed, 11 Aug 2010 22:47:52 +0000

FHA is the single hottest loan in Northern California. With a limited amount required down (3.5%) and more relaxed income and asset requirements FHA is the way most new Homebuyers are going. As of October 4th the cost of having an FHA loan will INCREASE MONTHLY for the first 5 years.

Let’s look at the math for a 30 year fixed FHA loan at 4.875%

Current rules FHA Cost:

Purchase Price: $400,000

3.5% down: $14,000

2.25% upfront fee: $9000

Total Loan Amount: $394,685

Principal and interest: $2088.71

Taxes (estimated): $322

Insurance (estimated): $80

Mortgage Insurance: $175.70

Total Monthly payment: $2667.33

NEW AS OF OCTOBER 4TH FHA Cost:

Purchase Price: $400,000

3.5% down: $14,000

1% upfront fee: $4000

Total Loan amount: $389,860

Principal and interest: $2063.17

Taxes (estimated): $322

Insurance (estimated): $80

Mortgage Insurance: $287.52

Total Monthly payment: $2753.61

Although the monthly payment is higher for the first 5 years (You have to pay mortgage insurance for 5 years) with the new rules if you keep the loan for the full 30 years you will actually save about $2485. Where this will become an issue is with “cusp” borrowers. Borrowers who were max qualified at a certain amount will now qualify for less.

Written by Jennifer Ready www.Readybell.com

Most important mortgage news this year

readybell — Thu, 03 Jun 2010 23:57:04 +0000

If you are purchasing or refinancing a home with a loan (not FHA)

DO NOT BUY ANYTHING WITH YOUR CREDIT CARDS.

As of June 1st Fannie Mae is requiring lenders to check the borrowers credit right before funding. If anything changes on your credit your loan that you already have signed loan documents on could be denied. In order to protect yourself

1) DO NOT BUY ANYTHING WITH YOUR CREDIT CARDS OR OPEN NEW LINES OF CREDIT.

2) PAY YOUR CREDIT CARDS ON TIME

3) DO NOT ALLOW ANYONE TO RUN YOUR CREDIT.

By following the three above rules you will have no problems. If you decide to go against any of the above you could be setting yourself up for disaster.

How a lender checks your employment

readybell — Fri, 21 May 2010 22:17:25 +0000

In this market it is key to work with a lender that is well informed and has your best interest at heart. Unfortunately, not every buyer is so fortunate. Today I was surprised when a person I was pre qualifying told me they were leaving their job in 3 weeks and they had no other employment lined up and they would be going back to school. The lender they had been working with told them this would not be a problem because the bank would not find out.

There are two issue with this.

#1 misrepresenting income or continuance of income is fraud. Mortgage fraud is very serious and carries severe penalties.

#2 the bank would find out because every single lender verifies employment right before the loan funds. If the lender finds out there is no longer a job and the borrower does not qualify without it the buyer loses the loan and generally their deposit as well.

There are 3 ways employment is verified on every loan.

#1 Current paystubs and w2′s

#2 The loan processor requests a written or verbal verification of employment before the loan is submitted to underwriting. They contact your employer directly for this

#3 Verbal verification of employment at Funding. They will not fund the loan unless your employer verifies you are still working there.

If you are leaving your job and do not have another job lined up you should not be using that income to qualify for your loan. If you switch jobs in the middle of the loan you need to tell your lender so that they can adjust the transaction. Many people think that if they get through underwriting and they sign loan documents they are in the clear. You are not in the clear until the loan closes and the house has recorded./ Honesty is the best policy. If you are working with a lender that is encouraging you to misrepresent yourself leave that lender quick. Mortgage fraud is serious and no house is worth it.