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FHA Limits Expand for 2016; More Likely in 2017

The Department of Housing and Urban Development (HUD) announced the 2016 maximum loan limits for the Federal Housing Administration (FHA) yesterday. While the maximum loan limit will not change, limits will rise in 188 counties around the country. Every year, HUD establishes the maximum mortgage amounts which the FHA can insure. HUD sets limits based […]

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FHA Lending Likely to Tighten Modestly

Lenders who responded to the 3rd Quarter Survey of Mortgage Originators indicated that proposed changes by the FHA may cause them to tighten their credit standards modestly. While this change is unfortunate, it would be a mild reversion to what is already a tight credit environment. These changes are not likely to affect the FHA’s […]

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More Loans Getting Approved, But Applications Still Low

The share of home purchase loan originations to total home purchase loan applications improved steadily if slightly, based on the latest Home Mortgage Disclosure Act (HMDA) loan level data as of 2014 (most recent). However, consumers remained reluctant to borrow as credit standards remained difficult, even for middle-income earners. FHA-insured mortgages have higher debt-to-income requirements […]

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State and Local Down Payment Assitance is Important

One of the Federal Housing Administration’s (FHA) important functions is to provide insurance on low down payment mortgages. The majority of FHA-financed mortgages have a down payment of 3.5%. A homebuyer can get assistance for the down payement from a relative, an employer-sponsored program, or a state or local government sponsored program. Recently, the FHA’s […]

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071615A

For the FHA, Pricing Springs Eternal

Following several years of premium increases, the FHA implemented a 50 basis point reduction in its annual mortgage insurance fee in 2015.  The sharp reduction was expected to boost affordability for entry-level and disadvantaged home buyers and to stimulate access for new buyers in this part of the market.  Through May, the impact of the […]

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purchase apps

Mortgage Application Data (June 24th, 2015)

This blog post was written by La Shawn Skeete. La Shawn is a Summer Research Intern, and is currently studying at The University of Maryland, College Park pursuing a degree in Economics.  Seasonally adjusted mortgage loan applications increased 1.6% from the week ending June 12th and 10.5% when compared to this time last year. Seasonally adjusted applications for purchase […]

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finance

Return Buyers Prefer Safe, Affordable Financing

The share of homes purchased by return buyers or “boomerang” buyers, those who formerly short sold a home or were foreclosed on, increased significantly in recent years.  NAR Research estimates that 8% or nearly 350,000 home sales were to return buyers in 2014.  It’s important to note though, that the majority of these borrowers according […]

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purchase

Mortgage Application Data (June 17th, 2015)

This blog post was written by La Shawn Skeete. La Shawn is a Summer Research Intern and is currently studying at The University of Maryland, College Park pursuing a degree in Economics. Seasonally adjusted mortgage loan applications decreased 5.5% from the week ending June 5th thus balancing that weeks’ swell due to Memorial Day. There were 7.7% more applications […]

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Underwater Streamline Refinance into a Conventional Loan

For upside down homeowners that have a FHA mortgage right now, the Streamline Refinance loan is one of the most effective tools available for taking advantage of today’s historically low interest rates. FHA interest rates have been lower than conventional interest rates for quite some time now. This hasn’t always been the case, and it […]

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April 1st, 2013 FHA Mortgage Insurance Increase Deadline

FHA mortgage insurance increases once again on April 1st, 2013.  This increase applies to all FHA mortgages with a case number on or after April 1st. A case number is assigned when a loan is submitted for approval through an FHA authorized lender.  To submit a loan, you need a loan application, a credit report, […]

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FHA Repairs CalHFA FHA & CHDAP Interpretation

FHA Repairs CalHFA FHA & CHDAP Interpretation UPDATE: Effective immediately on January 29th, 2013 the federal government has given a “transitional” period for CalHFA to comply with guidelines. This means that CHDAP is temporarily reinstated. The emphasis here is on the word “temporary”.  Any FHA loans originated after June 1st, 2013 may be ineligible for […]

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No Automatic FHA Approval 3 Years After Foreclosure

Tens of thousands of California families are now, or close to being eligible to boomerang back into the Real Estate market after past foreclosure, short sale or bankruptcy. 2009 was one of California’s most active years for bankruptcy, short sale and foreclosure activity.  Families that endured these hardships have come through the tunnel and the […]

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Will FHA Streamlines Go Away in 2013?

Homeowners with a FHA insured mortgage may be eligible for a special refinance program that offers reduced cost, and reduced documentation refinancing options. The FHA streamline refinance program allows home owners to reduce their interest rate to current market rates if: At least 6 payments have been made on your current FHA mortgage No late […]

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New FHA Commissioner to Raise Down Payment and Closing Costs?

Last Sunday, Congress approved the appointment of Carol Galante as assistant secretary for housing and commissioner of FHA. FHA has been in the spotlight recently after rumors of a tax payer bail out due to increased market share and delinquencies as reported in the BMCD annual report to Congress delivered November 16th, 2012.  In its […]

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FHA waiting period after foreclosure

Is FHA Waiving the 3 Year Foreclosure Waiting Period?

I’ve been getting a lot of questions in the past couple weeks about FHA waiving the waiting periods for buying after a bankruptcy, foreclosure or short sale. As is true with most rumors, there is a significant amount of truth woven into this conversation. As of the date this article is being written, I have […]

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Mortgage Insurance Alternative

Buy a Home with 3% Down without Monthly Mortgage Insurance?

Mortgage insurance is required on all FHA insured home loans.  FHA requires two mortgage insurance premiums, upfront mortgage insurance equal to 1.75% of the loan amount and annual mortgage insurance added to your monthly payment. Currently, the annual mortgage insurance premium is 1.25% if you have less than a 5% down payment available, 1.20% of […]

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How Long do I Have to Wait to FHA Streamline Refinance Again?

Interest rates continue to plummet this week as we see home loan mortgage rates reach the low 3% range. It’s absolutely unheard of to have long term, 30 year interest rates this low.  It seems like only a few months ago we saw rates hit the low 4% range and everyone, myself included, thought there […]

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hr 5884 home buyer incentive

H.R. 5884 Reduces FHA Mortgage Insurance for Home Buyers?

H.R. 5884 Was introduced to Congress on July 1st, 2012 by Representative Rep. Karen Bass [D-CA33] of California. The goal of this proposed bill is to make FHA home loan financing more affordable by combatting the many mortgage insurance premium increases that have made FHA less affordable to entry level home buyers. Dubbed the Homeownership Preservation Education […]

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625 FHA MIP Increase

FHA Fees Increase Again – June 2012

Mortgage Insurance Premiums FHA Mortgage insurance premiums on loan amounts above $625,500 are due to increase again next week. On April 9th, 2012, FHA MIP increased across the board for all loan amounts. June 11th, 2012, we will see monthly premiums increase another 25 basis points to 1.50% if you are putting down between 3.5% […]

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Changes to FHA MIP UFMIP

Important Changes to FHA Mortgage Insurance Premiums 2012

There are a couple of important changes coming up that you should be aware of if you intend to us FHA financing to either buy or refinance your home in the upcoming months. Increase in Annual Mortgage Insurance Premium On December 23, 2011, the President signed into law the Temporary Payroll Tax Cut Continuation Act […]

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FHA streamline refinance catch

FHA Streamline Refinance – What's the Catch?

I know that sometimes FHA home loans get a bad rap because of the mortgage insurance premium, but there are benefits that go far beyond that of simply being easier to qualify. FHA home loans have a built in benefit of allowing you to reduce the interest without having to go through the expense and paperwork […]

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Election year promises

Election Year Help For Underwater Homeowners?

Presidential election years are always interesting as the vote sway machine kicks into high gear. During President Obama’s State of the Union address on Tuesday evening administration, he briefly mentioned a new plan to help underwater homeowners whose loans are NOT owned by Fannie Mae or Freddie Mac and therefore do not qualify for the […]

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Refinancing options for underwater california homeowners

Refinancing Options for Underwater California Homeowners

Refinancing options for underwater California homeowners is a subject that doesn’t get enough press. Having the ability to refinance your home to take advantage of today’s low interest rates may not be as futile as you might think. Many California homeowners find themselves in a position of owing more than their home is worth.  I […]

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H.R. 3630 home loan fees increase

Why Does H.R. 3765 Increases Home Loan Fees?

What does H.R. 3765 – The Temporary Payroll Tax Cut Continuation Act of 2011 have to do with mortgages getting more expensive? H.R. 3630 is being paid for by raising home loan guarantee fees! This includes the fees charged to lenders to deliver loans to Fannie Mae and Freddie Mac, as well as another increase in […]

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Mortgage Insurance Deduction Expires

Mortgage Insurance Premiums Tax Deduction Expires 2011

Don’t feel like reading?  Listen to this article instead! Mortgage insurance premiums have been tax deductible for many homeowners since 2007 as part of an early incentive bill that aimed to encourage buyers to get into the stumbling real estate market at that time. In December 2006 the 109th Congress passed, as part of a […]

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Difference in FHA County Loan Limits 2011

ALERT: Loan Limit Changes October 2011

Single-family loan limits are slated to adjust upon expiration of the temporary limit increases that were part of the Housing and Economic Recovery Act of 2008. Based on this “Difference in County Loan Limits” map, it looks like California is hit hardest with the most dramatic decrease in loan limits accross the board. See that […]

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8-2-11 FHA Streamline Good

Historic Low Rates Make FHA Streamline Serious Option Now?

Updated August 2nd, 2011 – Yesterday we saw an unprecedented drop  of interest rates.  This now becomes a very realistic option! Original Article July 14th, 2010:  FHA Streamline refinance program is available to homeowners that currently have an FHA loan on an owner occupied home. FHA Streamline refinance loans are much quicker and easier than a typical […]

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FHA Loan Fees

Understanding FHA Loan Fees

If you are a first time home buyer, you’ve most likely have heard about FHA loans, and you probably have plenty of important questions. As you are deciding whether an FHA loan is best for you, it is important that you understand it’s unique features and how it works. One of the most important details […]

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4-18-11 FHA MIP changes

FHA Monthly Mortgage Insurance Premium Rises Again

On April 18th, 2011 FHA monthly mortgage insurance premium is rising again after the release of the administrations recent report to congress – Reforming America’s Housing Finance Market. Your monthly mortgage insurance premium will increase .25bps, an increase of 28% from .90% to 1.15%. Higher payments mean lower housing prices? Absolutely!  Affordability is a major […]

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California Housing Finance Agency

CalHFA FHA Government Loan for First Time Home Buyers UPDATED!

The California Housing Finance Agency (CalHFA) has added a new FHA government loan program for first time home buyers. CalHFA is the State of California’s first time home buyer program for the past 35 years.  The program was chartered as the State’s affordable housing bank to make low interest rate loans through the sale of […]

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fha steamline refinance

FHA Streamline Refinance Just got Better?

FHA streamline refinance program has seen several new developments and at least one of the changes has been for the better. Prior to these changes one of the requirements in regards to the FHA streamline program, was that the sum of all the liens on the home not exceed the geographical maximum mortgage limit for […]

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FHA mortgage insurance changes october 4th 2010

FHA Mortgage insurance changes – Top 3 things you need to know

FHA mortgage insurance changes are due to take effect on October 4th, 2010.  When I first wrote about the increase in monthly, and decrease in up front mortgage insurance premiums, the changes were due to take effect on September 7th, 2010. The Top 3 things you need to know: 1.  The upfront mortgage insurance premium […]

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