Archive for the 'Home Loans' Category
VA Zero-Down Loan Limits Reduced For 2010 In San Diego County
Posted by Kevin Kueneke | Leave A Comment »
The Department of Veteran’s Affairs (VA) announced that the maximum zero-down VA loan limit for 2010 is being reduced from $593,750 to $437,500 for San Diego County. Remember that VA loan amounts exceeding $417,000 are considered VA Jumbo loans.
Other areas, such as Los Angeles and Orange Counties, will have maximum zero-down loan limits as high as $593,750 whereas much of the San Francisco Bay Area can go up to $962,500.
A veteran can purchase a home in Pitkin County Colorado up to $1,094,625 with zero down payment. Click here for a complete list of areas with limits greater than $417,000.
Qualifying veterans can still purchase higher priced homes in San Diego County with significantly lower down payments than with Conventional financing.
Assuming the veteran has full entitlement, he/she may purchase a $450,000 home with as little as $3,125 down which is less than 0.7%. A $550,000 home can be purchased with as little as $15,625 down which is only 3.125%. Click here for examples for additional prices.
Please remember that the entire down payment can be a gift.
Whether you are a VA, FHA, or Conventional buyer, please email me: [email protected] with any questions.
Related Posts: Buyers, CW Mortgage, Home Loans, Mortgage News
FHA Purchase: After 90 Days But Before 180 Days
Posted by Kevin Kueneke | Leave A Comment »
We have discussed FHA’s 90-day “anti-flip” policy a lot these days. Basically, a buyer will be unable to obtain FHA insured financing if the subject property has been owned by the seller for less than 90 days, with some exceptions.
But did you know that FHA is still concerned from day 91 to day 180? If the new purchase price is 100% or more than the price paid by the seller and the seller purchased the property within the past 91 to 180 days, the lender will be required to obtain a second appraisal by another appraiser.
Even though this rule has been in effect since June of 2006, it has only recently been an issue due to all of the properties purchased on the court house steps.
Even if the seller can provide documentation showing the costs and extent of rehabilitation that went into the property resulting in the increased value, a second appraisal will still be required. Also, the cost of the second appraisal may not be charged to the home buyer.
Bottom line: check the transaction/price history. A second appraisal could add additional time to your escrow, unless you plan accordingly.
Should you have questions regarding this article or any other mortgage related topic, please call me at (760) 500-1919 or email me: [email protected]
Related Posts: Buyers, CW Mortgage, Home Loans, Homeowners, Mortgage News
Treasury sets Guidance to Simplify “Short Sales”
Posted by Brian Olenik | Currently 1 Comment »
Here is an important article that I wanted to share with everyone. If you would like more information, please don’t hesitate to contact me. My contact and article source information below.
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NEW YORK (Reuters) – The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed “short sales” of homes and other loan modification alternatives to stem a rising tide of foreclosures.
The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury’s website.
Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.
The incentives, first announced in May, expand on the government’s Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started.
Related Posts: Escrow, Financial news, Home Loans, Homeowners, Real Estate News, San Diego, Short Sales
How Does The Latest Version Of Fannie Mae’s DU Affect You?
Posted by Kevin Kueneke | Currently 1 Comment »
For Conventional conforming loans, lenders use one of two automated underwriting engines. Fannie Mae has Desktop Underwriter, otherwise known as DU. Freddie Mac has Loan Prospector, otherwise known as LP.
Prior to being reviewed by an actual underwriter, a loan must be run through one of these automated underwriting engines. The programs evaluate the information provided (income, assets, credit report, layers of risk, etc.) and determine whether or not the loan meets current Fannie/Freddie guidelines. If a loan does not pass this initial step, it cannot move forward.
Up to this point, Fannie Mae has not really had a set maximum debt-to-income ratio. A buyer could be approved with as much as 59% of their gross monthly income going towards their expenses (housing, cars, student loans, credit cards). A few years ago, that number could go up to 65%.
However, the latest version of Fannie’s engine, DU 8.0, will now have a soft debt ratio ceiling of 45% and a hard ceiling of 50%. Greater than 45% will be allowed if and only if there are compensating factors to rationalize the higher debt ratio.
What are compensating factors?
- Very high credit scores (greater than 760)
- Very large down payment (30-50% down payment for example)
- Large amounts of reserves (12+ months housing payments in the bank after the close of escrow)
- Long time on job (10+ years)
A survey of some of the larger lenders shows that more than 22% of all conventional loans in process right now have a debt ratio greater than 45%. More than 12% of all conventional loans in process have a debt ratio greater than 50%.
So, now what? If you are involved in a transaction right now, check with the lender to see if the loan will be affected by the tighter guidelines. Most lenders have a “pipeline protection” policy that will grandfather many loans, but not all.
Sometimes, an underwriter will re-calculate income differently than initially calculated and will then require that a loan be re-run through DU. If a loan is DU approved this week, but not actually reviewed by an underwriter until next week, that loan may not work under the new guidelines.
Please keep in mind that Freddie Mac has not tightened their LP program yet, so a loan that no longer fits under Fannie rules might still work under Freddie. However, not all lenders offer Freddie Mac products. Another reason to check with your lender.
By the way, for High Balance Conforming loans (a.k.a. Agency Jumbo, Conforming Jumbo, Jumbo Conforming), the maximum debt-to-income ratio is and always has been been 45%.
Any questions? Please feel free to call me at (760) 500-1919 or email me: [email protected]
Related Posts: Buyers, CW Mortgage, Home Loans, Mortgage News, San Diego
Getting a Loan Could Soon Prove More Difficult
Posted by Rachel LaMar, J.D. | Leave A Comment »
The FHA is looking into making some changes in how they approve insurance policies on home loans, and this may make it harder for borrowers to obtain loans in the future. If you are looking to purchase there is no time like the present.
There are four main components to the proposed changes, including raising minimum down payments and limiting seller contributions to buyer closing costs. To read more please visit http://www.rachellamarrealestate.com/blog/?p=216.
Related Posts: Buyers, Home Loans, Mortgage News, rachel lamar
