Federal Housing Administration to Increase Borrowing Costs in September
Posted by Sean Zanganeh | Leave A Comment »
The Federal Housing Administration plans early next month to raise the cost of loans backed by the agency in an effort to strengthen its cashed-strapped balance sheet. The bill will give the FHA the authority to raise annual mortgage insurance premiums. For more information on the legislation and how it can affect you, click here: http://www.mysddreamhome.com/index.php/federal-housing-administration-to-increase-borrowing-costs-in-september/
Related Posts: Buyers, Financial news, Home Loans, Mortgage News
Affordable Loans for California Public Schools Emplyoees – Get the Facts
Posted by Diane White | Currently 2 Comments »
Do you work for, or have worked in the past, the California Public School System? If so you are most likely eligible for the CalSTRS 80/17 Loan.
Some of the highlights of this program are:
- 3% down payment
- It is a 30 year fixed interest loan broken into two loans:
- 1st is for 80%
- 2nd is for 17%
- 2nd loan is at same interest rate as first – with no payments for 5 years
- No PMI (Private Mortgage Insurance)
- Conforming 1st loan amount up to $417,000
- Non-conforming 1st loan amount up to $536,082
Eligible Properties are:
- Owner-occupied single family homes
- Approved condos
- Approved attached and detached PUD’s
Eligible Borrowers are:
- Member of the California State Teacher’ Retirement System
- Employees of a California public school district
- Employees of a California Community College
- CalSTRS employees
It is a wonderful program which gives back to those employees that make our schools systems one of the best around! Ask your lender if this loan program is for you, or let me know if you would like any recommendations.
On another and seperate note…the Federal 1st time homebuyer IRS tax credit is running out. Escrow must be opened by April 30th and closed by June 30th. Call me if you want to take advantage of a possible $8,000 tax credit.
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Related Posts: Buyers, Financial news, Home Loans, Interest Rates, Real Estate News, San Diego, Uncategorized, tax credit
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
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
Great News! Fannie Mae To Allow Up To 10 Financed Properties Again!
Posted by Kevin Kueneke | Currently 2 Comments »
One of the biggest hurdles many solvent investors have had these days is Fannie Mae’s (FNMA) limitation on the number of one- to four-unit financed properties. This limit dropped to four properties over the last year or so, which has hamstrung many investors looking to add to their real estate portfolio.
However, according to FNMA Announcement 09-02, borrowers may now have up to ten financed properties without having to pay the higher rates of private or hard-money resources. In the current lower price and low rate environment, this increased limit is an extremely beneficial change.
For those looking to purchase more properties, this new limit also comes with some new guidelines:
- Minimum credit score is 720
- The borrower(s) cannot have had a bankruptcy or foreclosure in the past seven years
- There can be no mortgage delinquencies (30-days or greater) within the past 12 months on any mortgage loan
- Maximum loan to value is 75% for purchase of a 1 unit second home or investment property
- Maximum loan to value is 70% for purchase of a 2-4 unit investment property
- Full income documentation is required including most recent two-year’s IRS 1040’s
- Refinances are allowed on a no cash-out basis and with a loan to value limit of 70%.
FNMA’s announcement also outlined new reserve requirements:
“When the borrower will own one to four financed properties (including the subject property) the reserve requirements are:
- two months of reserves on the subject property if it is a second home
- six months reserves on the subject property if it is an investment property, and
- two months reserves on each other financed second home or investment property.
When the borrower will own five to ten financed properties (including the subject property) the reserve requirements are:
- two months reserves on the subject property if it is a second home
- six months reserves on the subject property if it is an investment property, and
- six months reserves on each other financed second home or investment property.“
Keep in mind, that a month’s reserve encompasses the total housing expense including principal and interest, property taxes, property insurance, HOA’s, Mello Roos, etc., not just the loan payment.
Now, six months reserves for up to ten properties might seem a little steep, but this is an important step in the continuing effort to rebuild a solid home-ownership base. You want to buy a bunch of property? Then you better be able to show that you can afford to do so. Sounds fair to me.
If you would like to discuss this topic further, please email me at Kevin@MyCWMtg.com
Related Posts: Buyers, CW Mortgage, Financial news, Home Loans, Homeowners, Interest Rates, Mortgage News, Real Estate News
