December 29, 2011
FHA Extends its Anti-Flipping Waiver Regulations through 2012
The waiver, which was initially issued in 2010 and set to expire this month, suspends regulations that prohibit the agency from insuring mortgages used to purchase homes that are bought and resold in less than 90 days. "This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight," said Acting Federal Housing Administration Commissioner Carol Galante. For more information go to: www.Hud.gov
October 1, 2011
New FHA Loan Limits:
Starting October 1, 2011, conforming loan limits were reduced. New Loan Limits dropped from $729,750 to $625,500.
Still great terms and rates for FHA loans:
Down payments as low as 3.5%
Low Interest Rates
Flexible qualifying guidelines
February 15, 2011
Yesterday HUD issued Mortgagee Letter 11-10, making it official that FHA annual mortgage insurance will increase another 0.25% basis points on case numbers issued on or after April 18, 2011. The annual mortgage insurance is included in the monthly mortgage payment. There is no change (at this time) to the upfront mortgage insurance which is paid for at closing (typically financed or may be paid as a closing cost). This is in line with the Obama Administration's plan for reforming mortgages which was revealed on Friday.
Here's how this will pencil out for a 30 year fixed mortgage based on a sales price of $400,000 with a minimum down payment of 3.5% (base loan amount of $386,000).
FHA mortgages with a case number issued prior to April 18, 2011:
386,000 x .90% = 3,474/12 months = $289.50.
FHA mortgages with a case number issued April 18, 2011 or later:
386,000 x 1.10% = 4,246/12 months = $353.83
Difference in monthly payment: $64.33.
This will also impact FHA 203k rehab loans.
Remember, FHA annual mortgage insurance remains on the loan for a minimum of 60 payments regardless of loan to value. Even if a home buyer is putting down 20% towards the purchase of their home, they will still have FHA mortgage insurance. FHA mortgage insurance will also remain on the home until the loan balance reaches 78% of the loan to value based on the original appraised value or purchase price of the home (which ever was less).
February 8, 2011
The FHA has extended its temporary waiver of its “anti-flipping rule.” The original waiver, which was passed as the direct result of C.A.R.’s leadership efforts, was set to expire at the end of last month, but now will be extended through the remainder of 2011. The ruling allows investors who acquire foreclosed properties at below-market value to be exempted from waiting the customary 90 days before reselling them. The 90-day waiting period originally was put in place to protect FHA borrowers against predatory practices of flipping where properties were quickly resold at inflated prices to unsuspecting borrowers. First-time buyers have responded overwhelmingly to the opportunity to buy “move-in ready” renovated homes with low down payments, prompting the extension.
January 4, 2011
FHA ISSUES GUIDANCE FOR REVERSE MORTGAGE BORROWERS AND LENDERS DEALING WITH OUTSTANDING PROPERTY TAX AND INSURANCE DEBTS:
The Federal Housing Administration (FHA) today released guidance to homeowners and lenders that use the reverse mortgage or Home Equity Conversion Mortgage (HECM) program and are dealing with outstanding property taxes and unpaid hazard insurance premiums. FHA’s guidance is intended to assist elderly borrowers who have neglected to pay these expenses and may face foreclosure.
FHA’s Mortgagee Letter applies to all HECM loans where the lender/servicer advanced corporate funds to satisfy an unpaid property charge on behalf of the borrower. It reminds lenders that foreclosure is to be a last resort when dealing with their elderly clients. It also includes sample letters that lenders may use to make certain borrowers understand that property tax and hazard insurance are required expenses that must be paid even though the homeowner owes nothing on their mortgage loan.
When a borrower fails to pay a property charge, the loan is deemed to be out of compliance with the provisions of the mortgage and FHA considers the loan to be delinquent. Lenders/servicers, however, must work with the borrower to try to bring the loan current at the earliest possible point. It is only after all loss mitigation strategies have been exhausted that the lender may submit a "due and payable" request to FHA.
Today’s Mortgagee Letter precisely defines the process and reporting requirements lender/servicers must follow to collect unpaid property charges from HECM borrowers. FHA is strongly encouraging HECM borrowers who have outstanding property charges to work closely with loan servicers and approved housing counselors who can provide free assistance to help them resolve the situation and avoid any foreclosure action.
For the full story http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-001
Feel free to ask me about HUD's available properties For Sale and/or FHA loan guidelines. I am here for all your Real Estate needs! My Cell #: (818) 535-6493
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
Dawn Gonzales
REALTOR®
Cell: (818) 535-6493
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