FHA Temporary Loan Limits Reinstated

FHA Mortgage Letter 11-39  announces that the temporary limits that expired on October 1, 2011 will be reinstated under H.R. 2112 remain in effect through December 31, 2012. Case numbers pulled on or after November 18, 2011 will be subject to the new "old" limits or "new" old limits... take your pick!

Limits adjust annually within each county as the median sales price is adjusted... Check the FHA Loan Limits in your County.

To apply for this or any other loan program contact me today.

Additional Resources:

FAQ on FHA Loan Limits

HUD Mortgagee Letters

VA Funding Fee UPDATE

The lowered VA funding fees that went into place a mere four days ago are no longer in effect as of today due to the signing of HR 674 as cited in VA Circular 26-11-19. The fees will revert back to those that were in effect prior October 1st, 2011 and will remain in effect on through September 30, 2016.

To apply for this or any other loan program contact me today.

Additional resources:

VA News and Announcements 

Benefits for Veterans Chapter 5 Home Loan Guarantee

Oregon VA Loan Lowers Mortgage Rate

The ORVET Home Loan Program lowered their rate... again. This loan program is not the same as the VA Home Guaranteed Loan Program but is underwritten, funded, and serviced by the State of Oregon ODVA through a special federal bond. The ODVA loan program is a close match to a conventional loan in underwriting, requires mortgage insurance if not putting 20% down, and allows loan limits up to $417,000. The loan is available to eligible active duty veterans for the purchase of a primary residence. The ODVA Loan carries no funding fee, typically offers a rate below market, and even lends on manufactured homes. Added benefits include payment re-amortized with a principal reduction of $3000 plus and optional loan cancellation insurance.

You can find the current rate and additional program information at the the OR VET Home Loan webpage.

To apply for this or any other loan program contact me today.

A Ray of Sunshine for the Housing Market with New Changes to HARP

Good news is aglow in the mortgage industry since FHFA announced loosened guidelines to the Home Affordable Refinance Program or HARP yesterday. New guidelines are effective November 15, 2011, for the loan program which dawned March 4, 2009; at the time a refinance under HARP allowed up to 105% in loan to value. This isn't the first change we've seen however hopefully the most effective. Past changes have shed some light for underwater homeowners with an increase to permitted LTV's upwards of 125%, expanded upon loan origination dates, and extended deadlines of its availability to consumers. The program was conceived alongside HAMP which has aided borrowers in obtaining modifications but HARP did not require a financial hardship and/or mortgage payments to be past due. Performance of HARP has been lack-luster as participation is not mandatory and individual lender overlays have made it difficult to place some borrowers into a new loan. However the most recent changes have sparked lenders currently participating to accommodate the enhancements to the Fannie Mae and Freddie Mac backed loans. If we are lucky maybe even a few new lenders will lighten up and follow suit. I am hopeful for borrowers who have been left out in the dark until now to refinance into these historically low rates. Per the News Release...

The new program enhancements address several other key aspects of HARP including:

• Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;
• Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;
• Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac [the Enterprises]
• Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and
• Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.

Borrower Eligibility  

• The existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. 
• Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to:
• http://www.FannieMae.com/loanlookup/
  or calling 800-7FANNIE (8 am to 8 pm ET)
• https://ww3.FreddieMac.com/corporate/
  or 800-FREDDIE (8 am to 8 pm ET)
• The program will continue to be available for loans with LTVs above 80 percent.  
• Borrowers must be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months.  
• Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances.

To apply for this or any other loan program contact me today.

Additional Resources:

Extended dates and higher LTV announced March 2010

Extended dates announced March 2011

Know your options

Making Home Affordable

VA Home Loan Public Announcement on YouTube?

In my quest to find a hidden RSS feed on the VA Home Loans website I wandered, as I often do, to their YouTube channel and found this morsel...

It might be from March 2011 but it still applies. Oh, and 209 hits in 7 months? I feel validated in knowing that mortgage news just isn't sexy since little old me is generating more traffic than a huge government conglomerate! #Fail

To apply for this or any other loan program contact me today.

VA Funding Fees Clarified... For Now.

The VA News and Announcements page has been updated today to advise HR 2646 has been signed into law. Circular 26-11-15 has been issued and the fees structure published. The VA is waiving the difference in fees for loans disclosed with the lower fees prior to October 6, 2011 as the increase to fee would cause a tolerance violation where the GFE and final HUD was concerned. There is a high probability that the fee will change again in the near future with pending legislation and lenders are being advised to pay close attention. 

Loan Fee Structure for VA-Guaranteed Loans 

                                                                                 Veteran             Reservist/NationalGuard 
First Time Use     
Downpayment     

     Less than 5 percent ¹

             * October 1, 2011 until October 5, 2011            1.40%                 1.65% 

             * October 6, 2011 until November 17, 2011      2.15%                 2.40% 

             * On or after November 18, 2011                       1.40%                  1.65% 

     At least 5 percent but less than 10 percent      

             * October 1, 2011 until October 5, 2011             0.75%                1.00% 

             * October 6, 2011 until November 17, 2011      1.50%                 1.75% 

             * On or after November 18, 2011                        0.75%                 1.00% 

     10 percent or more     

             * October 1, 2011 until October 5, 2011             0.50%                0.75% 

             * October 6, 2011 until November 17, 2011      1.25%                 1.50% 

             * On or after November 18, 2011                        0.50%                 0.75% 

Second and Subsequent Use     

Downpayment     

     Less than 5 percent ¹

             * October 1, 2007 until October 1, 2011             3.30%                3.30% 

             * October 1, 2011 until October 5, 2011             2.80%                2.80% 

             * October 6, 2011 until November 17, 2011       3.30%                3.30% 

             * November 18, 2011 until October 1, 2012       2.80%                2.80% 

             * October 1, 2012 until October 1, 2013             2.15%                2.15% 

             * On or after October 1, 2013                               1.25%                1.25% 

     At least 5 percent but less than 10 percent      

             * October 1, 2011 until October 5, 2011             0.75%                 1.00% 

             * October 6, 2011 until November 17, 2011       1.50%                1.75% 

             * On or after November 18, 2011                         0.75%                1.00% 

     10 percent or more     

             * October 1, 2011 until October 5, 2011              0.50%                0.75% 

             * October 6, 2011 until November 17, 2011       1.25%                1.50% 

             * On or after November 18, 2011                         0.50%                0.75% 

Refinancing Loans     

Interest Rate Reduction                                                    0.50%                0.50% 

Other 

Assumptions                                                                      0.50%                0.50% 

Service-connected Veterans                                            0.00%                0.00% 

¹ includes 'Cash-Out' Refinancing loans     

To apply for this or any other loan program contact me today.

All Eyes Watching Status of HR 2646

As we await the fate of the VA funding fee... Once signed by the president the fee will revert back to the old until November 17, 2011. Whether or not the new lower fees will be upheld at that point are questionable. The right hand does not know what the left hand is doing. Mortgage transactions are hard enough as it is... this isn't helping.

Additional Resources:

Extension of Funding fees Strike October 1, 2011, Insert November 17, 2011 

VA Funding Fee Changes Recinded

That certainly didn't last long... according to VA News and Announcements:

LOANS CLOSED ON OR AFTER OCTOBER 1, 2011:  Due to legislation affecting funding fees that has passed both houses of Congress and is awaiting the President's signature, lenders should not submit payments for loans closed on or after October 1, 2011, until further notice.  This issue should be resolved within the next several days.   If the President signs the legislation, it will in effect keep funding fees at their FY2011 rates through November 17, 2011.  This means the changes set to take effect per Circular 26-11-12, might only be in effect for a very short time. For cases where lenders have closed loans with lower funding fees than provided in the new bill, the Secretary, under existing authority, will waive the difference in the fees. PLEASE monitor this page for updates.  We will pass on information as soon as we get it and also release a circular if and when the bill is signed.

I will montor the website closely for upcoming changes... an RSS feed would be helpful although I've heard that "Military Intelligence" has been dubbed an #oxymoron

To apply for this or any other loan program contact me today.

USDA Rural Development Implements Annual Fee

Effective today mortgage loans granted by USDA Rural Development, aka Guaranteed Rural Housing Loan Program, will carry an annual fee in addition to the upfront guarantee fee. The upfront fee will decrease from 3.5% of the loan amount to 2% on purchases and remains at 1% for streamline refinances. The annual fee will be assessed at .3% of the principal balance of the loan beginning with the original loan amount in the first year and recalculated each year thereafter for the life of the loan. Borrowers will pay a monthly installment to the lenders who will in turn pay the annual fee to USDA. The USDA Rural Development loan remains a viable option for home buyers seeking to purchase a home with little to no down. The mortgage program is income contingent and only available in eligible areas. To apply for this or any other loan program contact me today.

Additional Resources:

AN 4551

Property Eligibility 

Income Limits -Guaranteed / Moderate Income 

Income Limits -Direct / Low Income

FHA Loan Limits Decreased

As of today the temporary FHA loan limits have expired and home seekers in the market to purchase a higher priced home may have to shell out a little more for the down payment on their home mortgage. The loan limits were increased in 2008 through the Economic Stimulus Act in a effort to resuscitate the housing market. The limits are based on the median sales price and vary by county. To find the FHA limit for your area search HUD's link here.

There are still low to no down mortgage options for home buyers in a higher price range. There's the VA loan for qualified Veterans, USDA Rural for qualified properties and incomes, HomePath and HomeSteps for Fannie and Freddie REO's,  or Conventional paired with your choice of mortgage insurance. This may be structured either as a monthly premium, a split or single premium which may be financed into the loan. Comparing loan programs is critical when buying a home, make sure you take the time to clearly understand all of your financing options options. If you would like more information you may contact me for an appointment.

Additional resources:

FAQ on temporary limits

HUD Market Analysis

Mortgagee Letter 11-29