FHA Is Proposing These Two Changes (Not Good News)...

Good Morning!   In a recent press release HUD is proposing two changes to the FHA mortgage program... 1) They are proposing the monthly mortgage insurance on a 30 year FHA mortgage will last for the life of the loan. Right now if 5 years have passed and your LTV is 78% or lower you can eliminate monthly MI payments to FHA. ...this may very well go away. 2) They are proposing a 10 basis point increase to the annual insurance premium. Currently these are just proposals, but I would expect them both to happen at some point in the not too distant future. Suggested action: If you were considering getting an FHA mortgage do it now - not later.   Have a good day today!  ...and thanks for reading.    Brett      To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application. To sign up for my weekly mortgage quick tips - CLICK HERE.

HOW TO USE INCOME FROM AN ASSET SALE FOR DOWN PAYMENT…

Happy Thanksgiving Week! 

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Quick Tip: If you were considering selling an asset to raise money for a down payment on a house – you can! 

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Here’s how… 

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You must create a bill of sale reflecting the date of sale, asset to be sold, and the sales price. 

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The buyer’s and seller’s signatures are required on the bill of sale. 

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Copies of all checks, and deposit slips are also needed. 

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A picture of the item sold is also helpful.

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Have a good day today!  …and thanks for reading.

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Brett

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.

How To Qualify For A FHA Streamline Refinance...

Keeping on the theme of ways to refinance if you owe more on your house than it's worth...

If you currently have an FHA mortgage you can do a Streamline Refinance.

Some key aspects of this loan are... the mortgage approval process for an FHA Streamline Refinance says :

1) Employment verification is not required with an FHA Streamline Refinance.

2) Income verification is not required with an FHA Streamline Refinance.

3) Credit score verification is not required with an FHA Streamline Refinance.

4) The kicker: No appraisal is needed!

Here are some basic guidelines to see if you are eligible for an FHA streamline...

1) Perfect, 12-Month Payment History Is Required.

2) Loans must be current at the time of closing.

3) The FHA requires that borrowers make 6 mortgage payments on their current FHA-insured loan, and that 210 days pass from the most recent closing date, in order to be eligible for a Streamline Refinance.

4) Streamline Refinance applicants must demonstrate that there's a Net Tangible Benefit in the refinance; a legitimate reason for refinancing. A Net Tangible Benefit is defined as reducing the (principal + interest + mortgage insurance) component of the mortgage payment by 5 percent or more. Another allowable Net Tangible Benefit is to refinance from an adjusting ARM into a fixed rate loan. Taking "cash out" to pay bills is not an allowable Net Tangible Benefit.

5) Loan Balances May Not Increase To Cover Loan Costs. The new loan balance is limited by the math formula of (Current Principal Balance + Upfront Mortgage Insurance Premium). All other costs -- origination charges, title charges, escrow population -- must be either (1) Paid by the borrower as cash at closing, or (2) Credited by the loan officer in full. The latter is called a "zero-cost FHA Streamline".

If you have an FHA loan and would like to see if you qualify for a Streamline Refinance - just give me a call, shoot me an email, or apply on my web site!  

 

Have a good day today!  ...and thanks for reading.

  

Brett

 

  

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.

 
  

 

How To Refi If You Owe More Than Your House Is Worth...

If you owe more than your house is worth and you want to refinance there are three main options for you depending on if your loan is conventional, FHA, or VA.

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Conventional: The main refi product for upside down mortgages is HARP 2.

FHA: We can use a streamline refinance.

VA: We can use the VA IRRRL loan program.

In coming blog posts I’ll be going into detail on each one of these programs. …how they work. …how you qualify for them, etc.

If you are upside down and are looking to refinance you don’t have to wait for my next blog post.

…You can just give me a call or email me and ask me about your situation.

Have a good day today!  …and thanks for reading.

Brett

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.

If You Have These It Could Kill Your Loan...

Good Morning! 

Many people are unaware of this, but NSF charges on your bank statement can derail your loan.

It's true! NSF charges are a potential deal killer for the underwriter. 

If you have insufficient funds charges in your bank statement it signals to the underwriter that you are having a hard time managing your money.

The solution is to ask your lender (hopefully me!) to replace your statements with a verification of deposit.  

Have a good day today!  ...and thanks for reading.

Brett

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.