It’s About To Get More Difficult To Get Approved For FHA…

FHA is making it harder to qualify for financing if you have lower credit scores.

Starting April 1st, 2013 with Mortgagee Letter 2013-05 FHA has revised its guidelines for manually underwritten loans.

Here are three things you need to know about this update from FHA…

1) Manual underwriting is required for loans with a credit score less than 620 and a debt to income ratio greater than 43%.

2) Any compensating factor used to justify approval of a loan that exceeds ratios must also be supported by documentation.

3) Energy Efficient Mortgages may still be approved with a debt-to-income ratio up to 45% without compensating factors.

Note: It’s still possible to be able to use an automated approval with scores less than 620, but the debt to income ratio must be less than 43%.

If your scores are in the lower 600′s, and you have been considering purchasing a home then I would recommend you take action now. …because if you wait until April it could be more difficult for you to purchase!

That’s it for today!

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.

The Best HARP Program In The History Of Ever…

Would you like to refinance your home, but you owe more than your home is worth?

If your home loan is held by Fannie Mae then there is hope for you to refinance your home.

You may have heard about the HARP program. HARP allows you to refinance your mortgage at loan to value ratios above the normal maximum limits for LTV.

Most lenders offer HARP.

However, not many offer HARP with no overlay guidelines!

…But, I do!

Here are a few of the highlights of this program…

1) No minimum credit score required!

2) No max LTV on fixed rate loans!

3) 1 to 4 units (owner occupied, or NON OWNER OCCUPIED)!

4) No maximum LTV!

5) Subordination of eligible junior liens without a max combined LTV – for all occupancy types!

6) No limit on the number of financed properties!

7) Available on manufactured homes!

So, if you have a Fannie Mae loan, and are currently upside down on your home – give me a call or shoot me an email! …I just might be able to help you out!

That’s it for today!

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.

Starting April 1st You Will Pay More For This Loan…

FHA has confirmed it’s changing it’s MIP. …again.

Starting April 1st of 2013 there are two big changes that will go into effect.

1) The annual FHA is going up. (Can be as high as 1.55%)  …This is up from the max rate of 1.25% now.

2) If you are putting down less than 10% on an FHA mortgage you won’t ever be able to get rid of your annual MIP on an FHA loan. It will be on the loan for the life of the loan no matter the loan to value ratio.

The reason FHA is making these changes is that FHA’s reserves have dropped below the $2 for every $100 insured threshold – mandated by congress.

FHA loans MIP rates really fall into two categories.

 …loans that were originated before June 1, 2009, and loans that were originated afterwards.

If you are refinancing a loan that was originated before June 1 of 2009 here are the MIP rates you can expect…

Up front MIP = 0.01%.

Annual MIP =

15-year fixed rate mortgage with loan-to-value of 78% or less : No annual MIP required

15-year fixed rate mortgage with loan-to-value greater than 78% : 0.55% annual MIP

30-year fixed rate mortgage, all loan-to-values: 0.55% annual MIP

-

If you are refinancing an FHA mortgage originated after June 1 of 2009, or purchasing a home with a new FHA mortgage these will be your MIP rates…

Up front MIP = 1.75%

Annual MIP =

15-year loan term, LTV less than, or equal to, 78 percent : 0.45% annually

15-year loan term, LTV greater than 78 percent, less than 90 percent : 0.45% annually

15-year loan term, LTV greater than 90 percent : 0.70% annually

30-year loan term, LTV less than, or equal to, 95 percent : 1.30% annually

30-year loan term, LTV greater than 95 percent : 1.35% annually

-

Right now FHA will allow you to remove your annual MIP if you have paid MIP for 5 years, and the loans size is less than 78% of the home’s original purchase price or appraised value.

However, now FHA will remove annual MIP after 11 years if your beginning LTV is 90% or less.

If you are only making a 3.5% down payment, the FHA will assess MIP for the duration of the loan’s term.

Currently, the FHA removes the annual mortgage insurance requirement for homeowners who have paid mortgage insurance for at least 5 years, and whose loan size is less than 78% of the lower of a home’s original purchase price or appraised value.

Going forward, the FHA will remove annual MIP after 11 years for homeowners whose beginning LTV is 90% or less.

For everyone else, including those making a 3.5% down payment, the FHA will assess MIP for the duration of the loan’s term.

That’s it for today!

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.