As a buyer or a seller, the appraisal is one of the key parts in the home sale transaction. If you’re the buyer, you have to get an appraisal to get a loan. As a home seller, one of the key stumbling blocks on the sale is having the home appraise for the selling price. What happens when the home does NOT appraise for at least the agreed upon sales price? Are there any options? [Read more…]
Here are some general time frames for getting a new home loan after going through a short sale. [Read more…]
I hate it when my condo buying clients send me a listing they are interested in, and I have to tell them we can’t look at it because that particular complex is not FHA approved. Breaks my heart. It’s good for potential condo buyers to get an understanding on what the basic requirements are for a condo complex to be FHA approved. [Read more…]
You’ve found a property that you really love and are excited about. It’s time to put your best foot forward and submit an offer. Here are the elements that go into your offer package. [Read more…]
A mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). [Read more…]
FHA loans are a great way for some home buyers to get into a property with a low down payment, a good rate, and a higher debt to income ratio. The FHA loan program will be changing on April 1st, 2013 and June 3rd, 2013.
On all FHA loans with case numbers ordered on or after 04/01/2013, the monthly mortgage insurance premium (MIP) will increase by .10 for loan amounts under $625k.
|Loan Term,LTV(%),Previous MIP Rate,New MIP Rate|
|Greater than 15yr term,down payment <||5%,1.25%,1.35%|
|Greater than 15yr term,down payment 5%-9%,1.20%,1.30%|
|Greater than 15yr term,down payment 10%-21%,1.20%,1.30%|
On 06/03/2013, the length required to have monthly mortgage insurance is changing.
|Loan Term,LTV(%),Previous MIP Duration,New MIP Duration|
|Less than or equal to 15 years,Less than or equal to 78%,5 years,11 years|
|Less than or equal to 15 years,Greater than 78% –||90%,Cancelled at 78% LTV,11 years|
|Less than or equal to 15 years,Greater than 90%,Cancelled at 78% LTV,Loan term|
|Greater than 15 years,Less than or equal to 78%,5 years,11 years|
|Greater than 15 years,Greater than 78% –||90%,Cancelled at 78% LTV &||5 years,11 years|
|Greater than 15 years,Greater than 90%,Cancelled at 78% LTV &||5 years,Loan term|
What You Need To Know:
- Even with the increases, a FHA loan is still a great option. You just have to look at the numbers to make sure it works for you.
- Look at conventional loan products as an alternative. There are major banks who provide loans with high LTV’s.
- Consider delaying your home purchase until you can put a larger down payment.
The Federal Housing Administration (FHA) is facing the same fiscal crunch most government agencies are facing. As a result, they are going to make a few changes to their programs. If you plan on getting a FHA loan in 2013, you need to be aware of them. [Read more…]
The journey to buy a home is long, and is comprised of many smaller journeys. One of those journeys is the process of getting a loan. Usually, the process starts with applying for a loan directly through a bank or a mortgage broker.
To get the ball rolling, you will need to fill out a basic loan application. Additionally, you will have to provide copies of certain documents. These docs help provide a detailed snapshot of your employment and financial standing. Here is a list of the common documents loan professionals require: [Read more…]