I Found Me! (At my new job)
While for the last several years I have been blogging as partner and “President” of a busy but small mortgage lender licensed in Georgia, Florida and for a time North Carolina things have changed mightily over the last few weeks. Many of you knew I was considering mothballing my Novation Mortgage and indeed had spoken to some about various opportunities around the industry.
Early on in the change process I decided if I were to continue with my experience in the mortgage industry it would be at Regional Director or above or good old Loan Officer. Several people contacted me through Active Rain or as a result of Active Rain I should say and others with whom I interviewed rapidly found my 3 plus years of blogging here as well as proliferated around the Internet. Some liked the idea and others did not – understandably – as keeper of the keys to my own company I was often more outspoken than I will be henceforth.
FHA and VA Rates Down at Month's End
With FHA and VA mortgage interest rates down here at the end of August it really could be one of the best times to refinance or buy in modern American history. There is still an abundance of available homes to be purchased and the First Time Home Buyer’s Tax Credit ends in just a little over 3 months.
I encourage all first time buyers to be very active about finding a new home and getting approved for the loan now because November will be too late. Seriously, if you think you can wait until November to find a home you will be sadly mistaken and, in Georgia at least, miss out on a possible $9,800 tax credit including both the Federal and State home buyer’s tax credit.
Home Loan Mortgage Rates Lowest Since May
Georgia FHA Mortgage Rates
We constantly keep our eyes on the rates wondering if and when they will move and which direction they will go. As a Georgia FHA home loan expert I am most interested in FHA but we offer VA, Fannie Mae and Freddie Mac loans as well. Of course any move higher invokes one response and any move lower another. It is amazing to me how a slight move higher gets people to call and a slight move lower gets people to hope the rate will go even lower.
Forbes is a great source for stories and news about mortgage interest rates and I can almost tell where my customers get their information when they get it from Forbes. Their article this morning titled “Mortgage Rates Lowest Since May” sparked a few emails and a couple of calls from people saying they saw rates had dropped to 4.57 – sure, on a 5 year adjustable!
It’s easy to skim articles and come up with a number like that so I don’t blame people for doing so. The reality is mortgage rates are lower today than they have been since May but chances of them going any lower or even hovering that low are very slim. Rates have been more volatile this year than they have in many years although the fluctuations, fortunately, have been small. My advice? If you are a first time home buyer and want to take advantage of the first time home buyer’s tax credit or even if you’re just looking to purchase or refinance an existing Georgia FHA home loan this is a great time to do so.
Call me directly at 678-946-0101
An FHA Home Purchase for $100 Down? Yes!
Sure, there’s the old argument that people who don’t make a down payment can’t afford the home. Then there’s the realistic fact that in Georgia you can buy a HUD home for well under market value from HUD using our FHA acquisition loan and only $100 down thus saving your down payment for clean up and cosmetic rehab. In fact if there is up to $5000 in necessary repairs like the HVAC, plumbing, electrical, Sheetrock, etc., that can be paid for at closing as a part of the loan.
HUD currently has an excess of properties available in Georgia and many of them are in great condition. Some may need repairs but this program allows for up to $5000 in repairs and the FHA streamlined 203(k) allows for up to $35,000 in repairs.
You still have to qualify under HUD’s guidelines for this FHA loan but all in all this is a fantastic program.
Call me today at 678-946-0101 and let’s discuss the possibilities about you owning one of these Georgia HUD homes!
FHA Property Flipping Rule Waiver Extended
FHA has extended the temporary property flipping waiver that allows lenders and the property disposition firms they hire (or with whom they are affiliated) to sell properties on which they have foreclosed without regard to FHA’s 90-day seasoning requirement. The waiver is in effect for loans with purchase agreements signed by the borrower and seller on or before May 10, 2010.
Exceptions to 90-day Restriction
The following sales are exempt from the time restrictions provided by 203.37a:
- Sales by HUD of its Real Estate Owned
- Sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies.
- Sales of properties by nonprofits approved to purchase HUD-owned single-family properties at a discount with resale restrictions.
- Sales of properties that are acquired by the sellers by inheritance.
- Sales of properties purchased by employers or relocation agencies in connection with relocations of employees.
- Sales of properties by state and federally charted financial institutions and Government Sponsored Enterprises.
- Sales of properties by local and state government agencies.
- Upon FHA’s announcement of eligibility in a notice (i.e., ML), sales of properties located in areas designated by the President as federal disaster areas, will be exempt from the restrictions of the property-flipping rule. The notice will specify how long the exception will be in effect and the specific disaster area affected.
Hope for Home Owners with a Fannie Mae Loan
Fannie Mae mortgagors have long been jealous of FHA mortgagors because they have the FHA streamline refinance. Enter the FNMA DU Refi Plus. If you have an existing Fannie Mae home mortgage which does not have mortgage insurance you can refinance all the way up to 105% of the appraised value of your home provided you are current with your mortgage payments, are currently employed and meet a couple of other criteria.
Even if you have a second mortgage you can qualify for the loan as long as the second mortgage holder with agree to re-subordinate the mortgage. There is no maximum combined loan to value (CLTV) on the DU Plus and so long as there is no mortgage insurance on the existing loan there is no mortgage insurance on the DU Plus.
Novation Mortgage will request the subordination agreement from your existing lender and you will only need to get involved if for some reason they refuse to agree to re-subordinate. Don’t worry if you do not fully understand what all that means. When you call I will explain it to you in detail. In fact I may explain it to you even if you think you already know so that I make sure I know you understand – as they say on TV “that’s just the way I roll.”
If your home is in Georgia or Florida and it is the home you live in full time (primary residence) don’t hesitate to call me at 678-946-0101 and ask about the Fannie Mae DU Refi Plus or the FHA streamline refinance.
FHA Cash Out Refi >85% requires two appraisals
FHA Home Loans
Fore loans submitted on or after January 1, 2009 (casefile created), FHA now requires a second appraisal for cash-out refinances with the loan to value is greater than 85%. This means if your home is valued at $200,000 and your loan amount is $170,100 you will need the second appraisal. If your loan amount is 85% or less, for our $200,000 home that would be $170,000 or less, you will not be required by FHA to have the second appraisal.
If your home is a single family residence detached from other homes you will only need an exterior appraisal, called a 2055. However, if your home is a condominium, duplex or other attached residence you will need the full FHA approved appraisal. This appraisal includes the 1004, 1073 and 1025 on the appropriate forms.
The additional burden of cost to you is different by jurisdiction and set by appraisers in your area. The first appraisal and second appraisal may be required to be performed by designated appraisers depending on your lender. Average cost will be an addition $200 to $500 to the borrower for this new regulation.
Have a nice day.
Twitter Tweets about FHA November 19, 2008
As a part of my research for my BlogTalkRadio shows I collect data from all over the internet. I used to keep these quiet but now, at least from time to time, I share these with anyone who wants to read them. If you are unfamiliar with Twitter it is a
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Daily Rates for Qualified Buyers
Today |
Last Week |
|
| 30 Year Fixed | 3.59% | 3.65% |
| 15 Year Fixed | 2.91% | 2.89% |
| 5/1 ARM | 2.81% | 2.57% |
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