Fannie Mae Links

Posted by gilkerk ( Fannie Mae ) :: Permalink :: Trackbacks (0)

Loan Program Changes

Changes phasing in or already here without much fanfare:

Debt to Income Ratio: Many FHA lenders will soon be or have started in the last few weeks introducing their own maximum debt to income ratios limits. This DTI limit resembles the same one Fannie/Freddie implemented in December. Please double check your buyer pre-approvals.

Where once it was ok to have a borrower with a max total debt to income ratio of 55-60%. Some lenders have compressed that number to as low as 45%. Some of the seasoned Realtors will remember the 28/36 ratio limits of the 90's. 45 is still more tolerant than the old 36.

FHA lenders were relying on findings from their "FHA Total Score Card" system to determine what a specific borrowers maximum approvable debt to income ratio is after running the borrowers credit data through the FHA automated system (aka FHA Total Score Card)- this is no longer the standard. Many lenders have now created their own guidelines (FHA overlays) and are disregarding what FHA tolerates, resulting in lender specific tighter tolerances.

The impetus for the above change may be stemming from an important date in April 2010. HUD will soon be requiring all HUD/FHA approved lenders to maintain an increased minimum "net worth". It is estimated that 60% of the HUD approved lenders across the country can't meet the new net worth test. Other lenders that are on the fringe may be tightening their guidelines to reduce loan buybacks in order to maintain their net worth capacity so that they can pass the test.

Many of the lenders that have reduced their max DTI tolerance haven't promoted their specific change in fear that notification would drive business away to lenders with higher tolerances. Be mindful of debt to income ratios when receiving pre-approval letters.

See my blog at www.gilkerk.realestateloans.com to learn more about Debt to Income Ratio's.

FHA HVCC: Feb 15. Appraisals for all FHA case numbers assigned to a property transaction on or after this day will require the appraisal to be ordered through an Appraisal Management Company (AMC). Same as conventional loans, FHA will require a neutral third party to "manage" the appraisal order process.

PURCHASE TAX INCENTIVE TIMELINE WARNING: April 30th is the last day for inked contracts. If you now have buyers/borrowers that are still waiting to make an offer, please let them know that they are shooting themselves in the foot. As the deadline nears, underwriting turn times will slow down substantially. If your buyers property shows an appraisal or inspection concern in the last few weeks of April, what time does it give you or the home buyer to correct the deficiency or start looking for another property? DON'T PROCRASTINATE!

CONDO COMPLEXES: The new FHA guidelines on condos has been revised and is now being implemented. Please pay close attention to one of the provisions - the new 15% rule. No more than 15% of the unit owners in a complex can be delinquent with their association dues. In this foreclosure and shortsale environment, you will want to ask the association delinquency question of the listing agent or association manager prior to paying for a property inspection or appraisal.

IHDA: Down payment assistance program seminar at McHenry County Association of Realtors open to all. Feb 24th 10am. Call now to reserve your seat. Seating is limited. MCHCAR: 815.893.5100

Please call me at (847) 873-7295 to discuss nuances with the above information. Here to help you get homes financed.

Posted by gilkerk ( FHA, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

Home Buyer Fliers

Below is a list of my top programs:

-FHA closed on time: www.realestateloans.com/fhadonewell.pdf

-100% Rural Development: www.realestateloans.com/usda.pdf

-$100 down for HUD owned homes: www.realestateloans.com/100hudhome.pdf

-Deferred maintenance homes: www.realestateloans.com/uglyhomes.pdf

-100% pre-approval to closing ratio: www.realestateloans.com/concierge.pdf

-VA 100% financing: www.realestateloans.com/va.pdf

-Home Buyer job protection mortgage: www.realestateloans.com/rainydays.pdf

Posted by gilkerk ( FHA, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

Understand Home Buyer Closing Costs

Understanding Home Buyer Closing Costs:

Processing Fee Estimate: $350
This fee is charged by us to pre-approve, pre-underwrite and make sure the home buyers loan fits program guidelines prior to us submitting the loan to an underwriting unit for full approval. We will review all documents, submit the package, insure compliance, attend closing and maintain support all the way to closing. Fee paid directly to us at closing. This fee also includes credit reports, approval certificates and document gathering expenses.

Discount Points to Buydown Rate:
Normally not charged unless a buyer requests or needs to buydown an interest rate in order to qualify for the loan.

Appraisal Fee Paid to Independent Appraisal Company Estimate: $275-$450 Upfront Cost
This fee is paid directly to an independent appraiser to determine the maket value of the property. The appraiser is chosen by a neutral third party and you must pay this fee at the start of the loan process once a property is determined.

Underwriting Fee Paid to Independent Undewriting Unit Estimate: $600-$800
This fee is paid by the home buyer directly to the loan underwriting entity at loan closing. Once we have pre-underwritten the loan and we have determined the best lender able to actually fund the loan, we submit it to them for review, approval, legal documents and funding.

Homeowners Insurance Paid to Your Insurance Company Estimate: $300-$600 Upfront Cost
The home buyer will contact their personal insurance provider two weeks prior to the closing date to determine the cost of a homeowners insurance policy. This will be paid in advance of closing directly by the home buyer to the company they have picked. A one year policy must be paid for in advance of closing. If the property is in a flood zone, the home buyer will also be required to get flood insurance also.

Mortgage Interest Payment at Closing Estimate: Depends on closing date.
Depending on the day of close, the home buyer will pay for the days of homeownership from the day of closing to the last day of the month. Example: if we close on the 15th of the month home buyer will pay from the 15th to the last day of the month for each day they own the home.

Tax Escrow Paid Directly to Lender Estimated: Monthly property taxes times two. Most loans require borrowers to have the lender pay the property taxes on behalf of the buyer. Unless the home buyers are putting in 10-20% downpayment, expect to "escrow" for taxes. Lenders typically require a 2 month cushion placed into an escrow account. Ex: $500x2=$1000

Homeowners Insurance Escrow Paid Directly to Lender Estimated: $60-$120
Like taxes above, lenders will want to pay for the homeowners insurance when it comes due. Most lenders will require a 2 month cushion placed into the escrow account at closing.

Settlement Costs- Closing Attorney, Title Insurance, Closing Company, County Recording
Fees Paid Directly to Providers Pre-Chosen by Others Estimate: $1500-$2500
These are standard fees required to purchase a home. Refinances are much lower. These fees are not chosen by us but rather chosen by the sellers attorney.

Home Purchase Transfer Tax Stamps Estimated: Call the city to see if buyers pay these
Most common in the city of Chicago and a few others. Not all cities or villages charge buyers a transfer stamp tax. Usually a sellers expense. Can be expensive for buyers if they are charged.

**** In a home purchase transaction the home buyer may have the Seller of the Property pay for some, most, or possibly all of the above expenses. This is called a "Seller Paid Closing Contribution". This is highly recommended if the home buyer is short on funds to close or currently only has the downpayment and no other funds available. Seller can pay up to 3% of the purchase price towards closing costs.

If the Seller picks up yclosing costs, any monies paid up front other than the home inspection (appraisal and homeowners insurance up front) will be applied to the downpayment commitment.

Please call me at (847) 873-7295 to discuss nuances. Here to help you get homes financed.

Posted by gilkerk ( FHA, Government Home Loans, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

FHA FAQ's

FAQ's
1		How can FHA help me buy a home?
2		How can I buy a HUD Home?
3		What is the H4H Program and how can it help borrowers avoid foreclosure?
4		How can my company obtain the co-branded marketing materials being developed by FHA?
5		How do I calculate a 203(k) or Streamline K loan to meet the new cash investment and refinance requirements?
6		How can the Making Home Affordable Program help me avoid foreclosure on my conventional loan?
7		How can the Making Home Affordable Program help me avoid foreclosure on my FHA loan?
8		Does FHA allow dug wells?
9		Is it true that FHA no longer accepts applications from state- licensed appraisers and I must upgrade to state-certified general or residential to qualify for placement on the FHA Appraiser Roster?
10		Why are licensed appraisers not grandfathered to stay on the appraiser roster?
11		Can you tell me when more HERA information will be available for licensed roster appraisers?
12		Must I upgrade to certified general or residential to be placed on the FHA appraiser roster?
13		What if the appraiser roster system does not recognize the user ID that was provided to me?
14		How can I reset my appraiser roster password?
15		How can I resolve a sanctions issue and become eligible for placement on the FHA appraiser roster?
16		How can I get help applying or maintaining my appraiser listing on the FHA roster?
17		Can you tell me how the HERA law effects licensed appraisers on the FHA roster?
18		How do I become a state-certified appraiser?
19		Can I perform appraisals in one state if I am sanctioned in another?
20		How can I become an active appraiser if I allowed my status to lapse?

Posted by gilkerk ( FHA, Government Home Loans, Home Loan application, Home Appraisals, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter, Condominiums ) :: Permalink :: Trackbacks (0)

FHA Waives 90 Day Seasoning "Flip Rule"

FHA Waives 90 Day Seasoning “Flip Rule”

Have you heard the news?

Last week FHA announced that it is waiving the 90-day seasoning required for sellers. This is truly great news for First Time Home Buyers and Real Estate Investors expecially as sales are starting to ramp up again.

This change will allow buyers to use a FHA Mortgage when purchasing investor and bank owned properties that were recently purchased, rehab and placed back on the market for sale.

Posted by gilkerk ( FHA, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

FHA Foreclosures Rising

Rising FHA default rate foreshadows a crush of foreclosures

David H. Stevens (Andrew Harrer - Bloomberg)

By Dina ElBoghdady and Dan Keating

Washington Post Staff Writer
Tuesday, February 2, 2010

The share of borrowers who are falling seriously behind on loans backed by the Federal Housing Administration jumped by more than a third in the past year, foreshadowing a crush of foreclosures that could further buffet an agency vital to the housing market's recovery.

About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency's figures show.

Although the FHA's default rate has been climbing for months and eating into the agency's cash, the latest figures show that the FHA's woes are getting worse even as the housing market shows signs of improvement. The problems are rooted in FHA mortgages made in 2007 and 2008. Those loans are now maturing into their worst years because failures most often occur two to three years after a mortgage is made.

If the trend continues and the FHA's cash reserves are exhausted, the federal government would automatically use taxpayer money to cover the losses -- a first for the agency, which has always used the fees it charges borrowers to pay for its losses.

As these loans from 2007 and 2008 go bad and clear off of the FHA's books, agency officials said, losses are expected to taper off, aided by the housing market's anticipated recovery and an influx of more creditworthy borrowers, who have flocked to the FHA's home-buying program in the past year.

Agency officials said they have cracked down on poorly performing lenders and announced higher qualifying fees for borrowers. On Monday, the agency projected that the fees should generate $5.8 billion in fiscal 2011, up from $2 billion this year. That would fatten the FHA's cash cushion, used to cover unexpected losses.

Posted by gilkerk ( General, FHA, Government Home Loans, Home Loan application, VA, Home Appraisals, Downpayment, Homeownership, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgage Interest Rates, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, FHA Gift Letter, (847) 794-5000, Condominiums ) :: Permalink :: Trackbacks (0)

FHA HUD Links

Posted by gilkerk ( FHA, Government Home Loans, Downpayment, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

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FHA, VA, CONVENTIONAL, USDA, JUMBO MORTGAGES