Regular FHA versus IHDA Programs: Which is the Best for Home Buyers?

Today I'm going to compare: Regular FHA Purchase Money versus IHDA (Illinois Housing Development Authority "IHDA DPA") Purchase Money.

A quick overview on the two loan programs: FHA is a government run home loan insurance program that allows borrowers to borrow money with low down payments (3.5% down). The IHDA program is built on an FHA first mortgage chassis but goes one step further by placing a 2nd mortgage (IHDA loan) on top of a Regular FHA loan in order to reduce the down payment requirement to 1% of purchase price.

For our comparison below I'm going to use a first time buyer with a gross monthly income of $4000, $400 a month car payment, $150 monthly credit cards, $150 monthly student loans, purchase of a single family home, 30 year fixed loan, interest rate of 5.0%, property taxes of $425 monthly, standard FHA MI, and homeowners insurance of $35 monthly.

How much home can our home buyer purchase using either a regular FHA or an IHDA DPA** program? (**down payment assistance)

1) Housing Debt to Income Ratio - Housing payment divided by gross monthly income

Regular FHA with FHA Total Score Card Approval: 44%

Using the regular FHA program, the buyer would qualify for $227,000

IHDA must keep to a hard book ratio: 31% (no exceptions)

Using the IHDA program, the buyer would qualify for $138,000

2) Total Debt to Income Ratio - All monthly credit debt plus total housing payment divided by gross monthly income

Regular FHA per FHA Total Score Card: 55%

Using the regular FHA program, the buyer would be limited to $175,000

IHDA hard book ratio: 43%

Using the IHDA program, the buyer would be limited to $100,000

Regular down payment versus assistance borrower funds to close requirement:

Regular FHA: Borrower must show in their savings or as a gift $6125 (3.5%) for a $175,000 purchase.

IHDA: Borrower must show in their savings or a gift of $1000 (1%) for a purchase of a $100,000 purchase.

Processing times: Regular FHA- 2 weeks to 30 days. IHDA - 30-45 days to have IHDA review the loan package.

Hope this comparison helps clarify things. Not all programs are the same and please be careful when discussing an "offer" or program with a borrower without critically looking at the details.

Posted by gilkerk ( FHA ) :: Permalink :: Trackbacks (0)

Freddie Mac Important Internet Links

Freddie Mac Email Subscriptions

http://www.freddiemac.com/news/alerts/newscenteremail.html

Choose the Freddie Mac Bulletins, Announcements

and Publications you would like to receive notifications

of via email

Freddie Mac Forms & Guide Access

http://www.freddiemac.com/sell/guide/

Access Freddie’s Single Family Selling & Servicing

Guides as well as forms

Freddie Mac Learning Center

http://www.freddiemac.com/learn/

This website includes links to Quick Reference

Summary Charts on LP, Condominiums, Residency

and Citizenship, Various products, LTV/CLTV/HLTVs,

Refinances, New Construction, Income/Assets,

Collateral., Credit, and Super Conforming- just to name

a few!

Single Family Mortgage Products Page

http://www.freddiemac.com/singlefamily/mortgages/

This website includes links to Product Summaries,

Overviews, Marketing Materials, Affordable Income &

Property Eligibility Lookup Tool, FAQs, Links to live

product training opportunities and much more!

Training Events Page

http://www.freddiemac.com/learn/edu/train/

This page provides links to Live and Web Training

Events on LP, Underwriting, Product, Selling, Servicing

and Delivery-Related topics.

Loan Prospector Main Page

http://www.loanprospector.com/

This is the home page for all things LP! Features,

Benefits, documentation requirements, products, credit

report vendors, LOS vendors, news & highlights, best

practices, as well as login access to LP itself!

Loan Prospector Functionality Page

http://www.freddiemac.com/learn/uw/

This page provides resources and training associated

with documentation and underwriting-related topics

Loan Prospector Helpful Tips & Best Practices

http://www.loanprospector.com/getthemost/bp.html

This page provides links to guides that are very

detailed and well-written for originators, processors,

underwriters and quality control functions within an

organization. These are great reads for everyone!

Loan Prospector Training Page

http://www.loanprospector.com/learn/index.html

This page provides links to recorded training sessions

divided out by topic and category. These short

sessions are excellent educational resources that new

and even experienced LP users can benefit from!

Fraud & Quality Control

http://www.freddiemac.com/learn/uw/qc.html

This page provides links to Quick References

regarding predatory lending, property flips, appraisal

underwriting, documenting citizenship and residency,

rental income, standard income, Freddie’s

Exclusionary List, and standard quality control best

practices

Freddie Mac Homebuyer/Homeownership Page

http://www.freddiemac.com/corporate/buying_and_owning.html

This page includes various resources, tools and

information for both homebuyers and homeowners

Freddie Mac Loan Look-Up

https://ww3.freddiemac.com/corporate/

Determine if Freddie Mac currently services your own

or your borrower’s existing mortgage

Freddie Mac Marketing Kits & Materials

http://www.freddiemac.com/singlefamily/kits.html

Freddie offers excellent marketing materials in the form

of fillable flyers, mailers, post cards, door hangers,

brochures, and stuffers and some are even offered in

languages in addition to English! These are some of

the most professional-looking materials out there! Very

easy to sign up for access and easy to use!

Posted by gilkerk ( FHA, Home Loan application, Home Appraisals, Refinance, Downpayment, 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, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, Mortgage Buydowns, 2-1 buydown, FHA 2-1 Buydowns, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Gil Kerbashian, Home Affordable 125%, FHA Gift Letter, Condominiums ) :: Permalink :: Trackbacks (0)

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)

Cash / Mattress Money is a Deal Killer

- Cash / Mattress Money is a Deal Killer-

AHEAD OF THE CURVE ARTICLE BELOW

Below is a list of my top programs that should be in every agents resource
folder:

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

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

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

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

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

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

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

CASH IS KILLING DEALS:

I recently had a borrower call me and state she deposited $6000 into her
bank account from an unsecured loan. Without telling the Realtor or myself
she used this money for the contract deposit. Some form of outside monies
has been interjected into four of the last ten deals I've done and the
borrowers did it after reading
[http://gilkerk.realestateloans.com/condominiums/2009/05/07/i-need-to-make-a-home-loan-application-help.html]
my home purchase introduction link which clearly states that cash and large
deposits should be avoided.

Why isn't cash allowed into a transaction? It's the borrowers money right?
Several obvious reasons: Patriot Act/Banking Laws, Drug Money, Cash
Laundering, Straw Buyer considerations, Under the Table Seller Concessions,
Realtor or Loan Office contribution, Unsecured/unreported loan, Gift from
an unacceptable source, etc..

Loan officers and Realtors should never allow or encourage customers to
deposit or use cash for ANY part of the transaction nor turn a blind eye if
they know a client is borrowing money from credit cards or personal loans.
This type of mistake will certainly cause problems and create needless
tension. Now more than ever, loan files are being looked at with a fine
tooth comb. More and more careful verifications are being done a day before
closing- be prepared and don't let your deal die for dumb reasons.

Remember, FHA case numbers follow these loans. If one underwriter declines
a loan, the disposition will follow that loan. Realtors and Loan Officers
must work closely to prevent problems from day one.

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

Is your loan officer less responsive than you'd like? Cut yourself free
from bad service, poor communication and start enjoying incredible support
today.

Could your team use an updated presentation to get agents up-to-speed on
loan program changes? Lending is a huge part of transactional business,
consider scheduling my lunch and learn for your team.

Gil Kerbashian

Mortgage Lending Since 1997

Gil's Loan Answer Hotline: (847) 873-7295

Posted by gilkerk ( General, FHA, Lender Gossip, Government Home Loans, Home Loan application, VA, Home Appraisals, Credit Scores, USDA Loan, Credit Repair, Tax Credits, Refinance, Downpayment, Homeownership, Housing Bottom, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Treasury, Federal Reserve, Fannie Mae, Freddie Mac, Housing Recovery, TARP, FHA Appraisals, FHA Appraisers, HUD Owned Homes, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, McNeil Financial Group, Lake in the Hills Mortgage, McHenry Home Loans, Home State Bank IL, Harris Bank IL, realestateloans.com, mcneil financial group, (847) 458-8700, Integra Mortgage Schaumburg Illinois, Mortgage Buydowns, Mortgage Modifications, 2-1 buydown, FHA 2-1 Buydowns, Consumer Financial Protection Agency, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Donald Brewer, Gil Kerbashian, Crystal Lake IL Teachers, Northwest Suburbs Il, Northwest Young Scholars Foundation, Home Affordable 125%, FHA Gift Letter, (847) 794-5000, OFAC, Condominiums, Allied Mortgage Capital Corp, Allied Mortgage ) :: Permalink :: Trackbacks (0)

Realtor Webinar Feb 3 : Deciphering Credit Reports

1. Please join my meeting, Wednesday, February 3 at 1:00 PM Central Standard Time.
https://www1.gotomeeting.com/join/741724721 2. Use your microphone and speakers (VoIP) - a headset is recommended. Or, call in using your telephone. Dial 215-383-1004
Access Code: 741-724-721
Audio PIN: Shown after joining the meeting Meeting ID: 741-724-721 GoToMeeting®
Online Meetings Made Easy™

Posted by gilkerk ( FHA ) :: Permalink :: Trackbacks (0)

FANNIE MAE'S NEW DEBT TO INCOME RATIO'S

Ahead of the Curve

For Active Real Estate Marketing Professionals...

Fannie Mae has implemented the new debt to income ratio for borrowers in conventional loans: Starting December 1st or thereabouts for most lenders, conventional loan total debt to income ratio's have been brought down to 45%. Up to this point the average TDTI has averaged in the low 50's.

NOW: 45% is the guideline for borrowers that put down 20% or more. For conventional loans with less than 20% down the ratio is restricted to 41%. Please see my above article on debt to income ratios for clarification of what a DTI is.

Why is this change important to real estate professionals? You have pending offers, pre-approvals and deals in the pipeline that currently have ratios above 45%. These deal may have problems closing. Take a moment to inquire about these offers or pre-approvals and make sure the home buyers will be able to close.

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

Posted by gilkerk ( General, FHA, Lender Gossip, Government Home Loans, Home Loan application, VA, Home Appraisals, Credit Scores, USDA Loan, Credit Repair, Tax Credits, Refinance, Downpayment, Homeownership, Housing Bottom, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Treasury, Federal Reserve, Fannie Mae, Freddie Mac, Housing Recovery, TARP, FHA Appraisals, FHA Appraisers, HUD Owned Homes, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, McNeil Financial Group, Lake in the Hills Mortgage, McHenry Home Loans, Home State Bank IL, Harris Bank IL, realestateloans.com, mcneil financial group, (847) 458-8700, Integra Mortgage Schaumburg Illinois, Mortgage Buydowns, Mortgage Modifications, 2-1 buydown, FHA 2-1 Buydowns, Consumer Financial Protection Agency, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Donald Brewer, Gil Kerbashian, Crystal Lake IL Teachers, Northwest Suburbs Il, Northwest Young Scholars Foundation, Home Affordable 125%, FHA Gift Letter, (847) 794-5000, OFAC, Condominiums, Allied Mortgage Capital Corp, Allied Mortgage ) :: Permalink :: Trackbacks (0)

FHA Discount Points

Discount Points

The value of points can vary depending on current financial markets, lenders generally consider that it takes roughly 1 point to lower a loan's interest rate by .25 percent.

If the lender offers an option of paying points for a certain rate of interest, the borrower must consider several important factors. One of the main issues to regard is the length of time that the borrower will own the property and keep the mortgage. At some point in time during the loan, the points will have paid for themselves and begin to save the homebuyer money.

Posted by gilkerk ( FHA, Government Home Loans, Home Loan application, VA, Home Appraisals, USDA Loan, Downpayment, 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, Mortgage Buydowns, 2-1 buydown, FHA 2-1 Buydowns, Mortgage loan application, mortgage application, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

USDA Homeownership Website Links

Subscribe to receive Single Family Housing News for GUS & GRH: http://www.rdlist.sc.egov.usda.gov/listserv/mainservlet

USDA Rural Housing Home Page: http://www.rurdev.usda.gov/RHS/

Rural Development Contacts Page: http://www.rurdev.usda.gov/RHS/Admin/contact.htm

Rural Development Regulations Page: http://www.rurdev.usda.gov/regs/

Rural Development FAQ Page: http://www.rurdev.usda.gov/rd/faqs.html

Rural Development Income & Property Eligibility Site: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Single Family Housing Guaranteed Loan Income Limits: http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm

Loan Application Package Checklist: http://www.rurdev.usda.gov/regs/an/an4470.pdf

Rural Development Regulations: http://www.rurdev.usda.gov/regs/

Rural Housing Origination Handbook 1980-D: http://www.rurdev.usda.gov/regs/regs/pdf/1980d.pdf

GUS Lender User Guide 2008: https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/gus/lender/GUSLenderUserGuide.pdf
GUS Login Page: https://pws.sc.egov.usda.gov/login/login.aspx?TYPE=33554433&REALMOID=06-f8405ea7-471f-474d-8a4e-731f76f1e536&GUID=&SMAUTHREASON=0&METHOD=GET&SMAGENTNAME=-SM-S3%2fpukYCkOnlZ%2feImVktFvcBZTmcxsBEbQyvAIf2sN6XculadBu%2f5WF4TmWxHg2x&TARGET=-SM-HTTPS%3a%2f%2fgus.sc.egov.usda.gov%2faus%2findex.jsp%3fcallingPath%3dusdalinc.sc.egov.usda.gov%2fRHShome.do

Administrative Notices for Loan Origination and Underwriting: http://www.rurdev.usda.gov/wi/programs/rhs/sfhg/handbook/originating/ans.htm
USDA Rural Development Forms Library: http://www.rurdev.usda.gov/regs/formstoc.html

Rural Development State Office/Service Center Locator: http://www.rurdev.usda.gov/recd_map.html

USDA Live WebEx Training Schedule: https://rurdev.webex.com/mw0305l/mywebex/default.do?siteurl=rurdev&service=7

USDA LINC Training and Resource Library: https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do
Guaranteed Rural Housing Consumer Marketing Brochure: http://www.rurdev.usda.gov/RHS/sfh/GSFH_Information/Common/09_2009_Website_%20Hooray%20For%20Housing%20GRH%20Brochure.pdf

Guaranteed Rural Housing Consumer Marketing Booklet: http://www.rurdev.usda.gov/rd/pubs/pa1501.pdf

Rural Development Lender Information Page: http://www.rurdev.usda.gov/rhs/sfh/GSFH_Information/lenders.htm

Digital Rights and Copyright

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Some materials on the Rural Development site are protected by copyright, trademark, or patent, and/or are provided for personal use only. Such materials are used by Rural Development with permission, and they have made every attempt to identify and clearly label them. You may need to obtain permission from the copyright, trademark or patent holder to acquire, use, reproduce or distribute these materials.

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FHA, VA, CONVENTIONAL, USDA, JUMBO MORTGAGES

Regular FHA versus IHDA Programs: Which is the Best for Home Buyers?

Freddie Mac Important Internet Links

Fannie Mae Links

Loan Program Changes

Home Buyer Fliers

Understand Home Buyer Closing Costs

FHA FAQ's

FHA Waives 90 Day Seasoning "Flip Rule"

FHA Waives 90 Day Seasoning “Flip Rule”

FHA Foreclosures Rising

Rising FHA default rate foreshadows a crush of foreclosures

FHA HUD Links

Cash / Mattress Money is a Deal Killer

Realtor Webinar Feb 3 : Deciphering Credit Reports

FANNIE MAE'S NEW DEBT TO INCOME RATIO'S

FHA Discount Points

Discount Points

USDA Homeownership Website Links

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