More options for Washington home buyers

April 5, 2013 by Leave a Comment

Yesterday I was “in class” at the Washington State Housing Finance Commission learning about programs they have to offer Washington home buyers, including down payment assistance programs.

In order to obtain the down payment assistance, you must use a WSHFC first mortgage product, which includes:

The first mortgages may be FHA, USDA, VA or conventional mortgages with private mortgage insurance.

The down payment assistance (DPA) is in the form of a second mortgage that have specific criteria home buyers must meet to qualify.

  • Home Advantage DPA has an income limit of $97,000 and does not have a “needs assessment”.
  • Commissioned Second Mortgage works with the House Key Opportunity and is available to home buyers with special needs.

Home buyers interested in either program must attend a 5 hour class in order to qualify for these programs. While at class yesterday, I also received training to be a “Commission trained instructor”.

Watch for more details to follow soon!

Filed Under: Down Payment Assistance, FHA, First Time Home Buyer, Home Advantage Program, House Key Opportunity Tagged With: , , , , ,

Get Ready for Round 2 of Changes to FHA Mortgages

April 3, 2013 by Leave a Comment

mortgageporter-round-twoEffective this week, FHA annual mortgage insurance premiums were once again increased on loans with case numbers issued April 1, 2013 or later by 10 to 15 basis points. This is just the first round of changes that were issued with HUD Mortgage Letter 2013-04.

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No Fooling! Time’s Running Out on Reduced FHA Mortgage Insurance Premiums

March 19, 2013 by Leave a Comment

There are just a few days left before FHA mortgages will have another increase to annual mortgage insurance premiums. Effective with case numbers issued April 1, 2013 and later, FHA annual mortgage insurance premiums will adjust an additional 10 bps to 15 bps.

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FHA Streamlined Refi for your Investment Property

March 7, 2013 by Leave a Comment

Did you know that if your existing mortgage is FHA on your investment property, that it may qualify for an FHA streamlined refi?

Here’s the scoop for a non-owner occupied FHA streamlined refi:

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Five weeks remaining before FHA mortgage insurance premiums increase

February 20, 2013 by 2 Comments

HUD has scheduled another increase to FHA annual mortgage insurance premiums effective with new case numbers obtained April 1, 2013 and later. FHA’a annual mortgage insurance premiums are paid monthly and are set to rise by 10 basis points.

For example, a base loan amount of $400,000 with a loan to value of 95% or lower, currently has a monthly mortgage insurance premium of $396.65 based on a rate of 1.20%. After the new mortgage insurance rates go into effect, this monthly premium will be $429.71 – an increase of $33.06 per month.

NOTE: Home owners who currently have FHA insured mortgages for their primary or investment properties and who had those mortgages guaranteed by FHA prior to June 1, 2009 will still qualify for reduced mortgage insurance premiums with FHA streamlined refinances. If you’re not one of these lucky home owners, you may want to take action now!

In addition, with new FHA loans as of June 3, 2013, FHA mortgage insurance will remain on the life of the loan. The only way to terminate it is to refinance out of an FHA loan or pay the loan off. Currently, FHA annual mortgage insurance is set to drop off the loan after it reaches a 78% loan to value and a minimum of 60 mortgage payments have been made. However with a minimum down payment scenario, it often takes closer to nine years before the loan to value reaches 78%. I would bet that many Washington home owners either refinance or sell their homes before their mortgage insurance drops off. Regardless, if you want to avoid having to pay FHA mortgage insurance for the life of that FHA insured mortgage, you’ll need to have your FHA case number prior to June 3, 2013.

What can you do?

If you want to avoid having a higher mortgage payment and you’re considering an FHA loan for your refinance or home purchase, you have a short window of opportunity to secure your lower payment now. An FHA Case number is not your application date. It is actually obtained shortly after you have a bona fide transaction and application. As we near the April 1 date, if you have a new FHA mortgage in process, you will want to confirm with your mortgage professional that your FHA case number has been secured. (They can provide you your FHA case number as proof).

I have been helping people with FHA insured mortgages since April 2000 at Mortgage Master Service Corporation. If you would like me to provide you with a rate quote for your home located anywhere in Washington State, click here.

Filed Under: FHA, Mortgage Insurance Tagged With: ,

It’s official: HUD issues Mortgagee Letter Confirming Changes to FHA Mortgage Insurance

February 1, 2013 by 2 Comments

I’ve been writing about pending changes to FHA insured mortgage loans regarding the mortgage insurance premiums. Yesterday, HUD issued Mortgagee Letter 2013-04 which makes the proposed changes “official”. 

We’ve been anticipating changes to how long mortgage insurance will remain on an FHA insured loan as well as increases to FHA’s mortgage insurance premiums.

It’s no surprise that FHA will increase annual mortgage insurance premiums (paid monthly). The first increase goes into effect with case numbers issued April 1, 2013 and later.

  • 30 year fixed with loan to values of 95% or lower will increase to 130 bps (from 120)
  • 30 year fixed with loan to values greater than 95% will increase to 135 bps (from 125)
  • 30 year fixed FHA Jumbos with loan to values of 95% or lower will increase to 150 bps (from 145)
  • 30 year fixed FHA Jumbos with loan to values greater than 95% will increase to 155 bps (from 150)
  • 15 year fixed with loan to value of 78.01% – 90% will increase to 45 bps (from 35)
  • 15 year fixed with loan to values greater than 90% will increase to 70 bps (from 60)
  • 15 year fixed FHA Jumbos with loan to values of 78.01% – 90% will increase to 70 bps (from 60)
  • 15 year fixed FHA Jumbos with loan to values greater than 90% will increase to 95 bps (from 85)

NOTE: in the Seattle – King County area, FHA jumbos are loan amounts from $417,001 to $567,500.

But wait… there’s more!! 

Effective on case numbers issued June 3, 2013 and later, 15 year fixed FHA mortgages with a loan to value of 78% or lower will have annual mortgage insurance of 45 bps. Currently these loans have zero annual mortgage insurance. 

Want to save on your FHA mortgage insurance? Act quickly!! Click here for a mortgage rate quote for homes located anywhere in Washington state.

FHA streamlined refi’s where the current FHA mortgage was endorsed prior to June 1, 2009 are exempt from this adjustment. These loans still qualify for reduced mortgage insurance premiums.

Per the mortgagee letter, this will be effective on case numbers issued June 3, 2013 and later, FHA insured mortgages will change when mortgage insurance can be terminated. Most FHA loans will have mortgage insurance for the term of the mortgage for loans with case numbers issued June 3, 2013 and later. 

Here is a chart from HUD comparing “previous” (in effect now until the new regulation) and “new” (in effect with case numbers issued June 3, 2013 and later).

FHA Annual Premium Cancellation
FHA Annual Premium Cancellation

If you are considering an FHA insured mortgage and would like to have mortgage insurance that one day drops from your mortgage payment – you have a couple months left to do so. The FHA Case number is typically (but not always) ordered at application. 

I am happy to help you with your FHA purchase or refinance on your home located anywhere in Washington state. I have been originating mortgages at Mortgage Master Service Corporation since April 2000, including FHA loans.  

Filed Under: FHA, Mortgage Insurance Tagged With: , ,

Buying a 2-4 Unit Home using an FHA Mortgage

January 31, 2013 by 13 Comments

mortgageporter-seattle-duplexEDITORS NOTE: This post was written in 2013. FHA loan limits have changed as well as the interest rates posted below. Please see the bottom of this web page for current FHA loan limits. If I can provide you with a current rate quote for your home in Washington, please click here.

If you are considering buying a duplex, triplex or fourplex and you’re going to live in one of the units, FHA is a possible mortgage option.

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Filed Under: FHA, Investment Property Tagged With: , ,

Heads up! HUD issues Press Release with upcoming changes to FHA Mortgages

January 30, 2013 by Leave a Comment

Today HUD issued a press release confirming pending changes to help bolster FHA’s capital reserves.

“These are essential and appropriate measures to manage and protect FHA’s single-family insurance programs” said Galante.  “In addition to protecting the MMI Fund, these changes will encourage the return of private capital to the housing market, and make sure FHA remains a vital source of affordable and sustainable mortgage financing for future generations of American homebuyers.”

Some of the changes to take place with HUD have already been announced. Here are a few points from today’s press release

  • FHA annual mortgage insurance will remain on the mortgage for the life of the loan. This is the mortgage insurance that is paid monthly. Once this goes into effect, home owners will need to either refinance to a non-FHA loan or pay it off to no longer have mortgage insurance. 
  • Mortgage insurance is set to increase. The annual mortgage insurance (remember, this is the one that is paid monthly) is set to increase by 0.10 basis points. FHA Jumbos will see an increase in the mortgage insurance by 0.05%.
  • FHA Jumbo’s will have a larger down payment requirement. Currently a home buyer can do as little as 3.5% down on all FHA insured mortgages. Once this goes into effect, the minimum down payment for an FHA jumbo will be 5%. In the greater Seattle area, loan amounts over $417,000 and up to $567,500 are currently considered “FHA Jumbos”.
  • Manual underwrites for credit scores below 620 with debt to income ratios over 43%. Currently, I believe the lowest credit score our company can do for an FHA insured mortgage is 640.

We are waiting for HUD to issue Mortgagee Letters before this goes into effect. 

Stay tuned!

Filed Under: FHA Tagged With: , , ,
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