One of my favorite blogs to follow, Get Rich Slowly, recently published Reader Stories: I bought a duplex to save money on rent. The author of the post describes how he used an FHA mortgage to buy a duplex and with renting out the unit he was not living in, he wound up paying less for his housing than when he was renting.
Buying a Duplex to live in with an FHA mortgage
April 26, 2013 by 4 Comments
Why you should compare FHA to a Home Advantage Mortgage
April 24, 2013 by 2 Comments
If your credit scores are 680 or higher and you’re considering buying a home located anywhere in Washington state using FHA for your mortgage, you may want to consider the Home Advantage Mortgage program.
Home Advantage is a mortgage program created by the Washington State Housing Finance Commission. Only Loan Officers, like yours truly, who have completed WSHFC training are allowed to offer this program.
Home Advantage Mortgage with Down Payment Assistance
April 11, 2013 by 4 Comments
Home Advantage is a program that is offered through the Washington State Housing Finance Commission. Home Advantage is typically combined with a Home Advantage second mortgage that can finance closing cost and the down payment. Unlike the House Key program (state bond), this program has unlimited funds available for qualified Washington home buyers.
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:
- Home Advantage
- House Key Opportunity (limited funds – state bond). UPDATE: As of June 26, 2013 – this program is not being offered by the Commission. Home Advantage is still available.
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!
Get Ready for Round 2 of Changes to FHA Mortgages
April 3, 2013 by Leave a Comment
Effective 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.
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:
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.
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