HUD is adopting Fannie and Freddie’s reporting requirements for declining markets. Per Mortgagee Letter 2009-09, as of April 1, 2009 appraisals for all FHA insured mortgages must include the Market Conditions Addendum. Be prepared for second appraisals and limits to cash-out refinances if your property is determined to be in a declining market. From HUD’s letter: [Read more…]
Mortgage Programs
Not all mortgage loans are the same — and choosing the right program can make a significant difference in your payment, qualification, and long-term financial flexibility.
This section covers the most common and specialty mortgage programs available to homebuyers and homeowners, including:
- FHA Loans
- VA Loans
- USDA Loans
- Conventional & Jumbo Loans
- HomeReady & Home Possible
- Down payment assistance programs
- Washington State Housing Finance Commission (WSHFC) programs
- Specialty programs for medical professionals and unique scenarios
Understanding eligibility guidelines, loan limits, credit requirements, and program benefits allows you to compare options strategically rather than relying on headlines or general advice.
As a Mortgage Advisor with over 25 years of experience, I help clients evaluate which program best aligns with their income, assets, and long-term plans.
Explore the programs below to better understand your options.
Revised FHA Loan Limits for 2009
February 25, 2009 by Leave a Comment
Please visit or up-to-date FHA Guide for current FHA loan limits for homes located in Washington state. [Read more…]
Reviewing an ARM Note for a Neighbor in West Seattle
January 27, 2009 by Leave a Comment
I've been working with a home owner in West Seattle who has an adjustable rate mortgage that she obtained almost five years ago from a big "local" bank. She contacted me to obtain rate quotes for refinance because her ARM is set to adjust soon. Here's what a review of her Note reveals:
The Note rate is 4.125% for five years with the first adjustment coming up on May 1, 2009. The index is based on the 1 Year Treasury (CMT) and her margin is 2.75%.
If her ARM were set to adjust today, her new rate would be based on adding the margin of 2.75% to the 1 Year Treasury rate of 0.49% rounded to the nearest 0.125% = 3.25%. (Indices are changing dramatically in our current climate–it's hard to say where the CMT will be on May 2009).
This rate is amortized based on the remaining term of 25 years and every May her ARM will continue to adjust based on where the current index is (1 year Treasury – CMT) plus the margin of 2.75%. This is also limited to specific caps that her Note features of 2% annually and a lifetime ceiling of 10.125%.
Let's assume her rate adjust to 3.25% in May 2009. The highest her rate could be on May 2010 is 5.25% and the lowest is 2.75% (the lowest the rate may ever be is limited to the margin of 2.75%). If rates continuing rising, the worse case scenario would look like this: May 2011 = 7.25%; May 2012 = 9.25%; May 2013 = 10.125% (because of the lifetime cap of 10.125%).
If worse case scenario, the CMT climbs dramatically over the next few months, the highest her rate could be is 6.125% based on her 2% rate caps.
Should this home owner refinance with her adjustment date looming near? It really depends on what her personal financial plans are and if she can tolerate having her rate change annually. Her main risk is where rates may be in the future. The choice is hers.
What would you do?
Are you a Seattle area home owner with an ARM? I'm happy to review your Note for you–no refinance required.
How the 2009 FHA Loan Limits Impact Homeowners
November 10, 2008 by 2 Comments
Please visit our up-to-date FHA Guide with current FHA loan limits for homes located in Washington state.
I was so busy sulking about my neck of the woods having the FHA loan limit reduced by $61,500, that I didn’t realize that two Washington State counties (Chelan and Douglas) actually had their limits increased! Kitsap county has been hit the hardest with a reduction to their FHA loan limit by $167,950. The following comparison is based on single family dwellings for FHA loans: [Read more…]
2009 FHA Loan Limits for Washington State
November 10, 2008 by 5 Comments
Please visit our up-to-date FHA Guide with current FHA loan limits for homes located in Washington state.
