VA Funding Fees…what briefly goes down, must quickly come back up.

November 25, 2011 by 1 Comment

Well the lower funding fees we thought we had were officially taken away when the President signed HR 674 raising the funding fees effective for VA loans closed November 22, 2011 through September 30, 2016.  The following is per Circular 26-11-19.

VA Funding Fees for Veterans 

First Time Use

Downpayment:

  • Less than 5%*:  2.15%
  • 5% but less than 10%:  1.50%
  • 10% or more:  1.25%    

Second and Subsequent Use

Downpayment:

  • Less than 5%*:  3.30%
  • 5% but less than 10%:  1.50%
  • 10% or more:  1.25%

VA Funding Fees for Reservist/National Guard 

First Time Use

Downpayment:

  • Less than 5%*:  2.40%
  • 5% but less than 10%:  1.75%
  • 10% or more:  1.50%    

Second and Subsequent Use

Downpayment:

  • Less than 5%*:  3.30%
  • 5% but less than 10%:  1.75%
  • 10% or more:  1.50%

Interest Rate Reductions (IRRL) are remaining at 0.50%.

I am happy to help you with your VA loan for your home located anywhere in Washington State.  A heartfelt thank you to those who have served our country.

Filed Under: VA Mortgage Loans Tagged With: , ,

Happy Thanksgiving

November 24, 2011 by Leave a Comment

Happy Thanksgiving from my family to yours.

Thanksgiving

Filed Under: Interest Rates

Just in from HUD on FHA Loan Limits

November 23, 2011 by Leave a Comment

I've been following this because some folks I respect in the mortgage industry have been touting that the former higher "temporary" FHA loan limits are in effect as of November 18, 11.  Tonight I received this from HUD which would lead you to believe this is true:

FHA Update:

On November 18, 2011, the President signed into law H.R. 2112, Consolidated and Further Continuing Appropriations Act 2012 (HR2112). Section 238 of HR 2112 re-establishes the FHA loan limit at the higher of the dollar limit in Section 203(b)(2) or the dollar limit prescribed in Section 202 of the Economic Stimulus Act of 2008 for Forward mortgages.

Forward Mortgages:

Therefore, effective for all Forward mortgages with a case number assigned on, or after, November 18, 2011 through December 31, 2011, the loan limits referenced in Mortgagee letter 10-40 shall be in effect.

As a reminder, Mortgagee Letter 11-29 still applies to the time period 10/1/11 through 11/17/11:

  • Loans that did not have credit approval on, or before, 9/30/11 are subject to the lower limits that were in effect 10/1/11 through 11/17/11.
  • Loans that had credit approval on or before 9/30/11 and FHA to FHA refinances may be eligible for exceptions to those loan limits as defined in Mortgagee Letter 11-29.

The Department will be issuing a Mortgagee Letter by mid-next week that will include more detailed guidance and applicable updated loan limit tables for 2012. We expect supporting system changes to be completed within that same time frame.

With FHA loans, it's important to wait for the Mortgagee Letter or memo from HUD to confirm the change.  Once the ML letter is issued, FHA loans in Seattle will have the loan limit for 1-unit properties of $567,500 applies. 

As of now, Wednesday, November 23, 11, lenders (at least the major banks we work with) are not lending at the higher restored loan limit as of November 18, 2011. It appears this may change…we'll need to wait for the mortgagee letter from HUD and then wait to see when banks and wholesale lenders adopt the changes.

Stay tuned – I'll keep you posted.

Filed Under: FHA

Freddie Mac HomeSteps offers NEW Buyer Incentives

November 23, 2011 by Leave a Comment

EDITORS NOTE: this post was written back in November 2011 – incentives may or may not be currently available.

Freddie Mac is sweetening the pot for qualified REO’s (Freddie Mac foreclosed homes) in Washington with their HomeSteps program.  HomeSteps SmartBuy provides buyers with a two year home warranty and up to 30% savings on new appliances.

What’s New? Freddie Mac is trying to warm up home sales with their Winter Sales Promotion.  Washington state has been added to this program!

Homebuyers may receive a credit of up to 3% towards closing cost for offers received between November 15, 2011 and January 31, 2012 that are closing on or before March 15, 2012. This is for owner occupied homes only.

Freddie Mac’s REO program, HomeSteps, is different than Fannie Mae’s Homepath. Fannie Mae offers special terms on their REO’s (foreclosed homes) however, Freddie Mac’s program is incentives for the buyer (no special financing programs).  Home buyers who are interested in buying a Freddie Mac HomeSteps property can use ANY type of financing, including conventional, FHA, VA or USDA.  

Click here for your rate quote for homes located in Washington State.

To see which homes are available for the HomeSteps program, you can search here. As of the publishing of this post, there are 53 Freddie Mac homes listed in Seattle; 209 homes in King County and 628 in Washington state.

If you are interested in buying a Freddie Mac HomeSteps property any where in Washington state and require a mortgage, I’m happy to help you!

Filed Under: Fannie, Freddie and FHFA, Homesteps Tagged With:

The Risk of Extended Closings

November 22, 2011 by Leave a Comment

With more short sales taking place, many home buyers are having to wait months before their closing date is here. The same may be true for those who are buying homes that are being constructed.  With a delayed closing, there are some additional risk involved that buyers should be aware of so they can take action, when possible, to protect themselves. Some risks, borrowers have more control over than others. [Read more…]

Filed Under: Credit Scores and Reporting, Escrow and closing, Residential Purchase

FHA Loan Limits will be higher than Conforming in Seattle for 2012

November 18, 2011 by Leave a Comment

Well it looks like our Congress has passed loan limits for 2012 restoring FHA's higher "temporary" loan limits (pre October 1, 2011) and preserving the current loan limits for conventional mortgages.  

From the press release by the Appropriations Committee:

The bill does not increase the maximum loan limits for Fannie Mae and Freddie Mac. These entities have been under public scrutiny for their questionable businesses practices and use of billions in federal bailout funds, some of which have been used for extravagant management bonuses. The bill limits the increase in the conforming loan limits to only the Federal Housing Authority (FHA), which is subject to greater congressional scrutiny and oversight.

Congress is essentially punishing home owners for the sins of Fannie Mae and Freddie Mac execs. Personally, I think it's too bad that they didn't state this was done to help stimulate private lending instead of using this as an opportunity to publically wag a finger at Fannie and Freddie.

It appears the loan limits for 2012 in King County, Pierce County and Snohomish County for a 1-unit property will be:

  • $506,000 for Conventional
  • $567,500 for FHA

Once the GSE's and HUD officially announce the conforming and FHA loan limits for 2012, I'll be posting them here.

Stay tuned!

Update Nov 22, 11: Here is FHFA's press release regarding the 2012 conforming loan limits confirming they will remain the same for 2012 – except for one county (not in Washington state).

Filed Under: Fannie, Freddie and FHFA, FHA

Would You Like a HARP 2.0 Rate Quote for your Home in Washington State?

November 17, 2011 by 3 Comments

If you prefer to use our online form to provide us with information for your rate quote for a Home Affordable Refi in Washington, click this link.  Or you can copy and paste the questions below and send me your info via email.

Here are 10 quick questions that I need answers for in order to provide you with a quote (if your answers on 1-3 are “yes”, please proceed with the remaining questions for your HARP 2.0 rate quote):

  1. Is your home located in Washington State? [I’m only licensed to originate mortgages on residential property located in Washington].
  2. Is your mortgage securitized by Fannie Mae or Freddie Mac?  [You can click these links to verify].  
  3. Did you close on this mortgage prior to June 1, 2009? [Note: HARP is available for mortgages “securitized” by Fannie Mae or Freddie Mac before 6/1/09 – “securitization” actually takes place after closing.
  4. Do you currently have private mortgage insurance and/or lender paid mortgage insurance?
  5. Do you have a second mortgage/home equity line of credit? If so, what is the mortgage balance? [Note: second mortgages cannot be included in the HARP refi and will be subject to their approval to be subordinated]
  6. What is the principal balance of your mortgage?
  7. Is this property your: primary residence, second home or investment?
  8. Is this property a condo, townhome or single family residence?
  9. How do you rate your credit?  Excellent, pretty good, good, okay or blemished – if you know your credit scores, please provide them.
  10. What program do you like to see quotes on: FIXED: 30 year, 20 year, 15 year, 10 year; or ADJUSTABLE: 5/1, 7/1 or 10/1.

NOTE: As we learn more about this program, we will continue to update you here at Mortgage Porter.  Read my latest post about the Home Affordable Refinance Program.

These pages will be updated as we receive more information:

Fannie Mae – Home Affordabe DU Refi Plus

Freddie Mac – Home Affordable Streamline Refinance – Open Access

I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington…and yes, I would love to help you with your HARP (or any) refinance:

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.

If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: www.freddiemac.com/mymortgage or

http://www.fanniemae.com/loanlookup/

Last updated: January 25, 2013

Filed Under: HARP - Home Affordable Refi, Refinance

What You Need to Know about HARP 2.0: the Home Affordable Refinance Program

November 16, 2011 by Leave a Comment

Yesterday, we received more details about the new and improved Home Affordable Refinance Program (HARP 2.0) which is available for home owners who have a conventional mortgage that was securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. (Securitized is different than your close date and takes place sometimes several weeks AFTER your loan has closed).  

I've written more information about HARP 2.0 here.  HARP 2.0 removes the loan to value cap of 125% and allows some transactions to take place without an appraisal. If your mortgage qualifies for this refinance program, it is well worth your time to obtain a rate quote to see if you can reduce your mortgage payment, shorten your term or fix your adjustable rate mortgage. If your home is anywhere in Washington State, I can help you with your home affordable (or any) refinance.

Here's what you need to know about HARP 2.0:

  • HARP 2.0 is effective for loan applications dated December 1, 2011 or later. Here's what you can do to prepare while you wait to apply for HARP 2.0.
  • For your primary residence, if you opt for a 20 year fixed term or shorter, there are no additional hit to fees (LLPA – risk based pricing). Should you select a 30 year fixed term, the "hit" to fee is limited to 0.75%.  Read more about Fannie Mae's LLPA's here.  What this means in a nut-shell is that HARP 2.0 will have lower rates than other conventional (non-harp) refis.  
  • Fixed rate mortgages will not have the 125% loan to value restriction (no maximum loan to value); however should you opt for an adjustable rate mortgage, the maximum loan to value will be 105%. [update: higher loan to values will be increased in phases for this program].
  • No mortgage lates are allowed during the last six months and only one late payment allowed during the last year (seven to twelve months ago).
  • YOU  DO  NOT  HAVE  TO  RETURN  TO  WHERE  YOU  MAKE  YOUR  CURRENT MORTGAGE  PAYMENT  TO  FOR  YOUR  NEW  HARP 2.0  REFINANCE.  …Yes, I'm shouting 🙂  If your home is located anywhere in Washington State, I can probably help you with your refinance. However…
  • Borrowers who currently have LPMI (lender paid mortgage insurance) need to return to their current mortgage servicer (who they make their mortgage payments to) for a HARP 2.0 refinance.
  • HARP is available for owner occupied, second or vacation homes and investment properties. It's okay if the occupancy type has changed from when you obtained your last mortgage. If your previous primary residence is now a rental, this is acceptable with HARP.
  • Condos should not require additional review as long as there is adequate insurance coverages in place for HARP 2.0.
  • HARP loan amounts are limited to current conforming loan limits and does not grandfather the previously higher "temporary" loan limits. The conforming loan limit in the greater Seattle area for a single family dwelling is $506,000 through 2012.
  • A Borrower may be removed from a HARP refinance (divorce, etc.) as long as they can document that the remaining borrower has been making the mortgage payments with their own funds the past 12 months. (This is not a new guideline). If the refinance's purpose is to "buy-out" the borrower, it will not qualify for a HARP refinance.
  • A few borrowers who previously refinanced using HARP may be able to refinance using HARP 2.0 (loans acquired by Fannie Mae between March 1, 2009 and May 31, 2009).
  • If you have a second mortgage or HELOC, the second lien holder still needs to approve the refinance and agree to be subordinated.

So now we wait for December 1st and for our wholesale lenders and banks to adopt Fannie and Freddie's revised HARP 2.0 guidelines. Here is what you can do to get ready before you apply on December 1, 2011.  We are preparing to accommodate your request for HARP 2.0 rate quotes and transactions – the more prepared you are will make your transaction progress more smoothly.

We are now accepting requests for HARP 2.0 rate quotes for homes located anywhere in Washington State. You are welcome to submit a rate quote request, which will be sent to you once the new HARP 2.0 rates are available (December 1, 2011 and later).

NOTE: For HARP 2.0, we are pleased to offer Fannie Mae DU Plus and Freddie Mac Open Access for Home Affordable refinances.

Filed Under: HARP - Home Affordable Refi, Refinance
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