.jpg)
Subscribe to:
Post Comments (Atom)
ASK QUESTIONS. GET FAST ANSWERS. We have amassed a team of Mortgages First loan officers, real estate appraisers, title agents, processors and Mortgages First underwriters to answer any and all inquiries you might have! THERE ARE NO RESIDENTIAL REAL ESTATE QUESTIONS THIS TEAM CAN'T ANSWER!
RELATED LINKS
How comfortable are you with FHA and Downpayment Assistance Programs?
Over the next 3 years, what percentage of mortgages under $271,050 will be FHA financed?
Mortgages First
Home of the FHA FAST PROGRAM
44 comments:
I am trying to get a condo approved for a FHA spot loan. The HOA is currently filling out the FHA Mortgagee Letter 96-41 checklist, however, I am at a loss of how to get it over the FHA approval department. I am also unsure of how long the process will take. Any knowledge is greatly appreciated!
Kelly,
I need to get you our checklist for approval. Some very important items that must be addressed before approving a condominium project for FHA financing include, but are not limited to-
1) At least 51% of the project units must be owner occupied.
2) No single entity owns more than 10% of the units in one single project.
3) At least 90% of the project units have been sold.
There are more requirements for a HUD approval.
I will send to your email a form the HOA can fill out. We will then go through the process of approving the complex for you ( if it is approvable ).
How long will it take? That varies...but it shouldn't be as arduous as you might expect.
sending email over now..
Thanks Kelly,
Casey
One of the agents here has a property under contract (she has the buyer). The property was under contract before with Countrywide and an FHA loan. The new lender says they will have to extend closing as they have to get a release from Countrywide before they can go forward with the new FHA loan. True or False?
True. When the new lender applied for an FHA Case Number, CHUMS identified the property as already having one attached to it. The lender receives an error message stating "Held for Duplicate Address". An Endorsement Technician will review the request and release a new case number if further processing is allowed. If another case number, or numbers exists, you will be sent a message advising of this fact. I dont believe that Countrywide has anything to do with it. They do not "own" the case number.
I need an impressive flyer or something of sort for a teacher program asap. Good lead to get a listing and their purchase also. Thanks!
Kelly,
Sending over.....
Also, we need to make sure that we get the Down Payment Assistance yards signs for your listings....this along with flyers for your listings will generate more interest and buyer agencies for you....
I will send you a separate flyer for the teacher grants...
thanks Kelly,
Casey
So just curious what everyone elses opinion is. With 100% financing pretty much by the wayside do the rest of you antcipate fha taking a huge upswing. Do you foresee fha guidlines changing much in the future as a result?
Deb,
The only true 100% financing available is FHA with Down Payment Assistance. Fortunately, this is the best 100% option that has been available in many years...
We also have grant programs for teachers, firefighters, police, etc... these type programs help quality customers buy homes with nothing down and and secure low, fixed interest rates.
FHA has already expanded it's guidelines considerably and will continue to do that over the foreseeable future.
I bet that approximately 75% of all home purchases over the next 3 years will require FHA financing....
thanks Deb....enjoyed the radio show last night,
Casey
Hey Casey,
I have a buyer who is trying to get financing on a lot that my builer will be building a house on, what is the best way to handle this type of scenerio, the house plans have not been finalized yet and they have not yet agreed on what the total contract amount will be on the home...
Gina,
Thanks for blogging....
From a financing standpoint...
my suggestion is to have your client complete an earnest money contract. I would suggest a sizeable enough earnest money check so your builder is comfortable moving the project forward.
Once the home is near completion we will move forward with permanent financing for the buyer....
let me know if that works.....
thanks,
Great, I will see if that is something the parties would be willing to do...sounds like a great idea to me....
On a different note, I also have a client who just started a new company about a year ago, and while thriving quite well, he only has one tax return since the conception of the new biz and his credit score is not too great, but has at least enough for a 20% DP on a $290+ home...what program would you recomend since the cut off for FHA is $271k???
Ginab said,
"but has at least enough for a 20% DP on a $290+ home...what program would you recomend since the cut off for FHA is $271k???"
We would only need 10% down to get loan amount below 271k to qualify for FHA....that should open up a few scenarios...
I will, however, defer to the rest of staff on the question of tax returns....
Let me get this straight...
In business for one year....but in the same line of work for many years...correct?
Tricia or Tammy can you give a little input here?
thanks
typically we need 2 years tax returns for a self employed borrower...
However, there could be factors there that will contribute to your customer getting loan approval.
Sometimes we can overlook some items if there are other positive factors (like higher down payments, in same line of work for years, etc.)....
thanks
Correct...same industry for 10-13 years now and low debt to income ratio from what I understand..thanks!
If my client is wanting to close on the home he is currently leasing by Novemebr, how much time would you recommend he allow to get positioned for the loan process? He travels frequently so I want to make sure he gets things in order in between biz trips...
We can never start too early....every situation is unique so we should start the process as soon as possible so we will be prepared to close property before November..
if there are any hurdles that need to be addressed....starting early will give us time to plan accordingly.
I agree! Thanks for your help Casey...I will be in touch! BTW- The client who is wanting to build may be contacting you.....
Good Idea....we want to go ahead and get your buyer approved before the building process begins...not only that but develop a mortgage plan with your client and make sure they don't do anything over the next few months that could jeopardize permanent financing...
Casey
GREAT BLOG Casy!
I have participated in a few blogs in the area, but this one provides a service that is much needed. What a great way to get information out.
What about manufactured homes. FHA still not providing loans for these folks?
Rick,
Good to see you here....I have no doubt this blog will help to educate everyone...
Regarding Manufactured Housing...
As of now, FHA still insures mortgages on these products....the problem is that the secondary markets will not buy these type mortgages...so...it is basically a secondary market issue.
Having said that, I believe we might see some investors taking another look at manufactured housing...but right now they are all gun shy.
Casey
Casey,Wes, Marv and Mortgages First,
Thanks for your help on our last closing!!!!!
I can't tell you how much my clients and I appreciate your ability to expedite this FHA loan.
Best of all, docs were at the title company 1 week early.
I do have a question.
I am writing a new contract today that you guys have already approved FHA....what should I put as the closing date. We are trying to close ASAP.
Thanks again,
Holly
Holly,
Thanks for blogging!
I would suggest you put at least 3weeksfor the closing date....while it is true that we can close faster than that...I like to give everyone ample time.
I guess you will have a 10 day option period and we will not be able to do much until that period is up. After all inspections and the contract is finalized we will move forward with appraisal. Our ppraisers usually take 1-3 days. By then we should have everything signed off by our in-house underwriter and will only need the appraisal.
This gives us ample time to address any unforeseen issues that might arise.
So....in a nutshell...set the closing for a minimum of 3 weeks after EXECUTED date of contract...
Thanks Casey! Question- Are all FHA Loans assumable? Is the quailifcation the same? And can they be paid off at anytime during the loan term without penalty?
Holly,
All FHA loans are assumable. FHA has some restrictions on assumability of FHA insured loans originated since 1986. While they will be assumable, you will need to see the original documents to see what, if any, restrictions may exist. Assumptions will typically require a creditworthiness review by the lender.
FHA loans do not have prepayment penalties. If the FHA loan is refinanced or the property sold and the loan paid off, you have to pay interest on the loan through the end of the month in which the loan is paid off.
Have a great week.
Clay
Thanks Clay! Also, on the FHA Insurance- how much is that 2.25% of loan? This is all new to me again and I can't remember. Also, is it possible to get assistance for the insurance? Is it always rolled into the loan?
Clay,
On your comment:
"FHA loans do not have prepayment penalties. If the FHA loan is refinanced or the property sold and the loan paid off, you have to pay interest on the loan through the end of the month in which the loan is paid off."
This is true. I think what a Realtor really needs to understand from that statement (and I have seen a lot that don't) is that when you are negotiating a contract it is especially important to note to the seller that if closing at the beginning of the month they will be paying all mortgage interest for the remainder of that month if they had an FHA loan. Meaning that with a beggining of the month closing the seller is esentially leaving/loosing money at closing depending on their situation.
This makes it real important to find out at the listing appointment what type of loan the seller has.
Holly said,
"on the FHA Insurance- how much is that 2.25% of loan?"
Holly,
There is an upfront 1.5% Mortgage Insurance Premium for all FHA loans....This is usually financed in the loan amount. This upfront fee allows for much lower monthly mortgage insurance payments. An example is for a 150k loan, the monthly MI for a 100% conventional loan is usually around $125.....the monthly MI for a FHA loan is around $63...plus the rates are usually lower for FHA.
Deb,
Good point...I didn't even think of that....
Deb,
Thanks for clarifying that point further. I didn't think about stating that. Obviously when a buyer comes with FHA financing that does affect the possible closing dates on the seller's end.
You are right at is obviouse if you know it however typically not something that the buyer agent is thinking about.
Even the listing agent doesn't think about it because most of the time they were not involved with the original loan that the seller made.
At closing I have seen an upset seller or 2 that has made their mortgage payment for the 1st only to see that they are charged essentially a full payment again if we have a beginning of the month closing.
Again, trying to find out about financing the a condo. Cannot get fha financing because 1 party owns 33% of the units. Now I am told by another agent that it cannot go conventional because there is no fidelity bond. What is a fidelity bond and is it needed for conventional?
kelly,
thanks for asking...we will get back with you...
casey
Kelly,
Is the HOA stating that these projects will not take conventional financing?
It's not the HOA, it's another listing agent in the complex that has brought this to my attention. I've been researching this online and although I cannot find anything directly relating to Texas I have found info for other states stating a conventional loan for a condominium requires both a Fidelity Bond and E&O. They are always mentioned together. I don;t yet understand it completely but a Fidelity Bond appears to be a form of insurance (maybe by HOA) that covers all units in complex. Can you check with your underwriter and see if this is a requirement for conventional condo loan. Thanks!
Kelly,
we do not require fidelity bond's on condominiums......
thanks,
casey
Does anyone have a list of guidelines for FHA and VA appraisals to avoid deferred maintenance issues...A realtor posed this great question to us this morning. She said it would help her in advising her seller's what items they might be expected to fix in order for appraisal to be approved.
Thanks.
Linda,
I am an apparsier and not to well versed in the VA requirements, but FHA will require a roof with at least 2 years remaining life; utilities must be on or a re-inspection must take place; pier and beam foundations must be accessible and clear of debris; slab foundations must be solid; floor coverings must be present (no bare concrete);any appliances that are "built-ins" must be present; no rotted wood, bare wood or flaking paint may be present on the exterior.
You can access more information by googling FHA Appraisal Guidelines.
Post a Comment