FHA Loan

For all loans between January 1, 2012 through December 31, 2012, “The FHA Floor and Ceiling loan limits will remain the same as those that were in effect from January 1, 2011 through September 30, 2011, as announced in FHA Mortgagee Letter 10-40.”

If you need more information on a Rhode Island FHA loan or would like to apply, please feel free to call 401-524-9796 and a RI FHA LOAN SPECIALIST can assist you.

Lynda Mckenzie
RI license#137627/NMLS#137627
Direct:  401-524-9796
E-mail: lmckenzie@guaranteedrate.com
Web:  http://www.guaranteedrate.com/lyndamckenzie
RI Licensed- 20102682LL

Utah County FHA Update

Utah County FHA loan limits from now through 2012 have moved back to previous values.

Single Family FHA Loan Limits in Utah County, Utah
Most of 2010 $323,750
October 1st – November 17th $271,050
November 18th $323,750

The FHA Loan Limit was significantly raised by congress in 2008 to help both Utah first time buyers and those who were wishing to refinance. FHA typically is easier for most homebuyers to qualify for than a Freddie Mac or Fannie Mae mortgage. One of the advantages is that FHA allows for little equity in a property. FHA underwriters are also less concerned about credit and credit scores. Utah Home Builders were especially thankful for the increase in loan limits as they have inventory in that exact price range on the market.

Congress was slow in passing the new legislation, however it passed with huge majorities in the Senate (60-39) and the House (298-121). Conventional loan limits still remain the same at $417,000.

Other Articles of interest
Utah First Time Home Buyer
Utah Home Group

VA recently announced the new VA loan limits for Orange County, California. Counties like Orange and Los Angeles are “high cost” areas and have higher loan limits than other some other counties in California. The 2011 VA loan limit has been $700,000, but the new limit VA loan limit for 100% financing in Orange County will be $621,000.

Zero Down to $621,000 in Orange County, CA on VA Loan

A Veteran will be able to purchase a home in the counties of Orange and Los Angeles with no down payment up to a purchase price of $621,000. That will buy a very nice home in most parts of southern California. This essentially matches the 2012 Fannie Mae/Freddie Mac loan limit of $625,500, except on a Conventional loan a down payment is required. Plus, any less than 20% down on a Conventional loan would also mean “Private Mortgage Insurance”, an added expense. VA does not have monthly Mortgage Insurance, even with 100% financing.

Many Veterans who already own a home that has lost value are finding that refinancing from a Conventional loan to a VA loan can save thousands of dollars. VA interest rates are very low, and VA allows for refinancing up to 100% of the properties value.

Orange County, CA VA Jumbo Loan

It is even possible for a Veteran to buy a home using VA financing that is more than $621,000. A small down payment is required, but still less than what is required on other types of home financing programs. A California VA Jumbo loan occurs when the loan amount is higher than the county loan limit for 100% financing. The down payment is equal to 25% of the difference between the purchase price and the county limit. For example, a Veteran who buys a home in Placentia, CA for $821,000 would need $50,000. ($821,000 purchase price – $621,000 loan limit = $200,000. X 25% = $50,000 and $771,000 loan amount.) Only 6% down payment with no mortgage insurance on a $821,000 price. Not bad.

With home prices remaining low, interest rates at all times lows, and VA loan limits and high, there has not been a better time to purchase a home in southern California in years. The first step is to talk to a local Orange County VA lender and get PreApproved.

Delaware FHA loan limits from now through 2012 have moved back to previous values.

Single Family Delaware FHA Loan Limits by County:

New Castle County Delaware – $420,000

Kent County Delaware – $376,250

Sussex County Delaware – $375,000

The FHA Loan Limit was significantly raised by congress in 2008 to help both Delaware first time home buyers and those who were wishing to refinance their Delaware home mortgage. FHA typically is easier for most homebuyers to qualify for than a Conventional mortgage.   FHA loans typically have lower credit score requirements and higher loan to value which make them the perfect choice for many borrowers and the higher loan limits open up more opportunities.

Congress was slow in passing the new legislation to raise the limits back up, however it passed with huge majorities in the Senate (60-39) and the House (298-121). Conventional loan limits still remain the same at $417,000., which is the loan limit for Fanne Mae Loans and Freddie Mac Loans.  The loan limit increased had expired on October 1, 2011 so this was a very important bill to pass.

If you need more information on a Delaware FHA loan or would like to apply, please feel free to call 302-703-0727 and a local mortgage consultant can assist you.  You can also APPLY ONLINE.

Good news for San Gabriel Valley homebuyers: Prior to the Thanksgiving holiday, President Obama reinstated higher FHA loan limits through 2013. FHA loan limits can go up to 125 percent of local area median home prices. This means you can obtain a mortgage for a purchase or refinance in Claremont, San Dimas, LaVerne or Glendora for up to $729,750!

Currently there are over 33 homes for sale in Claremont, CA and 42 homes in Glendora, CA listed at $700k and above.

These high FHA loan limits combined with low downpayment options present a great opportunity for a qualified home buyer to purchase a high-end home in Claremont or Glendora, California while holding on to more of your own cash.

On October 1, 2011, FHA loan limits in Orange County, CA dropped from their current level of $729,750 down to $625,500. But on Friday, November 19, President Obama signed a new bill which reinstates the FHA loan limits for high cost areas, like Orange County and Los Angeles County, back to $729,750. This is great news to Orange County first time home buyers hoping to purchase a home with minimal down payment in price ranges from $675,000 to $800,000.

Advantages of the FHA Program

The minimum down payment requirement for an FHA loan is only 3.5%. This means a first time home buyer in Irvine could purchase a property for $725,000 with only $25,375 down payment. The down payment can come from savings, a 401K or other retirement account, or even a gift from a relative. FHA also allows for non-occupant co-signers, which most Conventional loan programs do now allow for. FHA is also more flexible with credit and FICO scoring than Conventional programs. The seasoning requirements for purchasing a home with FHA after a bankruptcy or foreclosure are shorter than on other types of Conventional loan programs.

By keeping the loan limits at $729,750, Orange County home prices should stabilize in these upper price ranges. During the month in a half that  the limits had dropped, sales of homes in the  upper price ranges had struggled as a result of the loss of this huge pool of FHA borrowers. While there are other programs that allow for minimal down payment, like the VA loan program, most of these are specialized programs. VA allows for 100% financing up to a purchase price of $700,000. But to be eligible for a VA loan the borrower must either be active duty military or a retired veteran. FHA is a great way for a non-Veteran to purchase a home using a government program with a small down payment.

FHA Streamline Refinance Program

Another big advantage of the FHA loan program is the FHA Streamline Refinance. This is one of the easiest loan programs for refinancing that there is. Available only to those who already have an FHA loan, the program allows a borrower to take advanatge of lower interest rates without having to qualify or even do an appraisal. In most case, the Orange County FHA lender will cover the closing costs so that there are no out of pocket expenses for “non-recurring” closing costs.

The first step in determining the best loan program for your home purchase is to contact a local Orange County, CA FHA lender. your lender should be able to prepare custom loan scenarios based on your qualifications and goals, comparing them side by side.  Once Prequalified, the next step is to get PreApproved, which is necessary before makijng an offer on a home.

Friday President Barack Obama signed a bill that reinstates the recently expired higher loan limits that were in effect for FHA and VA loans through December 31, 2013 but does not provide this extension to Freddie Mac and Fannie Mae.

According to the article on Mortgage News Daily, “The new legislation also sets an annual fee for loans guaranteed by Freddie Mac and Fannie Mae.  This fee is in the amount of 15 basis points on the outstanding principal balance of the loan and is “independent of any guarantee fees upfront on ongoing, charged to the borrower, and the premium loan fee shall not be affected by changes in guarantee fees.”  The fee, according to the bill, is expected to achieve an annual income of $300 million in revenue which “shall be used to pay for costs associated with maintaining loan limits established under this section. “

This is great news for homebuyers who are refinancing or purchasing a home with FHA financing!  Feel free to contact The Werdmuller Group for any questions on the housing and finance markets at info@garrick.biz or 510.282.5456.

To read the full article click here:

http://www.mortgagenewsdaily.com/11182011_revised_loan_limits_loan_fees.asp

The House of Representatives today voted to restore higher loan limits to $729,750!! This is great news considering that the high limits returned to $625,500 in October.

Here is a brief excerpt of an article published today at Bloomberg.com “For all of the objections from Republican lawmakers and interest groups, the measure survived congressional negotiations on the strength of last month’s Senate vote in favor of an amendment to boost limits for FHA loans and those purchased by Fannie Mae and Freddie Mac. The increase for Fannie Mae and Freddie Mac loans was dropped during the talks, and today’s vote leaves the FHA increase needing only a Senate vote and President Barack Obama’s signature to become law.

Lawmakers who back higher limits say withdrawing federal support could undermine a housing market that has struggled to recover from the 2008 credit crisis. The limits automatically returned to $625,500 in October, spurring lawmakers and housing lobbyists to press for a return to the higher level.”

Feel free to contact The Werdmuller Group for any questions on the housing and finance markets at info@garrick.biz or 510.282.5456.

To read the full Bloomberg Article click here:

U.S. House Backs FHA Loan-Limit Boost Over Republican Objections

The 2011 100% financing VA loan limits for Orange County, CA have been at $700,000 since January. The $700,000 limit is good through December 31, 2011, but after that it could drop. While Conforming and FHA loan limits in Orange County are about to go lower from the current $729,750 down to $625,500, the VA limit of $700,000 will remain for a few more months. Veterans in Orange County looking to take advantage of the high loan limits should start getting serious about taking advantage of low rates and high loan limits.

The Veteran’s Benefits Improvement ACT of 2008 provided a temporary increase in VA loan limits for loans closed from January 1, 2009 until December 31, 2011. The “loan limit” refers to the maximum loan a lender will fund and still receive a 25% guaranty from VA. Technically, VA does not have a loan limit, but based on the VA Guaranty, lenders in Orange County will allow a $700,000 purchase price with Zero Down payment. Prior to 2009, the max 100% financing limit was only $417,000. In 2009 it increased to $737,000. In 2010 in dropped down to $593,750, and this year went back up to $700,000.  As we near the deadline for the Veterans Benefits Improvement ACT of 2008, there is concern that the 100% financing limit will decrease.

Benefits of the VA loan Program for Orange County Home Buyers

While the VA program is often thought of as a “first time buyer” program for Active Duty and/or military veterans, the high loan limits have actually provided a great way for high income Veterans to purchase luxury homes with little to no down payment. There are several advantages VA financing has over Conventional and FHA financing.

• Zero Down payment up to a $700,000 price. Very low down payment options are available for prices above $700,000.
• No Monthly Mortgage Insurance. (FHA requires Monthly Mortgage insurance on all loans. Conventional requires is when the down payment is less than 20%.)
• Flexible Credit qualifying guidelines. Especially when compared to Conventional “high balance” loan underwriting. VA is more flexible with bankruptcy and foreclosure seasoning, as well as minimum FICO requirements. VA does not have a “minimum” FICO requirement, but most lenders want at least a 620 FICO on a VA loan.
• High Debt to Income Ratios allowed. While VA will allow the debt to income ratios to be as high as 50%, 55%, or higher, Conventional financing cuts off at 45% in most cases.
• Low Fixed Rates. VA fixed rates tend to be lower than Conventional fixed rates, especially in situations where the FICO score is less than 740.

The first step in determining whether a VA loan is a home buyers best option is to check with a local Orange County Direct VA Lender. The lender should be able to provide customized loan scenarios which will give a complete breakdown of the purchase price, loan amount, closing costs, and amount needed to close. The lender can also quickly retrieve a Veterans Certificate of Eligibility. From there, VA Loan PreApproval is the next step. For anyone wanting to lock in the current high loan limits and low interest rates, now is the time to start the process.