Archive for October, 2011

The Federal Housing Finance Agency, together with Fannie Mae and Freddie Mac, have set up a bunch of updates to the HARP (Home Affordable Refinance Program).

The program has existed to help people who were in a position of negative equity but capped homeowners at 125% Loan-to-value. But now Homeowners can refinance without any limit on how upside down they are (i.e. limitless Loan-to-Value). The loans to be refinanced must have been sold to Fannie or Freddie on or before May 31, 2009 with current loan-to-value (LTV) ratios above 80 percent.

Here’s a summary of the most significant changes to the HARP program:

• Elimination of certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;

• Removal of the current 125 percent LTV cap/limit for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;

• Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;

• Eliminating the need for a new property appraisal where there is a reliable A VM (automated valuation model) estimate provided by the Enterprises; and

• Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Fannie or Freddie on or before May 31, 2009.

To see if your home loan is eligible, go grab the correct address at the Post office’s web site (to make sure you use the standardized address) then look it up at the Fannie Mae and Freddie Mac ‘Look Up’ addresses here.   Fannie Mae Look Up Site or Freddie Mac Look Up Site

To download the full Federal document, click here

 

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Did you know you can remain in Bankrtupcy and still purchase a home with FHA financing? Also, some buyers are eligible for FHA financing just 1 day after short sale ? Watch this informative video (40 mins) when you have time.

 

 

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Everyone!
Write your Congressman/Congresswoman and push them to pass H.R. Bill 8026 known as “The Medical Debt Responsibility Act (2011″. Below is a Summary of what the Bill means, straight from Congress.
Basically, any medical bill less than $2500 which is satisfied or paid CANNOT BE REPORTED ON YOUR CREDIT REPORT! Could you imagine what this would do to the FICO scores of millions of people? With FHA financing now available for scores as low as 530 to 560, could you imagine how many folks would become eligible for buying a home?
This Bill potentially has a sensational effect on homebuying if we can get it to Pass.
HR Bill 8026 Medical Debt Responsibility Act 2011

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If you’re getting married and plan on a Bridal Registry, there’s good news for you.
You can set up a ‘Downpayment Registry’ and have family and friends dump some cash in there for you which can later be used towards the FHA required Downpayment on a Home! This isn’t a new program at all; . ..it’s been around since 1996
But homebuyers are taking advantage of it m

ore these days due to the difficulties involved with putting enough money away for a home purchase in this tougher economy. In fact in 1997 HUD came forward with further clarification which streamlined the program.
Here are the essentials:
(i) Open a ‘Downpayment Bridal Registry’ called a ‘Bridal Registry Account’ Bank account. This account is a custodial savings account where all deposits made are used to fund the down-payment on a home.
(ii) Give your family & friends the account information.
(iii) Even cash deposits into that account are acceptable!
(iv) You don’t have to use ALL the money that ends up in the account towards your home purchase.
(v) You don’t even need to be married before you close on your home to use the money that accumulates in that account.
(vi) The typical FHA restriction of sourcing of funds whereby the relationship between the homebuyers and the Gift-Giver, proof of where the funds came from and other annoying procedures, are bypassed. All that’s needed is a Lender & Borrower certification! Cash is fine too!
(vii) The only folks excluded from being able to deposit money into that account are those that are party to the transaction.
(viii) Good news for those single homebuyers also! This convenience isn’t just for people getting married. The FHA allows their gift registry to be used for any other ‘special’ occasion for which gift funds might typically be received by someone including Graduations, Birthdays and so on.
Contact the featured Loan Officer or Real Estate Agent on this Blog for more details!

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What Are FHA Rules For Buying A Home After Short Sale?

HUD that oversees FHA came out with the Mortgagee Letter in Dec 2009 which essentially gave FHA’s blessing for buyers who were forced to short sell their homes to be able to buy a home just 1 day after short sale!

Here’s the rules

Buyers are NOT eligible if

They are exploiting declining market conditions to be able to purchase a home of similar or superior size within a reasonable commuting distance. This means ‘moving up’ is not allowed.
They were behind on their mortgage at any time in the 12 months leading up to the short sale.

Buyers ARE eligible if:

They were forced to short sell their home due to some situation beyond their control such as death of a wage earner, relocation, job or income loss, onset of sickness or illness etc.
They were on time on their mortgage payments for the 12 months preceding the short sale and had only a 1 x 60-day mortgage late in the 24 months preceding the short sale.
There’s no deficiency balance resulting from the short sale. In other words the Lender settled for less than full balance.
The loan involved in the short sale cannot have been an FHA loan.

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