: March 2010

FHA Changes on April 5th, 2010: 3% Seller Contribution Maximum

And if you think things could get any tougher for an FHA borrower!

In an effort to tighten up its latest embarassment, (FHA's balance sheet and dwindling capital reserves), the Federal Housing Authority is rolling out sweeping financial changes that can affect you or your customers. FHA borrowers will need to look better on paper and be better credit risks moving forward in 2010.

To boot, Mortgage insurance premiums are rising from 1.75% to 2.25%.

Click for major FHA Changes on April 5th.

You may or may not have heard, USDA has announced that they anticipate funding for the guarantee program will be exhausted by the end of April.   This announcement is different from the past announcements regarding exhaustion of funds, in that this time new funding is not certain.  USDA will not be issuing conditional commitments with the conditional statement “subject to appropriation of funds”.  Click here for USDA  Update

USDA Rural Development Home Loan Program - Running out of funds

Appraisals:  FHA vs. Conventional

Once upon a time, there was a difference between an FHA appraisal compared to a Conventional appraisal.  For many years, real estate professionals, investors and motivated buyers avoided an FHA loan out of the fear that the appraisal, known for it's vigorous inspection of the condition of the property, would complicate the transaction and therefore opening preference to a contract offer involving a conventional loan program versus accepting an offer with an FHA loan. 

To say it bluntly:  That was then, this is NOW!  In today's lending industry, there is no difference between a conventional appraisal when compared to an FHA appraisal.  It is an industry wide fallacy that has corrupted the minds of real estate professionals and consumers alike.  

The reasons are simple!  Click here for -> Differences on FHA and Conventional Appraisals

Fannie Mae: You can now choose your own Title Insurance and Escrow Company 

You and Many homebuyers have encountered the typical experience when dealing with an REO deal.   After driving around for days and putting in countless offers, you get one of your offers accepted to only have the listing agent tell you that you have no choice in who you and your client can use in regards to their title insurance and escrow company. 

Once you sign the contract you are told to open escrow by depositing an agreed amount known as an Earnest Money Deposit, as you well know.  This company happens to be on the other side of town or sometimes out of state.  It is rare that someone will get an title insurance and escrow company that is close by.  Call it Murphy's Law! 

Here comes the fun part! Click Here Fannie Mae allow you to choose