FHA Eliminates Unlimited CLTVs for Refinance Transactions

FHA Eliminates Unlimited CLTVs for Refinance Transactions

This update from Mortgagee Letter 2010-24 contains changes to the new maximum CLTV limits for refinance transactions, which will be effective for case numbers assigned on or after September 7, 2010.

The combined amount of the FHA-insured first mortgage and any subordinate lien may not exceed the applicable FHA LTV AND the geographical maximum mortgage amount (does not apply to streamline refinance transactions).

Here are the 4 Maximum CLTVs for Refinance Transactions that you need to know about:

Rate and Term (or No Cash Out) Refinances = 97.75%

Refinances for Borrowers in Negative Equity Positions* = 115%

FHA-to-FHA Streamline Refinances With or Without Appraisals = 125%

Cash-out Refinances = 85%

via LoanToolbox.com – FHA#FHA#FHA#FHA.

Let me know if you have any questions.

Matt Steinmetz

Envoy Mortgage

Located in Contra Costa County in Concord, CA

FHA Can Raise Annual Premiums

Bill to Let FHA Raise Annual Premiums Heads to Obama « HousingWire.

Once Obama sings it, this bill will allow FHA to raise it’s annual premiums from .55% to 1.55%.  The idea is that FHA, being the crutch of our housing recovery, can better position itself and rebuild reserves.  The idea is that FHA will lower its upfront premium, which went up from 1.75% to 2.25%, and raise it’s annual premium (paid monthly) as needed.  Whether or not FHA raises it partially or all the way to 1.55% is what we wait for.

Thank you,

Matt Steinmetz

NMLS# 221315

Envoy Mortgage- Hiring experienced Loan Originators, Ask me for info.  

2151-A2 Salvio St.

Concord, CA 94520

Phone 925-671-9501 x119

FHA * VA * CALPERS * CALVET * FHA 203K Rehab Loans * Energy Efficient Mortgages * HomePath * Flips * County/City Homebuyer Assistance Programs

FHA May Require 10% Down from Low Credit-Score Borrowers « HousingWire

FHA May Require 10% Down from Low Credit-Score Borrowers « HousingWire.

Envoy Mortgage in Concord, CA is funding FHA purchase loans in under 30 days with 3.5% down for those who qualify.  Contact me for more details.

Thank you,

Matt Steinmetz

NMLS# 221315

Envoy Mortgage- Hiring experienced Loan Originators, Ask me for info.  

2151-A2 Salvio St.

Concord, CA 94520

Phone 925-671-9501 x119

Follow me on Twitter

Apply for a loan online

FHA * VA * CALPERS * CALVET * FHA 203K Rehab Loans * Energy Efficient Mortgages * HomePath * Flips * County/City Homebuyer Assistance Programs

Don’t apply for new credit before your mortgage closes

Don’t apply for new credit before your mortgage closes | Bankrate.com.

Fannie Mae will start to require lenders to pull an updated credit report befor ethe loan closes.  Thi swill show if you have any new debt since you applied for the loan.  Typically as long as your credit report was younger than 90 days lender would not pull a new report.  that changes next month for Fannie Mae loans.

Thank you,

Matt Steinmetz

NMLS# 221315

 Envoy Mortgage - Hiring experienced Loan Originators, Ask me more.  

2151-A2 Salvio St.

Concord, CA 94520

Phone 925-671-9501 x119

Fax 925-940-9639

Visit  my blog  for my most recent mortgage related update.

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FHA * VA * CALPERS * CALVET * FHA 203K Rehab Loans * Energy Efficient Mortgages * HomePath * Flips * County/City Homebuyer Assistance Programs

 Envoy Expands Underwriting Dept. into CA 

FHA and Rates-Change is Upon Us

Today the increase on FHA’s upfront mortgage insurance premium (UFMIP) begins.  The UFMIP is going up from 1.75% to 2.25% of the loan amount and is charged on every FHA loan with less than 5% down.  With more down payment the UFMIP goes down a smidgen but not enough to get excited about.

Still to come are the possible changes to the allowable amount of seller credits, form 6% to 3%, and the possible change from allowing 3.5% down to 5% down payment.

As for rates, they have gone up about .25% in the last few days and today is no different.  The market is already looking like we’ll have a reprice for the worse.  As you know from my previous posts, the Feds have stopped buying MBS or mortgage backed securities.  This leaves a lot of supply on the market and with out demand, rates will have to go up to entice investors into the market place.

Last Friday also saw the best jobs report in 3 years and the stock market is reacting positively to that today, as it was closed on Friday.

Feel free to comment or share with anyone you know.

Thank you,
Matt Steinmetz
NMLS# 221315

Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-A2 Salvio St.
Concord, CA 94520

Phone 925-671-9501 x119

Follow me on Twitter
Learn When to Pay Points
Apply for a loan online

FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages * HomePath * Flips

FHA wants your money!

Be on the look out for FHA, as they are trying to raise the monthly mortgage insurance premium (MIP) from .55% to .85%.
Reading in my posts below you will see that they are already raising the upfront MIP from 1.75% to 2.25%.
Check back here, as I will let you know if this gets passed.

Fannie Mae’s HomePath pays for closing costs

Click this link for the Press Release

When you buy an owner occupied home that is owned by Fannie Mae and the HomePath loan program is used, you will have the option to receive 3.5% credit toward closing costs or your choice of appliances.  The sale must close by May 1st, 2010 to qualify.

This is part of the ongoing effort to help stabilize the market.  Perhaps it’s also due to the bad press Fannie Mae is getting, about being in bad shape.  Maybe they really need to clear off some inventory.  In the end though, who cares?  If it helps the buyer and Fannie Mae, I’m happy.

Matt Steinmetz

A Little Fed and a lot of FHA

I heard the Tavern on the Green in Central Park is or has just closed. Here is a picture I took while there last September. Many people remember this place by the manicured animal shapes like this one.

The Fed says that the Fed’s Mortgage Backed Securities purchase program (see previous post), will end March 31st.  Overall this news was taken bad as rates got a little worse yesterday.

Also in a previous post, I commented on FHA changes.  Well it looks like the date for the increase in up front mortgage insurance (UFMIP) is April 5th.  The increase, just days after the Fed stops buying MBS’s, takes the UFMIP from 1.75% of the loan amount to 2.25%.  If you look at a $300,000 purchase price, and use FHA with the minimum 3.5% down, after April 5th your UFMIP will be $1,582 higher!  This is can be a problem for a lot of people.  I know, because I see how people struggle to save just enough for a down payment and closing costs.

It is true that UFMIP can be, and usually is financed into the loan amount, how ever that means higher payments.  While the impact to payments is low, those buyers who are already on the border for qualifying will be affected.

At some point the cap for seller credits will come into play as well.  Currently a seller can credit 6%, but FHA will shrink that to 3% sometime soon.

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Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine

2151-A2 Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639

Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
Apply for a loan online

FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages

FHA Making Changes

Currently when someone purchases a home using a FHA loan, they are required to pay an upfront mortgage insurance premium.  This fee can be paid or financed, and is currently at 1.75% of the loan amount.  FHA will be increasing this premium up to 2.25% of the loan amount.

In an effort to have purchasers put more skin in the game, many ideas were discussed, including raising the down payment minimum from 3.5% to 5 %.  It would appear the insurance premium was the victor instead…  For now!

Other changes include limiting seller concessions, like paying closing costs to 3% instead of the current 6%.  Once again requiring more skin in the game from the buyer.

The reason for these changes?  FHA has become so popular over the last year that it insures thousands of loans per day.  With that it’s foreclosure rate has increased, which means its insurance payouts have also increased.  Not to mention that there are minimum requirements for reserves as compared to the amount of insurance FHA issues.  The FHA has been said to have fallen below these requirements and needs cash.

In addition, FHA will attempt to hold lenders more accountable by reporting each lenders FHA performance rating to the public.  The belief is that a borrower will want to go through a lender with a positive rating.

These changes will leave many borrowers out of the market, as they will not be able to save for the additional insurance premium and additional 3% in closing costs, that can now be paid by the seller.

Whether you believe this is a bad idea, since some would be home buyers will be left out, or a good idea, as it keeps FHA in a good position for future use, this is the reality of changes to come.

I did not see a specific date as of yet, but read “this summer” in one article.

Click here to go to the FHA site and read the press release.

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Thank you,
Matt Steinmetz

Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-A2 Salvio St.
Concord, CA 94520

Phone 925-671-9501 x119
msteinmetz@envoymtg.com

Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
Apply for a loan online

FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages

Energy Efficient Mortgages

This loan gives you extra cash to complete energy efficient improvements in your home.  This loan is similar to the FHA 203K streamline loan, which is a larger scale  rehab loan, but the EEM (Energy Efficient Mortgage) lends up to $8,000 maximum.  The 203K and EEM can be used together. 

Just in case you were not aware of this little program here is some information about the the Energy-Efficient Mortgage.
-Finance up to 15% of an existing home’s value or 5% of a new homes value
-The monthly energy savings are added to your income, to help you qualify
-There is a 3% minimum investment required by you, but rebates and other incentives from the governmanet may be applied toward your contribution.

Some items you can use the money for are:

• Windows and Doors
• Heating and Cooling
• Insulation

If you’d like to know more, contact me today.

Also, feel free to Share or Comment

Thank you,

Matt Steinmetz
Envoy Mortgage
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639

Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
Apply for a loan online

Contra Costa County, home loans, mortgages, Concord, CA, refinance, rahab loans, 203K, FHA