FHA Update

Housing Report
House Passes FHA Reform Bill

By a very strong bipartisan vote of 406 – 4 the House passed H.R. 5072, the “FHA Reform Act of 2010″. This bill, sponsored by Rep. Waters (D-CA) and Capito (R-WV) strengthens the FHA mortgage insurance program while keeping the program affordable and available for responsible homeowners. The bill will allow FHA to increase the annual (monthly) premium. This is a victory for homebuyers. In February, FHA increased the upfront premium from 1.75% to 2.25%. With this new authority, HUD will DECREASE the upfront premium to 1% and increase the annual premium from .55% to .85%. This will reduce the upfront burden on homeowners while most quickly restoring FHA’s reserves to the congressionally mandated level. The bill also included an amendment to increase the FHA multifamily loan limits in multi-story (elevator) buildings. The House defeated amendments to raise the FHA downpayment requirement, decrease the loan limits, and cap the market share for FHA. The NAR-supported bill now moves to the Senate.

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

msteinmetz@envoymtg.com

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.

 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

 Envoy Expands Underwriting Dept. into CA 

Purchasing After Your Short Sale

From Fannie Mae Announcement SEL-2010-05

Fannie Mae is updating several policies regarding the future eligibility of borrowers to obtain a new mortgage loan after experiencing a pre foreclosure event (pre foreclosure sale, short sale, or deed-in-lieu of foreclosure).

The “waiting period” – the amount of time that must elapse after the pre foreclosure event – is changing and may be dependent on the LTV (loan to value) ratio for the transaction and whether extenuating circumstances contributed to the borrower’s financial hardship (for example, loss of employment). In addition, Fannie Mae is updating the requirements for determining that borrowers have re-established their credit after a significant derogatory credit event.

In the past a borrower would have to wait 4 years after a deed in lieu of foreclosure to get a Fannie Mae loan.  Now with 20% down that time frame is 2 years, otherwise it’s still 4 years and capped at 90% LTV.

Pre foreclosure sales and short sales are 2 years, with the same LTV restrictions.

Extenuating circumstances may allow a borrower to get a loan up to 90% after just 2 years.

Borrowers must show they have re-established credit and show good payment history and good fico scores.

After a foreclosure borrowers still have to wait 5 years to buy again under Fannie Mae, but FHA is 3 years and VA is 2.

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

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

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

Home Affordable Improvements and New FHA Refinance Program

Details of HAMP Improvements and New FHA Refinance Program.

the link above will give you a few details.  Here are some details:

• Temporary assistance for unemployed homeowners while they search for re-employment.  Payments reduced to affordable level for a minimum of three months, and up to 6 months for some borrowers, while eligible homeowner looks for new job.
• All servicers (who you make the check to)  are requirement to consider alternative principal write-down approach and increased principal write-down incentives.  This pertains to borrowers who owe more than 115% of the homes value
• Other implementations are to reach more consumers and help those going through foreclosures by making the process smoother.

Thank you,
Matt Steinmetz
NMLS# 221315

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

Governor Schwarzenegger Signs $10,000 Homebuyer Tax Credit Legislation

Governor Schwarzenegger Signs $10,000 Homebuyer Tax Credit Legislation.

Starting May 1st, the very day after the federal tax credit ends, California’s tax credit kicks in!!!

This time it’s not just for new homes either.  First time buyers, purchasing new or existing homes can apply for the lesser of 5% of the sales price or $10,000.  This is good for accepted purchase contracts from May 1st through Dec 31, 2010. 

Post a comment and let me know what you think about this.  Is it going to help?  Do you know anyone who needs to know this?  Please pass this along by using the share button, or copy the link in your browser.

I’m here to help, let me know what I can do for you, or someone 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

The Count Down Begins!

10 days left of the Fed’s mortgage backed securities (MBS) purchase program! Experts say rates will go up.  Not right away, or perhaps right away, but rest assured the signs are pointing one direction, up!  

Best bet is to lock in now.  Rates are still very low and why risk missing the boat when the forces seem to be stacking against rates going lower.

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

msteinmetz@envoymtg.com

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

Homebuyer Tax Credit Extended!

The House and the Senate have passed the extension of the Homebuyer tax credit and made some changes.  The President is expected to sign it into law tomorrow.

For 1st time buyer’s or those who have not owned a home in the last 3 years, the tax credit is $4,000 for singles and $8,000 for couples, with income restrictions maxing out at $125,000 for singles and $225,000 for couples.

Current homeowners, who have owned a home for 5 of the previous 8 years, can now also get a credit of $3,250 for singles and $6,500 for couples with the same income restrictions. 

Purchase agreements must be signed by 4/30/2010 and close by 6/30/2010

Those in the armed forces, stationed outside of the U.S. on official duty for 90 days during the period of 1/1/2009 – 5/1/2010 have an extended time frame for signed purchase agreements to 5/1/2011 and closing to 6/1/2011.
 

Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119

Visit my blog for my most recent mortgage related update.

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

Pick your own escrow

AB 957 Galgiani (D-Livingston) This law will mandate that buyers of foreclosed homes would have the choice of using a local escrow office to handle the transaction. It also prohibits a seller of residential property from requiring the buyer to use an escrow service company or purchase title insurance chosen by the seller and would also prohibit a seller of residential property from, without good cause, disapproving the use of a title or escrow company chosen by the buyer.

This is Good News!  If you have been involved in a purchase of a foreclosed home, you know that the escrow companies were forced on you by the seller.  These companies, for the most part, were out of the area, over worked and simply not caring to your needs, since their client was the bank with the foreclosure.  Terrible service is usually accompanied with these transactions.  Now you can choose your own escrow company, a local company that you or your agent/lender has a relationship with.  One that will care for your needs.

A small victory but one that helps!

 
Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119

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

Possible Changes Underway

• The Senate is looking at Bill to extend the first time buyer tax credit for service members, who served over seas.

The National Association of Realtors is out there trying to make some significant changes that will help the industry recover. 

1. Trying to keep the higher loan limits for FHA permanent
2. Trying to eliminate the owner occupied ratio on condo complexes.  This is big because, you currently cannot buy a condo using an FHA loan if more than 51% of the units are not owner occupied.

It’s great to see people trying to create change.

Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639
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