Posts Tagged ‘HUD’

FHA Mortgage News for the New Year

January 12, 2015

fha_loan_limitsGreat news! FHA loan limits for the major counties in Georgia increased from $320,850 to $342,700 for all new FHA sales contracts written on or after Jan. 1, 2015. This gives homebuyers the opportunity to buy a home with a 3.5% down payment (all from a gift) and FHA has relaxed qualifying guidelines on homes $21,850 more expensive than last year.

The bad news is that the FHA Anti-Flipping Waiver expired on Dec. 31, 2014. Some folks might say, “What Anti-Flipping Waiver?” Many thought a seller had to have owned the home for 90+ days before selling it to a new buyer using FHA financing.

Well, you’re not totally right or wrong. Even though HUD introduced the Anti Flipping Waiver in February 2010 and extended it to December 2014, many FHA lenders and banks ignored the waiver guidelines and continued to require that the seller hold title to the home a minimum of 90 days before re-selling it to a buyer using FHA financing. Since HUD (FHA) only insures loans and FHA approved Lenders actually lend the money, FHA Lenders often have different guidelines than HUD’s guidelines for FHA Insurance purposes. (more…)

FHA HAWK Program: Not Yet Approved, but Getting a Lot of Attention

July 21, 2014

FHA_HAWKThe new FHA HAWK (Homeowners Armed With Knowledge) Program designed to give homebuyers a discount on the FHA Mortgage Insurance Premium (MIP) in exchange for them taking approved Homebuyer Education Classes has been getting a lot of attention and press. Real estate professionals and homebuyers are beginning to inquire about how to apply for the HAWK Program.

The most important major detail that many of the articles and news reports are not making very clear is that the HAWK Program has not yet landed its final approval status and IS NOT available!

HUD’s current estimate is that phase one of the four-year, four-phase program should roll out winter of 2014 or spring of 2015.

Below are the basic program details if the program rolls out without any changes to the current program proposal: (more…)

FHA Increasing MIP on Apr. 1

March 11, 2013

fha-mip-changes-2013For the first half of 2013, the U.S. Department of Housing and Urban Development has made two major changes to their policies:

1. Monthly Mortgage Insurance Premiums (MIP) are scheduled to increase affective April 1, 2013. While Upfront MIP is remaining the same at 1.75%, Monthly MIP is changing from 1.25% to 1.35%.

2. June 3, 2013 the FHA will no longer allow an FHA borrower to cancel their mortgage insurance premium payments when the loan balance drops to 78% of the property’s value!

This is the fifth increase HUD has made to the FHA MIP cost in the past 3 years. In April of 2012, FHA increased the MIP rates from 1% to 1.75% on the Upfront MIP and from .90% to 1.25% on the Monthly MIP. (more…)

Top 10 Contract Mistakes for 2012!

January 14, 2013

contract_mistakesIt’s that time of year again! Time to recap 2012 and highlight the TOP 10 of pretty much anything you can think of. Here, we’ll reveal the “BHGRE Metro Brokers / Billboard Top 10 Contract Mistakes of 2012” and what you can do to prevent making those mistakes in 2013. Oh, and before you say, “But the seller’s a bank and they don’t do that!”, we removed all the REO deals from consideration before tabulating the final results. (more…)

Why Are There Multiple Offers?

June 4, 2012

Today’s real estate market continues to provide agents and their clients with new challenges. One hurdle that we’re facing is the prevalence of multiple offers on well priced properties.

If what we have been seeing and hearing on the news about our real estate market is true, why would this be happening?

Statistics show that the Atlanta area listing inventory is quite low compared to the previous 4 years. In the under $100,000 range citywide, we are seeing a 3 month inventory at best. The total number of days on market for all properties has dropped to a citywide average of 13 days during the month of April 2012. The average sales price on the other hand continues to creep upward. (more…)

FHA to Raise Mortgage Insurance Premiums on Apr. 1, 2012

March 19, 2012

HUD announced this month that they were raising the Mortgage Insurance Premiums (MIP) effective April 1, 2012. The Upfront MIP is changing from 1% to 1.75% and the Annual MIP is changing from .90% to 1.25%.

Before you panic about this bad news… the bottom line is that on a $100,000 FHA base loan amount, the payment will increase less than $7 per month as a result of both MIP premium increases. (more…)

Tips to Get HUD Homes Closed with FHA Financing

October 10, 2011

There are so many things that Realtors and their customers need to be aware of when dealing with HUD properties. And if your buyer is purchasing a HUD property and utilizing FHA financing, there’s even more to consider. The following tips will help you get to a successful closing.

Be sure to check out the HUD class we’re offering that discusses all of the changes that went into effect in October. The class is tomorrow (Oct. 11) at 10am inAtlantaor you can take it on Friday (Oct. 12) inWoodstockat 10am. Use the promo code “HUD“ to take the class for free. See details below. (more…)

Help is Here for Jobless Homeowners Nearing Foreclosure

July 25, 2011

There have been rumors and various news reports circulating that FHA will soon be allowing unemployed Americans who have an FHA insured mortgage to miss up to 1 year of mortgage payments without being foreclosed on.

My hope in writing this article is to provide more details on this topic that is sure to prompt more and more discussions and questions.

IMPORTANT: Please note that only the customer’s current lender can give them a final answer on if they qualify under this program. The number to call is on their mortgage payment coupons or monthly statements from their current lender. (more…)

Closing Killers: Opening New Credit

September 20, 2010

opening new creditMy second “Closing Killers” story is about buyers relocating from Idaho who expose their closing to one of the Closing Killer gang leaders: “Opening New Credit”!

Sam and Sue Spud had found a peach of a deal in Peachtree City. This foreclosed home was perfect. It had taken the Bank seller over 7 weeks to respond to their offer. They were finally under contract and heading for closing. If they missed the original closing date, they would have to pay the seller $100 per day to extend the closing date. Their loan application had been in process for over 3 weeks… everything looked “fine”.

Their agent and loan officer had told them not to make any changes to their credit or finances until after closing. (more…)

More of the Same from HUD

June 3, 2009

question-mazeI have some good news and not so good news.

The Federal Housing Authority (FHA) finally released more details on whether or not you can use the $8,000 Homebuyer Tax Credit as a down payment.

In a nutshell, borrowers may be allowed to get the $8,000 Tax Credit prior to closing and use it as an additional down payment, buying down an interest rate or other closing costs. However, no investor has found a way to legally allow this to occur…meaning it still can not be used for a down payment, closing costs or buying down interest rates.

Keep reading for the details.


You’re Just Giving Me $14,000?

May 21, 2009

GeorgiaDream“This is the best time to buy a house.” If I’ve heard that once, I’ve heard it a thousand times but maybe there’s a reason why people keeping saying this. Let me introduce you to the newest loan program: The Georgia Dream Neighborhood Stabilization Program.

This program is strictly for buyers purchasing foreclosures to help reduce the number of foreclosures on the market. In a nut shell, this program gives you $14,000 to use for repairs to the home or for the down payment, and here’s the best part: You aren’t required to pay it back!


$8,000 Tax Credit as Down Payment?

May 13, 2009

chicken or eggOh yeah….the rumors are flying about the “real” possibility of being able to use the $8,000 Federal Tax Credit for a down payment! But as we all know, the devil is in the details and as of yet those details have not been worked out by HUD or their FHA approved investors.

This will be HUGE! This is the piece that has been missing for those buyers who are qualified in all aspects except for actually having money or the down payment!

The $8,000 tax credit is great, but it’s the old “Chicken or the Egg” challenge. At this moment, buyers must close on a home in order to apply for the $8,000 tax credit. But, in order to close on a home, those buyers must have acceptable down payment funds.