You had to know this was coming after Fannie and Freddie announced their home loan fee increases.

Beginning April 18th, 2011 FHA will raise its Monthly Mortgage Insurance Premium (MMIP) by 25 basis points. For the average FHA borrower, the increase will equate to about an additional $30 per month.

According to HUD’s spokesman, the increase was necessary for the following two reasons. First, FHA’s capital reserves are currently below a mandated minimum set by the legislature, and the fee increase will help the agency comply with the law. Second, HUD hopes to steer more buyers away from FHA loans and into the private sector by making an FHA loan less desirable.

How commendable on their part.

Continue Reading FHA Increases Mortgage Insurance Premium

Tags: buyers, FHA, Florida, mortgages, real estate

Back in January of last year, HUD announced it was waiving its rule of prohibiting the 90 day waiting period for obtaining an FHA mortgage on a flipped property. The change was originally intended to temporarily help boost the sagging housing market and was set to expire on January 31, 2011.

On Friday of last week, FHA Commissioner David Stevens extended the “anti-flipping rule” waiver through January 31, 2011, and said the move was based on HUD’s intention to help “accelerate the re-sale of foreclosed upon homes in neighborhoods struggling to overcome the possibility of property abandonment and blight.”

Continue Reading FHA Extends 90 Day Property Flipper Waiver

Tags: FHA, HUD, mortgages, real estate

Federal lawmakers recently voted to keep the maximum size of loans guaranteed by Fannie Mae, Freddie Mac and FHA for high-cost areas at their current levels ($729,750 and $625,000). President Obama finally signed the legislation, thereby extending the loan limit through 2011.

The provision means homebuyers and homeowners in expensive housing markets like California, New York, Alaska and Hawaii will continue to get a break on interest rates when they purchase or refinance. Conforming loans come with cheaper interest rates versus non-conforming or so called “jumbo” mortgages, because they are backed by the government lending entities.

While most areas will remain at the $417,000 maximum loan amount, it will continue to make a huge difference in the various high cost areas that exist around the country.

Continue Reading High Cost Area Loan Limits Extended Through 2011

Tags: FHA, Interest Rates, legislature, mortgages

Buyers and investors looking to purchase a property using FHA financing have some good news and bad news to consider. FHA commissioner David Stevens outlined the agency’s new policy guidelines last week. Included in his announcement were changes to “seller concession” ceilings and new FICO score related down payment requirements that went into effect immediately. Changes to the 90 day “anti-flipping rule” go into effect today. And finally, proposed changes to the “upfront” mortgage insurance premium and the “annual” mortgage insurance premium that are slated to go before Congress for approval shortly and should be in place no later than mid-year at the latest.

Here’s a synopsis of the changes to HUD’s guidelines:

Continue Reading New HUD Guidance for Property Flippers and First Time Buyers

Tags: FHA, HUD, mortgages, real estate

For buyers or investors looking to purchase a short sale property using FHA financing, HUD has put in place some tough guidelines going forward into the New Year. A letter sent to FHA lenders by Commissioner David Stevens last week spelled out the agency’s revised policy regarding short sales. HUD made it quite clear they are not going to tolerate individuals trying to “take advantage of declining market conditions” on principal residences or simply “renting out their current house” in order to buy another property that is a lower priced short sale.

Here’s a summary of the latest guidance:

• Applicants for new FHA insured mortgages will be denied new financing – effective immediately – if they participated in a short sale on their current principal residence.

Continue Reading New HUD Guidance for FHA Loans and Short Sales

Tags: FHA, HUD, mortgages, real estate