FHA Loans....change coming????

                                FHA Mortgages

                 Is the Life Line for 1st Time Buyers History?

For many buyers, FHA mortgages are the least expensive way to finance a home.  The sole exception are military home buyers, past or present service people, who have the advantage of 0 down VA financing available.  Still the 3.5% down payment for FHA loans is much easier to save up than the 10% and very often 20% down payment required for Conventional financing.  Thus, there popularity with young and less well financed buyers.

I share the newsletter article from Al Clark as I know you will heare the news that FHA loan size are being cut.  You may not know this is important to you but it is.   If know that the loan limits set by FHA determines the maximum loan that FHA will insure, then you know a smaller loan value in a high price market could mean you can NOT QUALIFY for this low down payment load if your LOAN VALUE IS TOO HIGH.

But don't be alarmed!!!  In Hampton Roads, for example, there is no change to the loan limit from 2012/2013.  Thus, business as normal.  If you are reading this blog from outside Hampton Roads, you will want to contact your mortgage officer.  He or she will
know what the limit in your market is and whether there has been any change.

Knowing what your options are prior to starting the home search in Spring 2014, it a very smart move.  Should you be actively looking now, make the call today to see if you are impacted!

Happy New Year!!!

FHA MORTGAGES TO SHRINK IN 2014 FHA Loan Size Cut By Half In Some Markets The size of the biggest mortgage the Federal Housing Administration (FHA) can guarantee is going to drop by as much as 50 percent in some areas of the U.S. in 2014. Homeowners living in the highest-cost areas of the country will find their FHA loans capped at $625,500, down from $729,750 in 2013. To get a larger mortgage, you'll have to turn to the jumbo mortgage market, where you'll likely pay a higher interest rate because your jumbo loan lacks a government guarantee. The National Association of Realtors? predicts the maximum FHA loan amount will fall 20 percent or more in 146 U.S. counties and 10 percent or more in 300 counties. In some counties, the maximum size FHA loan will fall by more than 50 percent. FHA's website lets you check the loan limits in your county. Be sure to select the 2014 limits if you visit the site. NAR recently wrote to HUD Secretary Shaun Donovan pleading with him to reverse FHA's decision. "While the housing market has improved in many areas of the country, the recovery remains fragile and uneven, especially in many of the areas where HUD has most severely reduced FHA loan limits," NAR's letter said. "Many borrowers in areas affected by the reductions rely on FHA-insured products and would not have qualified under the low loan-to-value and tight credit standards currently required by the private market," the letter continued. "These conditions leave the American dream of home ownership out of reach for many families. Without access to affordable low down payment financing, families are unable to purchase orrefinance homes, and those who wish to sell find it more difficult, all of which will continue to prolong our housing crisis. As proposed, the turbulence these reductions will create runs the risk of reversing progress being made in the economic recovery."

1st Timers...Buy Before FHA rates are up!!

Yes!!!  Another message on BUYING NOW!!!

Personally, I am surprised so many buyers are on the sidelines...and I do mean BUYERS that need to BUY!!

Did you know you may be among 300,000 people that graduated, got divorced, add a family member that are projected to be the "pent up market".   

Economists have been stymied by the lack of recovery in the housing market with the pressures present from those noted above that have had a life change event and the general population growth that has occured since 2007(both immigration and births) coupled with the overall increased aging of the American population.

So if great rates under 5% and bargain priced homes has kept you on the sidelines, perhaps new FHA regulations will inspire you.  In June, FHA mortgages will have a higher monthly MI(mortgage insurance premium) which will result in higher mortgage payments for home owners.

For instance, if you purchase a home resulting in a $200,000, your PMI will go from a present  $92/mth to $142/mth:  $50 increase.  

This $50/month equates to $600/year and $6000 over 10 years

Thus if you purchase a home with an FHA Loan and had the appraisal ordered prior to June 1st, you could either save the money or purchase a home up to $210,000 for a similar payment.

Any questions????

                           Ready to Move???

         Call me today...(757) 580-6546

How Many Condos In Your Neighborhood Can't Sell?????

Update on Condo Dilemna: 

 Will your Condo be "sellable" in the December and beyond???

In a local Hampton Roads market, Chesapeake, there are 189 HUD(i.e. FHA LOAN) approved condominiums as of today(10/28/2010).

On Dec. 7th, ONLY 11 CONDOMINIUMS WILL BE APPROVED.

          Can you see the approaching challenge???

You live in a condo neighborhood, list the condo, get an FHA contract but can't close because the condo group didn't get the necessary paperwork filed. 

         This challenge can be solved!!!!    

If you live in a condo, you need only to get on it NOW!!!  It can take 60 days for HUD to approve a condo project/neighborhood!!!

Need to know how to get approval????   Want to know how
to get approval done in a week??     Let me know!