FHA Non Occupant Co-Borrowers

Another huge advantage to the FHA product is that co-borrowers do not need to occupy the property and while typically the primary borrower needs a minimum 60% DTI before consideration is given to the co-borrower, FHA does not. The overall qualifying ratio is what matters. This really give FHA a huge advantage in typical co-borrower scenarios.

FHA Streamline

It is important to know that FHA streamlines are only available IF you (borrower) receives payment benefit. If you don't then a lender technically shouldn't offer you a streamlined program. SOOOoooo if you receive an approval for FHA streamline, you know that you should receive a real payment benefit. Don't forget that all borrowers from the original FHA loan need to be parties to the new FHA streamline loan.

FHA High Balance Loan Limits

It's important to remember that the FHA lending limit for Orange County, CA 1-unit properties is 729,750 and it goes up from there for 2-4 unit properties. This number is even higher in Hawaii and little less in other states. Why is this important? Because just a few years ago these loan amounts would be considered Jumbo and even Super Jumbo. And you want to know why else this is important? Because jumbo loans are relatively non-existent these days and certainly not available with any serious leverage. But FHA allows LTV's up to 96.5%.
And you wanna know something else FHA offers VERY competitive rates and terms.

So next time you are thinking no have no options for your jumbo home loan, call an FHA Lender and see what they can do...and of course you can call mine,
HomeSecure Mortgage Lending 888-450-HOME, a direct FHA lender

The secret to mortgage shopping

Ok. You want to know the real secret to finding the best loan. Here it is. Figure out what rate you really want/need to have. One that provides you the payment or savings that you want. Then call a couple of direct lenders and ask for a quote at that rate and if THAT CAN BE LOCKED and when. Then compare those quotes directly. Here is where most people miss it. Rather than worrying about processing fees, underwriting fees, closing fee, title, points, etc. simply require a detailed good faith estimate that includes third party fees. Then simply add ALL the fees together and determine which fees are lower for the same rate. Obviously the lower the fees the better the loan. Then make sure the lender offers a best price mortgage guarantee and lock policy to make sure they do not "pull the carpet out from under you at closing". If they can't meet these requirements, run!

How do I know this, because my company offers all these services for free.
http://www.myhomesecure.com/

FBI and HUD Issue Reverse Mortgage Scam Warning
The FBI and the Department of Housing and Urban Development recently issued a warning for senior homeowners to be cautious of fraud schemes when seeking reverse mortgage products.

If you are seeking a reverse mortgage simply take these few steps to ensure your working with an approved direct lender:

1. Verify the Lenders license through online governement databases
2. Search the internet for references good and bad.
3. make sure everything is in writing AND that you read it all.
4. Seek a second opinion from your trusted financial advisor

If you take these step you'll avoid the majority of these scams.

Don't count out FHA as expensive

Just becuase FHA has an upfront mortgage insurance premium don't assume FHA is too expensive. Often times, FHA loans provide the ONLY option available to a consumer due to higher debt ratios, lower credit scores, or higher loan to value ratios. So UFMIP isn't really expensive since there are no other products to compare to. Expensive is a relative term, relatively speaking ;)

FHA Spot Condo Process

FHA is doing away with the spot condo process...I am sure to allow for much more "streamlined" process, yeah right. Eitherway the good news is we can still consider unapproved condo projects for FHA financing.

In other news. Rates continue to trend down nicely - sparking a small increase in the amount of mortgage applications. Get yours in to make sure you are ready to lock when rates hit your mark.

In even more news. The 125% program announced by the Obama administration can only be originated/facilitated by the current servicer of your loan.

Got a short pay refinance???We can now offer these - certain restrictions apply.

125%

Update on the 125% program - we expect to be able to deliver or fund these loans in September. To make sure you are ready to fund your loan - you must apply and receive your approval from your direct lender. This is free with most lenders, including mine, so the KEY is to be READY to pull the trigger. Consult your mortgage professional for the best advice and most timely market commentary.

Interest Rates

Over the last week interest rates have settleed down a little although they have not settled to lows seen earlier in the year.

The trick to getting the best mortgage rate, is... Well there is not secret you just have to pay attention to what your lender tells you. First choose a lender, a direct lender, that has the ability to lock their own loans. Also make sure that lender is willing to give you a lock confirmation in writing. Once you've applied with a company you may be able to lock your loan - you should be watching or following rates before, during, and after you lock your loan.

You must remember to lock a loan you need to apply. Some lenders have different requirements and allowances for locking your loan. It is important to get this information in writing - always.

Apply + Monitor + Direct Lender = Happy Mortgage Borrower.

FNMA 125% Refinance Program

This week, Obama and his adminstration announced they will allow Fannie Mae and Freddie Mac to refinance homeowners with Loan to Value's up to 125%. As with most programs your potential approval lies in the details. Most lenders have still been retooling for the 105% LTV program and only around 20,000 of these Refinance Plus loans/mortgages have been funded. Not nearly as many as was hoped for. Clearly this plan will have more impact with the loosening of the guidelines. But is that what we need? In any event, programs that help keep families in homes are key to the rebound of the overall economy.

Let's Talk UFMIP and the FHA?

What the heck is UFMIP? Up Front Mortgage Insurance is a fee charged on FHA mortgages in exchange for FHA insuring the mortgage loan. It is the same for every FHA lender no matter how big or small. I guess the best part of the UFMIP is that it can be financed. So even though it can be 1.75% of the loan amount, the fee can be included in your payment. And since many finance up to the limit of 96.5% Loan to Value, the fee relatively speaking, is low, when compared to the risk FHA and the lender is making on the borrower. UFMIP can also be paid for with seller credits, broker credits, and interested third party credits.
FHA lending can be the key to homeownership for some, but as with any mortgage program the devil is in the details. FHA lending is very specialized and in fact FHA loans must be underwritten by a special DE underwriter. These underwriters have their names on the line literally and therefore are a little more conservative than on a traditional conventional loan. Be prepared for some possible additional conditions. But with the help of a direct lender most loans are quite smooth. In todays market FHA loans provide for the least amount of down payment when buying a home except for VA mortgages. With the new 8,000 first time homebuyer credits. Many buyers should take avantage of FHA and their very competitive lending programs