Archive for the ‘FHA 203k Streamline’ Category

I just started a three part series on FHA real estate loans on my Active Rain blog. The purpose of the series is to instruct and inform potential first time home buyers in the use of an FHA loan for the purchase of their new home. The first part talks about changes and non-changes in the HUD programs.

by Fred Chamberlin, senior mortgage consultant, Eugene/Springfield Oregon, 541-342-7576

This is part 1 in a series about FHA mortgage loans that affect buyers and home owners in the Eugene and Springfield Oregon area. FHA mortgage lending will undergo several changes on January 1, 2009. Some of them will affect more people than others.

1. The down payment requirement on the FHA 203b and 203c will change from 3.0% to 3.5%.
2. The FHA Secure will go away.
3. The maximum loan amount for Lane County will change from $343,750 to $271,050 for a single family residence.
4. FHA HECM (reverse mortgage) will be available for purchase transactions. Loan amount limit for the HECM will be $417,000, purchase or refinance, in Lane County.
5. Reportedly, builders will no longer be able to steer borrowers to their “in-house” lenders with enticement of paid closing costs they will not give if another lender is used. (This is a change in RESPA but the reading on this is very complex.)
6. This doesn’t change, it already did – UFMIP (upfront mortgage insurance premium) changed from risk based premiums to 1.75% for everything except for FHA Secure and H4H and other exception noted below. (15 year term different.)

At the same time, there are some things that don’t change Jan. 1.

1. Streamline refinances UFMIP is still at 1.5% with pro-rata refund on existing UFMIP if loan is less than 3 years old. Streamline refinance are available with or without a new appraisal.
2. The streamline program does not have either the 3% or 3.5% requirement and may be up to 100% loan to value, including UFMIP.
3. Down payment requirements for FHA 203k and 203h do not change from 3% minimum. The FHA Energy Efficient Mortgage is also not effected.
4. Down payment may still be a gift or a qualifying down payment assistance program such as HAP or SHOP. No limit on combined loan to value when using community based second mortgage.
5. Sellers may still contribute up to 6% of the purchase price for closing and prepaid expense (taxes, insurance and interest) costs.
6. Non occupant co-borrowers can still be used to qualify a borrower for income. Credit problems cannot be overcome with a cosigner.
7. Non traditional credit underwriting still available if no credit score is available.
8. 550 credit score and above underwriting available.
9. Double wide and single wide manufactured home FHA loans available. Homes require concrete foundations and tie downs. Pre-1975 (June 15) and homes on leased land not applicable.
10. Cash out refinances are available to 95% loan to value, including manufactured homes.

11. FHA loans are not just for first time home buyers.

Check back later for Part 2 in this series. I intend to share information that is not generally known in greater detail. Read More

• Share this:
• Email
• Reddit
• Facebook
• StumbleUpon
• Digg
• Print

The City of Springfield and the City of Eugene administer programs to help low to moderate income purchasers get into their first home. They are called SHOP and HAP, respectively. This is an acronym for Springfield Home Ownership Program and (Eugene) Homeowner Assistance Program. These assistance programs were created to encourage home ownership in Springfield and Eugene by assisting low income first time homebuyers with their real estate purchase.

The programs are designed to help first time home buyers with the down payment and closing costs in their purchase. A $10,000 interest free, payment free second mortgage is available for this purpose. The loan is accepted by FHA as a viable method of obtaining down payment money and is also accepted on some conforming products. Read More

The USDA Rural Guaranteed Loan Program is an exceptional vehicle for first time home buyers who often times have trouble coming up with the down payment. The credit crunch keeps some home buyers sidelined because of credit problems, many others with good or adequate credit are able to purchase real estate and get best deals in years, including mortgage programs with no down payment like this! Large portions of Lane County qualify for this program.

This loan program is available right now for Florence, Veneta, Junction City, Cottage Grove, Creswell, Oakridge, Westfir, Swiss Home and Pleasant Hill. The credit guidelines are quite liberal and more people can qualify that may think they can. Read More

Local and state governments are taking advantage of HUD’s New Neighborhood Stabilization Program in a big way. Eugene recently received over $600,000 and Springfield received over $300,000 to assist first time homebuyers in the purchase of homes located in targeted areas. The money is to be used for downpayment assistance for first time homebuyers and for housing for very low income housing. It is to be used for foreclosures and bank owned properties. Read More

• Share this:
• Email
• Reddit
• Facebook
• StumbleUpon
• Digg
• Print

There are a lot of common misconceptions about FHA mortgage loans that have been around for a long time. Anyone that got an FHA loan in the 80s or 90s had to go through a lot more paperwork and inspections than are required currently. One of the things that was required on an FHA loan was a compliance inspection by a certified FHA inspector, that is no longer required. This is from an August post of mine on Active Rain about myths about FHA loans.

Dispelling Common Myths About Participating with FHA (edit/delete)

I know there are Realtors out there that remember the bad old days of FHA financing. I still remember having to have and FHA certified inspector check over the house and make the sellers sweep up the basement or clean a spot on the carpet. Anyone remember the VC sheet (that hasn’t been that long ago)?

Well, that isn’t the case anymore. FHA loans are nearly the same as conventional loans, except in some (many) cases better. Take a look at these common myths about FHA:

1. Myth: Takes more time processing.
   Truth: Read More
   • Share this:
   • Email
   • Reddit
   • Facebook
   • StumbleUpon
   • Digg
   • Print