> NEW!  Mortgage Bailout Help HERE

> Fannie Mae, FHFA Streamlined Modification Program

> FHA Foreclosure Prevention Act HERE

> Behind in your Mortgage Information HERE

> $7,500 First Time Home Buyer Tax Credit HERE

]]> http://www.goviegovernment.com/2008/12/12/to-help-direct-you-please-tell-us-what-part-of-the-housing-bill-hr-3221-you-are-interested-in-below-2/feed/ http://www.goviegovernment.com/2008/12/12/mortgage-insurance-premium-mip-requirements-of-fha-loans/ http://www.goviegovernment.com/2008/12/12/mortgage-insurance-premium-mip-requirements-of-fha-loans/#comments Sat, 13 Dec 2008 02:04:25 +0000 Scott Schang http://www.goviegovernment.com/?p=407 Mortgage Insurance is required on all 30 year fixed rate mortgages.  There are two types of mortgage insurance premium payments that you will always incur.

There is an upfront mortgage insurance premium of 1.75% and a monthly mortgage insurance premium of .55% of the loan amount. These premiums were recently increased as part of the FHA overhaul legislated through H.R. 3221 passed in July, 2008.

To give you an idea of what this would translate to as far as actual costs, let’s use a $300,000 purchase price to give you some examples:

• Purchase Price:  $300,000
• Down Payment:  3.5%
• Loan Amount:  $289,500

Upfront MIP (Mortgage Insurance Premium) would be $5,066.  FHA allows you to finance this as part of the loan.  The monthly mortgage insurance premium would be $132.69 a month.

For the purposes of calculating what these insurance premiums would be for any loan amount is as follows.

• Multiply the purchase price x the down payment of 3.5% - This will give you your loan amount
• Multiply the loan amount x the upfront MIP of 1.75% - This will give you your upfront MIP
• Multiply the same loan x the monthly mortgage insurance premium of .55% - this gives you the annual sum of your  monthly mortgage insurance premiums.
• Divide the annual sum of your monthly mortgage insurance premiums by 12 - this will give you your monthly mortgage insurance premium

If you would like to get more information about qualifying for FHA financing complete this simple, secure online form to receive a no pressure, no obligation qualification analysis.

If you have have additional questions about qualifying for an FHA loan for either Purchasing a new home or Refinancing your existing mortgage, contact us at 1-866-667-6724

Fannie Mae and Freddie Mac until December 2008 only required that your Bankruptcy be discharged prior to application, Chapter 13 could be paid through refinance, as long as the Bankruptcy was filed at least 2 years prior to application.  In the case of a foreclosure it was 4 years from foreclosure date.

As of December 2008 Fannie and Freddie increased these guidelines to 4 years for the date of discharge for bankruptcy and 5 years from foreclosure or short sale date.

FHA foreclosure and bankruptcy requirements remain unchanged and seem to be the only option for homeowners that have been hardest hit through the market crash of 2007/2008 (and maybe 2009?).

FHA requirements are 2 years from discharge for Bankruptcy and 3 years from Foreclosure or Short Sale date.

If you would like to get more information about qualifying for FHA financing complete this simple, secure online form to receive a no pressure, no obligation qualification analysis.

If you have have additional questions about qualifying for an FHA loan for either Purchasing a new home or Refinancing your existing mortgage, contact us at 1-866-667-6724

100% of the down payment may be received by the borrower as a gift from a relative, related by either blood or marriage.  Gift funds must have been in the donor’s account for at least 30 days.

Seasoning of gift funds must be verified by providing a bank, or funds account statement and accompanied by a Gift Letter that states that the money is a bona fide gift and that there are no expectations of repayment.

Although seller assisted down payment programs such as Nehemiah, AmeriDream and HART are no longer allowed as of October 1st, 2008, you may still use down payment assistance programs and grants from City, County or Government sources.

If you would like to get more information about qualifying for FHA financing complete this simple, secure online form to receive a no pressure, no obligation qualification analysis.

If you have have additional questions about qualifying for an FHA loan for either Purchasing a new home or Refinancing your existing mortgage, contact us at 1-866-667-6724

This leaves only one option for home owners looking to take cash out that will result in a new loan that exceeds 80% of the value of the home.  Cash out guidelines are as follows:

Conforming Cash-Out Guidelines

• 90% Maximum Loan to Value / 620 Minimum FICO - 1-2 Units
• 85% Maximum Loan to Value / 600 Minimum FICO - 1-2 Units
• 85% Maximum Loan to Value / 620 Minimum FICO - 2-4 Units

Jumbo Cash-Out Guidelines

• 85% Maximum Loan to Value / 640 Minimum FICO - 1-2 Units
• Cash-Out not allowed for 3-4 Unit properties

You must own the property for a minimum of 12 months with no mortgage lates in the last 12 months to be eligible for a cash out refinance.

If you would like to get more information about qualifying for FHA financing complete this simple, secure online form to receive a no pressure, no obligation qualification analysis.

If you have have additional questions about qualifying for an FHA loan for either Purchasing a new home or Refinancing your existing mortgage, contact us at 1-866-667-6724

• FHA offers 30 & 15 year fixed rate mortgages
• FHA does NOT offer Interest Only or Adjustable Rate Mortgages

If you would like to get more information about qualifying for FHA financing complete this simple, secure online form to receive a no pressure, no obligation qualification analysis.

If you have have additional questions about qualifying for an FHA loan for either Purchasing a new home or Refinancing your existing mortgage, contact us at 1-866-667-6724

• 2 Years W2’s and 2 months most recent pay stubs if you are a W2 employee
• If you are a 1099 employee you are required to provide 2 full years tax returns including all schedules and show that you’ve been in the same line of work for at least 2 years.
• Self employed borrowers are required to also provide 2 full years tax returns including all schedules and must have been in business for a minimum of 2 years.

If you would like to get more information about qualifying for FHA financing complete this simple, secure online form to receive a no pressure, no obligation qualification analysis.

If you have have additional questions about qualifying for an FHA loan for either Purchasing a new home or Refinancing your existing mortgage, contact us at 1-866-667-6724

Friday, December 12th,  2009

Fannie Mae Announcement 8-33

Today, Fannie Mae Announced it’s Streamlined Modification Program underwriting guidelines to lenders and servicers.  Following are excerpts from this announcement that outlines the qualification requirements for consideration of a loan modification under this program.

EXCERPTS FROM FANNIE MAE ANNOUNCEMENT

A mortgage loan is considered eligible for the SMP if it is owned or is securitized by
Fannie Mae and all of the following criteria are met:

• The mortgage loan is a first lien conforming conventional mortgage loan that was
  originated on or before January 1, 2008. Jumbo-conforming mortgage loans are also
  eligible.
• The mortgage loan is at least three full payments past due (or at least six payments in
  the case of a biweekly mortgage loan). This may include loans in foreclosure.
• The mortgage loan is secured by a one-unit property that is the borrower’s principal
  residence (two- to four-unit properties are excluded).
• The current mark-to-market loan-to-value (LTV) ratio is equal to or greater than 90
  percent based on a valuation provided by Fannie Mae or an appraisal, or an estimated
  sales price from a broker’s price opinion (BPO). (Refer to the “Determining Mark-to-
  Market LTV” section for additional information.)
• The borrower documents a financial hardship by completing the Streamlined
  Modification Program Hardship Affidavit (Form 1023) and by providing income
  information. The documentation supporting income may not be more than 90 days
  old (as of the date the servicer is determining SMP eligibility).
• The borrower agrees to set up an escrow account for taxes and insurance prior to the
  beginning of the trial period if one does not currently exist and, in the event the
  escrow analysis uncovers a shortage, the servicer shall fund the shortage. The
  borrower agrees to pay the servicer any shortage amount over a 60-month period.
  The mortgage loan is not insured or guaranteed by a federal government agency
  (FHA, HUD, VA, and Rural Development mortgage loans).
• The mortgage loan is not a daily simple interest mortgage loan.
• The property securing the mortgage loan must not be abandoned, vacant, condemned,
  or in a serious state of disrepair.
• The borrower on the mortgage loan is not currently subject to a performing
  repayment plan or a loan modification or other workout relating to the applicable
  mortgage loan.
• The borrower must not be currently involved in litigation regarding the mortgage loan
  other than a routine foreclosure action.
• The borrower must not be currently involved in a bankruptcy proceeding.
  Borrowers who have received a Chapter 7 bankruptcy discharge in a case involving
  the first lien mortgage are eligible, but if the borrower did not reaffirm the mortgage
  debt under applicable law, the following language must be inserted in Section 1 of the
  SMP Agreement: “I represent that I was discharged in a Chapter 7 bankruptcy
  proceeding subsequent to the execution of the Loan Documents. Based on this
  representation, Lender agrees that I will not have personal liability on the debt
  pursuant to this Agreement.”
• Regular servicing option MBS pool mortgages and portfolio mortgage loans subject
  to lender recourse are ineligible for a Fannie Mae SMP. (Servicers are encouraged to
  offer the SMP for these mortgages; however, when a servicer decides to use the SMP
  for such mortgages, the servicer will be expected to obtain any third-party approvals
  and Fannie Mae will not be responsible for any losses or expenses the servicer incurs
  and will not pay incentive fees for these mortgages.)

In reviewing these qualifying guidelines I am left feeling that there are many distressed homeowners that will not meet these requirments. If you feel that you do not fall into this very small window of opportunity, do not lose faith!

There are still many modification options and resolutions available to you.  For a free modification analysis to determine what option are available, start by visitng helpUmodify.org or call 1-888-271-9767

Here are some things you do need to know about FHA Jumbo loans

• Minimum 620 FICO required
• 1-4 Units allowed
• NO Condominiums allowed

If you would like to get more information about qualifying for FHA financing complete this simple, secure online form to receive a no pressure, no obligation qualification analysis.

If you have have additional questions about qualifying for an FHA loan for either Purchasing a new home or Refinancing your existing mortgage, contact us at 1-866-667-6724

Here are the credit score requirements now in place for Conforming FHA loans

• 580 FICO required
• 580 FICO required on 1-2 Units
• 600 FICO required on 3-4 Units
• Conforming loan amounts can not exceed FHA’s 2007 County Loan Limits

If you would like to get more information about qualifying for FHA financing complete this simple, secure online form to receive a no pressure, no obligation qualification analysis.  If you have have additional questions about qualifying for an FHA loan for either Purchasing a new home or Refinancing your existing mortgage, contact us at 1-866-667-6724