December 26, 2016
Happy Holidays 2016! The Monday AFTER December 25 might seem to be a strange time to make that statement, but today is the observed holiday since Christmas came over the weekend this year. Many banks are closed, the markets that affect mortgage rates aren’t operating to day, and we too observe the extended holiday weekend. We’ll resume our usual posting schedule on Tuesday including an updated look at mortgage rate trends. Thank you for reading!
December 22, 2016
Since our last report on mortgage rate trends, we’ve seen a minor bit of improvement in interest rates, but the numbers still remain at highs not seen in the last couple of years. The improvements will likely be reflected in closing costs where applicable, and the range of rates is still at or near what it’s been in recent days. That means that 30-year fixed rate conventional mortgages are holding in a range between 4.375% at the very bottom end and 4.5% at the top end, best execution. FHA mortgage rates are holding in a best execution comfort zone of 4.0%, though if upward movement resumes we could see this turn into a range of rates also. Best execution rates assume ideal borrowers. Your FICO score, loan repayment history, and | more...
December 19, 2016
Your credit report and FICO scores are very important factors when it comes to getting an FHA loan approved. Do you know what your FICO score is and how it affects your home loan? The U.S. government’s consumer watchdog agency, the Consumer Financial Protection Bureau, has a definition of FICO scores on its’ official site, which includes the following: “A FICO score is a particular brand of credit score. A credit score is a number that is used to predict how likely you are to pay back a loan on time. Credit scores are used by companies to make decisions such as whether to offer you a mortgage or a credit card. They are also used to determine the interest rate you receive on a loan or credit card, and | more...
December 16, 2016
Housing counseling is an important resource for those who want to apply for a mortgage loan. When borrowers decide to start on the journey to home ownership, there can be many areas they are unsure about. That’s one reason why it can be helpful to contact the FHA directly at their toll-free number (1-800 CALL FHA) to request a referral to a local, HUD-approved housing counselor to get expert advice and help in areas related to budgeting for a mortgage payment, credit issues, the home loan process and more. In some cases, certain types of counseling are actually required as a condition of FHA loan approval; this is true for FHA Home Equity Conversion Mortgages (HECM), where all borrowers must attend counseling to insure they understand the nature of HECM | more...
December 13, 2016
Mortgage loan interest rates have been in an upward trend for some time now; since our last report we saw rates hit two-year highs once more on Friday only to recover a little come Monday. In days past we’ve seen overseas issues such as the European Central Bank’s policy announcements play a partial role in the investor reactions that caused some of the upward pressure on rates, but also bond market issues and jitters over economic issues related to politics. These factors, combined with the potential for the Fed to announce an interest rate hike, and it is no surprise that we’re in an upward trend at the moment. 30-year fixed rate conventional mortgages are reported, at the time of this writing, in a range between 4.125% and 4.25% (best | more...
December 2, 2016
The FHA official site has been updated recently to include 2017 loan limits for Home Equity Conversion Mortgages, also known as FHA HECM loans or FHA reverse mortgages. According to the press release at www.FHA.gov, “The Federal Housing Administrations (FHA) Home Equity Conversion Mortgage (HECM) loan limits for Traditional HECM, HECM for Purchase, and HECM-to-HECM refinances are governed by the maximum claim amount limitation in sections 255(g) and 255(m) of the National Housing Act, which contains cross-references to section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act”. The FHA updates HECM loan limits annually, and those updates are effective for the new calendar year; limits may be subject to change depending on legislation, FHA requirements, or other legal factors that may apply before or after the existing year’s update | more...
December 1, 2016
For potential borrowers thinking of filling out FHA loan applications in 2017, there are a number of areas to think about as you prepare. Some potential borrowers are ahead of the curve when it comes to getting financially ready for a major loan application, while others may overlook important areas that need attention long before the loan paperwork is filled out. Do you know how ready you are to fill out that mortgage loan application? One question to ask yourself before the new year arrives is how long youve been planning and preparing for the new loan. Many financial experts advise taking at least a full year to save, budget and research the new loan. Why is research needed? In several ways, doing some research can help you decide what | more...
November 14, 2016
The Department of Housing and Urban Development has announced a new Fair Housing Act case in Florida, and settlements of similar cases in two other states. According to a press release at the HUD official site, ” The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging landlords in South Florida with discrimination against tenants with disabilities. Meanwhile, HUD is announcing separate agreements with landlords in Nevada and Massachusetts resolving similar charges.” According to the press release HUDNo.16-169, “HUD charged the owner of Hillcrest East Building No. 22, a multifamily development in Hollywood, Florida; the properties management company, Rhodes Management; and a previous president of the homeowners association with housing discrimination for failing to make reasonable accommodations, publishing discriminatory notices and statements, and attempting to | more...
November 10, 2016
FHA loans include the option to fill out a loan application for condo loans. Borrowers can apply to purchase a condo unit as long as the condo project is either on the FHA approved list or is added to that list. Recently we reported on the FHA’s change in rules for occupancy requirements for approval of condo projects. According to an FHA mortgagee letter, “In accordance with the passage of the Housing Opportunity Through Modernization Act of 2016 (HOTMA), the Federal Housing Administration (FHA) is required to provide guidance on the percentage of owner occupied units required to obtain condominium project approval.” To be put on the approved FHA condo loan list, the project must meet specific requirements including an owner/occupier ratio. That ratio is addressed in that mortgagee letter | more...
November 9, 2016
Are you thinking about purchasing a home? Or refinancing your current home loan? FHA mortgage loans and refinance loans offer a variety of options. For new purchases, an FHA mortgage loan allows qualified borrowers to purchase typical suburban homes, but also condo units, town homes, and manufactured homes. Any property that has a permanent foundation or will be affixed to a permanent foundation at closing time may be eligible for an FHA mortgage. (All homes considered for purchase with an FHA loan are subject to an appraisal and must meet basic FHA standards.) Heading 2 For new purchase loans, borrowers can choose a fixed interest rate mortgage or an adjustable rate loan. Borrowers who choose adjustable rate mortgages will be offered an introductory rate, and overall your FICO scores and | more...