New FHA rules and regulation

[Irvinecommuter]

After the FHA changes come into effect on June 3rd, most homebuyers with a case number after this date will have to pay mortgage insurance for the life of the loan - unless they put a down payment of more than 10 percent, according to Mortgagee Letter 2013-04 issued by the U.S. Department of Housing and Urban Development (HUD) on January 31, 2013.

If you are considering refinancing or getting a mortgage over $625,500, the required down payment (or equity in the home if it's a refinance) will rise from 3.5 percent to 5 percent of the home value, according to a FHA Federal Register Notice dated February 6, 2013. This means that your mortgage amount cannot exceed 95 percent of the home value.

http://homes.yahoo.com/news/get-a-fha-loan-before-june-3rd-181635371.html

I wonder how much these two items will affect FHA loan refinance and origination.

 

[usctrojancpa]

After the FHA changes come into effect on June 3rd, most homebuyers with a case number after this date will have to pay mortgage insurance for the life of the loan - unless they put a down payment of more than 10 percent, according to Mortgagee Letter 2013-04 issued by the U.S. Department of Housing and Urban Development (HUD) on January 31, 2013.

If you are considering refinancing or getting a mortgage over $625,500, the required down payment (or equity in the home if it's a refinance) will rise from 3.5 percent to 5 percent of the home value, according to a FHA Federal Register Notice dated February 6, 2013. This means that your mortgage amount cannot exceed 95 percent of the home value.

http://homes.yahoo.com/news/get-a-fha-loan-before-june-3rd-181635371.html

I wonder how much these two items will affect FHA loan refinance and origination.

FHA buyers have no chance in the current market so this will not have any kind of material impact.

 

[Irvinecommuter]

After the FHA changes come into effect on June 3rd, most homebuyers with a case number after this date will have to pay mortgage insurance for the life of the loan - unless they put a down payment of more than 10 percent, according to Mortgagee Letter 2013-04 issued by the U.S. Department of Housing and Urban Development (HUD) on January 31, 2013.

If you are considering refinancing or getting a mortgage over $625,500, the required down payment (or equity in the home if it's a refinance) will rise from 3.5 percent to 5 percent of the home value, according to a FHA Federal Register Notice dated February 6, 2013. This means that your mortgage amount cannot exceed 95 percent of the home value.

http://homes.yahoo.com/news/get-a-fha-loan-before-june-3rd-181635371.html

I wonder how much these two items will affect FHA loan refinance and origination.

FHA buyers have no chance in the current market so this will not have any kind of material impact.

Maybe not in Irvine but there are still a lot of places to buy for under $600K.

 

[irvinehomeowner]

FHA buyers have no chance in the current market so this will not have any kind of material impact.

Can you qualify that statement please?

I think you are saying because there are multiple bids on homes, sellers would rather take a traditional 20%+ buyer or an all-cash buyer over an FHA buyer.

So anyone looking to buy with a low down payment is out of luck? Do new homes discriminate?

 

[usctrojancpa]

FHA buyers have no chance in the current market so this will not have any kind of material impact.

Can you qualify that statement please?

I think you are saying because there are multiple bids on homes, sellers would rather take a traditional 20%+ buyer or an all-cash buyer over an FHA buyer.

So anyone looking to buy with a low down payment is out of luck? Do new homes discriminate?

Correct...in the current market where most homes get multiple offers the sellers will basically ignore any FHA buyers and move on to the conventional loan buyers.  I have buyers who can only put down 20-25% and when we make offers over list AND remove appraisal contingencies we still don't even get a response back from the seller.  There are that many cash and higher financed buyers out there (both investors and owner occupants) that sellers can be that selective, not just in Irvine but other cities in OC.  FHA buyers actually have a chance at new homes as long as they qualify and get on the "buyer list" so there it isn't as much of a concern. 

 

[usctrojancpa]

After the FHA changes come into effect on June 3rd, most homebuyers with a case number after this date will have to pay mortgage insurance for the life of the loan - unless they put a down payment of more than 10 percent, according to Mortgagee Letter 2013-04 issued by the U.S. Department of Housing and Urban Development (HUD) on January 31, 2013.

If you are considering refinancing or getting a mortgage over $625,500, the required down payment (or equity in the home if it's a refinance) will rise from 3.5 percent to 5 percent of the home value, according to a FHA Federal Register Notice dated February 6, 2013. This means that your mortgage amount cannot exceed 95 percent of the home value.

http://homes.yahoo.com/news/get-a-fha-loan-before-june-3rd-181635371.html

I wonder how much these two items will affect FHA loan refinance and origination.

FHA buyers have no chance in the current market so this will not have any kind of material impact.

Maybe not in Irvine but there are still a lot of places to buy for under $600K.

It's not just Irvine...almost every other city that I go to in OC has low inventory and strong buyer demand with rising prices.  FHA buyers are at a huge disadvantage trying to buy re-sale homes. 

 

[irvinerealtor]

FHA buyers have no chance in the current market so this will not have any kind of material impact.

Can you qualify that statement please?

I think you are saying because there are multiple bids on homes, sellers would rather take a traditional 20%+ buyer or an all-cash buyer over an FHA buyer.

So anyone looking to buy with a low down payment is out of luck? Do new homes discriminate?

For a quantitative view of the market: In Irvine so far this year, there have been just 12 MLS sales reported as closed with FHA financing, of 857 total closings (that's a miniscule 1.4%). By contrast, there have been 319 all-cash transactions (37.2% of the total).

-IrvineRealtor

 

[irvinehomeowner]

So who was that doubting my "Legend of the FCB"?

 

[irvinerealtor]

By comparison, for the total Orange County market the numbers are as follows for April:
Total sales: 2565
FHA financed: 168 (6.5%)
All-cash: 807 (31.5%)

-IR2

 

[irvinerealtor]

(but don't despair FHA buyers... I have two clients that closed with FHA financing in April, one of whom worked with SGIP) How your offer is written makes a difference.

-IR2

 

[The Motor Court Company]

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

 

[usctrojancpa]

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

Especially with the cost of FHA PMI going through the roof.  Besides, there are other options for folks who don't have 20%....80-10-10 loan programs or a 85-90% conventional loan. 

 

[Irvinecommuter]

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

FHA is not really for highend buyers ala Orange County.  I am assuming that a lot of the buyers in the 300-500K range are FHA loans.

Also, FHA is a big deal in refinancing.

 

[gld2]

Could you please introduce several lender do 80-10-10 loan programs or a 85-90% conventional loan?

Thank you

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

Especially with the cost of FHA PMI going through the roof.  Besides, there are other options for folks who don't have 20%....80-10-10 loan programs or a 85-90% conventional loan.

 

[usctrojancpa]

Could you please introduce several lender do 80-10-10 loan programs or a 85-90% conventional loan?

Thank you

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

Especially with the cost of FHA PMI going through the roof.  Besides, there are other options for folks who don't have 20%....80-10-10 loan programs or a 85-90% conventional loan.

The lender that SGIP used to work for does 80-10-10 loans so let me get a good point of contact from him for someone over there. 

 

[usctrojancpa]

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

FHA is not really for highend buyers ala Orange County.  I am assuming that a lot of the buyers in the 300-500K range are FHA loans.

Also, FHA is a big deal in refinancing.

How is FHA a big deal in refinancing?  In the same way that HARP 2.0 is for upside down conventional loans?

 

[Irvinecommuter]

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

FHA is not really for highend buyers ala Orange County.  I am assuming that a lot of the buyers in the 300-500K range are FHA loans.

Also, FHA is a big deal in refinancing.

How is FHA a big deal in refinancing?  In the same way that HARP 2.0 is for upside down conventional loans?

Pretty much.  Also, if you have an existing FHA loan.
http://www.lender411.com/mortgage-a...harp-2-0-and-a-fha-streamline-refinance/2718/

 

[irvinehomeowner]

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

What if someone doesn't *want* to put 20% down and can afford the higher payments?

 

[Irvinecommuter]

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

What if someone doesn't *want* to put 20% down and can afford the higher payments?

Also..FHA is good for people with bad credit scores and allows you to get cash out.

Also, FHA allows someone who declared BK or foreclosed upon to buy a home 3 years after...you cannot get a Fannie/Freddie Loan if you get foreclosed for 7 years.

 

[homer_simpson]

if some one cannot afford a home with 20% down and has to rely on FHA, it is probably not a good idea to buy a house any way.

What if someone doesn't *want* to put 20% down and can afford the higher payments?

Also..FHA is good for people with bad credit scores and allows you to get cash out.