Mortgage

 New FHA Loan Limits. On October 1, 2011, the Federal Housing Administration (FHA) will implement the new single-family loan limits as specified by the Housing and Economic Recovery Act of 2008 (HERA).  As a result, FHA will reduce loan limits in the highest cost metropolitan areas of the country while limits would remain unchanged in most other parts of the nation. Here in Arizona the FHA loan limit will be $271,050 in Maricopa, Pinal and Pima counties.

These new FHA loan limits were scheduled to take effect in January of 2009 but continuing strains in credit markets led the Congress to delay implementation.  The result has been nearly three years of higher loan limits for some areas based on the Economic Stimulus Act of 2008 (ESA). 

Barring any new action by the Congress, many affected areas will have lower FHA loan limits on October 1, 2011.   The current standard (floor) loan limit for areas where housing costs are relatively low will remain unchanged at $271,050 for one-unit properties. 

The change in FHA loan limits will affect 669 counties across the country, out of a total of 3,234 jurisdictions in which FHA insures home loans.  Most loan applications with an FHA case number assigned on or after October 1, 2011, will be subject to the new limits. In addition, there are exceptions for loans that were issued case numbers on or before 9/30/11 and meet all of the credit approval criteria detailed in Mortgagee Letter 2011 -29. To Pre-qualify please call Ed Heiser of The Heiser Team at 480-830-8030. Follow this link to read the Mortgagee Letter.

VA Loan Program – Over 30 million have answered the call to serve this great nation.  1 in 8 American males are veterans.  The Veterans Affairs (VA) home loan program was designed to help veterans purchase homes with favorable terms and interest rates.

As a United States Army Veteran, Ed Heiser, with The Heiser Team at AmeriFirst Financial, is an Expert in VA Home Loans. When applying for a VA home loan, Ed & Barbara Heiser understand first hand the needs of fellow Veterans. With years of experience in helping fellow veterans purchase their home with their VA home loan benefits, you can be assured your in good hands with Ed Heiser and the Heiser Team.

 WHO IS QUALIFIED

1. Active duty personnel
2. Honorably discharged personnel “Veterans”
3. Personnel with previous qualifying active military service
4. Reservists, National Guard, and Coast Guard who meet minimum enlistment requirements
5. Unmarried, surviving spouse of military personnel who were missing or killed in combat
6. ROTC, cadets/midshipmen in Army, Navy, Air Force, and Coast Guard academy

 * A qualifying veteran will be required to provide a Certificate of Eligibility AND their  

     DD-214, NG Form 22, or Statement of Service.

 WHY CHOOSE TO USE YOUR VA LOAN

1. 0% down payment – 100% financing
2. The loan amount can be up $417,000 in Arizona
3. Gift money (money from other sources like parents) is allowed for closing costs
4. No monthly Mortgage Insurance
5. No prepayment fees
6. VA Funding fee, if any, can be financed into the loan

 VA loans are not just for first time home buyers.  Also, the home must be owner occupied.  If you are purchasing a 2-4 unit under the VA, the veteran must occupy 1 of the units.

 VA LOAN OPTIONS

1. 15 and 30 year fixed rate loans
2. 3/1, 5/1 Adjustable Rate Mortgages (ARM)

 To understand the above terms please read my post on FHA loans by visiting this link.

 ELIGIBILE PROPERTY TYPES

1. Single Family Residences (SFR)
2. 2-4 unit properties

CONCLUSION

I have a deep respect for the men and women who have sacrificed their time and talents to protect and guaranty the rights we all enjoy as citizens.  So many give so much for us and I am proud of this program that at least in a small way says ‘thank you’ to those who are or have served.  If you are a veteran and looking for a home to purchase, I would find it a great honor to assist you.

 Remember to remind your REALTOR that YOU are eligible and call me Ed Heiser (480) 830-8030.  You’ve EARNED it by proudly serving our great country.

  As a future home owner, Ed & Barbara Heiser of TheHeiserTeam.com, want you to
know that we offer a wide assortment of mortgage programs that can be tailored to help you in achieving your dream of home ownership. Whether you reside in the Phoenix Metro Area “The Valley of the Sun” or any where else in Arizona, you have found the right place. No matter where you want to live in Arizona; Whether you’re a first time home buyer, or if you want to up size or down size your current home, you may want a second home or a cabin on the Rim or in Flagstaff, or are you a current home owner who just needs the right mortgage; or maybe you’re relocating to the beautiful Grand Canyon State of Arizona, no matter what your home financing needs are, Ed & Barbara Heiser of TheHeiserTeam.com can help you.

   At The Heiser Team, we remember the ‘Good ole’ Days’ when people really cared about each

other.  When customer service was more than just words. When those you did business with knew you by name. Come with Ed & Barbara Heiser back to those ‘Good Ole’ Days’ where we combined the best of the past with the best of today. We strive to  bring that good ole’ fashion warmth to our business. Those we do business with are like family.

   Our focus and our job is to look at you for who you are, a unique individual with unique needs and dreams. As licensed professional loan officers we understand that each client requires a custom tailored loan developed around their home buying experience and needs.

   We offer a large number of mortgage program options, which allows us to identify and place virtually any client into the right loan for them. Whether you need a 100% VA loan, an FHA loan or if you want to put money down on a Conventional loan and not have mortgage insurance, we have the perfect loan program for you.

    Our programs include:

• Several Fixed Rate Loan programs
• Adjustable Rate Mortgage [ARMs] with Fixed Periods
•  A Conservative 3/1 ARM Mortgage
• The outstanding 5/1 ARM
• 7/1 ARM Loan
• 10/1 ARM Loan
• FHA loan programs
• 100% Financing for Veterans and Current eligible Armed Forces
• 100% USDA Loan Program
• For high dollar home buyers, we offer “Jumbo” loan programs

 Take the first step towards accomplishing your home buying goals by completing our easy Online Application. It’s Fast, Free, and Secure! Ed & Barbara Heiser of The Heiser Team look forward to hearing from you at 480-830-8030.

Sit down and take a breath, here we go again, FHA has raised the annual mortgage insurance premiums which is known as the FHA monthly mortgage insurance. These changes are mentioned in Mortgagee Letter 11-10 and become effective on or after April 18th, 2011. The new change is 25 bps or .25%.

Now remember that we just had an increase by FHA that went into effect in October of 2010. ALSO, keep in mind that Fannie Mae (Conventional Loans) has a pricing change that goes into effect on April 1st, 2011 as well.  And there is talk about conventional loans requiring 10 percent down, not 5 percent down. But there seems to be no foreseable changes for FHA loans and the minimum down payment of 3.5 percent for now.

 Why the changes? HUD wants to strengthen the FHA’s Mutual Mortgage Insurance Fund, known as the MMIF. They want to see the fund financially sound. Also, there is no change to the Upfront Mortgage Insurance Premium of 1 percent.

FHA Commissioner David Stevens commented:

“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market.  This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

HUD claims that this change to upfront MIP charges will increase the capital reserves the FHA holds in the Mutual Mortgage Insurance Fund by $3 billion, greatly increasing the stability of the FHA, which had $3.6 billion in the account at the end of 2010.  According to the press release, new FHA borrowers will pay about $30 extra per month on average.

Old verse New Monthly Mortgage Insurance Changes

This chart is from Mortgagee Letter 11-10 – Annual Mortgage Insurance Premium Changes -

 As you can see by the red arrow, indicating that this goes into effect on April 18th, not April 4th. HUD must have revised the date after they did the charts. So what does this all mean to those refinancing or buying new homes with a FHA mortgage?

This is based on a $250,000 sales price and the end result is that it would cost the buyer $50.26 more in their total mortgage payment. You can also look at it from the flip side when qualifying buyers. This could lower the new buyers purchasing power by about $9,000. Meaning, instead of the $250,000 purchase price in the example, they can now afford a $241,000 home.

 This new change is for your primary 1 to 4 unit properties. This change does not affect Title 1 loans, the HECM loan (reverse mortgages – which I am writing about tomorrow), the HOPE loan, and a few other types of FHA loans. This can also be found in the new FHA mortgagee letter 11-10.

There are also new changes to how one would have to request a FHA case number, cancellations of FHA case numbers, and a few other issues. These changes can also be found in the new FHA mortgagee letter 11-10.

 Here is a quick breakdown of different purchase prices just to give you an idea on how it will change the monthly payment.

When Can I Buy a Home After a Foreclosure? Bankruptcy? Short Sale?

 If you’ve recently experienced foreclosure, bankruptcy or a short-sale, you are  wondering when you’ll be able to purchase a home again. Now when I say purchase a home, I mean doing so with the aid of a mortgage; obviously you can buy a home with cash at any time if you’ve got the funds yourself.

 One of the most common questions I’m asked as a Mortgage Loan Officer is; “How long after a ______ can I purchase a home?”

 Well there is an answer, BUT it takes some explaining to get there. Luckily you’ve come to the right place. FHA & VA are Government “Guaranteed” loans and Fannie Mae and Freddie Mac are known as Conventional loans. They each have their OWN minimum standards or Guidelines. To add to the confusion, different Lenders can, and DO, add their own more strict guidelines on top of these called “Over-Lays”.

There has been more changes in the Mortgage industry in the last year and a half than ever before. These changes at times seem to come monthly or even weekly. It has been VERY hard to keep up with. SO, as of TODAY, below are the “CURRENT” guidelines:

 Loan Type       Bankruptcy                Foreclosure*              Short-Sale

   FHA                    2 years                         3 years                         3 years 

   VA                      2 years             2 yrs/May Loose VA**         2 years 

  Conventional    4 years                         5 years                         2 years 

   USDA               3 years                         3 years                         3 years 

*  In the case of foreclosure, The waiting period begins once change of ownership has been RECORDED.

** If the foreclosure was on a VA loan, full entitlement may not be  restored.