Category Archives: Refinance

Guideline Change – FHA Refinances Cashout Require Two Appraisals now in 2009 over 85% LTV

FHA Cash-Out Refinances

FHA Refinances Cashout Require Two Appraisals now in 2009 over 85% LTV

Starting January 1st 2009 , Loans with FHA case numbers assigned on or after will require a Second Appraisal to be done for cash-out refinances greater than 85% LTV.

If you are refinancing two mortgages into one then its considered a Cash-out.  The only exception is when the 2nd mortgage was used as a purchase and not as a cash out or HELOC.

Reverse Mortgages are the only exception to this guideline change.

Below are highlights to the changes.

  • A 2nd appraisal is required regardless of loan amount or property location.
  • The 2nd appraisal must be still be completed by a FHA approved appraiser.
  • If 2nd appraisal is lower than 5% of 1st appraisal, the maximum mortgage amount will be based on the lowest appraisal.
  • This does not change the current requirement for two appraisals on loans greater than $417,000 and LTV greater than 95%.

Please consult with a mortgage expert regarding these changes.

Update to 2009 FHA Refinance Guidelines

 

Update to 2009 FHA Refinance Guidelines

 

mortgage1

 

Mortgagee Letter 08-40 communicates changes to FHA refinance transactions and are effective January 1st, 2009. Although this update includes guidelines that have not changed, I have listed the unchanged ones anyway as a review for those of you already familiar with FHA guides.
Here are the 10 things you need to know about these changes:
1.  The maximum Loan To Value for rate & term refinances (including streamlines WITH an appraisal) is 97.75%*
2. The maximum Loan To Value for cash-out refinances is 95%* for loan amounts less than the conforming limit and 85%* for loan amounts at or above the conforming limit. (Must have 12 months seasoning and no 30 day late payments)
3. Two appraisals will be required for all cash-out refinances with an LTV above 85%.
4. The mortgage must be current for the month due.
5. New or current 2nd mortgages are eligible with no maximum CLTV.
6. Loan amount for streamline refinances WITHOUT an appraisal cannot exceed the original loan amount.
7. UFMIP rates: 1.75% for all rate & term and cash-out refinances AND 1.5% for all streamline refinances.
8. The FHA Secure refinance will be terminated.
9. Refi loan amount CAN include: Closing costs, discount points, current interest, prepayment penalties, prepaids, late charges, and escrow shortages.
10. Cash back on rate & term and streamline refinances CANNOT exceed $500.
*All LTVs are before adding the UFMIP

VA Mortgage Cash Out Refinance 100% 411

 

VA Mortgage Cash Out Refinance 100%

VA Mortgage Cash Out Refinance 100%

VA Mortgage Cash Out Refinance 100%

Veterans’ Benefits Improvement Act of 2008 Changes recently signed by President Bush on 10/10/2008 implement 4 major changes below.

The official Bill Circular is found  HERE

1.)  Mortgage Loans allow Cash Out Refinances to 100% changed from 90%.

2.)  The VA ARMs (Adjustable Rate Mortgages) are good through 2012

3.)  The Temporary Extended Loan Limit Amounts are extended through Dec 31st 2011

4.)  Guaranty of refinances from $36,000 to the same guaranty for purchase deals.

FHA Streamline Refinance 411 – The Quick & Easy Loan – No Cost – No Appraisal – Bad Credit OK!

No Cost, No Appraisal, Quick and Easy

No Cost, No Appraisal, Quick and Easy

FHA Streamline Refinance 411 – The Quick & Easy Loan – No Cost – No Appraisal

FHA Streamline 411:  FHA has permitted streamline refinances on insured mortgages since the early 1980’s.  This is a way to “Gurantee Refinance” regardless of certain requirements.  This is an excellent choice if you want to ..

1.)  Convert your ARM to a FIX regardless of past credit and upside appraisal issues.

2.)  Refinance to a lower rate, quick and easy without the headache of new loan process.

FHA Streamline Requirements:

  • The mortgage to be refinanced must already be FHA insured. 
  • The mortgage to be refinanced should be current (past late payments OK)
  • No Fico Score Required
  • Must lower the borrower’s monthly principal and interest payments to qualify. 
  • No Cash out over $500 on refinance.
  • No termite report is required
  • Appraisal not required
  • Income documents not required

 

FHA Streamline Process: The Streamline process is by far the most Fastest and Easiest to qualify.  Heres how it works

  1. Check to make sure your loan is a FHA loan
  2. Call me to complete a 5 minute application
  3. Sign and Complete disclosure forms to get Payoff from your current company.
  4. Wait 48 hours
  5. Close Loan
  6. That was easy!!

FHA Chapter 7 & 13 Bankruptcy Mortgage 411

Hope is not lost if you filed for Bankruptcy or have been discharged from a Bankruptcy.

FHA Bankruptcy

FHA Bankruptcy

Whats great about FHA loan programs is that they are backed by our Government, Easier to Qualify and help with Less than Perfect Credit borrowers.

FHA understands that nobody is perfect and realizes that filing for Bankruptcy does not mean your not applicable for credit.  FHA reviews all credit applicants based on your repaying profile and background.  Even though you may have had hiccups in the past as long as you are able to re-establish a track history of paid on time agreements or even document an isolated time frame that resulted in excruciating circumstance.

With that being said what can you do with borrowers who filed for Bankruptcy? Take a look below…

Chapter 13 Bankruptcy 411

  • Must have paid on time with the Bankruptcy for 12 complete months.
  • Must obtain permission for the courts to refinance or purchase a home.  Must have trustee sign off and finally the Judge to sign off final approval.  Typically the Trustee charges $500 added to the HUD statement at closing to deliver this permission for the courts.
  • Must establish 2-4 paid as agreed tradelines other than the bankruptcy.
  • Must write a letter of explanation why you filed bankruptcy and what steps have you done to correct your credit default.

Chapter 7 Bankruptcy 411

  • 24 months must pass from the time of Discharge Date of the borrower/spouse in order to apply for a FHA loan.
  • Must establish 2-4 paid as agreed trade lines other than the bankruptcy.
  • Must write a letter of explanation why you filed bankruptcy and what steps have you done to correct your credit default.

If you have any questions or comments please feel free to respond!

[Podcast] Why FHA ARM’s are better than Conventional ARMS

Podcast about why consumers should not be afraid and believe the myth of ARMS.

Not all ARMS are bad and this podcast will explain why FHA ARMS are still a good loan program and why.

Comments welcomed.