FHA Guideline Changes for Self Employed Borrowers and Collection Accounts

FHA recently made underwriting guideline changes for Self Employed borrowers and borrowers who have disputed and/or collection accounts. The changes apply to residents of states of California, Washington, Oregon and rest of the country. These changes will be effective April 1, 2012 and will impact all FHA mortgages except non-credit qualifying Streamline Refinances and Reverse Mortgages. New Guideline about Self Employed Borrowers: Profit and Loss (P&L) and a Balance Sheet is required if more than a calendar quarter has elapsed since date of most recent calendar or fiscal-year end tax return was filed…continue reading →

FHA Extends Waiver of 90 Day Flip Regulation Till End of 2014

* The below post was originally published on Dec 22, 2011. In Dec 2012, FHA issued a notice announcing that the Flip waiver has now been extended till end of 2014. All other information in the post remains valid.** In an effort to continue stabilizing home values, Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante has today extended FHA temporary waiver of the anti-flipping regulations through December 31, 2012. With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010,…continue reading →

It’s Official – FHA Loan Limit of $729,750 is Back! No Such Luck for Fannie/Freddie!

Just few hours back, President Obama signed a bill reinstalling  the FHA Jumbo Limit back for several high cost counties in  California to $729,750 (from the recently reduced $625,500). The bill comes into immediate effect, meaning FHA can start  insuring the $729,750 Loan Amounts right away. The restored loan amount is good till Dec 2013. Senate approved it 70-30, which was preceded by the House passing the bill 298-121. The senate has earlier in the month approved an amendment to the bill to restore the $729,750 loan limits for FHA and Fannie Mae/Freddie…continue reading →

Breaking News : $729,750 Loan Amount for Conforming and FHA is Coming Back

Rejoice California Homebuyers and Home Owners - The $729,750 Loan Amount Limit for Conforming and FHA Loans could be coming back. These loan amounts were rolled back to $625,500 few weeks back. Bloomberg reported - The U.S. Senate adopted a measure that would raise the maximum size of a home loan backed by mortgage companies Fannie Mae, Freddie Mac and the Federal Housing Administration to $729,750. Senator Robert Menendez, a New Jersey Democrat, offered the increase as an amendment to a spending bill today. The measure was approved less than a month after…continue reading →

FHA Loan without Mortgage Insurance – Yes! It’s Possible.

Yes it is possible to get a California FHA Loan without paying for the annual Mortgage Insurance (MI). While you will still pay the Upfront Mortgage Insurance Premium of 1.75%, the annual Mortgage Insurance Premium can be completely waived in one scenario. **This is changing starting June 3, 2013. Get the details on this blog post published on February 23, 2013.** FHA recently issued a Mortgagee Letter that confirms that the Annual Mortgage Insurance Premium will not be charged if a loan meets these 2 criteria: The Loan is a 15 Year Fixed…continue reading →

Bye Bye $729,750! Welcome Back $625,500 (Sigh!)

Bay Area Conforming and FHA Loan Limit goes down These loan amounts over $417,000 are known by several names like - Loan Limits for High Cost Areas, Super Conforming Loans, High Balance Loans or Conforming Jumbo loans. They are going down from the current $729,750 to $625,500. For the current loan limit of $729,750 the loan has to be closed by September 30, 2011 so no lender is accepting new applications anymore with that limit. The table below shows new loan limits for Conforming loans by both Fannie Mae and Freddie Mac. For…continue reading →

California FHA Mortgage Insurance Premium goes up – AGAIN!

FHA recently announced an increase to the Annual Mortgage Insurance Premium on standard California FHA loan programs. This is a second increase in less than 6 months. FHA earlier increased Annual Mortgage Insurance Premium in October 2010. **The information to this post has been updated. Read our complete guide for FHA mortgage insurance premium for the latest information. Click here to go to that post.** Here are the 6 things you need to know about these changes: These changes are effective April 18th, 2011. The Annual Insurance Premium will increase .25% for standard…continue reading →

Changes to California FHA Streamline Refinance Loan Programs

FHA announced changes to California Streamline refinance transactions. The FHA issued Mortgagee Letter provides guidance on the changes as well as clarification on existing streamline refinance guidelines. *** To Read the Complete Guide on California, Washington and Oregon FHA Streamline Refinance and to request a mortgage rate quote go to my new blog post -  https://www.mortgageblog.com/fha-loans-streamline-refinance-and-mortgage-rates-a-complete-guide/**** Here are the 6 things you need to know about these clarifications and changes: Borrower must be current on their mortgage for the month of closing AND the month prior to closing (The payment due the month…continue reading →

CalHFA helps California First Time Home Buyers to buy with 1% Down Payment

CalHFA 1st mortgage + CHDAP 2nd mortgage = 99% LTV or 1% downpayment loan for California First Time Home Buyers. Here's how it works: CalHFA (California Housing Finance agency) FHA loan offers financing up to 96.5%. California Homebuyer's down payment assistance program (CHDAP) provides a deferred payment junior loan (2nd mortgage) up to 3% of the purchase price; 2.5% of which can be used towards downpayment and the rest .5% can be used towards closing cost. See below: How to qualify for CalHFA FHA loan and the Downpayment Assistance Program: You have to…continue reading →

FHA extends 90 day flip rule for California Mortgages

FHA today extended the 90 day flip rule for California FHA Mortgage Loans. In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Federal Housing Administration (FHA) today extended FHA's temporary waiver of the agency's 'anti-flipping rule.' The extension announced today is intended to accelerate the resale of foreclosed upon homes in neighborhoods struggling to overcome possible property abandonment and blight. With certain exceptions, FHA regulations prohibit insuring a mortgage on a California home owned by the seller for less than 90 days. Early last year,…continue reading →