California FHA Loans after Foreclosure, Bankruptcy, Judgment and Collection

In this post I am talking about eligibility guidelines for a FHA Loan after you have gone through Judgment, Collection, Bankruptcy or Foreclosure. This applies to residents of California, Washington, Oregon and rest of the country. FHA Loan after Collection and Judgment: FHA does not require that collection accounts be paid off as a condition of mortgage approval. However, court-ordered judgments must be paid off before the mortgage loan is eligible for FHA insurance endorsement. Exception: An exception on a court-ordered judgment may be made if the borrower has an agreement with the…continue reading →

How to qualify for FHA Negative Equity Short Refinance on a San Jose Home

Department of Housing and Urban Development (HUD) announced enhancements to the existing Making Home Affordable Program (MHA) and Federal Housing Administration (FHA) refinance program that will give a greater number of responsible borrowers an opportunity to remain in their homes. These enhancements are designed to maintain homeownership by providing borrowers, who owe more on their mortgage than the value of their home, opportunities to refinance into an affordable FHA loan. This opportunity allows borrowers who are current on their mortgage to qualify for an FHA refinance loan provided that the lender or investor…continue reading →

FHA reduces upfront Mortgage Insurance for San Jose First Time Home Buyers

FHA today announced reduction in upfront Mortgage Insurance Premium (UFMIP) for San Jose First Time Home Buyers and FHA Streamline Refinance on San Jose homes. A change that has been prompted by passage of H.R. 5981 in the congress, will reduce the upfront mortgage insurance premium to 1% from the current 2.25%. At the same time, the annual mortgage insurance premium currently at .55% for the minimum downpayment of 3.5% will go up to .90%. For downpayments at 5% or more the annual mortgage insurance may go up to .85% from the current…continue reading →

Resources for FHA Approval Process for San Jose Condominiums

FHA recently announced additional resources for condominium approval process for San Jose and rest of the country condos. All condominium inquiries, telephone and email, must be submitted to the FHA Resource Center at:(800) 225-5342 or by email at: [email protected] The FHA Resource Center will provide responses to general inquiries received from consumers and industry partners. Before contacting the FHA Resource Center, it is recommended that you use the following resources to search for answer(s) to your question(s). 1.Check to see if your question is already included in the Condo FAQs currently posted on…continue reading →

FHA 203K Rehab loans for San Jose Homes

Have you found that almost perfect San Jose home in the right location that is selling at a reduced price because it needs a little rehab work? Unfortunately, most mortgage loan programs require homes "in need of work" to be complete before the financing can be secured for the purchase transaction. Whether the property needs a little or a lot of work, most First-Time Home Buyers simply don't have the up-front cash to invest in a property prior to actually securing the financing. However, the FHA 203(k) Rehab Loan may be your answer…continue reading →

Everything you wanted to know about FHA condominium approval

In this blog post I will try to answer all FAQs related to FHA condominium project approval. Beginning this year, FHA made some major changes to the Condominium process. I have done a lot of speaking on this topic and have written several blog posts. In this post, I am trying to get the most frequently asked questions and answers to those questions in one post: Where can I go to find if the FHA project is already approved? Go to FHA Condominium page to check if a project is approved with FHA.…continue reading →

Government announces principal reduction plans for underwater borrowers

The Government said last week it would offer principal reductions for borrowers who are underwater (owe more than their homes are worth.) The FHA plan is targeted at investors who currently own these underwater mortgages (see Negative Equity Share Chart below - source American Core Logic). Under the plan, the 1st mortgage holders would write down the principal of a first mortgage at least 10%. The loans would then be refinanced into FHA-insured mortgages as long as the loan to property value ratio is 97.75%. For borrowers with second mortgages, total mortgage debt…continue reading →

New FHA Loan guidelines for San Jose Condominiums

Some major changes went into effect today for FHA loans on San Jose & rest of the Bay Area Condominiums. I. Elimination of Spot Loan Approval Process If a condo project was not approved by FHA, a "spot approval" was allowed just for financing one unit. This process has been eliminated as of today. Now the entire project has to be approved either directly by HUD (process called HRAP) or by a Direct Endorsed Lender (process called DELRAP). With all the liabilities involved around the process most of the direct endorsed lenders would…continue reading →

Changes to FHA Down Payment, Credit Score and Seller Contribution requirements

FHA announced a series of changes to their Down Payment, Credit Score, Seller Contribution and Mortgage Insurance guidelines. Credit Score/DownPayment Guideline Change : New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%. This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer. Effect of this change…continue reading →

Increase in FHA Mortgage Insurance for Bay Area Home Loans

FHA today increased it's upfront mortgage insurance premium requirements for Bay Area FHA Home Loans. Upfront Mortgage Insurance is the money that FHA collects at the time of closing a mortgage to insure the loan against default. Currently, this premium is 1.75% for most purchase and refinance transactions. However, effective April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent for purchase money and refinance transactions, including FHA-to-FHA‚ streamlined refinance transactions. Below is the breakdown of FHA upfront mortgage insurance for different loan programs: Purchase Money Mortgages and Full-Credit…continue reading →