Archive for the 'Mortgage Guidelines' Category
Basic Requirements and Benefits of FHA Streamline Mortgage Refinance
November 23rd, 2010
Written by Frost Mortgage
Any borrower who is FHA insured can obtain FHA streamline mortgage refinance loan. These kinds of loans provide lower rate of interest, and the tenure can be fixed according to the borrower’s requirement. Borrower can also avail the opportunity of zero initial expenses. Moreover one can be relaxed while undertaking FHA streamline loan, as the paperwork is reduced to almost half of what is required in any other type of loan.
Federal Housing Administration or the FHA, since its inception in 1980, has allowed streamlining refinances on FHA mortgages. The word “streamline” refers to the fact that opting these kinds of loans will reduce the borrower’s paperwork to almost half of that, what is required by any other kind of refinancing bank. Before applying for the loans, one can learn about certain essentials of FHA refinance program.
The Basic Requirements For Streamline Mortgage Refinance Are:
1) The mortgage which has to be refinanced should be FHA insured.
2) The property should be legal.
3) The monthly installment should reduce the borrower’s monthly principal amount and interest payments.
4) No money can be drawn on refinanced mortgage.
The Benefits of Streamline Mortgage Refinancing:
1) People facing credit problem can relax, as for FHA credit evaluation is not required.
2) The borrower has to carry out minimal paper work.
3) No income verification, no employee verification is required.
4) oan tenure can be increased or decreased as per the individual’s requirement.
5) Interest rates are comparatively lower than other mortgage refinances.
Beside all the above, very little or zero initial expenses are involved.
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Rates are even lower and tax credits may be extended
July 1st, 2010
Written by Frost Mortgage
It’s a busy week in the news for potential homebuyers.
First, both 15-year and 30-year loans hit record lows for the second week in a row.
Second, as Reuters reports, the tax credit extension has passed a key hurdle:
The House backed by a vote of 409-5 a measure to extend the closing deadline to September 30 for buyers who already met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.
The measure must also go before the Senate for approval.
Rates are dropping and home sales are also down.
What this means is an exceptional window of opportunity for those looking for a new home. Please contact one of our loan officers today and allow us to help you find out what is available to you. We think you’ll be glad you did.
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FHA: A range of creative options for borrowers
June 30th, 2010
Written by Frost Mortgage
The Federal Housing Administration (FHA) helps prospective borrowers in a wide range of ways. Frost Mortgage is a huge fan of the FHA program; in 2009, for instance, we were named No. 2 in America for FHA fundings by Mortgage Originator Magazine, and we’ve consistently been the top FHA lender in our home state of New Mexico.
CreditLoan.com has a great article on some of FHA’s main programs, including loans for
- First homes,
- Fixer-uppers,
- Reverse mortgages,
- Energy efficiency, and
- Manufactured or mobile housing.
We can help you with any of these needs–we’re FHA experts. Please call one of our experienced loan officers today for more information on how FHA programs can help you fund your next move.
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Final days for ’seller concessions’
June 1st, 2010
Written by Frost Mortgage
The writing is on the wall for funds for homebuyers from sellers that can pay for some services and taxes in the transaction. As the Washington Post explains,
Say you’re buying a $200,000 house. If you are using FHA [Federal Housing Administration] financing under current rules, you can structure the contract so that the seller agrees to pay at settlement all closing costs and even the cost of some needed repairs, up to 6 percent of the price, or $12,000. On a $400,000 house, allowable concessions go to $24,000. That’s huge, especially if you have to struggle to come up with a 3.5 percent down payment and you’re not sure where you’ll find the closing and repair money.
Contrast that with using Fannie Mae or Freddie Mac conventional financing, in which seller concessions generally are limited to 3 percent. For many buyers, the extra negotiating flexibility built into the FHA program makes the choice of programs a no-brainer.
Sometime this summer, though, seller concessions will be cut to a maximum 3 percent. The precise timing is unknown because the announcement had not been made in the Federal Register, but the message is clear: Act now if the concession affects your deal.
We can help. Frost Mortgage is a “Full Eagle” FHA expert. Please contact one of our experienced loan officers today and we’ll quickly help you work through any questions. Because at Frost Mortgage, we don’t just close loans–we open doors.
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‘Qualified mortgages’ to be exempt from new risk requirement
June 1st, 2010
Written by Frost Mortgage
The recent “Wall Street Reform” bill required that 5 percent of a mortgage be retained as a buffer against risk. Fortunately, as National Mortgage Newsreports, a measure passed in May amended that requirement to exempt “qualified mortgages” (subscription required)–those that are generally fully documented and include 20 percent down and mortgage insurance. We agree with Sen. Johnny Isakson, one of the co-sponsors of the bill, who said, “Risk retention is not the cure-all for good lending–underwriting is.”
If you’d like to join a mortgage group that values smart thinking and solid principles like these, please look into our Branch Partner Opportunities. We’re always looking for qualified new partners for this industry-leading offering.
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Appraisals must now be electronic, Fannie says
May 11th, 2010
Written by Frost Mortgage
Fannie Mae has begun mandating that appraisals be delivered by lenders electronically, according to National Mortgage News.
Lenders will have several options for providing the information according to MISMO standards (”the leading technology standards development body for the residential and commercial real estate finance industries, is a wholly owned subsidiary of the Mortgage Bankers Association”). Smaller lenders may upload PDFs or use the XML format using a Web portal, while larger lenders may work
directly with Fannie’s chosen technology provider, Veros Real Estate Solutions.
According to one analyst, “the migration to the newly adopted valuation standards will largely be invisible to the lending community on the origination side” but is expected to have significant impacts on secondary markets.
Are you a top producer who follows news like this? If so, visit our site and find out why our Branch Partner Opportunities are among the best in the business. Come see why we don’t just close loans, we open doors.
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HUD close to higher minimum net worth for lenders
May 10th, 2010
Written by Frost Mortgage
A new letter from the U.S. Department of Housing and Urban Development (HUD) outlines plans to raise minimum net worth requirements for prospective FHA mortgagees (MortgageDaily.com; subscription required).
The minimum net worth requirement had been $250,000 since 1993. Within the next few days, the amount will change to $1 million, though existing lenders will have one year to meet the new requirements.
Frost Mortgage has some of the best Branch Partner and Loan Officer offerings in the business. If the new requirements have you looking at platforms that can help you continue to be a top producer, give us a call–we don’t just close loans, we open doors.
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Positive news for insured loans
May 3rd, 2010
Written by Frost Mortgage
Private mortgage insurers are coming back to the market, the Los Angeles Times reports, even as the Federal Housing Administration (FHA) is pulling back.
Private insurers had almost completely left the sector. Last year, the Times reported, the FHA insured roughly 30 percent of low-down-payment (less than 20 percent down) single-family loans; 10 percent would be considered appropriate. The FHA has also raised down-payment requirements on insured loans.
The move by the private insurers, though, signals increased confidence about the economy, the Times notes.
Changes are happening fast, and it remains a great time to consider a Net Branch Partner opportunity. Please contact us today and learn why our offering is among the best in the business.
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Today: FHA upfront premiums rise for mortgage insurance
April 5th, 2010
Written by Frost Mortgage
The Department of Housing and Urban development is reminding the mortgage industry that, starting today (April 5, 2010), an upfront mortgage insurance premium of 2.25 percent will be collected “for purchase money and refinance transactions, including FHA-to-FHA credit qualifying and non-credit qualifying streamlined refinance transactions.”
HOPE for Homeowners and Home Equity Conversion Mortgages will be charged a 2 percent premium, according to Mortgagee Letter 2010-02.
Do you thrive on news like this? Are you a top producer? Consider joining with the best in the business — Frost Mortgage — and becoming a Branch Partner.
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Good Faith Estimates and RESPA: Don’t lose sight of the big picture
March 8th, 2010
Written by Greg Frost
The Real Estate Settlement Procedures Act (RESPA) that took effect earlier this year has attracted a lot of attention both from the industry and from borrowers. The act requires that “loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs and that closing agents provide borrowers with a new HUD-1 settlement statement.”
After several months with the new protocols in place, we have some perspective on the changes. From the buyer’s point of view, the new rules mean a lot more paperwork for a relatively small amount of money, since differences in Good Faith Estimates are rarely significant. And from our perspective, RESPA looks like a Band-Aid solution that doesn’t give buyers credit for their intelligence.
We pride ourselves on following the strictest standards, and we ensure that our people are up on all the latest developments, but we see the chance that too much focus on minutia could make us lose sight of the forest for the trees. Buyers, the details do matter, and you need to get the facts from a reputable broker such as Frost. But fear about relatively small amounts like these shouldn’t keep you from getting on with your lives. And those in the mortgage industry, you need to maintain a focus on what really matters–helping people get the funds they need to make society run, just as our industry has done for most of the last 200 years, by providing sensible, reasonably priced products that fit the need.
If you have any questions at all about what all of this means to you, please contact us today. We’ll be happy to help.
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