Archive for the 'Mortgage Programs' Category

Great news for FHA lenders from Congress

June 29th, 2010

Written by Frost Mortgage

Federal Housing Administration (FHA) lenders will be exempted from new “risk retention” rules, which is great news for companies who issue loans insured by the government.

National Mortgage News reports that

[t]he legislation finalized by the conference committee late last week would require originators to retain at least 5% of the credit risk in loans they securitize unless the assets meet a “qualified mortgage” test. All loans backed by the FHA, the Department of Veterans Affairs or the Rural Housing Service will automatically meet that test.

This is a complex time to be in the FHA-backed mortgage business, but the opportunities are huge for those who are eager to learn to succeed as branch partners or loan officers.

Frost Mortgage has been a leader in FHA lending since 1991. If you’re looking to step up, take a look at our mortgage partner offering–we think you’ll find it’s the best in the business.

Discussion: No Comments »

Video: Catch the latest dish on our new commercial

June 3rd, 2010

Written by Frost Mortgage

Here at Frost, we believe there are a few fundamental things that bring true joy to life. One is our homes, of course. Another is our food. That’s why we’ve become such big fans of New Mexico’s Hot Chefs. Have a look and then give us a call to see what we can whip up for you.

Discussion: 1 Comment »

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.

Discussion: No Comments »

Reverse Mortgage program: Be aware of possible changes

May 25th, 2010

Written by Frost Mortgage

The future of the FHA Reverse Mortgage program is in jeopardy. Frost Mortgage helps seniors find home loans through this great program, but we’re disappointed to see that, without $250 million from Congress, the principal amount of a new loan for seniors (subscription required) could be reduced by 30 percent, according to National Mortgage News.

Even though HUD officials say the appropriation for the Home Equity Conversion Mortgage (HECM) may not receive its appropriation in the coming fiscal year, we hope you won’t be discouraged from looking into the program. For the moment, we’re able to provide loans as usual, and even should the appropriation fall through, we know many of the fine points that can make the difference in tapping into your home’s equity.

So please, contact one of our loan officers today and let us help you leverage your home in a way that will give you long-term peace of mind through a top-quality reverse mortgage.

Discussion: 1 Comment »

FHA: Reverse mortgage support is crucial

May 4th, 2010

Written by Frost Mortgage

Reverse mortgage programs operated by Housing and Urban Development (HUD) require help to continue, the Federal Housing Authority (FHA) told a House subcommittee recently, Reverse Mortgage Daily reports.

In testimony, an FHA assistant secretary said that, without support, HUD will be forced to more drastically cut principal limit factors (PLFs), which “would significantly reduce the amount of funds that would be available to seniors (more than 30%), which is on average a $23,000 to $27,000 impact.”

We know what a reverse mortgage can mean to older members of our community. As a full eagle licensed FHA lender, Frost Mortgage is a great choice for your reverse mortgage questions. Please, contact us today and find out why we don’t just close mortgages–we open doors.

Discussion: No Comments »

Possible extension for rural housing program

May 3rd, 2010

Written by Frost Mortgage

The Rural Housing Service’s single-family program (subscription required) is almost out of loan guarantee authority, but a bill passed by the House and potentially being taken up by the Senate this week would extend it to Sept. 30, giving it time to become self-funding by raising its fee to 4 percent (it is currently 2 percent). The Agriculture Department-managed program has been extremely popular.

U.S.Department of Agriculture (USDA) loans are one of our specialties, and we’ll be watching these developments closely. Please click today to find a friendly, helpful loan officer in your area.

Discussion: No Comments »

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.

Discussion: No Comments »

Hope for housing in Southern California

April 22nd, 2010

Written by Frost Mortgage

According to the Los Angeles Times, Southern California could be on the verge of a housing recovery:

“The median price paid for a home rose 14% in March to $285,000 from a year earlier, according to MDA DataQuick. Higher-priced coastal markets saw more activity, and fewer foreclosures were for sale.”

Our loan officers and Branch Partners can help you wherever you’re looking for a mortgage in California. Please, give us a call today and learn more about why we don’t just close loans–we open doors.

Discussion: No Comments »

Wait time halved for some distressed borrowers

April 19th, 2010

Written by Greg Frost

Great news for mortgage shoppers who have been hampered by a deed-in-lieu of foreclosure transaction–Fannie Mae is potentially cutting your hold time in half.

You’ll have to put 20 percent down, but if you can, Fannie says you don’t have to wait four years before getting a new mortgage as was previously required, but only two years. That should make homeownership a possibility again for a whole new group.

Here at Frost Mortgage, we’re always excited to see a new way to help borrowers, because our business isn’t just closing loans, but also opening doors. We’ve been doing just that since 1991, and we make it our specialty to understand all the ways we can help. So if you’ve been held back by a deed-in-lieu of foreclosure transaction and you’re wondering whether the new rules could help you, please call us today.

Discussion: 1 Comment »

Reverse mortgages: What are they?

April 13th, 2010

Written by Frost Mortgage

Many people don’t realize that Frost Mortgage’s expertise also extends to “reverse mortgages.” In fact, it’s one of our specialties, and we have a full-time staff member dedicated to this unique program.

So, what is a reverse mortgage? As the department of Housing and Urban Development (HUD) explains:

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.

As a full eagle licensed FHA lender, Frost Mortgage is a great choice for your reverse mortgage questions. Please, contact us today and find out why we don’t just close mortgages–we open doors.

Discussion: No Comments »