|
|
|
Monday Morning Mortgages>
Monday Morning Mortgages
February 1, 2010
FHA Changes
In case you have been under a rock (like I occasionally find myself) here are the latest FHA changes.
• HVCC appraisal methods are slated to begin Feb 15, 2010. No more directly ordering appraisals for FHA. These now must be paid upfront by buyer via credit card and ordered through the lender like conventional loan appraisals.
• As of today, FHA has relaxed its anti-flipping rule for one year. Transferred homes can be financed by FHA anytime with no 90 day restriction. But if the home is selling for more than 20% above seller’s acquisition cost, conditions will apply. These may include no “arm’s length transactions”, second appraisal requirement, proof of increase in value per improvements, and detailed building inspection submitted to lender.
• Does not include reverse mortgage financing.
• Some lenders are not yet accepting the new leniency, but most are with restrictions (mentioned above).
• Short Sale clarification: if the short sale seller was not more than 1 time 30 day late payment on their short sale property, the seller is immediately eligible to apply for FHA financing for a subsequent home purchase.
Home Buyer Credit Date Clarification
To use the first time homebuyer credit of $8,000 or the second home credit of $6,500, the buyer must be in contract by April 30, 2010 and close the transaction by June 31, 2010. To use the second home credit, buyer must have resided in the former home 5 of the last 8 years.
Condos Harder to Finance
Fannie Mae released notice last week that condos on the FHA approved condo list are not eligible for Fannie Mae financing unless the project is on Fannie Mae’s list. Also, there are no longer “spot” approvals done by lenders who would, in the past, review HOA info to approve a project not on the list for Fannie Mae. Full blown individual approvals of new condo communities are still being done, but are onerous and expensive. Freddie Mac still does spot approvals. Here are resources for approved condo project lists.
• FHA (set “approval method” to “PRE HRAP/DELRAP” https://entp.hud.gov/idapp/html/condlook.cfm
• Fannie Mae https://www.efanniemae.com/syndicated/documents/dps/condopud/CA.pdf
• VA http://condopudbuilder.vba.va.gov/2.2/frames.html
• Freddie Mac fact sheet http://www.freddiemac.com/sell/factsheets/condo_projects.html
Bank Closures Continue
Six more banks across America were closed on Friday by the FDIC. Want to check up on the strength of your bank? See http://www2.fdic.gov/idasp/main_bankfind.asp. Remember, credit unions are not FDIC insured, but insured by National Credit Union Administration.
|
|
