FundMyRemodel.com Mortgage Lending Update: Congress Extends Maximum Mortgage Loan Limits Of $729,750 In High-Cost Areas Until Sept. 30, 2011

30 09 2010

Congress has approved legislation extending for one year the existing loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration, allowing the loan guarantee and insurance programs to continue backing loans of up to $729,750 in markets with the highest cost of living.

“Extending the existing limits is essential to helping borrowers continue to have access to affordable long-term, fixed-rate mortgage credit in today’s struggling economy,” the Mortgage Bankers Association said in welcoming the move.

“The current limits have been a key component of keeping the mortgage market functioning, helping keep mortgage interest rates low for consumers who want to purchase a home or refinance an existing mortgage.”

In addition to extending the loan limits through Sept. 30, 2011, HR 3081 expands the FHA’s capacity to back multifamily loans, ensuring continued funding for development, renovation and mortgage refinancing to preserve affordable rental housing, the MBA said.

Congress instituted temporary increases in the $417,000 conforming loan limit in high-cost areas in 2008, allowing Fannie Mae and Freddie Mac to to buy or guarantee loans of up to 125 percent of the median home price in high-cost areas.

A sunset provision in that bill briefly brought the limit back down to 115 percent of median home price, with a cap of $625,500, on Jan. 1 2009.

For more:  http://www.inman.com/news/2010/09/30/fannie-freddie-fha-loan-limits-extended


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Categories : 203k, Fannie Mae, Federal Government, FHA, Financing, Freddie Mac, Rates, Refinance

FundMyRemodel.com: HUD “Neighbor Next Door Sales Programs” Allow Qualified Homebuyers To Purchase HUD Properties At Up To 50% Discounts

28 09 2010

Neighbor Next Door Sales Programs

Potential homebuyers may be able to get a deal on an FHA home loan with a sales program that offers drastic discounts, which are reported to be around 50% off of list prices on homes, to those who are eligible. With numerous FHA foreclosures taking place across the nation, this discount program is hoped to promote housing in areas where foreclosures have been high by offering these discounted homes to individuals like law enforcement officers, teachers, firefighters, and emergency medical technicians.

Homeowners who qualify for this program can, again, receive an incentive from discounts on homes of up to 50% off the list price if they agree to live at the property for 36 months. This data, according to the Department of Housing and Urban Development, is hoped to build up areas where household income and home ownership is low or FHA-insured mortgages are being foreclosed upon at high numbers.

While this program does potentially offer very affordable housing opportunities for specific individuals, there are reports that indicate that not many are taking advantage of this FHA program. Housing seems to be lackluster at the present time despite the fact that low home prices and affordable mortgage interest rates have been made available over the past months, but also, offers like 50% discounts on home prices have also been met with a tepid response.

Homeowners who may look to take advantage of this program are being advised to consult the HUD website and it needs to be understood that certain commitments come with these discounted homes. Again, homeowners may receive 50% off of the list price on a home but if they do not live in that home for 36 months, there could be penalties or fees associated with this type of mortgage.

For more:  http://www.rwbpress.com/2010/09/28/low-cost-fha-home-loans-from-foreclosures-can-homebuyers-get-affordable-mortgages/


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Categories : 203k, FHA, HUD, Purchases, Rehabs, REO's

Skip Schenker’s “Hot…Dog Of The Week”: Moreno Valley HUD-Owned Foreclosure Is Being Purchased With An FHA 203k Renovation Loan Utilizing The “Good Neighbor Next Door” Program (Video)

27 09 2010

HUD owned foreclosure purchased using the Good Neighbor Next Door program and the FHA 203(k) renovation loan by first time home buyers Mike & Christina.


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Categories : 203k, Contractors, Federal Government, FHA, Financing, Homes, Hot...Dog of the Week, HUD, Purchases, Rehabs, Remodeling, REO's, The 203k Guy, Videos

FundMyRemodel.com Mortgage Loan Update: FHA And Conventional Maximum Loan Limit Of $729,750 In High-Cost Counties Set To Move Lower At End Of Year Without Extention From Congress

25 09 2010

Two years ago to help resuscitate the housing market, Congress allowed the Federal Housing Administration, Fannie Mae and Freddie Mac to back loans as high as $729,750 in some locales; well above the standard $417,000 limit. Without an extension on these new limits, as today’s WSJ story notes, that $729,750 ceiling would probably fall to $625,500 next year.

The National Association of Realtors says that nearly one in five U.S. counties—including almost the entire state of California—would see FHA loan limits fall if the current extension expires.

But there’s another issue at play here: loan limits in even more counties could fall because of temporary extensions that have allowed the FHA to guarantee larger loans. There’s a national floor for FHA loan limits, which is currently set at $271,050—this is different from the $417,000 floor used for Fannie and Freddie. That isn’t likely to change. There’s also a national ceiling, currently set at $729,750.

Most counties fall somewhere between the floor and the ceiling. That’s because FHA loan limits vary by region and are pegged to local median home prices. Under normal law, those limits are set at 115% of the local median price; under the expanded limits that are currently in effect, the limits are set at 125% of the local median price.

The current limits are also higher because they’re set using housing bubble-era median prices, which are significantly higher than today’s prices that would be used to recalculate the new loan limits. This means if Congress doesn’t again extend the higher limits, they’ll be starting from a much lower level next year, and the multiplier effect—115% versus 125%—will be lower, too.

The Obama administration supports extending the loan limits for another year for these reasons. “We’re not talking about wealthy millionaires. We’re talking about the average American’s ability … to finance a home,” said David Stevens, the FHA’s commissioner, at a Senate hearing on Thursday.

The limits don’t expire until the end of the year, but the real-estate industry is anxious for Congress to pass an extension soon because banks aren’t going to wait until Dec. 31. It takes a few weeks to close a loan, so banks are likely to stop accepting deliveries of high-cost loans in November if it’s unclear where the maximum loan limits will be come 2011.


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Categories : 203k, Fannie Mae, Federal Government, FHA, Financing, Freddie Mac, Purchases, Refinance

FundMyRemodel.com Mortgage Market Update: Mortgage Rates End Week Slightly Lower On Increased Odds Fed Will Begin Treasury Note Purchases

24 09 2010

The chance for additional Treasury purchases by the Fed helped mortgage rates improve early this week. Stronger than expected economic growth data trimmed the gains later in the week. The net result was that mortgage rates ended the week a little lower.

As expected, the Fed made no change in the fed funds rate at Tuesday’s meeting. Its statement was very similar to the last one, but investors focused on one important difference. Fed officials stated that they are “prepared to provide additional accommodation if needed to support the economic recovery.” Investors interpreted this to mean that additional bond purchases by the Fed could take place in coming months. While the Fed is expected to purchase Treasury securities rather than mortgage-backed securities (MBS), increased demand for Treasuries would be favorable mortgage rates. As usual, investors immediately priced in this information, and mortgage rates improved. Of course, if this action by the Fed never becomes necessary, then mortgage rates could give back this week’s gains.

The housing data released during the week generally matched expectations. While there are differences in regional performance, overall the housing market is holding steady above the lows reached during the recent financial crisis or improving modestly. August Existing Home Sales rose 8% from July. Inventories of unsold existing homes declined 1% to an 11.6-month supply. August New Home Sales were unchanged from July. August Housing Starts rose 11%, and Building Permits, a leading indicator, rose 2%. The September NAHB home builder confidence index was unchanged from August.


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Categories : Financing, Mortgage Industry, Rates

FundMyRemodel.com REO Update: Fannie Mae HomePath To Offer Up to 3.5% Buyer Incentive And $1,500 Selling Agent Bonus On HomePath Properties

24 09 2010
Fannie Mae is offering buyers up to 3.5% in closing cost assistance and a $1,500 selling agent bonus on HomePath® properties. To be eligible for this incentive:
  • Initial offers must be accepted on or after September 23, 2010;
  • Property sales must close on or before December 31, 2010, and close within 60 days of offer acceptance;
  • Buyers must be owner-occupants and confirm that the property will be used as their primary residence by completing a certification form (investors are excluded); and
  • Selling agents must represent owner-occupant buyers purchasing a HomePath property to receive the $1,500 bonus and offers must be submitted on or after the effective date.
The incentive reinforces Fannie Mae’s commitment to stabilizing communities and assisting buyers. For more information about the incentive, visit HomePath.com, read the press release, or contact a Fannie Mae listing broker.

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Categories : Fannie Mae, Financing, HomePath Renovation, Homes, Purchases, Rehabs, REO's

FundMyRemodel.com Bathroom Renovations: Kohler “Sustainable Design” Toilets, Fixtures And Showers Are Examples Of “Green Improvements” (Video)

23 09 2010

A suburban New Jersey couple prepares to remodel their water-guzzling master bathroom into a stylish water-saving retreat.

Watch this New Jersey couple’s sustainable remodel take shape, as their marble-clad master bathroom becomes a chic and modern oasis.

 


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Categories : 203k, Design, Energy Efficient Improvements, Energy Star, Fixtures, Home Energy Rating, Rehabs, Remodeling

FundMyRemodel.com “Green Mortgage” Update: The FHA 203k Is The Only Real “Energy And Green Improvement” Mortgage As Few Lenders Bother To Understand And Offer “Energy Efficient Mortgages” (EEM) And “Energy Improvement Mortgages” (EIM)

22 09 2010

These programs are not new; they have been around very a long time, 15 to 20 years. Lenders are not offering them because they don’t know enough about them and they don’t think they are necessary. They are not required to even discuss them.

What is on the horizon for green mortgages?
Short of a true green mortgage (which does not exist), the closest program is the FHA 203(k). This program can allow you to add both energy and green improvements to a home. There’s a lot more noise about them right now. I believe we will see some changes to the programs in the months to come but I encourage everyone in the industry to ask that their lender learn about these programs and start offering them.

What are EEMs and EIMs?
These are loans that credit a home’s energy efficiency in the mortgage itself, giving borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage. They allow borrowers to stretch their debt-to-income qualifying ratio in order to qualify for a larger loan amount and a better, more energy-efficient home.

An energy efficient mortgage (EEM) is typically used to purchase a new home that is already verified by a third party as energy efficient, such as an Energy Star-qualified home. An energy audit, performed by a certified energy rater, is required to prove efficiency and report expected monthly savings.

Energy improvement mortgages (EIMs) are for existing homes that need an energy retrofit. An energy audit identifies items that will make the home more energy efficient, and the costs of these improvements are added to the mortgage loan. EIMs are available for either a purchase or refinance of an existing home.

EEM and EIM guidelines are different depending upon the type of loan, so be sure the lender you are working with understands the details. FHA, VA, Fannie Mae, and Freddie Mac all have EEM and EIM programs.

The market for these types of mortgages should be very popular considering the fact that out of 128 million existing homes in this country, 95 million need some type of energy retrofit. The average American home is about 35 years old. Insulation wasn’t required until the mid ’70s. Energy efficiency wasn’t really considered until the 1990s. Look at all these homes that need energy retrofits and then look at all the refinances we’ve had recently: How many of the owners of those homes were offered an EIM? Not many, and getting an accurate count has been near impossible. It’s a crime.

For more:  http://www.ecohomemagazine.com/news/2010/09-september/on-the-front-lines-david-porter-porterworks.aspx


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Categories : 203k, Energy Efficient Improvements, FHA, Financing, Green Homes, Homes, Purchases, Refinance, Rehabs, Remodeling, The 203k Guy

Mortgage Loan Underwriting: Fannie Mae To Require “All” Revolving Debts To Be Included In Determining Ratios

22 09 2010

Fannie Mae will require lenders to include all revolving debts in a borrower’s debt-to-income ratio

Fannie Mae, the largest provider of U.S. residential mortgage funding, on Monday moved to further tighten some income requirements to better assess borrowers’ ability to pay.

Among the changes, Fannie Mae will require lenders to include all revolving debts in a borrower’s debt-to-income ratio, the company said in a lender announcement. Previously, it allowed lenders to exclude revolving debt if there were 10 or fewer payments remaining.

The shift by Fannie Mae — which together with rival Freddie Mac control the lion’s share of all home loan funding in the United States — comes even as tighter lending standards have been cited behind a sluggish response by borrowers to record low interest rates. But Fannie Mae has contended that tighter standards are necessary to ward off the excesses of the past.

For more: http://nationalmortgageprofessional.com/news-ticker/09/10/fannie-mae-tightens-more-underwriting-guidelines


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Categories : Fannie Mae, Financing, Underwriting

FundMyRemodel.com Green Home Update: Fixing “All The Bad Houses That Were Built During The Past 20 To 40 Years” Is A Priority

21 09 2010

“…even more important than building ultra-sustainable and highly-efficient homes is the mission to fix all of the bad houses that were built during the past 20 to 40 years…”

As award-winning builder Michael Chandler of Chandler Design-Build told me soon after I became the Editor of ProudGreenHome, “We’ve got to get out there and fix the bad houses and stop building more bad houses.”

He’s right. And I should know. I own one of ‘em. My split level ranch, which we purchased in 2001 after falling in love with the views of Boston Harbor, was built in 1972. From what I understand, builders paid little attention to the environment during that time frame.

Slowly, we’re doing our part to turn this energy hog of a home into a more energy efficient and environmentally-friendly living space. We’ve replaced our wind tunnel of a garage door with an air-tight one, and we do our best to seal up cracks and other voids where cold air can leak in. We’ve replaced most of our appliances with Energy Star models, although we’ve still got a ways to go.

Next month, our drafty, 20-year-old single-pane casement windows will be replaced with high-efficiency, Low-E advanced argon gas windows from Pella. I can’t wait to stand near those windows during that first nasty New England Nor-easter this winter and NOT feel a strong draft from the 40 mile-per-hour gusts outside. My cooling bill will be lower next summer, although in New England it’s the heating side of things that really matter.

In order to fix the hundreds of thousands of “bad homes,” much more education is needed. Although I have recycled for years and am well aware of my carbon footprint, I did not seriously consider the green home mission until I became involved with the launch of ProudGreenHome. Otherwise, I was fairly naive to the green options out there, as are many homeowners. Often, homeowners want to do the right thing, but don’t know where to start.

The message needs to spread to the contractor and building trades as well. Last fall, before my ProudGreenHome assignment began, I was faced with replacing my leaky, 30-year-old roof. I asked several builders about green roofing options, and received blank stares – not green solutions. With a prolonged period of rain in the forecast and the elaborate “water containment system” of tarps in my attic not cutting it anymore, I opted for a quick fix replaced my roof with traditional shingles, failing to take advantage of the potential envelope improvements while my roof was exposed. I’ll chalk that one up to inexperience, and vow to never let it happen again.

For more:  http://www.proudgreenhome.com/blog/4980/It-s-going-to-take-more-education-to-fix-the-bad-ones


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Categories : 203k, Contractors, Financing, Green Homes, Refinance, Rehabs, Remodeling, The 203k Guy

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