FHA Purchase Loans Can Be Combined With A California Homebuyer’s Downpayment Assistance Program (CHDAP) “Deferred Payment” Loan Of Up To 3% Of Purchase Price

29 04 2011

 

http://renovationlendinginstitute.com/

  • Purchase a home using an FHA loan and a distribution from a retirement account for the down payment is one option
  • Another option is a California Homebuyer’s Downpayment Assistance Program (CHDAP)
  • CHDAP provides a deferred-payment junior loan – up to 3% of the purchase price, or appraised value, whichever is less
  • It can be used for the down payment and/or closing costs
  • It is offered through the California Housing Finance Agency
  • This loan has no monthly payments and only needs to be paid off when the homeowner sells, refinances or moves out of the home
  • Qualified buyers must meet income and home price requirements and not have owned a primary residence in the last three years
  • The maximum income restrictions are listed, by county, and the combined income for co-borrowers, below: 

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/04/29/REAM1J98A5.DTL#ixzz1L13OikUd


Comments : Leave a Comment »
Tags: , , , ,
Categories : 203k, FHA, Financing, First-Time Homebuyer, Home Sales, Mortgage Industry, Purchases, Underwriting

Homeownership In The U.S. Dropped To 66.4% In First Quarter Of 2011, The Lowest Level Since 1998

27 04 2011

The homeownership rate dropped to 66.4% in the first quarter, the lowest level since the Fourth Quarter of 1998, according to the Census Bureau.

  • The rate is down from 67.1% one year ago
  • The decline is “yet more evidence that Americans are now less able and less willing to buy a home
  • The housing crash has more than reversed the increase seen during the boom
  • The Census Bureau estimated a total housing inventory of 131,009 units across the country in the 1st quarter
  • The homeowner vacancy rate on these properties stayed level at 2.6%; the high rate was the first quarter of 2009 at 2.9%
  • Homeownership varied across the U.S., peaking in the Midwest at 70.4% with a low in the West at 60.9%

For more:  http://www.housingwire.com/2011/04/27/homeownership-falls-to-lowest-level-since-1998


Comments : Leave a Comment »
Tags: , ,
Categories : Financing, Homes, Housing Market, Purchases, Statistics

February 2011 “S&P/Case-Shiller Index” Confirms That U.S. Home Values Declined Average 3.3% In 19 Major Metropolitan Areas

26 04 2011

http://renovationlendinginstitute.com/

“…The 20-city composite is within a hair’s breadth of a double-dip…” 
  • All but one of the 20 cities in the index showed a year- over-year decline of 3.3%
  • Phoenix had the largest decline with an 8.4 percent slump
  • Minneapolis declined 8.3 percent
  • The Washington DC area bucked the trend with a 2.7 percent increase from a year ago
  • 10 markets saw new lows in housing prices from their 2006, 2007 peaks including Atlanta, Chicago, Las Vegas, Miami and New York
  • The 20-city index fell in February to 139.27, compared with a recession low of 139.26, reached in April 2009.

Home Prices: Feb 2011 Vs. Feb 2010

Atlanta – 5.8 percent
Boston -1.0 percent
Charlotte – 5.0 percent
Chicago – 7.6 percent
Cleveland – 2.9 percent

Dallas – 1.2 percent
Denver – 2.6 percent
Detroit – 3.7 percent
Las Vegas – 5.0 percent
Los Angeles – 2.1 percent

Miami – 6.2 percent
Minneapolis – 8.3 percent
New York – 3.1 percent
Phoenix – 8.4 percent
Portland – 7.0 percent

San Diego – 1.8 percent
San Francisco – 3.5 percent
Seattle – 7.5 percent
Tampa – 6.0 percent
Washington + 2.7 percent

20-city composite – 3.3 percent


Comments : Leave a Comment »
Tags: , , ,
Categories : Home Sales, Housing Market, Purchases, Reports, Statistics

Homebuyers Need To Purchase Homes With Potential To “ADD” Value Through Renovation And Home Improvements As House Values Look To Remain Weak Through Spring Of 2012

25 04 2011

http://renovationlendinginstitute.com/

  •  Morgan Stanley predicts U.S. home prices will fall 6 percent to 11 percent in 2011
  • This correlates to a 39 percent drop from their 2006 peak through the spring of 2012
  • Morgan Stanley previously estimated values would drop 35 percent from the peak
  • The greater home price decline will come from a combination of non- distressed price declines and a shift-in-mix toward more distressed sales
  • Distressed homes sale prices appear to have stabilized while non-distressed prices are accelerating their rates of decline
  • The S&P/Case-Shiller index of 20 U.S. cities will probably show tomorrow that prices fell 3.3 percent in February from a year earlier
  • The measure was down 32 percent in January from its July 2006 peak
  • The following is the list of major reasons homes prices will continue to decline:
  1. A large supply of delinquent and bank-owned properties
  2. Uncertainty about home-finance and foreclosure regulations
  3. Proposals to reform mortgage companies Fannie Mae and Freddie Mac
  4. Requirements under Dodd-Frank legislation that lenders hold a percentage of mortgages
  5. Negotiations with state attorneys general to settle foreclosure disputes may further depress prices

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/04/24/bloomberg1376-LK7OFX0YHQ0X01-1UUCNLHJA14V3H5QNVBG6FGE65.DTL#ixzz1KYG2WhG7


Comments : Leave a Comment »

Categories : Uncategorized

“Short Sale Or Foreclosure”: Homeowners Will See FICO Scores Fall To 570-595 Range With Either Strategy; Credit Scores Will Take Up To 7 Years To Increase Back To Previous Levels

25 04 2011

http://renovationlendinginstitute.com/

 

 

  • FICO will not be higher if homeowners choose “short sale” over foreclosures
  • Mortgage delinquency data from the nation’s three major credit bureaus was used to make this decision
  • Potential borrowers with short-sales will have FICO scores in the 575-to-595 range at one credit bureau
  • This is  the same as having a foreclosure on their credit report
  • FICO scores will be either in the 570-to-590 range or the 620-to-640 range at the two other credit bureaus
  • Short sales and foreclosures will remain on credit reports for three-to-seven year credit restoration

For more:  http://www.housingwire.com/2011/04/22/short-sales-and-foreclosures-equally-degrade-fico-scores


Comments : Leave a Comment »
Tags: , , , , ,
Categories : Credit Reports, Defaults, Delinquencies, Financing, Foreclosures, Mortgage Industry, Short Sales, Underwriting

FHA Underwriting Standards Will See Renewed Focus On The “3 C’s Of Mortgage Lending”: A Borrower’s Credit, Collateral And Capacity

24 04 2011

http://renovationlendinginstitute.com/

“…Steps taken to hone our underwriting standards in the past year have allowed FHA to materially strengthen its balance sheet and to further strengthen its capital reserves…” 

 Written Testimony of Bob Ryan, Acting Assistant Secretary for Housing and FHA Commissioner
U.S. Department of Housing and Urban Development (HUD)

  • The importance of strong underwriting standards and heightened due diligence will remain paramount
  • FHA will continue to focus on the “3 C’s” of lending: credit, collateral and capacity
  • A borrower’s capacity to repay a loan, a buyer’s credit experience, the value of the property being financed, and the type of mortgage
  • The borrower’s credit history includes scanning for foreclosures, bankruptcies, liens and/or judgments, mortgage delinquencies, credit delinquencies, repossessions, collections, or charge-offs. It means verifying credit accounts, their type, age, limits, usage and the status of revolving accounts
  •  The collateral means an accurate and objective appraisal of the property and assessing the down payment structure (LTV)
  • The borrower’s capacity means verifying monthly housing expense-to-income ratio or monthly debt payment-to-income ratio, confirming employment and income, identifying cash reserves and weighing that against the characteristics and purpose of the loan type considered
  •  The above-mentioned items will allow a lender to properly identify responsible borrowers that can achieve sustainable mortgages
  • Strong underwriting has been at the core of FHA’s success. Because FHA insures lenders against losses that may result in the event of a borrower default, that commitment is made under the condition that lenders are required to abide by extensive documentation and underwriting guidelines to originate sustainable mortgages
  • Lenders are also required to provide loss mitigation opportunities to help borrowers avoid default or foreclosure

For more:  http://portal.hud.gov/hudportal/HUD?src=/press/testimonies/2011/2011-04-14


Comments : Leave a Comment »
Tags: , , ,
Categories : 203k, Federal Government, FHA, HUD, Mortgage Industry, Purchases, Underwriting

FHA Loans Will Continue To Offer Higher Debt-To-Income Ratios, More Flexible Underwriting, Lower Down Payments And FICO Scores As Private Mortgage Insurance (PMI) Seeks Higher Income Borrowers With Credit Scores Over 720

23 04 2011

http://renovationlendinginstitute.com/

 

  •  FHA continues to offer much higher and more flexible maximum debt-to-income ratios, far more generous underwriting and lower down payments, and will accept FICO scores that conventional lenders and private insurers won’t touch
  • The FHA put its second premium increase in six months into effect Monday
  • Private mortgage insurance (PMI) now offers significant monthly savings when compared with the FHA
  • The Obama Administration is pushing for greater private-sector involvement in the mortgage arena
  • First-time homebuyers are now needing larger cash resources or higher credit scores to qualify for loans
  • Some analysts are forecasting a 5 percent minimum down payment, up from the current 3.5 percent
  • FHA’s maximum loan amounts might also drop significantly this October if Congress does not renew the $729,750 “high-cost area” limit
  • Radian Guaranty, a major Private Mortgage Insurer, claims a 15 percent savings over FHA for borrowers with FICO credit scores above 720
  • A FICO score above 720 with a $285,000, 30-year loan with 5 percent down at a 5 percent interest rate would have an FHA mortgage costing $1,806 in principal and interest per month as compared with a Radian loan with $1,530 a month to $1,753, depending on the type of premium payment plan you choose
  • The lower cost PMI choice would have upfront cash payment of the insurance premium while the higher-cost alternative would involve standard monthly payments of the premium
  • PMI will be cheaper than FHA when the buyer puts down 5 percent and has a FICO score of 720 or higher or puts down 10 percent and has at least a 680 FICO score
  • The majority of FHA buyers can’t fit into the private insurers’ high-FICO, strict underwriting model

Comments : Leave a Comment »
Tags: , , , , , , ,
Categories : Credit Reports, Federal Government, FHA, FICO's, Financing, Housing Market, Mortgage Industry, Mortgage Insurance, Purchases, Underwriting

Freddie Mac Reports That 30-Year Fixed Mortgage Rates Dropped To Average Of 4.80% In Latest Week As Low Inflation Keeps Mortgage Rates Steady

22 04 2011

http://renovationlendinginstitute.com/

 

  • 30-Year Fixed Rate Mortgages (FRM) averaged 4.80% with an average 0.7 points for the week ending April 21, 2011
  • This was down from last week when it averaged 4.91%; one year ago the  30-year FRM averaged 5.07%
  • 15-Year Fixed Rate Mortgages averaged 4.02% with an average 0.7 points
  • This was down from last week when it averaged 4.13%; one year ago the 15-year FRM averaged 4.39%
  • 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged 3.61% this week, with an average 0.6 points
  • This was down from last week when it averaged 3.78%;  one year ago, the 5-year ARM averaged 4.03%
  • 1-Year Treasury-indexed ARM’s averaged 3.16% this week with an average 0.6 points
  • This was down from last week when it averaged 3.25%; one year ago the 1-year ARM averaged 4.22%
  • “Low inflation is keeping mortgage rates at bay. The core consumer price index rose just 0.1 percent in March, below the market consensus forecast
  • The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards
  • “The housing market continues to struggle. Although housing starts and existing home sales in March were stronger than expected, they were still at low levels
  • Homebuilders became more pessimistic in April about the near-term according to the NAHB/Wells Fargo Housing Market Index.

For more:  http://freddiemac.mediaroom.com/index.php?s=12329&item=33883


Comments : Leave a Comment »
Tags: , , , ,
Categories : Economic Statistics, Freddie Mac, Housing Market, Mortgage Industry, Rates, Statistics

Home Prices In California Decline 4.9% Statewide In Past Twelve Months To March 2011 On Heavy Distressed Home Sales And Loss Of Federal Tax Credit

21 04 2011

http://renovationlendinginstitute.com/

 

  • The statewide median price of an existing, single-family detached home sold in California increased 5.4% in March compared with February to $286,010
  • But prices declined 4.9% compared with March 2010’s median price of $300,900
  • The decline in prices year over year is attributed to an increase in distressed sales
  • It is clear that prices and sales in 2010 benefitted from the federal home buyer tax credit
  • The pace of sales for the first three months of this year is in line expectations for all of 2011, according to C.A.R.

March 2011 County Sales and Price Activity
Regional and Condo Sales Data Not Seasonally Adjusted

March-11 Median Price of Existing Single-Family Homes
State/Region/County Mar-11 Feb-11   Mar-10   MTM% Chg YTY% Chg
CA SFH (SAAR) $286,010 $271,320   $300,900 r 5.4% -4.9%
CA Condo/Townhomes $232,130 $236,360   $263,310 r -1.8% -11.8%
Los Angeles Metropolitan Area $272,600 $266,830   $280,160   2.2% -2.7%
Inland Empire $172,730 $174,040   $177,910   -0.8% -2.9%
S.F. Bay Area $487,060 $444,020   $498,980 r 9.7% -2.4%
               
S.F. Bay Area              
Alameda $480,250 $458,060   $476,560   4.8% 0.8%
Contra-Costa (Central County) $567,310 $516,670   $587,690   9.8% -3.5%
Marin $826,700 $632,580   $790,620   30.7% 4.6%
Napa $332,610 $354,760   $351,560   -6.2% -5.4%
San Francisco $679,770 $606,560   $720,390   12.1% -5.6%
San Mateo $695,000 $623,000   $800,000   11.6% -13.1%
Santa Clara $561,500 $525,250   $590,000   6.9% -4.8%
Solano $193,480 $191,790   $211,540   0.9% -8.5%
Sonoma $325,910 $315,340   $359,050   3.4% -9.2%
Southern California              
Los Angeles $282,170 $286,220   $290,000 r -1.4% -2.7%
Orange County $523,610 $496,540   $550,420 r 5.5% -4.9%
Riverside County $201,520 $203,630   $201,100   -1.0% 0.2%
San Bernardino $130,690 $131,470   $137,590   -0.6% -5.0%
San Diego $383,620 $367,770   $393,600   4.3% -2.5%
Ventura $443,920 $389,650   $444,890   13.9% -0.2%
Central Coast              
Monterey $260,000 $239,950   $245,000   8.4% 6.1%
San Luis Obispo $362,700 $328,750   $377,680 r 10.3% -4.0%
Santa Barbara $422,730 $380,000   $381,820 r 11.2% 10.7%
Santa Cruz $475,950 $451,000   $525,000   5.5% -9.3%
Central Valley              
Fresno $138,120 $141,360   $150,960   -2.3% -8.5%
Kern (Bakersfield) $129,900 $125,000   $136,000   3.9% -4.5%
Kings County $137,270 $154,000   $154,290   -10.9% -11.0%
Madera $133,530 $149,230   $146,000   -10.5% -8.5%
Merced $115,290 $117,270   $108,080   -1.7% 6.7%
Placer County $253,750 $269,670   $292,210   -5.9% -13.2%
Sacramento $168,250 $168,800   $183,330   -0.3% -8.2%
San Benito $247,500 $285,000   $275,610   -13.2% -10.2%
Tulare $121,950 $120,340   $145,140   1.3% -16.0%
Other Counties in California              
Amador $170,000 $200,000   $186,000   -15.0% -8.6%
Butte County $222,370 $190,000   $250,000   17.0% -11.1%
Humboldt $250,000 $238,890   $270,650   4.7% -7.6%
Lake County $94,170 $123,330   $155,000   -23.6% -39.2%
Mariposa And Tuolumne $154,440 $187,500   $204,690   -17.6% -24.5%
Mendocino $192,500 $200,000   $295,000   -3.8% -34.7%
Shasta $154,810 $162,110   $175,500   -4.5% -11.8%
Siskiyou County $112,500 $140,000   $150,000   -19.6% -25.0%
Tehama $125,000 $83,330   $132,860   50.0% -5.9%
             

Comments : Leave a Comment »
Tags: , , , ,
Categories : Bank-Owned, Condominiums, Defaults, Federal Government, Home Sales, Homes, Mortgage Industry, Purchases, Statistics

FHA Mortgage Underwriting: Analysis Of FHA Loan Servicing Records Finds That Requiring Larger Down Payments Does Not Correlate With Fewer Defaults; High LTV’s With Higher FICO Scores Are Best Performing Loans

20 04 2011

 

http://renovationlendinginstitute.com/

  • FHA uses both downpayment and FICO scores to allocate credit assistance
  • Downpayment and FICO scores when used together are a much better predictor of loan performance than just one of those components alone
  • FHA insured loans with LTV above 95% and a FICO score above 580 perform better than loans with LTV below 95% and a FICO score below 580
  • FHA loans with an LTV above 95% and a FICO score below 580 perform significantly worse than all other groups

FHA Single Family Insured Loan Claim Rates
Relative Experience by Loan-to-Value and Credit Score Values1

Ratios of Each Combination’s Claim Rate
to that of the Lowest Risk Cell2

Loan-to-ValueRatioRanges

Credit Score Ranges3

500-579

580-619

620-679

680-850

  
Up to 90%

2.6

2.5

1.9

1.0

  
90.1 – 95%

5.9

4.7

3.8

1.7

  
Above 95%

8.2

5.6

3.5

1.5

  

For more:  http://portal.hud.gov/hudportal/HUD?src=/press/testimonies/2011/2011-04-14


Comments : Leave a Comment »
Tags: , , , ,
Categories : Credit Reports, Defaults, Delinquencies, Federal Government, FHA, FICO's, Financing, Mortgage Industry, Mortgage Insurance, Underwriting

« Previous Entries


Follow

Get every new post delivered to your Inbox.