If you’re thinking of getting an FHA loan you may want to move up your schedule a bit. Because of loan losses FHA mortgage premiums are going to increase on April 1st. On most loans the increase will be about $100 a year per every $100,000 of your loan. If you want to avoid this increase you should apply for your loan prior to about March 25th.
There is another change coming down. In the past FHA would drop your PMI after about 5 years. For loans starting in June most borrowers will pay this PMI for the life of their loan. Talk to your lender (we can recommend a good one for you) and get the latest advice on how you should proceed from them. For more details on this change check out this article from sfgate.
Due to losses at FHA there are some changes coming for FHA loans. They are:
- Increasing the annual insurance premium paid by borrowers on new FHA loans in 2013. This should add $13 per month to the average borrower’s bill
- Continuing to sell expanded pools of defaulted mortgages that are headed for foreclosure
- Revising its loss mitigation program to offer more payment relief to struggling borrowers
- Expanding the use of short sales (selling the home for less than the value of the loan)
- Reversing a policy to cancel premium payments after a certain period of time.
These new rules are slated to take effect starting on new loans in 2013. The changes suck but aren’t exactly unexpected. How will they affect you? Feel free to email or call us with any questions you may have.
So you purchased your home a few years back. You got a good interest rate for the time, maybe about 6%. But now you see those 4% (and even less!) rates and you’re salivating. You want to refinance but you know your house is worth less than you owe, so there’s no way, right? Wrong! Now with the HARP 2.0 program you may qualify. The New HARP Mortgage Program Guidelines offering the following: features: The maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance in to a fixed rate mortgage. This means you can refinance your home even if it’s worth less than what you owe. But for homeowners looking to refinance in to an adjustable rate mortgage the maximum LTV is set at 105%. The appraisal process is streamlined and in many cases no appraisal is required.You can go to your own lender and ask if they are participating in the program. They probably are. But if you’re own lender isn’t very responsive you can go through any other lender including my favorite, Fairfield Mortgage. You can find their contact info on my vendor page.
So if you’d like to refinance, call your lender (or give me a call if you have other questions) The call is free and you can save significant money. I’ve helped several clients already and they are saving on average $200 per month! So what are you waiting for !
One of the hurdles facing home buyers today is coming up with a down payment. Often for first time home buyers the monthly payment is the about the same as their current rent. Saving up the down payment is a bigger issue. Fortunately there are programs out there to help out such buyers. Here is a summary. Give us a call if you’d like to learn more.
- The HUD $100 Down Payment Program – This is a program where you can buy a HUD foreclosure with as little as $100 down. The home has to be a HUD foreclosure. It’s an FHA program and you can go through your own lender. You still will have to come up with the earnest money which can be as much as $1,000. There are no income limits.
- The Georgia Dream Program – This program can be used on any home in the state of Georgia. You are given down payment assistance in the form of a forgivable second mortgage. With this program there are income limits and limits on the purchase price of the home. Also with this loan your interest rate will be about a half a point higher.
- The HUD Good Neighbor Next Door Program – This program isn’t actually a down payment program but I did want to mention it. If you are a full-time law enforcement officer, pre Kindergarten through 12th grade teacher, firefighter or emergency medical technicians then you may be eligible to purchase a HUD home at as much as a 50% discount. There are only certain properties that are available under this program.
- Atlanta Down Payment Assistance – The city of Atlanta offers several programs including homes along the beltline, a Vine City specific loan aand a city wide down payment assistance program. The beltline program is limited to a very few addresses in the city but the city does offer an FHA loan with down payment assistance in the form of a forgivable second mortgage. There are income limits but the down payment assistance can be as much as $10,000. There are also limits on the value of the house (currently about $250,000).
If you’re thinking of buying a home and think one of these programs might work for you give us a call or shoot us an email. We’ll help you every step of the way.