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More New FHA Mortgage Loan Rules For Getting A New FHA Loan |
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Written by Paul Dunn
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Wednesday, 24 September 2008 05:51 |
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Just when you thought it was safe to go out and buy a new home HUD has changed the FHA mortgage rules with Mortgagee Letter 2008-25 which is a response to the "Walking Buyer" and "Buy and Bail" trends in Arizona as well as the rest of the country.
A Walking Buyer (or Buy and Bail buyer) who has a home they cannot sell because they are upside down on the mortgage simply finds an affordable home and rents the current home. This helps them to qualify for the new home and then, once they move into the new home... they let the old one go into foreclosure.
Additionally, this fraudulent practice put yet ANOTHER FORECLOSURE HOME on the market and we just don't need additional foreclosures out there bringing property values down further.
Under the old rules (up until a few days ago) it was acceptable to use rental income on your existing home to qualify for your new Arizona FHA Mortgage Loan.
There are certain circumstances in which the new rental income may be used to qualify for the new Arizona FHA Mortgage Loan.
There are 6 things FHA home buyers need to know about this change:
- It is temporary
- To use the income the home buyer must be moving to a new city
- To use the income the new home must be outside reasonable commuting distance from the old home
- To use the income the old home must be leased for at least one year
- To use the income the home buyer must document the receipt of the security deposit
- To use the income the existing home must have a 25% equity position
Apply for an Arizona FHA Mortgage Loan Now.
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Last Updated ( Wednesday, 24 September 2008 06:15 )
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With The FHA Secure Short Refinance What Happens When I Owe More Than My House Is Worth? |
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Written by Paul Dunn
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Monday, 22 September 2008 06:45 |
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With the FHA Secure Short Refinance, when you owe more than your home is worth, there are typically three outcomes. Which option you are presented with in the outcome of your FHA Secure Short Refinance will depend upon the negotiations with your current mortgage lender.
- Short Refinance Write Down - This is the option of choice and the option we pursue when we package an FHA Secure Short Refinance offer to your current lender. The existing lender writes off the amount of indebtedness that exceeds the amount that can be refinanced into the FHA Secure Short Refinance.
- FHA Secure Refinance with subordinate financing - In many cases the existing lender will accept a secondary lien in the amount that the payoff is short.
- FHA Secure Short Refinance with a partial unsecured loan - In some cases the existing lender will write off a majority of the existing loan and allow for the creation of an unsecured loan of a portion of the amount that cannot be covered by the new loan. An example of this may be that the new FHA Secure Short Refinance loan can cover all but $50,000 and the existing lender agrees to write off $43,000. They may allow for an unsecured low or zero rate loan to cover the final $7,000 in an effort to make the transaction work.
Apply for an FHA Secure Short Refinance today.
Find out about a Las Vegas fha Short Refinance.
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Last Updated ( Wednesday, 24 September 2008 16:32 )
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Short Refinance Documentation - The Budget Worksheet |
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Written by Paul Dunn
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Wednesday, 17 September 2008 06:16 |
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It is truly amazing right now the number of homeowners who are upside down on their mortgages and could benefit from a Short Refinance, if only they knew it existed. It isn't unusual for me to get a call from a homeowner who owes $30,000 to well over $100,000 more than what their property is worth (this is one trigger for the Short Refinance). Add to that the fact that adjustable rate mortgages from 2005 and 2006 are now resetting to higher payments there is a tremendous oversupply of homeowners who need to refinance, but because of their declining property values and lack of equity... they think they can't.
The truth is that in certain circumstances they can refinance. It's called the Short Refinance and is one of the least known and least understood mortgage transactions out there.
A successful Short Refinance works exactly like a short sale in that the current lender accepts less than is owed as a payoff for the transaction. The major difference is that in a Short Refinance the homeowner retains ownership of the home, just like a typical refinance.
When applying for a Short Refinance you are applying for both a new mortgage from a new lender, and you are applying for a short payoff from your existing lender. One of the most important documents you can provide is a budget worksheet.
If you are considering applying for a Short Refinance, print out the Monthly Budget Worksheet and complete it. It is important to be able to prove to your current lender that you are in a financial hardship and they will need to see your monthly cash flow.
For more information about the Short Refinance, you can
This e-mail address is being protected from spambots, you need JavaScript enabled to view it
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Apply for a Short Refinance HERE. |
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Last Updated ( Wednesday, 17 September 2008 06:43 )
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The FHA Short Refinance Can Help You Get The Bank To Take A Short Payoff On Your Mortgage |
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Written by Paul Dunn
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Tuesday, 19 August 2008 22:44 |
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SHORT REFINANCE FHA SECURE, HOW TO GET THE BANK TO DISCOUNT YOUR MORTGAGE
In Arizona we have been seeing record numbers of foreclosures, record numbers of bank repos and record numbers of short sales. Homeowners are faced with rising mortgage payments when their once low adjustable rate mortgages reset and climb. A short sale has been a common answer to losing a home through foreclosure.
But now there's a new answer; the short refinance FHA Secure. The short refinance works exactly the same as a short sale with the exception that the homeowner remains a homeowner. In a short sale, once an offer comes in it gets presented to the bank along with an application package from the seller to the bank asking to take a discount on the current mortgage. Once the bank accepts the offer for less than what the seller owes the bank they have agreed to a short sale. A short refinance works in much the same way as a short sale only in the case of a short refinance the "offer" presented to the bank is actually a copy of the homeowner's brand new short refinance FHA Secure approval. The short refinance approval, along with all the supporting documentation, is then submitted to the bank requesting a discount. Once the bank accepts the discount, they have accepted a short payoff and agreed to a discount on the loan allowing for the short refinance.
A major benefit of the short refinance is that it allows borrowers to keep their homes. The short refinance delights homeowners because they get a new start with a lower mortgage payment and a lower mortgage balance.
Why would the bank agree to a short refinance and not just foreclose on the property? Simply put foreclosing on a property requires large amounts of legal fees and then the home is typically sold at a substantial discount off of the fair market value. The short refinance allows the bank to avoid the majority of the legal fees and let's the new lender make its largest loan based on the fair market value.
Read how the Short Refinance FHA Secure Helps 200,000 families
Apply for a Short Refinance FHA Secure loan |
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Last Updated ( Tuesday, 19 August 2008 22:54 )
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Down Payment Assistance For FHA ELIMINATED |
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Written by Paul Dunn
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Saturday, 16 August 2008 10:39 |
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Down Payment Assistance for FHA Mortgage Loan Programs is being eliminated on October 1, 2008. Many lenders who had accepted Down Payment Assistance for FHA buyers have stopped accepting applications on the product.
On July 30, 2008 the President signed into law the Housing and Economic Recovery Act of 2008. This law will eliminate the dream of home ownership for 50,000 to 100,000 families this year.
The loss of Down Payment Assistance could be devistating. According to the Nehemiah Corporation of America 40% of all FHA buyers will be affected.
Do you remember buying your first home?
Putting the key in the front door for the first time?
Imagining where everything would go?
Telling all your friends about your wonderful new home?
Do you remember how that felt?
Now imagine if it never happened! The loss of Down Payment Assistance will affect up to 100,000 families this year.
You can help...
You can apply for an FHA Loan with down payment assistance here, while there is still time. |
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Last Updated ( Saturday, 16 August 2008 10:55 )
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