LIMITED TIME Fannie Mae HomePath Closing Cost Assistance program!

3.5% Closing Cost assistance is available! Act now!

Fannie Mae is offering up to a 3.5% closing cost assistance for owner-occupant buyers and public entities who request the incentive at their initial offer during the First Look™ period, purchase a HomePath property in select states on or before March 31 and close by May 31, 2014. Visit Homepath.com for full terms & conditions and eligible states.

Take advantage of this great incentive program today!

What a great way to make buying a home more affordable!

 

Call Mortgage First at 503-588-3511 to get started on your pre-approval.

Latest extension update on USDA changes

As promised, we are following up on the USDA changes that will limit areas eligible for USDA 100% financing, as referenced here and here.

Good news on FHA manually underwritten loans!

There have been lots of rumors about the new Qualified Mortgage Rule that started earlier this year and the effect on getting loans approved without the benefit of automated underwriting.

 

FHA just came out two days ago with formal guidance that will make lenders far more comfortable in making loans with higher debt ratios WITHOUT the benefit of an automated approval. The new rules now put a cap on a 43% total debt ratio on manually approved loans in order to conform the “qualified mortgage”

 

Now, FHA will insure loans up to a 40% payment ratio, and up to a 50% total debt ratio with a min 580 score and two compensating factors! This will allow far more buyers to get into homes that cannot currently.

 

Compensating factors are things like: 3 months payments after closing (single family home) , rent similar to new house payment, other income that does not meet regular guidelines, and meeting VA residual income guidelines.

 

These rules have not been implemented yet, and if individual lenders choose to use these guidelines they are effective after April 21st, 2014. Stay tuned!

 

New FHA Loan Amount Limit

If you have a higher priced home that needs FHA financing, the current limit of $295,000 for the Salem area is set to DECREASE to $271,050 starting January 1^st, 2014.

 

You can still take advantage of the higher limits if the FHA case number is assigned prior to this date.

 

The full FHA mortgage limits for any area in the USA can be researched for 2013 or 2014 here: https://entp.hud.gov/idapp/html/hicostlook.cfm

 

To get started with your financing, give us a call or shoot us an email!

VA Guideline update Nov 2013

Great news!  Federal VA loans no longer require a home to be hooked up to city water and sewer. In the past this was an expensive requirement to meet VA loan guidelines. Now if the home has a private well or septic system, even if  city services are available, VA will not require hookup unless otherwise required by local laws!

 This change will save thousands of dollars on

each home that falls into this category!

Read the full VA memo, here:  http://www.benefits.va.gov/homeloans/documents/circulars/26_13_24.pdf

Rural Housing Designation changes POSTPONED

USDA has postponed the changes to the Rural Area Designations. 

Remember our Sept 10, 2013 post about changes in the USDA program's eligible rural areas with a September 30 deadline? The potential changes to the Rural Area Designations have been put on hold until January 15^th, 2014 unless otherwise determined by Congress.

New Expanded HARP Eligibility

New modification to the HARP eligibility rules

means great news for many home owners:

 

 

 Old qualification rules for HARP Program:

Sold to Fannie Mae or Freddie Mac on 5/31/2009 or earlier

 

NEW qualification rules:

Original note date (closing date) of 5/31/2009 or earlier