FHA Increases Loan Limits

FHA Loan limits increase http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-07ml.doc


All other counties would remain at the 271,050

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

FHA Increases Loan Limits

FHA Loan limits increase http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-07ml.doc


All other counties would remain at the 271,050

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

Loan Amount Calclulation Worksheets for FHA Loans

FHA has revised their loan amount calculation worksheets. You can go to my blog and print off the Work Sheet 1 Rate and Term, Work Sheet 2 Cash out , Work Sheet 3 Streamline without an appraisal , Work sheet 4 Stream line with an appraisal as well as the Purchase work sheet


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

HUD issues email alert

HUD issues email
1-FHA Industry Call: Maximum Mortgage Calculation: Wednesday, January 28th at 2 pm, FHA will provide a comprehensive review of the maximum mortgage calculation for all mortgage products, including purchase loans, all types of refinances, and 203(k). Materials will be provided the week of the call. The call-in number is 202-866-207-0413 and the ID number is 81608101.

2. 203(k) and Streamlined (k) Maximum Mortgage Calculation Clarification:The new cash investment requirements for all FHA case numbers assigned on or after January 1, 2009 also applies to the calculation of the loan amount for Section 203(k) and Streamlined (k) loans. Until the new 203(k) Maximum Mortgage Worksheet, form HUD-92700 is posted, please use the following guidance to modify the existing worksheet. As stated in Mortgagee Letter 2008-23, the Loan-to-Value (LTV) for 203(k) loans may exceed 100% of the appraised value. Modifications have been made to the existing worksheet and will be posted upon completion of the clearance process.“Form HUD-92700 203(k) and

Streamlined (k) Maximum Mortgage Worksheet: Mortgage Calculations for Purchase Transactions (Section C)Line C1 stays the sameLine C2 stays the sameLine C3 stays the sameLine C4:Mortgage Amount = Sum of C3 +(-) Required Adjustments (Note 4) ($__________) LTV Factor (96.5%) (Owner-Occupant) or Less Allowable Down Payment/HUD Owned Property ($__________) (Note 5)Line C5:Statutory Investment Required (C3 x 3.5%)Line C6:Actual Cash Investment Required (C3 + A5 minus C4 ($__________) (This figure must be equal to or greater than C5; if less, an adjustment must be made to C4 to ensure a 3.5% investment Mortgage Calculations for Refinance Transactions (Section D)Line D1 stays the sameLine D2 stays the sameLine D3: D2 ($__________) x LTV Factor (97.75%) (Owner-Occupant)Line D4: Maximum Mortgage Amount is the Lesser of D1 or D3 (Note 5) Line D5 stays the same”

3. Clarification to Requirements of Mortgagee Letter 2008-40: Cash-Out Refinance Transactions:On page 5, all of the requirements listed under the heading “Additional underwriting and eligibility criteria” are applicable to all cash-out refinance transactions where the LTV exceeds 85%

4. Streamlined Refinance Transactions at 2008 Economic Stimulus Loan Limits:FHA will permit loans originated under the 2008 loan limits to be refi-ed at mortgage amounts that exceed the current 2009 (and future) geographic loan limits. For streamlines with appraisals or full refinances, the mortgage amount may exceed the current geographic limit so long as:the new loan amount (without MIP) does not exceed the prior case loan amount and the new appraised value supports the loan amount and the LTV is not greater than 97.75%.


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

FHA issues two new mortgagee letters

FHA issues two important ant mortgagee letters
Mortgagee Letter 08-40 This changes or in effect for case numbers order on or after Jan 1, 2009. This mortgagee letter discusses Refinance Calculation for calculating loan amount and other Refinance issues.

Mortgagee Letter 08-41 Termination of FHASecure Program.


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

Streamline Loans and Condo's

Another FHA Streamline tip: If you have an FHA loan that propetty type is a condo that is no longer approved with FHA you can streamline it without an appraisal even though it is no longer FHA approved. Steeamline loans with an apprisal must be FHA approved


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

FHA changes Q and A site

FHA will begin using a new Frequently Asked Questions (FAQ) service as of December 8, 2008. This change required some modifications to the look and feel of the FAQ site ( http://faq.fha.gov ) as well as the need to use a new primary email address for email inquiries to FHA. (This link is also on the left hand side of my FHA Menu Blog)

The new primary email address for FHA is now: info@fhaoutreach.com (
In addition, clients may also utilize the "Contact FHA" tab on the FAQ site to submit questions directly to FHA.

FHA believes these changes will improve our ability to communicate with our clients and look forward to responding to your needs.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

What is the LTV/CLTV for streamline loans

Tips on FHA Streamline Loans
What is the LTV/CLTV limit on a Streamline Loan? A Streamline loan without an appraisal has no LTV limit. Your max calculation is based on the previous loan amount + new upfront mip (see my link in the FHA menu for Streamline loan without an appraisal worksheet link). A streamline loan with an appraisal at the begging of the year can not exceed the LTV of 100% with MIP. There is not CLTV limit in regards to either a streamline loan with an appraisal and without.
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

Mip on FHA Streamline Loans

Effective with case numbers issued on or after October 1, 2008, through September 30, 2009:
Upfront MIP Streamline Refinance (all types) 1.50%
(UFMIP) Annual (Monthly) - Based on LTV*
(excluding UPMIP) and loan term
> 15 Year Term
Streamline Refinance (all types) > 95.00 = .55
< 95.00 = .50 > < 15 Year Term 90.00 = .25
< 90.00 = None
* LTV must be computed to two decimals (e.g., 95.65)
• Enter "9999" for credit score in Pronto

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

FHA Refinance Tools

The current rates will bring a lot of Refinance business: Here are some tools that should help you
FHA
FHA has four worksheets you need when you refinance a loan. Choose between them for your scenario. These links are also on my blog in the FHA Menu on the left hand side of the screen under forms.
No Cash-Out/Non Streamline – Refinance Maximum Mortgage Worksheet #1
Cash-Out/Non Streamline - Refinance Maximum Mortgage Worksheet # 2
Streamline Refinance Without Appraisal - Maximum Mortgage Worksheet # 3
Streamline Refinance With Appraisal - Maximum Mtg. Worksheet #4

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

When is a loan eligable for a streamline refinance

The loan you are refinancing must be an FHA Loan (can not have been a FHA Secure Loan). The old and new terms must fall under one of the following scenerio's

ARM-ARM Immediate payment reduction required and the maximum interest rate of the new mortgage doesn't exceed the maximum interest rate of the old.
ARM-Fixed Interest rate on the new Fixed will be no greater than 2% above the current rate of the ARM
Fixed-ARM Interest rate of the new mortgage is at least 2% below the interest rate of the current mortgage
Fixed-Hybrid ARM Immediate payment reduction is required

The loan being refinance must be FHA insured and you can not increase the term of the loan more than 10 years.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

What Documents are needed to do a Streamline loan

Putting together a FHA Refinance streamline loan is simple. You generally do not need to document credit, income or appraisal value. There are exceptions and I will go into that at a later date. The following documents are needed for a streamline loan:
Old case number
Original note
12 month Mortgage Rating, if the loan is new document from the time of the new loan(MLHL allows 1x30 days late in the last 12 months)
Application (short version)
– Name, address, social security and phone
– Current employment, phone
FHA Streamline worksheet
New FHA Transmittal
Netting Authorization from FHA Connection
Verification of Social Security number
Borrowers authorization form signed
CAVIRS
Disclosures


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

HUD Homes can help homeowner strapped for down payment

With the market getting tighter the need to find a 100% loan is becoming increasingly harder to find. Don't forget HUD homes. The borrower finds a realtor that deals with HUD homes and makes a bid on a property that is owned by HUD. If the bid is accepted the down will be specified in the sales contract usually the down is $100, $500. If you want to know more go to

About Buying HUD Homes

Property Searh
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

FHA announces 2009 Loan Limits

FHA issues Mortgagee Letter 08-36 announces 2009 Loan Limits

Attachment I -- FHA Loan Limits for Areas AT CEILING AND ABOVE

Attachment II -- FHA Loan Limits for Areas BETWEEN CEILING AND FLOOR



Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

Calculating Income to qualify for a mortgage

Processing Tip
The credit freeze has made underwriting more particular than ever. Here are a few pointers to help you get your loan approved the first time. Loans that loose their Accept status when they are underwritten usually loose this because the underwriter calculates the income differently than you did. Many times if the underwriter knew how you calculated the borrowers income they would accept it. If I was processing a loan I would always include the calculation of income in my loan file. Make sure you know the guide lines regarding the income calculation. If you want an exception from the guidelines be sure and state the reason you feel the borrower deserves this exception. Example: overtime usually always requires a two year history. Your borrower has only been on the current job 12 months. However they had overtime in the previous job. In this scenario include a VOE of both jobs documenting a two year history. Don’t assume because an employer requires over time that they underwriter will accept that as a reason to have less than two years.

I also find this IRS web site in determining what income is tax deductable or how it should be reported to be helpful - IRS Frequently Asked Questions . Attached is an income worksheet that you could use to calculate income and include in your loan file

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com