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March, 4 2013 - by chad

Streamline Refinance (FHA to FHA) – Non-credit qualifying with or without an appraisal.  The maximum mortgage amount is the outstanding principal balance plus interest (not to exceed 60 days) minus the MIP Refund.  Borrower can NOT roll in any closing costs.   These must be locked and sold to the same investor that currently services the loan.

No Cash Out/Non-Streamline Refinances — With or without an appraisal.  The maximum mortgage amount is the outstanding principal balance plus interest (not to exceed 60 days + prepayment penalties + accrued late charges + ...

Reverse-Mortgage
February, 19 2013 - by chad

A Kiplinger magazine Q&A column addressed the question of what happens in the case of a reverse mortgage borrower who owes more on the home than the home is worth. For those who find themselves in this “underwater” scenario, Kiplinger’s columnist answers, there’s no need to worry.

The Kiplinger reader writes:

“My aunt, who lives in Las Vegas, has a reverse mortgage that she took out in 2006, when her home was valued at more than $250,000. The home is now worth just $85,000. If she dies while the home’s value is ...

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February, 1 2013 - by chad

This week HUD announced it will consolidate its Standard Fixed-Rate Home Equity Conversion Mortgage (HECM) and Saver Fixed Rate HECM pricing options. That means there is one less option for homeowners 62 years of age or older to access the equity in their property.  This change will be effective for FHA case numbers assigned on or after April 1, 2013.   More info to follow in February, but certainly give me a call if you would like to understand the implication of these changes.

vvv
January, 31 2013 - by chad

FHA announced yesterday that it is going to make more changes to discourage borrowers from using the FHA programs.  (That’s not how they worded it, but that’s how I see it.)  More details are coming soon, but the bottom line is that the annual FHA mortgage insurance is likely to increase by 10 bps (about $17/month or $200 more per year on a $200,000 loan) AND rather than being on the loan for a minimum of 5 years, the mortgage insurance will be on there for the life of the ...

Reverse_Mortgage
January, 10 2013 - by chad

Effective immediately, our investors will no longer close, fund, or purchase FHA reverse mortgage loans that include a non-borrowing spouse.  The only exceptions include a non-borrowing spouse who has never been on title OR a non-borrowing spouse who can document that they do not occupy the property and do not have any community property rights to the property.  We believe this change has been made due to younger spouses being removed from title in order for the borrowing spouse to get an FHA reverse mortgage.  To date that was acceptable, ...

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January, 18 2012 - by chad

Lately we have received a couple of questions from Realtors who heard USAA can do VA loans for relatives of veterans, such as parents or children.  This is not the case.  Only veterans can get VA loans, with the exception of the unmarried surviving spouse of a deceased veteran.  USAA’s program is branded the  ”Military Family Home Loan” and is a joint venture with Wells Fargo.  This is simply an FHA loan through a Wells Fargo subsidiary and is NOT a VA loan.  When there are no other options, FHA ...

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October, 26 2011 - by chad

I was running early this morning and as usual, thinking about my mortgage business.  Why do people do business with me, my team, and my company?  I think I finally have it down to three key reasons.

The first is EXPERTISE.  Most lenders basically do everything, but don’t build up a solid niche for which they can consider themselves true Specialists.  I have focused on VA and Texas Vet financing since 2004, ensuring my clients get the correct information the first time and benefit from the programs for which they are ...

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October, 21 2011 - by chad

Just a quick post to mention some of the most useful websites for information on FHA reverse mortgages:

AARP

Dept. of Housing and Urban Development (HUD)

Federal Housing Administration  (FHA)

Federal Trade Commission (FTC)

National Association of Area Agencies on Aging (NAAAA)

National Council on Aging (NCOA)

National Reverse Mortgage Lenders Association (NRMLA)

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October, 19 2011 - by chad

I honestly cannot count how many times I’ve heard that a lender recommended FHA financing to a veteran, even though a VA loan would have been a much better deal. The truth is, FHA loans are easier for most lenders since most lenders do way more FHA loans than VA loans. That is, of course, a horrible excuse for giving a veteran a loan program when another program (VA) would have been a much better option.

Without going into the details of the financial analysis between VA and FHA loans, just know this… If the FHA upfront ...

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October, 13 2011 - by chad

This week my team funded two reverse mortgages that are both very good examples of what an FHA reverse mortgage can do for someone who is eligible for the program.  Both women are widows and own their own homes.  They are both in their 70′s and both lost their jobs earlier this year and have had trouble finding new ones (and they don’t really want to do that anyhow).  They both have fixed income that covers their basic living expenses, but not enough to cover their monthly mortgage payments without ...