FHA Insures $144 Billion in Home Loans so Far in 2009
Filed under FHA FAQ, FHA news, Mortgage News · Tagged: FHA, FHA loans, FHA mortgage
The FHA mortgage lending reported endorsing $143.9 billion in single-family FHA home loans in the first six months of fiscal year 2009, up 169% from the same period in FY 2008. The Department of Housing and Urban Development expects FHA endorsements will total $290 billion when the 2009 fiscal year ends on September 30. In March, FHA insured $25.4 billion in single-family FHA loans, including $15.3 billion in FHA refinancing loans, according to an FHA monthly report. The report shows that FHA has a 7.08% serious default rate as of March 31 with 347,500 loans that are 90 days or more past due. FHA had a 6.91% serious default rate back in September. Meanwhile, FHA has a 63% share of the mortgage insurance market, compared to 23% for private mortgage insurers and 13% for Department of Veterans Affairs’ loan guarantee program.
FHA Financing Helped in American Recovery & Reinvestment Act
Filed under FHA FAQ, FHA Mortgagee Letters, FHA news, Published Articles · Tagged: FHA loan limits, FHA mortgage, Foreclosure Protection, Home Ownership Tax Credit, mortgage loan modifications
The American Recovery and Reinvestment Act provides additional provisions:
FHA Mortgage Loan Limits – FHA home loan amount limits will be raised to $729,750 for homes in high-cost areas. Areas with higher-valued homes will enjoy the many benefits of a FHA mortgage, such as low rates and easier qualification standards. The bill reinstates 2008 FHA loan limits, with a maximum cap of $729,750. The bill also provides the option, if warranted, to increase loan limits for any “sub-area”, i.e.an area smaller than a county. These limits will expire December 31, 2009.
Home Ownership Tax Credit – A non-refundable tax credit of up to $8,000 will be available for buyers who purchase a home this year–before December 1, 2009–and who have not bought a house in the previous 3 years. This tax credit amount is based on 10-percent of the home’s purchase price, up to $8,000. To qualify, homeowners must keep their home for at least 3 years.
Simplified Mortgage Refinancing – Borrowers with less than a 20% equity stake in a traditional loan guaranteed by Fannie Mae or Freddie Mac (commonly referred to as “conforming” loans) may now refinance to up to 95% of their home’s market value without purchasing private mortgage insurance, which typically can increase monthly payments by hundreds of dollars.
Neighborhood Stabilization – $2 billion in additional funding is also made available to create the Neighborhood Stabilization Program (NSP) to address the problems facing whole neighborhoods that are decimated by foreclosures. Funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. States and localities can also use these funds to establish home financing methods for purchasing and redeveloping foreclosed properties.
Reverse Mortgages – Mortgage loan limits on Home Equity Conversion Mortgage (HECM) – or “reverse mortgage” loans will increase to $625,500 until the end of 2009. Current limits, which mirror conforming loan limits, will be raised to open up reverse mortgage options for many seniors who may want to rely on home equity as a stable source of income.
Low Income Housing – States will receive financing for construction and rehabilitation of low-income housing.
Rural Housing Programs – 100% home financing will be made available for rural housing loan programs.
Energy Efficiency Benefits – Tax credits for energy-efficient upgrades will be extended through 2010.
Foreclosure Protection – $75 billion program will be established to subsidize mortgage loan modifications for participating mortgage lenders to assist many distressed homeowners facing foreclosure.
“FHA mortgage rates are still at historically low levels and this is still a great time to refinance,” says Isaacs. “However, there has been much talk that banks and lenders will make it harder for borrowers to qualify for loans for both new and refinanced home loans, especially for borrowers with less than perfect credit scores. I urge people considering a new home loan, mortgage refinancing of an existing loan or a loan modification to move quickly to lock in their best loan rate and options.”
FHA Mortgage Programs Remain Strong in 2009
Filed under FHA FAQ, FHA news, Mortgage News, Uncategorized · Tagged: 1st time homebuyer programs, FHA, FHA home loans, FHA mortgage, home equity, new home financing, refinance
FHA mortgage lending continues to provide more opportunities for new homebuyers and borrowers in need of mortgage refinancing. FHA rates remain very attractive for borrowers who do not have much home equity left. FHA home loans enable borrowers with less than perfect credit qualify for refinance loans. The days of the no money home mortgages that assist homeowners in consolidating high rate debt or cash out second mortgage loans that new homebuyers would have to quickly refinance.
FHA continues to offer great 1st time homebuyer programs with new home financing requiring only 3.5% down. FHA mortgage brokers and lenders remain optimistic that Hope for Homeowners may help some of their borrowers prevent foreclosure. Home financing guru, Jason Cardiff said, whether it’s FHA or a loan modification, homeowners need to get up and do something to stop foreclosure.” Cardiff continued, “Mortgage lenders continue to provide loan modifications like we’ve never seen before, so contact a lender to refinance or seek counsel from a law firm that has a good track record of mortgage loan modifications with your lending company.” Read the original FHA loan article > FHA Mortgage Rates Creep Up to 5%
Tax Lien Issues with FHA Mortgage Loans
Filed under FHA FAQ, FHA news · Tagged: FHA insured mortgage, FHA mortgage insurance, FHA mortgage lender, second mortgage
FYI- If the borrower is presently delinquent on any federal debt (IE VA-guaranteed mortgage. HUD insured FHA loan, federal student loan, Small Business Administration loan, delinquent federal taxes, etc) or has a lien, including taxes, placed against his or her property for a debt owed to the United States, the borrower is not eligible until the delinquent account is brought current, paid or otherwise satisfied, or a satisfactory repayment plan is made between the borrower and the Federal agency owed and is verified in writing.
Tax liens may remain unpaid provided the lien holder subordinates the tax lien to the FHA insured mortgage loan. If any regular payments are made, they must be included in the qualifying ratios. Since the IRS routinely takes a second mortgage position without the necessity of independent documentation, eligibility for FHA mortgage insurance will not be jeopardized by outstanding IRS tax liens remaining on the property unless the FHA mortgage lender has information that the IRS has demanded a first mortgage position.
