What does Obama's announcement about FHA's move to reduce MI factor mean to YOU?

That's really the question isn't it?  

For those of us in the Mortgage Industry, we really want to know HOW MUCH will the reduction be and WHEN will it happen.  

Well that was answered in the press release put out by HUD shortly after Obama's announcement made today in Phoenix, AZ.

If you don't feel like reading the release, here's the cliff notes:  they are going to reduce the monthly mortgage insurance premium factor from it's current rate of 1.35% down to .85%.  This change will occur "later this month."  

So for those of you looking to purchase a home, what does that mean for you?

Well, a lot actually.  On a $300,000 purchase price, it translates to a savings of $120.63 per month - certainly nothing to sneeze at - here's an illustration showing the monthly MI difference:

So then taking it a step further, that would save you $5,428 over the first five years of the loan and a total of $21,713 over the first 15 years of the loan.  That's a lot.

But who really cares about that?  Well a lot of us MAY, but more of us will care that the reduction in monthly MI can also translate to MORE buying power.  In the $300,000 example, it would allow you to buy $18,000 more HOUSE and have the same payment.

Sometimes that's the difference between the house you really WANT and the one that you can GET.  When the payment is the same and you're not stretched to make it, it's all good in my opinion.

Contact me today if you have any questions and to see what this would translate for to you in the price range that you're looking to buy in.  Call me at 951-335-8134 or email me.

FNMA Unveils new 3% Down Home Purchase Loan for First Time Buyers!

Well we have certainly seen some interesting products hit the market in 2014, but I believe that one of the most viable ones that will soon be available is Fannie Mae's 3% Down First Time Homebuyer product.  

There were lots of press releases last week introducing the product and I've had lots of calls about the upcoming program.  The biggest question has been "Is it out there and available to Consumers yet?".  The answer for me is 'not yet.' BUT I will have it available in the next two weeks.

Once I am able to offer it I will post all of the details, but in the meantime, here are some bullet points:

Qualifications:

·         fixed rate loans with terms up to 30 years are eligible

·         the home must be the primary residence

·         at least one of the borrowers should be a first-time home buyer

·         the loan balance must be lower than the area loan limit

·         the borrowers' annual qualifying income must not exceed 100% of the area median income

·         they have a private mortgage insurance requirement of 18% coverage, and so on. 

You can also click here to go to the FAQ section directly on FNMA's website.

Stay tuned for more details!

Reverse Mortgage Rules will be Changing Q1 2015

If You, a loved one, or a Client have been considering a Reverse Mortgage, you may want to act sooner than later.

Just this month, HUD announced that March 2nd, 2015 will be the day that they will require Lenders to begin scrutinizing Reverse Mortgage applicant's credit reports .  In addition, Lenders will be required to evaluate the borrower's willingness and capacity to meet his/her financial obligations and comply with credit requirements.

For anyone not familiar, this is a HUGE change.  You see, currently Lenders are not required to do these things.  There's sure to be plenty of conversations, guideline changes, and new forms soon so stay tuned.

How can you use this news, knowing that this change is coming?  Well, if you're considering either a Reverse Mortgage refinance OR Reverse Mortgage purchase (yes I do both), then you may want to put that plan in motion NOW versus waiting to roll into Q1 2015.

This also means that because a lot of folks will be 'getting off the fence,' the Counseling Agencies will be busier which could create backlog / increased turn times.

If you have specific question on Reverse Mortgages, I'm happy to help!  You can call me directly at 951-335-8134 OR email your scenario to jwiggins@amerifirst.us.

Happy Thanksgiving Everybody!

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