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Effective July 14, 2008, FHA will implement a risk based premium policy for its mortgage insurance (MI) on 1 to 4 unit single family mortgages. The premiums will vary slightly based on the term of the loan (i.e. 30Yr versus 15Yr), so for the purposes of this post, we have focused on the single family premiums for a loan term over 15 years.

As with everything surrounding today's mortgage market, these new guidelines are another step towards tighter qualification standards and higher borrower costs. In fact, we find the new guidelines rather amusing as most wholesale lenders have enacted their own criteria and will no longer fund FHA loans for borrowers with lower FICO Scores - many now have credit score limits in the 560-580 range.

FHA’s New Risk-Based MI…

The Federal Housing Administration announced today it will temporarily lift the 90-day waiting period for property resales financed using an FHA loan. The 90-day waiting period was established in 2003 to help counter predatory lending practices and investor house flipping. Because of the glut of foreclosed and abandoned homes that are harming many neighborhoods, FHA will lift the waiting period for one year.

While Federal Housing Commissioner Brian Montgomery said "The action we take today will allow home buyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country," the move will not be as substantial as one might think. The reason for this is because FHA also requires that homes…

The American Society of Home Inspectors (ASHI) today announced the creation of a Client Bill of Rights to help protect home buyers in their home inspection process. According to Bill Loden, chairman of the ASHI Code of Ethics Committee, the Client Bill of Rights is designed to help the general public better understand how ASHI members and their Code of Ethics will serve them.

The intent is to shift the focus from the inspector to the client and is a commitment from ASHI members to uphold the highest standards of service and conduct a thorough, unbiased and honest evaluation of their clients' prospective homes. According to Loden, "our ethics are no longer simply a set of rules that our members strive to follow, they are more a commitment they offer to…

Who says conservatives won't do anything about health care. Surely not Florida Republican Governor Charlie Crist. He succeeded in getting his new and innovative health insurance reform plan through the state legislature that even the Democrats are having a hard time finding anything to complain about. With the State of Florida having nearly 21% of its population being uninsured, the "Cover Florida" plan should help uninsured Floridians by offering a variety of affordable health care insurance coverage plans.

The reform allows insurance providers to sell no-frills policies exempted from the more than 50 mandates Florida currently imposes. Those mandates were put in place without any regard for how much they cost consumers. The big problem is that with…

The January thru March Ft. Myers real estate market statistics for both homes and condominium sales are listed below. Known for its fabulous winter weather, Ft. Myers is a metropolis bustling with historical, cultural, and ecological attractions and the downtown area is undergoing major renovations in order to keep up with the cities continuing growth.

Ft. Myers Sales Data

Ft. Myers Home Sales Jan-Mar 2008*:

• 293 Closed Sales
• Average Sales Price - $318,257
• Median Sales Price - $240,850
• Average Days on Market - 120
• Price/Sq. Foot - $162.21

Ft. Myers Condominium Sales Jan-Mar 2008*:

• 273 Closed Sales
• Average Sales Price - $211,078
• Median Sales Price - $262,875
• Average Days on Market - 124
• Price/Sq.…

Imagine the surprise of many home sellers when they become aware that Fannie Mae, Freddie Mac and most of the major lender guarantors have identified their Metropolitan Statistical Area (MSA) as a declining market. Talk about a kick in the head. Like many across this country, they first had to come to terms with the fact their homes are declining in value. Now, they also must face the situation where many potential home buyers will be penalized if they attempt to buy their homes with conventional mortgage financing.

So, just exactly how do these metropolitan statistical areas get these "declining market" designations? We thought you might find a review of the situation helpful.

Fannie Mae and Freddie Mac are Government Sponsored Enterprises (GSEs) and…

Governor Charlie Crist signed the property insurance reform "Homeowners' Bill of Rights" into law yesterday. It offers a number of protections and upgrades for Florida homeowners. In his letter issued to the public, Gov. Crist said "the bill contains many important consumer protections that will help keep insurance costs more affordable for Florida's homeowners."

The law goes into effect July 1, 2008, and makes the following changes:

• Extends the rate freeze for Citizens Property Insurance Corporation, the state's insurer of last resort, to January 2010.
• Allows single-family residential homes and condominiums with a replacement value of up to $2 million into the Citizens insurance pool.
• Requires Citizens' policyholders of property located…

The January thru March Ft. Myers Beach real estate sales statistics for both homes and condominiums are listed below. Ft. Myers Beach is the "happening" locale on Southwest Florida's Lee Island Coast. Ft. Myers Beach offers every amenity you can imagine- from seven miles of wide sandy beaches, golf, boating, fishing and more than anything else - relaxing. The Beach as its known, is eclectic and diverse. It draws visitors from all over the world and you'll find all sorts of folks from generations of families to Easter Break kids. There's nothing else quite like it anywhere in Southwest Florida.

Ft. Myers Beach Sales Data

Ft. Myers Beach Home Sales Jan-Mar 2008*:

• 21 Closed Sales
• Average Sales Price - $689,500
• Mean Sales Price - $475,500
…