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Until now, purchasing a property from an investor who has owned the property for less than 90 days has required you to forego FHA financing. Late last week, HUD announced that beginning February 1st, they are waiving this 3 month seasoning requirement. As of this writing, it will stay in effectfor one year (through January, 2011). What this means is that you can now buy property flips with FHA loans. As per FHA's rules, this waiver is limited to those sales meeting the following general condi... Read Full Post

On two different occasions yesterday, two separate clients of mine asked me if there are salary limits to qualify for FHA loans. The short answer is no. Fha has been overhauled over the past few years to really fill the void left by conventional financing provided through Fannie Mae or Freddie Mac. That is to say, conventional financing tends to be much more limiting than FHA, particulary with respect to loan-to-value (LTV), private mortgage insurance (PMI) and credit scores. For example: -Fa... Read Full Post

In a move to step up the number of existing loans being modified, the administration announced new plans to pressure lenders into modifying more loans. According to the Washington Post, less than 1% of applicants have succedded in having their loans permantly modified. This falls far short of the administration's projections. The sluggish economy has not helped matters, with an increase in unemployment limiting many home owner's options. It's important to note that although lenders may be wil... Read Full Post

Although showing signs of recovery, the real estate market continues to undergo corrections. According to an article in The Wall Street Journal, one in four home owners owe more on their mortgage than their property is worth, also called negative equity. Negative equity is a bigger problem in areas across the country that had the largest increase in property value over the past several years. States like California, Nevada, Arizona and Florida are now experiencing collapsing values and home o... Read Full Post

Did you know that 1 in 7 mortgages are delinquent or in foreclosure? According to Reuters, 14% of home owners in the United States have been in foreclosure sometime in the past fiscal quarter. For perspective, it's important to note that the flip side of that figure means that 86% of homeowners are in good standing. An increase in unemployment and a protracted recession are being blamed for this rise in mortgage delinquencies. While the link to the weak economy makes sense, it's discomforting... Read Full Post

Yesterday marked the first day of FHA's revised guidelines for the streamline refinance program. The streamline program allows homeowners who currently have FHA loans to refinance into another FHA loan with heretofore reduced reduced documentation (ie. no appraisal, no asset check, etc). As of November 18th, however, any FHA case number issued for a streamline refinance will have to adhere to the following: *Employment and income will have to be verified *Credit scores will have to be disclos... Read Full Post

This week, Federal Reserve Chairman Ben Bernanke went on record with words of encouragement for the mortgage and real estate industry. Bloomberg quotes Bernanke as pledging to help keep rates low for an "extended period". Investors have been waiting for this type of long term commitment from the Fed. Heretofore, the duration of todays low rates has been unpredictable. Nobody knew how long they'd last as illustrated by the late May spike in interest rates. At that time, investors fled from the... Read Full Post

The number of foreclosures doubled over the past 12 months in the DC metro area. According to an article in The Washington Post, just under 3 percent of local home owners are facing foreclosure proceedings from their mortgage holders. Prince Georges and Charles Counties in Maryland as well as Prince William County in Virginia have the larges number of mortgage holders in arrears. That said, the Washington metropolitan area is still in far better shape than most other areas throughout the Unit... Read Full Post

Have you heard the First Time Home Buyer Tax Credit has been expanded and extended? The details of the tax extension, due to be signed by the President today, 11/6/09, are as follows: *Recipients of the tax credit must ratify a contract no later than May 1st and close on their purchase no later than June 30, 2010. *The tax credit gives up to $8000 for first time buyers (defined as not having owned a home for the past three years). *This revised version also allows up to $6500 credit for move-... Read Full Post

Often, home buyers put the cart before the horse. Specifically, the cart is the home search and the horse represents the mortgage financing. If you're considering buying or refinancing a property, the first step is to contact your lender- not your Realtor- as this approach will lead to a less stressful, more efficient home buying experience. If you haven’t been in the market for a mortgage in the past 24 months, you’ll notice a more detailed process is in store for you as the mortgage ind... Read Full Post