Tag FHA Loans

Tag FHA Loans

FHA One-Time Close Construction Loan

John Thomas April 23, 2019 Tags: , , ,
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Is a FHA One Time Close Construction Loan right for you?

Two isn’t always better than one. Let me explain.

If you’re building your house from the ground up, you’ll most likely take a construction loan followed by a permanent loan. This scenario will require you to have 2 loans, which means you’ll have 2 start dates and 2 closing dates—which means you’ll pay for 2 separate closing costs!

An FHA one-time close construction loan, however, will allow you to have your home built and financed just under one loan. It’s simpler and more cost-efficient and you end up with a FHA Loan with a 30 year fixed rate when all is said and don Keep Reading...

FHA Mortgage Insurance Premium Dropping January 26, 2015

John Thomas January 10, 2015 Tags: , , ,
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FHA MI Premiums 1-2015

FHA Mortgage Insurance Premium Dropping January 26, 2015

FHA Mortgage Insurance Premium being lowered on all new FHA Case Numbers assigned on or after January 26, 2015, as announced by HUD Secretary Julian Castro on January 8, 2015, per an executive order by President Obama.  FHA will reduce the annual mortgage insurance that borrowers will pay by 0.5%.  FHA made this official with the publication of the Mortgagee Letter 2015-01. Call 302-703-0727 to Apply for an FHA Loan or APPLY ONLINE

Below is a table that shows the changes to the annual mortgage insurance premiums for FHA Loans:

The Highlights of the New Rule are as follows:

• The annual premium is Reduced by 50 basis points (0.5%) on both purchase and refinance transactions.
• Applies to all FHA loans w/ terms greater than 15 years
• There is no change in premium on 15 years or shorter terms
• All loan types are affected except streamline refinances that are refinancing existing FHA loans endorsed before May 31, 2009
• Hawaiian homelands (Section 247) are also excluded.
• There is no change to the upfront premium (1.75%) or the life of loan requirement

FHA Streamline Refinance with New Lower Mortgage Insurance

Anybody that has gotten an FHA Loan since 2012 could probably save hundreds of dollars per month by refinancing their FHA loan with an FHA Streamline Refinance to lower the rate and lower their monthly mortgage insurance by taking advantage of this new rule.

This change to the annual mortgage insurance premium will be seen by a borrower in a lower monthly mortgage insurance premium on their mortgage payment.  This could be a savings of $80 to $100 per month for borrowers using an FHA loan to purchase a home.

If you would like to apply for an FHA Loan to purchase or refinance a home in Delaware, Maryland, or Pennsylvania please call the John Thomas Team with Primary Residential Mortgage at  302-703-0727 or you can APPLY ONLINE.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

FHA Update – FHA Announces Increase in MI Effective April 1, 2013

John Thomas February 2, 2013 Tags: , , ,
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In Mortgage Letter dated 01/31/2013, HUD  announced that the Federal Housing Administration (FHA) will increase its annual mortgage insurance premium for most new mortgages by 10 basis points or by 0.10%, and FHA will increase premiums on jumbo mortgages ($625,000 or larger) by 5 basis points or 0.05%.  It will also change the MIP from canceling at 78% LTV to being for the life of the loan on most FHA loans as of June 3, 2013.  You can read the letter at http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf

In addition, FHA will:

  • require most of its borrowers to continue paying annual premiums for the life of their mortgage loan
  • require lenders to manually underwrite loans for which borrowers have a decision credit score below 620 and a total DTI ratio greater than 43%
  • announce a proposed increased down payment requirement for mortgages with original principal balances above $625,000. The minimum down payment for these mortgages will increase from 3.5% to 5%
  • increase its enforcement efforts with regard to aggressive marketing “misleading” borrowers who have had previous foreclosures with the “false pretense” that they can “automatically” qualify for an FHA-insured mortgage three years after their foreclosure.
  • Keep Reading...

    FHA Update – Provisions for Condo Project Approval Process

    John Thomas September 18, 2012 Tags: , , ,

    In order to address current housing market conditions, HUD has published Mortgagee Letter 2012-18, which highlights important changes to the current condominium guides.

    Here are the 7 things you need to know about these changes
    1. These changes are in effect from September 13, 2012, until August 31, 2014, unless extended.

    2. Under construction is defined as (1) a new development in which construction has been started but is not yet completed or in which units are completed but are less than 1 year old (existing < 12 months old); or (2) gut rehabilitation conversions. The definition of “under construction” applies to legally phased developments.

    3. For newly converted condominium conversions, at least 50 percent of the total units in the project must have been conveyed or be under a bona fide contract for purchase to owner-occupant principal residence purchasers.

    4. A developer may own up to 50 percent of the total units at the time of project approval.

    5. No more than 15 percent of the total units can be in arrears (more than 60 days past due) on their condominium association fee payments. This does not include late fees or other administrative expenses. The 15 percent includes all units (occupied, investor, bank owned and vacant). There will be no exception requests granted.

    6. Unoccupied and unsold units owned by a builder/developer are not considered as investor-owned and subject to the requirements unless the unit is currently rented or has previously been occupied.

    7. For Proposed, Under Construction (including existing < 12 months old) or Gut Rehab Conversions, FHA will allow a minimum owner-occupancy percentage equal to 30 percent of the declared units. Legally phased projects must meet 30 percent presale and 30 percent owner occupancy requirements.

    Click here to read the full 12-page Mortgagee Letter in its entirety.

    If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

    John R. Thomas – NMLS 38783

    Certified Mortgage Planner – Primary Residential Mortgage, Inc.

    302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

    248 E Chestnut Hill Rd, Newark, DE 19713

    President Obama Announces Reduction in FHA Streamline Refinance Fees on March 6 2012

    John Thomas March 6, 2012 Tags: , ,

    FHA Streamline Refinance Fees are being lowered to help more people be able to take advantage of the FHA streamline refinance program, this was announced by President Obama on March 6, 2012, but won’t be effective until an FHA Mortgage Letter is released. The fees being lowered are the FHA Mortgage Insurance Premiums. The FHA streamline refinance program allows borrowers that have been current on their mortgage in the last 12 months to refinance without getting an appraisal or verifying income. This is a huge benefit to borrowers that may be underwater on their FHA mortgage. Call 302-703-0727 to take advantage of the FHA Streamline Refinance or APPLY ONLINE.

    John R. Thomas Explains the FHA Streamline Refinance MI Announcement

    The big benefit announced was that the upfront mortgage insurance being charged is being lowered from 1% of the mortgage loan amount to only 0.1%. They are also lowering the monthly mortgage insurance premium from 1.15% to only 0.55%. These two changes could save borrowers potentially thousands.

    The only downside to the program which is a BIG ONE is that it is only available for borrowers who currently have an FHA loan that was originated before June 1, 2009. This is leaving a lot of people out who could really benefit and in my opinion, is a dumb move on the part of the White House. Here is why, the Monthly MI premium wasn’t increased until October 1, 2010 so why would you leave out all the people who got loans at 0.55% monthly amount who can’t refinance right now as they would have to take the higher MI premium at 0.55% just because they had a loan that was originated from June 1, 2009 till October 1, 2010?

    If you do have a loan that was originated before June 1, 2009 or would like to find out if yours was, give me a call at 302-703-0727 or APPLY ONLINE and we will give you a free analysis for an FHA Streamline Refinance.

    John R. Thomas – NMLS 38783

    Certified Mortgage Planner – Primary Residential Mortgage, Inc.

    302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

    248 E Chestnut Hill Rd, Newark, DE 19713

    FHA Announces Increase in MI Effective April 9 2012

    John Thomas March 2, 2012 Tags: , ,

    FHA Announced Increase in MI Effective April 9, 2012

    FHA announces it is increasing the upfront mortgage insurance premium and the yearly mortgage insurance premium effective April 9, 2012. The Guideline changes are discussed below in the video by John R. Thomas from Primary Residential Mortgage.  Call 302-703-0727 if you would like more information or apply for an FHA Loan for the purchase or refinance of home or APPLY ONLINE.

    New FHA Mortgage insurance Guidelines Effective April 9, 2012, by John R. Thomas from Primary Residential Mortgage

    HUD/FHA is making the following guideline changes effective with FHA case numbers pulled on or after April 9, 2012:

    Upfront Mortgage Insurance
    Current Upfront MI = 1.0%
    New Upfront MI = 1.75%

    Yearly MI (Collected Monthly)
    Great than 95% LTV:
    Current MI = 1.15%
    New MI = 1.25%

    95% or Less LTV:
    Current MI = 1.10%
    New MI = 1.20%

    FHA implements these changes by issuing a mortgage letter which they have done called FHA Mortgage Letter 12-4. If you would like to apply for an FHA Loan before these changes take place call 302-703-0727 or APPLY ONLINE.

    John R. Thomas – NMLS 38783

    Certified Mortgage Planner – Primary Residential Mortgage, Inc.

    302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

    248 E Chestnut Hill Rd, Newark, DE 19713