Some changes are expected for the FHA terms and conditions at mid 2013. Some of the changes have already took place at April 2013 (increase in PMI) now more changes are expected. Read below and watch the clip to see how the 2013 changes affect your mortgage.
We have gathers items to sum up the upcoming FHA changes. Here is Courant example of PMI increase:
How does this price increase stack up to private mortgage insurance? On a $200,000 mortgage, borrowers who put at least five percent down and use private mortgage insurance can save more than $120 per month over FHA. This equates to thousands saved over the life of the loan, with lower monthly mortgage payments and higher equity from closing day forward. Read more..
FHA Insurance Cancellation June 2013
Note that FHA insurance guidelines changed for new (2013) FHA purchase and refinance loans.
Free Rate Update brings the FHA Cancellation changes and how they will affect mortgage borrowers.
Effective June 3, 2013, the annual mortgage insurance premium for FHA mortgages will no longer be based on a loan to value criteria of 78%. Cancellation of FHA MIP will be eliminated for loans that have a beginning LTV of 90% or more. For these loans, MIP must be paid for the entire term of the loan, in other words, forever. For loans that have a beginning LTV of 90% or less, the annual mortgage insurance premium will be required for 11 years. See more..
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With the housing market appearing to rebound over the past year, many buyers are wondering if now the is the time to purchase that new home they’ve had their eye on, or if it is time to shop around for what might be available in the area. The good news for buyers is that the mortgages rates have been declining and aren’t expected to get much higher in the coming months. The bad news, however, is that pricing values have begun to steadily rise up the charts and are expected to continue to increase in the foreseeable future.
With that said, you must decide whether you would like to risk waiting in hopes of getting a lower mortgage rate and hope the prices go down, or you can take action knowing what you now know.
Depending on where you buy, now is definitely the right time to purchase a new home. According to the New York Times, “Economists in recent interviews agreed that the rate for a 30-year fixed mortgage was unlikely to rise much above 4 percent this year. House prices, however, are rising nearly everywhere, and nowhere as rapidly as in the Sunbelt states.”
Good Time To Buy and Sell Houses
After seeing mortgage rates dip to a low in April, it would be hard to think that it will continue to get even better before rebounding, and with housing prices starting to climb, then you have to think that now is the time to buy. You may also wonder if now is the time to sell your property if you were thinking about it, but you may want to hold off until prices increase even more.
The median price of homes is increasing much faster than the mortgage rates have been dropping, and even if mortgage rates do start to rise, they won’t rise nearly at the rate seen over the last year.
The growth rates aren’t as high in the east and Midwest as they are on the west coast, but nationally, the prices are climbing. San Francisco has seen home values increase 14% in the last year, and Phoenix has seen a meteoric rise of 23%. Both of these numbers should cause a sense of urgency for buyers that now is the time to pull the trigger instead of waiting for prices and mortgage rates to go back into territories that will be hard to afford.
Better Position to Put Down the Down Payment
“When rates are rising, it’s because the economy is improving,” Jed Kolko, the chief economist of Trulia.com said, “so buyers are in a better position to put down the down payment and qualify for a mortgage.”
According to the New York Times, “Despite an upward trend over the last few months, the 30-year rate is unlikely to rise beyond 3.75 percent “for the foreseeable future,” said Keith T. Gumbinger, the vice president of HSH.com, a financial publisher, Stan Humphries, the chief economist of Zillow.com, agreed.” However, it is better to take advantage of the low rates now instead of taking the chance. The national average for a 30-year fixed-rate mortgage was 3.52 percent, according to Freddie Mac’s weekly survey released on Thursday, up from 3.51 percent the previous week. Expect these numbers to continue in that direction.
Remember, a positive impact takes months to reflect on the market, while a negative impact can be felt right away. Don’t wait for another negative surge in the market, strike while the iron is hot or you might regret your decision a few years down the road if anything negative were to happen.
Angie Picardo is a writer for NerdWallet, a personal finance website that offers advice on how to navigate financial decisions from purchasing a new house to finding the best options for Miami airport parking.
Once upon a time.. No Money Down Home Loans were a very common way to buy a home, but then can the 2008 depression and swept of these No Money Down Home Loans away. Today at 2013 there are no more such mortgages offered to the public. But there are some gems worth searching for and if qualified can be as close as you may ever be to No Money Down Home Loans at 2013.
MSN has placed the FHA as the first place to look for low to no money down home loans:
The Federal Housing Administration is the first place most new homebuyers should look when contemplating a low-down-payment mortgage. The FHA requires a down payment of as little as 3.5% — with attractive mortgage rates and credit requirements that are fairly generous as well.
The downside of an FHA mortgage is that the fees — actually FHA mortgage insurance — can add up. Currently, borrowers pay a one-time fee of 1.75% of the amount borrowed as an upfront mortgage insurance premium at the time they take out the loan. In addition, there’s an annual insurance premium of 1.20% to 1.25% on 30-year mortgages.
So in the first year, you can end up paying nearly as much in mortgage insurance as you paid for a down payment. However, you can roll the cost of insurance into the loan, so you’re paying it on a monthly basis over time, rather than having to come up with it all at once, as you would with a down payment. Check more here..
Army and Navy No Money Down Home Loans
Navy Federal Credit Union has ‘no money down home loans’ programs.
The Navy Federal Credit Union 100% Financing
BankRate brought Navy Federal Credit Union 100% Financing as one of the lowest down payment mortgage offers for 2013:
Navy Federal Credit Union, the nation’s largest in assets and membership, offers 100 percent financing to qualified members for buying primary homes. Credit union eligibility is restricted to members of the military, some civilian employees of the military and U.S. Department of Defense, and family members.
Navy Federal resumed zero-down financing in 2010 after a hiatus of a couple of years. Barbara Sheehan, Navy Federal’s assistant vice president for mortgage products, says when members of the military are transferred, they sometimes own houses whose values have fallen, wiping out equity.
“Some people had to take losses to sell their houses, so to have to start over and save the money again for a down payment is really difficult,” she says.
The credit union’s zero-down program is similar to the VA’s. One difference is cost: Navy Federal’s funding fee of 1.75 percent is less than the VA’s funding fees. See source..
Early in 2010, Treasury announced that the Hardest Hit Fund® would provide more than $7.6 billion in aid for homeowners in states hit hardest by the economic crisis. Since then, state housing finance agencies have used the fund to develop programs that stabilize local housing markets and help families avoid foreclosure. Hardest Hit Fund programs complement the Making Home Affordable Program but are not limited to homeowners eligible for Making Home Affordable. See more..
Hardest Hit Housing Fund HHF Explained
Hardest Hit Program Not Helping Enough Homeowners
The Hardest Hit Housing Program is intended to assist 18 states across the country. USAToday has covered the obstacles with the current Hardest Hit Program:
The federal Treasury Department, which oversees the Hardest Hit Fund, points to several obstacles in getting the money into the hands of homeowners:
Setting up the organization’s infrastructure in Washington and the 18 participating states most affected because of deep home-price declines and high unemployment.
Making themselves known to the homeowners, financial counselors and lending institutions.
Soliciting homeowners who want help.
“There are a number of states where we are still seeing homeowners really reluctant to reach out for help,” said Andrea Risotto, Treasury spokeswoman.
Homeowners who did apply early on were discouraged because they were rejected on eligibility requirements, she said. Since then, individual states have revised their programs to include a broader range of people.
Many who were rejected could qualify if they applied again. Read more..
If you live in one of these states or DC:
Here is the link to the US Treasury explaining each state and the contact information regarding qualifying for the program.
There are times in life when bad luck hits you bluntly in the face. Having a mortgage and being unemployed is such a case. Thousands of Americans have found out that their home value has sunk deep, their mortgage payments are coming as scheduled, but then the worst case scenario happens and the homeowner looses his job.
Losing a Job and Having Mortgage To Pay
Is the Home Affordable Unemployment Program for you? Here are the criteria as posted by the Make Home Affordable site:
You may be eligible for UP if you meet all of the following criteria:
You are unemployed and eligible for unemployment benefits.
You occupy the house as your primary residence.
You have not previously received a HAMPSM modification.
You obtained your mortgage on or before January 1, 2009.
You owe up to $729,750 on your home.
*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you are eligible for UP. See more.
More On Programs To Help You Pay Mortgage When Unemployed
Chase Bank – Home Affordable Unemployment Program
Here are the guidelines for the Chase BankUnemployed Assistance Relief Program:
During this time, you are provided a temporary relief in the form of reduced monthly repayments while you are on the lookout for a new job. This relief is termed as forbearance.
According to the recommendations of this program, you are not liable to pay more than 31% of your total monthly household income towards your home loan. It is applicable for up to 12 months or till the time, you find a new employment. Chase Bank is however very customer friendly bank and it reviews your mortgage, 30 days before the forbearance period is over to check if you are eligible for an extension of this relief. You can also consider the Home Affordable Modification Program. In case, you don’t qualify for any of the above, Chase Bank will still provide you help to avoid foreclosure.
For the eligibility criteria and other details about this program, you can call Chase Bank home loan support at1-866-550-5705. See Source..
Losing a job and having mortgage payments can wreck any family, which has to deal not only with the stress of finding a job, but also the fear of loosing their home back to the bank. Home Affordable Unemployment Program was developed to help at exactly these incidents.