Havasu Home Talk

On January 15, 2010, HUD announced that it will suspend a 90-day waiting period on property resales that is putting FHA borrowers at a disadvantage when purchasing foreclosures.  Get details in the HUD announcement:

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-011

As of the beginning of this month, new regulations are changing home purchases involving loans.  A new Good Faith Estimate has been introduced – the document which gives home buyers an estimate of their settlement charges and loan terms if they are approved for a loan.

As Lonnie Stevenson of Evergreen Home Loans points out, The new GFE (Good Faith Estimate) may have ramifications on the time frame in which a transaction can be completed and any changes that may affect the deal along the way.  Any “change” to rate, fees, extensions, sales price, credits etc. could impact the ability to close the loan on time.

It has never been more important to work with reputable real estate, title, and lending institutions.  This is no market to work with rookies.

To be connected with experienced professionals, contact The Concierge Service Team at 928-854-5511.

FHA announced today, Wednesday January 20^th some pretty significant changes that will take affect over the coming months. A copy of the press release is attached and you can also access it from the FHA website by clicking here. FHA is making these changes in an effort to strengthen their financial position while also helping to finance and sell more homes. However, FHA, like most every other servicer, is still suffering losses from defaulted mortgages. Highlights of the changes are:

1. Increase the up-front Mortgage Insurance Premium from 1.75% to 2.25% - This will happen sometime this spring.

2. Increase Minimum FICO score to 580 – This will have no affect on you as most all mortgage servicers have already raised their minimum FICO score requirements to 620. This may however, trigger the servicer to increase their minimum FICO score to 640 as we’ve been hearing whispers of already.

3. Reducing the Seller concessions/contributions from 6% to 3% - This will be posted sometime in February and go into affect sometime the early part of summer.

4. Increased enforcement on FHA Lenders - There will be additional information posted along with the neighborhood watch starting in February. There will be additional enforcements. This affects mostly the way that lenders approve mortgages and we will see additional investor/industry guidelines because of this change.

With 3.5% down payment still allowed, up to 6% seller contribution, Upfront MIP only 1.75%, low interest rates (see below for our 2010 prediction on rates*), good inventory, and $8000 and $6500 Tax Credit through contracts written by April 30 2010……..NOW is the Time To Purchase.

Many thanks to Lonnie Stevenson at Evergreen Home Loans for the information above.  If you would like to contact him for loan pre-approval and prequalification, you may reach him at 928-854-9400 or lstevenson@evergreenhomeloans.com

Don’t forget to visit our MLS searching website http://HavasuHomesNow.com or click on our “Search The MLS” button on the top right hand side of our blog at HavasuHomeTalk.com