FHA Anti-Flipping Rules Change

June 27, 2008 by Carl Chapman · Leave a Comment 

Great news for investors interested in acquiring, rehabilitating and reselling foreclosed houses: The Federal Housing Administration has temporarily waiving its “anti-flipping” rules and will now insure mortgages on properties that have been owned by the current seller for less than 90 days. Call me to learn more. 623-979-5962.

Changes in FHA Loans

June 17, 2008 by arizonan · Leave a Comment 

Big changes for those getting FHA loans. For the first time in history, FHA will take credit scores into account. I have attached the details for those who like to know all the details!  These guidelines are effective as of July 14th, 2008.

  • Borrowers need either no score, or at least 500, to get a LTV >90%; see matrix below. 
  • Borrowers with a score less than 500 get a maximum LTV of 90%.
  • Borrowers without scores will require manual underwriting.
  • Upfront Mortgage Insurance Premiums will range from 1.25% - 2.25%, based on score.
  • The Monthly Mortgage Insurance will range from .50% to .55% depending on score.
  • The premium is based on the borrower with the lowest score. 
  • If one of the borrowers has no score, then the Non-Traditional credit grade is used.
  • Credit rescoring is allowed to improve a borrower’s credit grade.
  • All FHA Secure refinances >95% LTV with delinquencies have a 2.25% UFMIP and .55% MMI.
  • Cash-out, rate & term, and non-delinquent FHA Secure refinances are included in this chang

 

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