Get those Buyers off the fence.
April Fool’s Day has added significance for homebuyers using FHA financing. There are a number of changes that take effect on 4/1/2012. Buyers would be foolish not to enter into contract in March and get to their lender (preferably us) quickly to have FHA case numbers ordered prior to this date.
Here are some of the changes:
MIP increases – Up front MIP is increasing from 1% currently to 1.75% (this can still be financed).
Annual MIP (monthly portion) is increasing .1% per year. (e.g. for a 30 year, 96.5% loan to value loan the annual MIP will be increasing from 1.15% to 1.25%) For a $100,000 base loan amount, these two changes will cost the borrower an added $11.81 per month.
Other changes include:
Self Employed Borrowers – P&L and Balance Sheets will be required
Disputed accounts or Collections/Judgments:
· If a borrower has singular or cumulative disputed accounts and/or collections that are >$1,000, the accounts MUST be resolved.
· Resolved = paid in full OR payment arrangements with a minimum of 3 months verified on time payments. Payment arrangements must be included in the borrowers ratios. Must provide documentation showing the payment arrangements have been set up with the creditor and paid on time such as bank statements or cancelled checks.
· If the borrower has accounts >$1,000 as a result of Identity Theft, they must provide a copy of the police report and other satisfactory documentation supporting the identity theft and then these accounts will not need to be paid or counted in their ratios.
· Judgments need to be paid in full UNLESS the borrower has set up satisfactory payment agreements with the creditor and has paid a minimum of 3 on time payments
· The borrower CANNOT pay down collections/judgments or disputed accounts to under $1,000 to avoid having to pay them off or make payment arrangements
Identity of Interest – Added definition of a family member now includes: step children, step siblings, aunt uncle, step grandparents.
Call or email us for additional information that could save your buyers money and make you a hero in their eyes!
Jay, Ralstin, Hancock Bank, 850.325.3159 -Office or 850.509.1154-Cell
Rates and payments are based on loan amounts of $150,000. Conventional programs are assuming an 80% loan to value, however higher loan to value options (up to 95%) are available, with private mortgage insurance, to qualified borrowers. Adjustable rate mortgage options are not published due to APR calculation complexity but pricing of these products is available upon request