With FHA restructuring its mortgage insurance premiums on October 4th, it’s probably time to take a look at other financing options. Many folks don’t realize that Fannie Mae and Freddie Mac offer low down payment options too. For example, Fannie Mae’s My Community Mortgage allows qualifying borrowers to buy a home with only 3% dow...Read More
Starting Monday HUD has new standards for borrowers who want to replace two loans with a single FHA mortgage.
The old rule worked like this: Since 2007 the FHA has said borrowers could refinance a conventional first loan regardless of the amount of any second lien.
“If the new maximum FHA loan is not enough [......Read More
As the FHA starts its short refinance program today, we’re left wondering how effective this program can be when it relies upon mortgage lenders being willing to write off a minimum of 10 percent of their loan balances. And then there are the private mortgage insurance companies, who will be left holding the bag for [......Read More
I read a lot about the hopes and dreams for higher home prices and it raises the issue of just how such prices will be obtained.
To have a marketplace with rising home values you have to first have sufficient cash or credit to purchase, two items which are plainly lacking for many would-be home purchasers.
To [......Read More
If you’re looking for a sign that real estate markets are beginning to rebound you certainly won’t find it in the July sale figures.
The National Association of Realtors reports that existing-home sales in July dropped 27.2 percent from the June, a decline of notable size.
“Sales,” says NAR, “are at the lowest level s...Read More
Homeowners struggling with mortgages of more than their homes are worth are said to be “underwater.” We’ll continue the marine theme by pointing out that in spite of FHA’s good intentions, its short refinance program is likely to function as an anchor rather than as lifesaver, tossed to drowning homeowners who can’...Read More
Over the weekend there were big doings in Washington. Duel demonstrations on the anniversary of the “I have a Dream” speech by Dr. Martin Luther King showcased many of the divisions which continue to separate our political thinking.
Meanwhile, on CNN’s “State of the Nation,” HUD Secretary Shaun Donovan told interviewer...Read More
Writing in the Financial Times, economist Charles W. Calomiris suggests that we raise down payment standards by 1 percent per year until all loans require 20 percent down.
Calomiris, the Henry Kaufman Professor of Financial Institutions at Columbia Business School, says in time “FHA mortgage guarantees would end, Fannie and Freddie’s assets w...Read More
For home buyers, housing news is both good and not so good with MSNBC reporting prices of existing homes falling to 15 year lows and ongoing coverage of FHA mortgage insurance premiums being raised. For those buying their first homes, the combination of lower home prices and lenient FHA guidelines can make buying a home [......Read More
There seems to be a considerable amount of confusion regarding the new FHA loan fees scheduled to start in October and how they will impact individual borrowers.
The Wall Street Journal headlines that “Red-Ink Fears Prompt Mortgage Backer to Raise Fees.”
The FHA, says the paper, “will raise annual insurance premiums to as high as ...Read More
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