FHA loans continue to have a front-end max housing payment debt ratio up to 47% and a max TOTAL debt to income ratio of 57% with compensating factors; as of the time of this posting.

If you would like further information on what this means to you and qualifying for a loan, please contact me today.

Look forward to the next posting from Jeff Cook – the CA Mortgage Guy!

Here are 5 Things You Need to Know about the New Condo Approval Process:

1. The new temporary changes and updates are effective on December 7, 2009 through December 31, 2010; with the exception of the spot approvals.
2. Spot approvals will be eliminated effective February 1, 2010.
3. FHA loan concentration within a project or development may be increased to 100% as long as the following criteria are met: A) Project construction has been 100% complete for at least 1 full year. B) All units within the project have been sold and no single entity owns more than 10% of the units. C) Development or project HOA holds 10% of the budget in reserves for capital expenditures and deferred maintenance. D) Control of the HOA (Home Owner’s Association) has been transferred to the owners of the units; and E) Owner-occupancy is a minimum of 50%.
4. Although FHA requires a 50% owner-occupant ratio, bank owned units that are either vacant or tenant-occupied are no longer required to be included in the ratio calculation.
5. New construction project’s/development’s pre-sale requirements are temporarily reduced to just 30%.

Over 50% of all loans nationwide today are now processed through FHA.  Know that your lender knows and understands FHA! Skyline Financial Corp, which powers the CA Mortgage Guy, is proud to be directly endorsed by the US Department of Housing and Urban Development (HUD) to originate, underwrite, process, fund and deliver FHA insured home loans.  Year to date 2009 we have funded millions of dollars in FHA loans for hundreds of California home owners!!

Contact the CA Mortgage Guy today for your FHA financing needs or any questions on FHA you may have!

Look forward to my next posting!

Here are the Top 10 Streamline FHA Refinance Updates You Need To Be Aware Of:

1. The current loan must have a minimum of 6 months seasoning (at least 6 mortgage payments must have been made to date).
2. On current loans with 6 to 12 months of seasoning, there must be NO 30-day late payments.
3. Current loans with 12 months or greater of seasoning can have a maximum of only ONE 30-day late payment within the past 12 months.
4. The Streamline FHA refinance MUST reduce the PITI (Principal, Interest, Taxes and Insurance payment) by 5% OR be going from an ARM to a Fixed Rate program (fixed rate cannot be more than 2% higher) OR be going from a Fixed Rate to an ARM (new ARM program MUST be 2% less than the original Fixed Rate).
5. If the borrower is reducing the term of the loan, it MUST be processed as a regular rate and term refinance.
6. Investment properties and 2^nd homes are NO LONGER ELIGIBLE for the Streamline FHA refinance program.
7. The lender providing the Streamline FHA refinance must include a signed and dated letter on their letterhead which states that the borrower is employed and has current income.
8. The maximum CLTV (Combined Loan To Value) is 125% of the new value OR the original value is the loan is being processed WITHOUT and appraisal.
9. The lender should NOT utilize the FHA TOTAL Scorecard system on Streamline FHA refinances UNLESS they want to process the loan as a regular rate and term FHA refinance.
10. The mortgage payoff statement on the current mortgage CANNOT include any delinquent interest, late charges or escrow shortages.  The loan must be current.

These are just a few of the changes coming down the pipeline from HUD on changes within the FHA guidelines – for regular FHA refinances, Streamline FHA refinance and also FHA purchase.  More info on additional changes coming in my upcoming blog posts so make sure and to follow the The CA Mortgage Guy by looking to the right for: Follow Me On The Web – and submit your email address today!

Look forward to my next posting!