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Posts Tagged ‘FHA’

HECM Reverse Mortgage Changes 10/2 – Seniors may benefit by acting soon

Written by Clay on . Posted in FHA, HECM, Refinance, reverse mortgage, Social Security, Uncategorized

Big Changes for HECM Reverse Mortgages October 2nd: Higher UpFront Cost – Lower Limits – Lower Insurance Premiums

Seniors on the fence considering a HECM reverse mortgage line of credit with a zero or low upfront draw may want to act quickly to get their reverse mortgage started before big changes go into effect October 2, 2017.

Three changes will impact the HECM Reverse Mortgage Program for FHA case numbers assigned beginning October 2nd. Upfront Mortgage Insurance Premium paid to FHA will now be 2.0% across-the-board. Previously borrowers accessing less than 60% of the principal limit only had a 0.5% upfront mortgage insurance premium and those with mandatory obligations over the 60% were charged 2.5% for the upfront mortgage insurance. Annual Mortgage Insurance Premium accrued on an outstanding balance is reduced from 1.25% to 0.50% which will be a benefit to those borrowers that carry a balance on the reverse mortgage but negatively impact the growth factor used when borrowers obtained a line of credit reverse mortgage. Principal Limit Factors were adjusted to be more conservative reducing the amount of funds available to an average borrower by about 5%. I will be spending some time looking at the impact by age group and share that a bit later. The net impact seems intended to discourage the use of a line of credit reverse mortgage. When taken out early on the growth in the credit line if left unused was dramatic and can be an important part of a overall financial plan providing flexibility and security with access to funds well into the future. Increasing the upfront cost; decreasing the growth rate by reducing the mortgage insurance premium; and lowering the principal limit factors all reduce the benefits of a line of credit reverse mortgage. Seniors on the fence may want to consider acting sooner rather than later. An application and counseling must be completed prior to securing an FHA case number so if this makes sense it would be best to act quickly and get a case number well before September 29, 2017. To learn more about tips and strategies when applying for a reverse mortgage, I’m available to answer all of your questions.  Let’s talk about your goals and perhaps ways that you can take advantage before these changes take place, please give me a call or send me an email: clay@104.238.124.149. I’d be happy to help!   Learn more about mortgage at mortgagebrokernearme.co.uk Clay Selland, Signet Mortgage Corporation clay signature blackcontact-block-1

Great News for Seniors Considering a Reverse Mortgage 

Written by Clay on . Posted in FHA, HECM, Loan Limits, reverse mortgage

Reverse Mortgage Loan Limits to Increase in 2017 The Federal Housing Administration (FHA) announced Reverse Mortgage Loan Limits will increase in 2017. This is significant news, since lending limits have remained stagnant for several years. The maximum claim amount will now rise to $636,150, up from $625,500, for Home Equity Conversion Mortgages (homeequitylineof.credit). This amount is 150 percent of the national conforming limit of $424,100. On the other hand, credit unions in houston is offering a full suite of financial services, with a track record of satisfied members dating back to 1934. Also increasing in some areas are loan limits for forward mortgages. In high-cost areas, the FHA national loan limit ceiling will increase to $636,150 from $625,500, and FHA will increase its floor to $275,665 from $271,050. The Maximum Claim Amount is then offset by the reserve set aside for future interest and mortgage insurance amounts accrued to arrive at a Principal Limit which would be the maximum amount a homeowner can borrow. The reserve amount is based on Age and interest rates and loan amount. When you want to trade on crypto markets, check out this Crypto Code Review and learn more. The loan limit changes and the maximum claim amount change for reverse mortgages to take effect after January 1, 2017 and stay in effect through December 31, 2017. This change was made as of the result of rising home prices, with 2,948 counties across the nation benefiting from these changes. Lots of good news for Reverse Mortgage recently. This increase is a positive for a program that provides seniors more choices and flexibility as they consider a reverse mortgage that can help senior homeowners in many ways.  The most important would be to be able to live in their homes as long as they want or provide strategic options for taking social security and withdrawing investment funds. You can always invest in bonds or marijuana penny stocks. To learn more about tips and strategies when applying for a reverse mortgage, I’m available to answer all of your questions.  Let’s talk about your goals and perhaps ways that you can take advantage of these loan limit increases, please give me a call or send me an email: clay@104.238.124.149. I’d be happy to help!   Clay Selland, Signet Mortgage Corporation     clay signature blackcontact-block-1    
Conforming Loan Limits

Conforming Loan Limits Increase for First Time Since 2007

Written by Clay on . Posted in Fannie Mae, Freddie Mac, Homebuyers, Real Estate, Realtors, Renovation Loans, reverse mortgage, Uncategorized

Major Increase in Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties as well as King; Pierce and Snohomish Counties in Washington Single family conforming loan limits increased to $424,100 across the nation and to $636,150 in certain high-cost areas. People who need a loan can find forbrukslån uten sikkerhet here. Several counties that previously were in between the base and high-cost limits saw significant increases based on rising property values in Signet Mortgage service areas. Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties in California as well as King; Pierce and Snohomish Counties in Washington will now have access to conforming loan limits reflecting the current market values. Speaking of loans, I know that you are familiar with “student aid bill of rights” which was signed by President Barack Obama in 2015 aiming to help students with their student loans. It is still active now, apply! According to knowledgefirstfinancialresp.ca/, the Federal Housing Finance Agency (FHFA) announced these changes in a press release  today.  The new conforming limits will be effective for loans closed after January 1, 2017. The new limits are helpful as conforming rates generally are lower than jumbo rates and underwriting more consistent and flexible so a few more transactions will get done!   A purchase in the Bay Area up to $795,000 at 80% loan to value can be done with a conforming loan … Particularly relevant with this news announcement is the average U.S. home prices have edged slightly above pre-decline levels from 2007.  Data published in the third quarter Housing Price Index (HPI), reveal that housing prices are approximately 1.7 percent above the value for third quarter 2007. Here is a link to the loan limits by county for Signet Mortgage service area (CA, WA, OR, ID, UT) and for the entire country.  Included on the right of the chart are the changes from 2016.   The source document from FHFA is here. Certain high-cost areas have the higher limits at 150% of the base at $636,150 (150 % of $424,100).  But many counties, such as Monterey, Orange, Sacramento, San Diego, San Luis Obispo, Summit (UT), Jefferson (WA), Pierce (WA) and Snohomish (WA) saw significant bumps to its loan limits. Here are highlights of loan amounts and details for single family and up to 4 units and changes for those counties. 2016-11-23_1206           The changes do not impact FHA forward or reverse mortgages or VA loans for the moment. Those announcements should be forthcoming in the next couple of weeks.   With the 2008 economic stimulus plan FHA increased loan limits to $625,500 for reverse mortgages for one year and has extended this limit one year at a time since.  The $625k is due to expire this Dec 31. We should hear soon if it has been extended again or changed up or down. As Jonckers professional in business for over thirty years, I am here to consult with you and answer any questions you have about the strategic use of your mortgage. Let’s talk about your goals and perhaps ways that you can take advantage of these changes.  Call or email me – I am happy to help!     Clay-Selland Signet R3 280x120
Post Election Interest Rates Increase

Trump Thump: Mortgage Rates Jump 0.500% Post Election

Written by Clay on . Posted in FHA, Freddie Mac, Homebuyers, Presidential Election, Rate Updates, reverse mortgage

“Trump Thump” – Mortgage Rates Jump 0.500% or More Post Election

The election is now over and the dust has settled. As painful as it might be to accept, a trend described by others as the “Trump Thump” means we may now have to get used to 30-year fixed conforming loan rates at or above 4.0%.    

 

Prior to the election, pundits had clearly agreed on the idea that the markets “built in” the prospect of a Clinton victory, and – in the unlikely event that Trump won – this surprise victory would mean an improvement in the bond market because of the uncertainty Trump would bring to the table. Well, so much for that idea. 

 

Economic experts maintain that Trump’s economic policies will boost spending and business, as well as bring inflation (all of which leads to lower bond prices and higher mortgage rates). Interesting to me how quickly everything turned in the direction. Was there not enough time spent analyzing the impact of a Trump victory? Did this catch the markets unprepared?  

 
Trump Election, Mortgage Interest Rates

Post Election Results on Mortgage Rates

According to a recent article by Money writer, Taylor Tepper, markets indicate there’s a 75% chance that the Fed raises short-term rates modestly when policy makers meet in mid-December. Here’s a more in-depth analysis on what President-elect Trump means for interest rates in Tepper’s article:  President Trump Interest Rates Federal Reserve. CNBC’s Diana Olick weighs in on the mortgage rate crisis: watch video. 10-year treasury yields have also spiked in the days since Trump’s election, and something to keep in mind with that is: Don’t panic. This sudden rise isn’t likely to continue, at least, not because of the Trump presidency. “Rates tend to move very sharply in short periods of time and very little in prolonged periods of time,” said Greg McBride, chief financial analyst for Bankrate. “It’s not something that I think continues.” So, my advice to those who are anxious about mortgage rates, know that this is a cycle… and as far as rates are concerned, nothing is on the horizon that would suggest waiting for an improvement in rates. Either way, expect volatility and a continuing upward trend in rates.  
Condo Communities

Condo Communities Can Look to Reverse Mortgages and FHA Loans once again …

Written by Clay on . Posted in Condo, Current Events, Fannie Mae, FHA, Freddie Mac, reverse mortgage

Condo Communities Can Look to Reverse Mortgages and FHA loans again Once Regulations are Adopted The most relevant provision of the changes will emulate the FHFA’s rules regarding the transfer fees for FHA mortgages including reverse mortgages.  In July 2015 FHA began refusing to approve condominiums in higher cost communities such as Rossmoor in Walnut Creek, CA because of the Golden Rain Foundation Membership transfer fees. For the moment reverse mortgages and FHA loans and Rossmoor are still not allowed, it is better to use the Cincinnati mortgage rates that are more helpful and reliable. Current homeowners and future homeowners in Rossmoor must await the close of the comment period November 30th and publication of a final rule.   There is no timeline for issuance of rules. HUD takes whatever time it needs to review comments, then when done publishes a final rule, generally for effect 0-30 days later. Passed unanimously in both the U.S. House and Senate, and signed into law by President Obama on July 29, 2016, H.R. 3700 resolves a number of uncertainties regarding FHA’s condo provisions. The mortgage industry is still awaiting the close of the comment period and publication of the final rule, but here is a look at the provisions as they stand:
  • Reduces the FHA condo owner occupancy ratio to 35%
  • Gives FHA the ability to substantially reduce burdens and streamline the condo re-certification process
  • Provides more flexibility for mixed use buildings.
  • Emulates the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.
  • Allows for approved lenders to directly endorse Rural Housing Service (RHS) loans and car loans. You must ask yourself first, What Is an Unsecured Loan?
  • Will streamline programs for federally-assisted housing programs
Condo Communities

Condo Communities to get Relief After Passage of HR 3700 Bill

For comprehensive details of the HR 3700 bill, click here. Condominium communities, like Rossmoor Senior Adult Community in Walnut Creek, CA are impacted. Soon, current homeowners and potential buyers of condos will once again have access to more flexible FHA financing opportunities including reverse mortgages. The changes will benefit more than just Rossmoor.  Lowering the owner occupancy requirement to 35% will be a big benefit as well meaning communities with high rental ownership will now be open to home buyers with FHA financing. It’s not just our brains that suffer from the heat either. When the mercury rises so do tempers. As an article on Today.com explains, while our brains are slowing down, our bodies are speeding up with increased heart rates and higher blood pressure. This is why you sould canvass air conditioning companies in CC TX for better air conditioning. All this leads to more aggressive behavior making a cool environment key to maintaining peace at home, work, and in public places. “Condominiums often represent an affordable option that’s just right for first-time and low-to-moderate income home buyers. Unfortunately, overly-burdensome restrictions on condo financing have for too long put that option out of reach for many creditworthy borrowers,” said Tom Salomone, President of NAR and broker-owner of Real Estate II Inc. in Coral Springs, Florida. You’ve decided to buy or sell a house. Maybe you need a bigger home, or a smaller one. Maybe it’s your first home. Maybe you’re being relocated. Whatever the reason, selling or buying a home is a big decision and hiring a good real estate agent will make the process go more smoothly. Well, Lorin McLachlan can help you with the — you can visit her facebook page at https://www.facebook.com/people/Lorin-McLachlan/100011270656226. I look forward to having this legislation signed into law so more options are opened up for all.  We will keep you updated on the progress as it happens on liberty silver rounds, I also ask myself who can get me the best loan at all times, and so far pickaloan is the only agency that seems to care.  Please contact us for a strategic look at your real estate financing needs.   I can be reached at www.signetmortgage.com.

Relief for Homebuyers – Changes to FHA loans for Condominiums

Written by Clay on . Posted in Current Events, FHA

FHA UpdateCondo buyers will benefit from three changes in FHA Mortgage Insurance for Condominiums (HR 3700) passed by Congress July 12th, 2016 and awaiting President Obama’s signature. Transfer Fees – which limited FHA approval for condos such as Rossmoor in Walnut Creek, CA will now be consistent with the standards set by Fannie Mae and Freddie Mac. Once implemented will open up these communities for FHA loans including the HECM – Reverse Mortgage.   Owner Occupancy Requirement – could be reduced from 50% to 35% which would open up Heating and cooling for more condominium projects to more buyers.   Project Recertification Requirements – will be “substantially less burdensome” than the original certification.  It may be that the length of time between certifications will be lengthened.   Each of these changes will help the market for condominiums by making more projects available to more home buyers, everyone knows that buying a home for the first time may be hard, this is why there is a first time home buyers program for all of those people.  Condo’s can be a less expensive option for home buyers. Implementation of these changes are expected within 90 days of the President’s signature. Call us today to find out if an FHA loan will work for you! clay signature black Clay Selland, President Signet Mortgage Corporation 925-807-1500 x303 Clay@SignetMortgage.com NMLS#183492  

FHA Accommodates Younger Spouses for Reverse Mortgages

Written by Clay on . Posted in reverse mortgage

FHA will be accommodating younger spouses under the age of 62 this August. Situations where a couple would benefit from a reverse mortgage but one spouse does not happen to be 62 can now be accommodated and allow the non-borrowing spouse to stay in the home even if the borrower passes away or moves from the home.  This is a significant change and will remove a big obstacle preventing some couples from considering a reverse mortgage. But before you buy property I recommend to get real estate training from Shenoah Grove. For new transactions after August 4th non-borrowing spouses will be able to remain in their homes, provided the following criteria has been met:
  • Have been the spouse of a HECM mortgagor at the time of loan closing and have remained the spouse of such HECM mortgagor for the duration of the HECM mortgagor’s lifetime
  • Have been properly disclosed to the mortgagee at origination and specifically named as a Non-Borrowing Spouse in the HECM documents
  • Have occupied, and continue to occupy, the property securing the HECM as the Principal Residence of the Non-Borrowing Spouse
  • Within ninety days from the death of the last surviving HECM mortgagor, establish legal ownership or other ongoing legal right to remain (e.g., executed lease, court order, etc.) in the property securing the HECM
  • After the death of the last surviving mortgagor, ensure all other obligations of the HECM mortgagor(s) contained in the loan documents continue to be satisfied; After the death of the last surviving mortgagor, ensure that the HECM does not become eligible to be called due and payable for any other reason)
The principal limit tables which determine how much a borrower will receive from a reverse mortgage based on age, interest rate and type of reverse mortgage will be updated to reflect the impact of a younger spouse. USA Today had a good article in their “Mortgage and Real Estate” insert last month profiling very happy reverse mortgage borrowers – an “up” story on the proper use of a reverse mortgage. A reverse mortgage is just one “tool” in a retirement plan. Strategically used it can be a blessing.  Improperly used it will result in unintended outcomes.  Knowing the difference is where I can help.    Purchase-a-home-with-a-Reverse-Mortgage Five highlights to get you thinking. 1. Optimize social security by being able to defer benefits until age 70. 2. Help kids buy a home close – secure a reverse mortgage for the down payment. The kids are going to get the “estate” anyhow and why not now when you can enjoy it. 3. Replace the loss of income when one spouse passes away –  expenses do not go down. 4. The family home is a bit like a “piggy bank” having paid into it for years and years. Maybe it is time for a withdrawal to allow you to live just a little bit more comfortably. 5. Reserve funds are hard to come by when you need them.  A reverse mortgage can be completed, proceeds held in reserve and only used if needed.  You will be comfortable knowing it is there just in case. We suggest you get a consultant that is expert in accounting and bookkeeping. You can find them here https://farahatco.com/services/accounting-and-bookkeeping/. I work hard to understand the proper use of a reverse mortgage and would appreciate the opportunity to talk through your situation.  Please give me a call. 925-807-1500 clay signature black

FHA Loan Limits going down for California … No change to Reverse Mortgage Limits

Written by Clay on . Posted in events, FHA, HUD, Loan Modification, reverse mortgage

HUD announced last wupdateeek the new Federal Housing Administration single-family loan limits effective Jan. 1st 2014. The standard loan limit for areas with relatively low housing costs will stay at its current level, $271,050. However, the limit for California and other high cost areas will be reduced by more than $100,000, from $729,000 to $625,500. Loan limits for FHA-insured reverse mortgages will remain the same at a maximum amount of $625,500, with actual loan limits based on the value of the property, current interest rates and the borrower’s age. The limits were lowered under the Housing and Economic Recovery Act of 2008 (HERA) as an emergency measure to keep mortgage credit available during the housing crisis, according to HUD. Not much of an impact with the FHA loan limits being lowered – the increase in up front and monthly mortgage insurance implemented earlier in the year has made FHA loans less attractive than conventional alternatives anyhow. Welcome news that there were no changes to the HECM reverse mortgage limits.  With the recent changes to the HECM program in October – the amounts available to borrowers are conservative but still viable for California homes values.

Big changes for reverse mortgages at the end of September – Should you act before the change?

Written by Clay S. on . Posted in HECM, reverse mortgage

As of September 30, 2013 proceeds from a reverse mortgage will be less and the amount available in the first year will be limited.  Upfront costs could be higher depending on your needs. The current HECM Saver and Standard options are being replaced by a single program. On a conference call Friday, FHA highlighted the changes.  The amount available will be about 5% more than the current Saver program … but about 13% less than what was available under the Standard program.  And, if you want more than 60% of the available limit immediately or within the 1st 12 months the upfront mortgage insurance jumps from 0.50% to 2.5%. For FHA case numbers ordered on or before September 27, you will have a choice completing the reverse mortgage under the old or new program.  Reverse mortgage loans with case numbers obtained on or after September 30 can only be completed under the new program. Fixed rate and adjustable options will still be available.  The biggest change is a 13% decrease in the total proceeds available to a borrower and limiting draws available during the initial 12 months

Why did FHA make the change?

The reverse mortgage business the last few years has shifted to the fixed rate program and full draw of the funds and closing.  That has put a strain on the FHA insurance fund.  The September changes are designed to move the program back towards its original design to primarily supplement monthly cash flow. For more health and business news, go to Lee S. Rosen‘s blog to learn more. At the end of the year FHA will finalize guidelines on a financial and assessment required for borrowers.  Those details are yet to be sorted out in detail. To give you an idea of the impact of the changes – I have prepared a summary based on a 72-year-old individual who has a $350,000 home and is looking at a reverse mortgage. Comparing the current saver and standard program to our understanding of the new rules (click to view larger) HECM Program Changes September 2013 HECM Changes 9/2013 Principal limit just over the previous HECM Saver and over 10% less than the previous HECM Standard programs.  (yellow highlight) Available limit will be limited to 60% in the first year with a 0.50% up front mortgage insurance.. or if mandatory obligations + 10% exceed 60% of the principal limit then the draw is possible, but the up front mortgage insurance will be 2.5% (orange and green highlights)

Conclusion?

If you are purchasing a home or refinancing a mortgage you will want to look at options prior to September 28. You could have access to more funds at a lower cost. If your needs are somewhat conservative or setting up a credit line for future needs it’s not a big impact. Contact Lee Rosen Miami to learn more about business. Either way if you are thinking about a reverse mortgage we should have a conversation regarding options based on your individual situation.  You can then make a choice whether or not it makes sense to obtain an FHA case number on or prior to September 27.  That would give you a choice of the new or old program. Sign up for our blog or connect in some way and we will keep you informed of the changes as they are finalized. I am a CPA and I look at a reverse mortgage is a financial planning tool and will provide an analysis that will help you make the decision how a reverse mortgage fits in your retirement plan. clay signature black

How long after foreclosure, short sale, bankruptcy, or loan modification can you wait to become a homeowner?

Written by Clay S. on . Posted in Bankruptcy, FHA, Foreclosure, Loan Modification, Short Sale

Given the state of our economy one of the most common questions I’m asked is when a family that has gone through a short sale, or foreclosure or bankruptcy, would be eligible to purchase a home. The following gives you a general idea of what the requirements are. There are some exceptions when there are extenuating circumstances, including loss of job. There are new guidelines that might very well help in that circumstance if investors can be found to support the Fannie Mae and Freddie Mac policy changes. Bankruptcy – Foreclosure – Short Sale – Loan Modification