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. 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 recertification 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
• Will streamline programs for federally-assisted housing programs

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.

 Please contact us for a strategic look at your real estate financing needs. I can be reached at www.signetmortgage.com.

A Renovation loan can be used to purchase a home or refinance an existing home. A HomeStyle Renovation Loan from Signet can be used to improve an investment property too!  A renovation loan based on the improved value of your home making it a valuable alternative to a construction loan. You can arrange for funds over and above the purchase price of your new home to remodel, make repairs or add a room! A refinance will pay off your existing loan, and provide additional funds for a wide range of improvements – let your imagination go! A renovation loan is a perfect way to fix up a property, or add that extra bedroom you need for your growing family.

• Streamline 203k – Renovation costs generally limited to $35,000.  The work can be done by the homeowner or contractors. Typical renovations include painting, carpet and replacement of appliances.  This loan does not require a HUD counselor, and is very close to the cost of a normal FHA loan.
• Full 203k – Renovation costs are only limited by the FHA loan limits for the county. The renovations are generally more extensive so they require the assistance of a general contractor.  An FHA Consultant is involved to ensure the project proceeds according to plans. Remember, the loan is based on the improved value of your home AFTER completion – so you will have the budget to renovate your dream home!

These solicitations to get a copy of your recent deed after closing ARE BOGUS!

If you have ever closed a real estate transaction or refinance – then you have likely received solicitations from “title recording services” or “local property transfer services” looking very official because they contain details of your recent transaction. These solicitations are bogus and simply a money grab for companies set up to sell you a copy of your grant deed that the county is going to send you anyhow, or ask you to complete a declaration of Homestead which you can do with the county for free. This is the old-fashioned form of phishing – these companies are selling you “services” that you do not need. While these companies may be technically compliant because the fine print disclaimer indicates they are “not a governmental agency and do indicate you can get a copy of your deed or record from the county recorder’s office” – it still stinks and is very deceptive. The documents are cleverly designed to create urgency and be something that you need to take care of right away simply because they arrived shortly after your transaction and always contain a deadline for response.  They even go so far as to put a warning on the envelope indicating “$2000 fine and five years imprisonment or both for a person interfering with the delivery of this letter” … Well that is standard Postal Service regulation!

Treat these as junk mail and toss them in the trash (or better, recycle the paper!)  Keep that $48.95 – $89.00 in your pocket – where it belongs!