BradyLoan.com

Lower VA Mortgage Funding Fees Implemented November 18, 2011

N.B:  On the day before I published this, HR 674 passed, reverting the funding fee amounts to the “old” levels.  It was updated in VA Circular 26-11-19, published November 22, 2011.  The “new” lower funding fee schedule was in effect for three days, from Nov 18-21.  Sorry for the confusion.

The Veterans  Administration lowered the funding fee it charges, to insure loans made to active-duty or retired military personnel.    The new funding fee schedule distinguishes first-time users and repeat users and between active-duty, reservists, prior military.

Can you use your VA loan guaranty benefit more than once?

Of course you can.  The VA even allows for two outstanding loans (under certain circumstances) but generally, veterans can only have one VA loan outstanding.  A common misunderstanding is that a veteran can only use a VA loan once.  The benefit can be used as many times as the veteran wishes.

Can you still get a zero-down VA home loan, again?

Indeed you can.  The new funding fee schedule, for zero-down loan purchases, is only 1.40% for first-time users who are active-duty veterans and 1.65% for reservist/guardsmen veterans. Zero-down home loans, for the second and subsequent VA home loans, require a 2.8% funding fee for all veterans:  active duty, reservists, and guardsmen.

Can you lower the funding fee if you use a down payment?

Yes you can.  If veteran home buyers put 5% down, with a VA loan, the funding fee drops to .75% for active duty veterans (1.0% for reservists and guardsmen).  For a 10% down payment, the funding fee drops to .5% for active-duty veterans and .75% for reservists and guardsmen.

Here is a list of the current and new VA funding fees scheduled to take effect on November 18, 2011.

Use/Purpose	Down Payment	Active Duty Veteran		Reservist/National Guard
		Old	New	Old	New
First Time	Less than 5%*	2.15%	1.40%	2.40%	1.65%
First Time	5% - 9.99%	1.50%	0.75%	1.75%	1.00%
First Time	10% or more	1.25%	0.50%	1.50%	0.75%
Subsequent	Less than 5%*	3.30%	2.80%	3.30%	2.80%
Subsequent	5% - 9.99%	1.50%	0.75%	1.75%	1.00%
Subsequent	10% or more	1.25%	0.50%	1.50%	0.75%
Interest Rate Reduction	N/A	0.50%	0.50%	0.50%	0.50%
Assumptions	N/A	0.50%	0.50%	0.50%	0.50%

 

FHA Flips Permitted Throughout 2011

From David Mikkelson:

The Federal Housing Administration has extended FHA's temporary waiver of the agency's 'anti-flipping rule.'  

With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days.  Early last year, FHA temporarily waived this regulation through January 31, 2011.  FHA today posted a notice extending this waiver through the remainder of 2011.  This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The extension announced today is effective through December 31, 2011, unless otherwise extended or withdrawn by FHA.  All other terms of the waiver will remain the same. The waiver contains strict conditions and guidelines to assure that predatory practices are not allowed.

To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver continues to be limited to those sales meeting the following general conditions:

• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.

The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Triple Crown Condos in Solana Beach- Approved for FHA Financing

Triple Crown Condominiums, in Solana Beach, CA, were approved for FHA loans on April 8, 2010.  The HUD approval # is S008356 and can be found on the FHA Condo Approval website.

Triple Crown condo owners now have the ability to refinance into a fixed rate home loan, without the 20% equity requirement most conventional lenders require.

FHA loans allow for a loan up to 96.5% of the appraised valuation for loan refinances that have not "taken cash out" in the past twelve months.  This means that no prior refinances nor withdraws from lines of credit could be made in the past twelve months.  "Cash out" on the property, beyond the 12 month window, still qualifies the borrower to receive financing up to 96.5% of the appraised valuation.

Any "cash out" refinances in Triple Crown would be limited to 85% of the appraised valuation, per FHA guidelines.

FHA loans are full-documentation loans, which allow for a debt-to-income ratio up to 55%.  The borrower's credit score must be 640 or higher.

Triple Crown condo owners, looking to refinance their home loan, might check Zillow.com for a "Zestimate".  While Zillow doesn't offer a wholly accurate depiction of what the appraised valuation might be, it is a great starting point to get a "ballpark" valuation.

Home buyers interested in Triple Crown condos might look at JustListedSanDiego.com to see current offerings in the complex.

FHA MORTGAGE INFORMATION:

Search current FHA rates fro Triple Crown at RatePeeker.com

Apply for an FHA loan in Triple Crown at LoanApp.info