Sound Mortgage Planning: SMP Blog

Sound Mortgage Planning Blog

What Your FHA Pre-Qualified Clients Should Know

June 17th, 2008 9:44 AM

The U.S. Department of Housing and Urban Development has just released a new mortgagee letter regarding Risk-Based Premiums for FHA Mortgage Insurance.

What it says: "Effective with new FHA case number assignments on or after July 14, 2008, FHA will implement risk-based premiums on one- to four-unit single family mortgages."

and

"UFMIP will range from 1.25 percent of the loan amount for lower-risk borrowers to 2.25 percent for riskier borrowers."

The Good News: If your client is coming to the transaction with a credit score 600 or higher they may have a reduced Up Front Mortgage Insurance Premium (UFMIP) of 1.250% of the purchase price. This is down 0.250% from the current 1.500%. If they are bringing in at least 5% for a down-payment, they will likely continue to see the same monthly Mortgage Insurance Payment (MIP) based on the current calculation of 0.500%.

The Not as Good News: Going with the same information above, if the client is bringing in less than 5% down, they may see their monthly Mortgage Insurance Payment (MIP) based on 0.550%, an increase of 0.050%.

Clients with credit score below 560 may see an increase in both the Up Front Mortgage Insurance Premium (UFMIP) and the monthly Mortgage Insurance Premium (MIP) unless the client is bringing in a down-payment of 10% or more.

If you have a client that has a lower credit score and is wanting to purchase a home with an FHA backed mortgage, now is the time to purchase before they are affected by the new change.

The matrix provided by FHA goes into greater detail and if your not sure what this may mean to you or your clients, please call.

I can be reached at (360) 528-3146.

Take care,

Shawn Anderson

Posted by Shawn Anderson on June 17th, 2008 9:44 AMPost a Comment (0)

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100% Financing through USDA

June 25th, 2008 3:49 PM

Ask most seasoned lending professionals about today's market and they are likely to say we are moving toward the same guidelines that were in place prior to the big refinance boom and building craze.

That may be true, but there are still some great rates and programs left on the table for homeowners and buyers to take advantage of.

Admittedly, it has become tougher to qualify and getting 100% financing is almost a thing of the past. Or is it?

At PC Bank Home Loans, we have VA, FHA, and USDA programs which help our clients purchase homes with little or no money down.

Our USDA program provides 100% financing with no down-payment. This Guaranteed Rural Housing Loan Program provides compelling affordable housing options for buyers and families.

Contact me today if you would like to learn more about our programs.

Take care,

Shawn Anderson

ShawnA@PCBank.us or Shawn@SoundMortgagePlanning.com

Posted by Shawn Anderson on June 25th, 2008 3:49 PMPost a Comment (0)

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New Office!!!

June 12th, 2008 9:11 AM

By now many of you know that I have joined PC Bank Home Loans in their new Lacey location.

For those of you that may be wondering who PC Bank is, check out our website at www.PCBank.us.

I am very proud to now be a part of such an extraordinary company. With the resources now available to me, I will be an even greater asset to my clients, referral partners, builders, and the community.

Please be sure to stop by our grand opening. You will be receiving a flyer or email with the details.

In the meantime, if you would like to stop by before then, follow this link to our website for directions: Driving Directions and Map

I look forward to being able to provide you with great service!

Shawn