Category Archives: HUD

Coming Changes for Qualified Mortgages

images Coming Changes for Qualified Mortgages

Starting January 10, 2014, HUD will be putting some changes into effect.  Following is an overview, but for more in depth details, the HUD Website has it all.

What is a General QM Mortgage?

  • Monthly back end rate (debt to income) ratio does not exceed 43%
  • Verified income, assets, credit history, and financial information
  • Full documentation only, no stated income allowed
  • Underwritten using Federally prescribed underwriting guidelines
  • ARMs qualified at the maximum interest rate in first five years
  • Points and fees may not exceed the limits based upon the loan amount. *See the points and fees section below*

What is a temporary QM Mortgage?

  • Loan must be eligible for purchase or gaurantee by FHA, VA, USDA, FNMA, and FHMLC
  • Must have an approved AUS agency finding or meet agency quidelines
  • Full documentation only, no stated income allowed
  • Underwritten using Federally prescribed underwriting guidelines
  • ARMs qualified at the maximum interest rate in first five years
  • Points and fees may not exceed the limits based upon the loan amount. *See the points and fees section below*

images (1) Loan Requirements

–No negative amortization
–No interest only loans
–No Balloon mortgages
–Term may not exceed 30 years

Loans Subject to the Rule?

  • All 1-4 unit dwellings including financing of existing Manufactured Homes, regardless of occupancy.

Loans Excluded from the Rule?

  • Reverse Mortgages
  • Bridge Loans
  • Heloc’s
  • Initial Construction Loans
  • New Manufactured Home Financing
  • Housing Finance Agency Loans (Federal or State Bond programs)

All Loans have a Points & Fee Threshold

If the note amount is:
–$100,000 or more –    Limit is 3% of Total Loan Amount
–$60,000 – $99,000 –    Limit is $3,000
–$59,999 – $59,000 –    Limit is 5% of Total Loan Amount

*Borrowers will be required to sign a “Discount Point Fee Disclosure” when signing the final documents explaining the points.

For more information on these changes, or any questions about Home Loans in general, contact:

Blair Chapman
Loan Officer
9250 Laguna Springs Drive 101
Elk Grove, CA 95758
Office:  (916) 683-7363
Fax:  (916) 691-5307
Email:  bchapman@summitfunding.net
Website:  www.summitfunding.net/bchapman

 

 

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HUD Sale on Castleview Drive in Elk Grove

HUD Sale on Castleview Drive in Elk Grove

13070006 9422 Castleview Drive, Elk Grove 95758, is a HUD Home, and a great opportunity to get into a nice sized home in Elliot Ranch.  Built in 1996, and 1285 square feet of living space, make this a great first home, or downsize for “Empty Nesters”!

Inside you have an nice open floor plan, with high ceilings, and a cozy living room fireplace.  Ceiling fans are a great feature for the summer and winter!  Keeping you cool on hot summer nights, and directing that hot air back down in winter!

13070006_04 The kitchen  is nice and bright!  With white counter tops and flooring, and a large sliding glass door, it is sure to wake you up with the sun!

There is a covered patio out back, and a large outbuilding for your outdoor storage.

See ALL 3 bedroom 2 bath homes for sale in Elk Grove!

Who can buy a HUD Home??
HUD stands for the United States Department of Housing and Urban Development. When an FHA Loan goes into foreclosure, it goes back to them to sell and recover the loss on the claim. They pay off the amount, and put it up for sale. Sometimes it is sold below market value, it depends on what the pay-off was. Anyone can buy a HUD owned home, however, there are some restrictions.

Your Broker must be currently registered as a HUD Certified Broker with a NAID number in order to successfully submit an offer. When a home is listed through HUD, no offers are reviewed or considered until the 10th day on the market. At that time, all bids are submitted electronically, and the system considers them all received at the same time. HUD would prefer an owner-occupant buyer. They will only accept such offers for the first 30 days. After that period, they will open the home to non-occupant buyers, or investors.

There is a definite process to buying a HUD Home…you will want to make sure and work with a Qualified Real Estate Agent if doing so! Here is a list of MUST-HAVE’S on Pre-Approvals for HUD bids.

  • Must say “Pre-Approval” somewhere on it
  • Lender’s Company Name
  • Current date, as well as 90 day expiration date
  • Selling Agent’s Name
  • Buyer’s Name
  • Property Address
  • Sale Price
  • Down Payment Amount
  • Loan Program Name
  • Pre-Qualification breakdown
  • Credit Scores
  • Lender Contract Information
  • Lender’s Signature (in BLUE ink!)

**HUD will pay up to 3% of the closing costs, but it must be stated on-line 5 of the contract, or they will not pay title, escrow, transfer tax, or anything else!  That is just one tip we will give you for FREE!  We would love to help you buy your next home, whether it is a HUD owned home or not!  We have worked with many types of buyer’s, and are ready to get started with you today!  Call to set up a FREE Market Analysis of your Home’s Current Value, or get set up on a Custom Search for upcoming homes on the market!

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