May 17th, 2013
I have so many interesting questions to share with you. I hope you find this information to be a true resource. Let's get started...
- We are purchasing a home, we want to purchase using FHA; however, it is our understanding that there are some serious changes coming June 1st of this year. What's up? There are changes that took place on April 1st of this year, and yes, additional changes to take place with case numbers assigned on and after June 3rd this year. As quoted from the HUD Mortgagee Letter, "For any mortgage involving an original principal obligation (excluding financed UFMIP) with an LTV greater than 90 percent, FHA will assess the annual MIP until the end of the mortgage term or for the first 30 years of the term, whichever occurs first." The up-front mortgage insurance will be 1.25% and monthly mortgage insurance rate will be 1.35%. If for any reason we see this policy rescinded, I will be the first to let you know!
- We are interested in purchasing a home using our VA eligibility. The purchase price is 485,000. We understand we will have some down payment - but how much? VA will allow you to finance 100% up to 417,000, currently limit in Hampton Roads. Any purchase price in excess of 417,000 requires a minimal down payment, so the 25% VA guarantee is maintained. With full eligibility, you maximum loan amount would be $468,000 requiring a down payment of 17,000, allowing you to borrow 96.49% of the purchase price.
- We are authorized users on a couple of account with our parents. Does this affect us when purchasing a home? If you are using a conventional loan, yes, it could. This has recently become a new issue in our industry. Basically as an authorized user on a credit account, you are establishing credit history and credit score for a debt where there is no responsibility or liability for payment. I would highly reccommend being removed as an authorized user, if you are planning to purchase a home with a conventional (plain 'ole vanilla flavored) mortgage.
Please feel free to contact me with any questions you might have. I look forward to working with you and your clients.
Jennifer Keenan, Senior Mortgage Consultant
NMLS# 101837, Tidewater Home Funding (757) 366-8690