Congress raises loan limit on FHA insured loans

Congress just passed a bill to raise the limit on FHA mortgages back to the $729,000 level in high cost areas (like Los Angeles). Obama must sign today. Read the article below. (Let me know if you are interested.)


http://bloom.bg/rqQ7Jd

New Refinancing Program for "Underwater" Homeowners

Tomorrow (Nov. 15, 2011) the government will announce changes to the Home Affordable Refinance Program (or HARP) that are designed to help eligible borrowers refinance their mortgages, when their mortgage balance is more than their home is worth. Homeowners in this situation are considered “underwater” on their mortgages.

The program only applies to conventional loans (not FHA or VA loans) that were closed on or before May 31, 2009.

The major proposed change is to remove the current ceiling on how much “underwater” the borrower can be. Currently, the limit for a refinance is 125% of the home’s value, or 25% more than the home’s value.

Another proposed change is to eliminate certain fees if the borrower refinances into a shorter-term mortgage. If you have a 30-year loan, and refinance to a 20-year loan, you will avoid some fees. However, you might also pay a higher monthly amount because your loan would have to be paid off in a shorter period of time. This depends on the new interest rate and the years left on your current loan.

A third proposed change is to eliminate the need for a formal appraisal if a reliable automated value is available. This would save the appraisal fee of $300 or more.

To be eligible, a borrower must be current on his mortgage payments, cannot have missed any mortgage payments in the past six months and cannot have had more than one missed payment in the past 12 months. Additionally, the borrower cannot have refinanced through this program previously.

Also, the property must be the borrower’s primary residence and the loan must be owned by Fannie Mae or Freddie Mac.

Other conditions and restrictions are proposed. This will help homeowners who have been keeping up their payments, have sufficient income, but have not been able to refinance because of their home’s value.

We will be offering these loans as soon as the final guidelines are issued. I'd be happy to determine if your current loan is eligible for refinancing. Just contact me, 818-952-8666, or email: David@TheFriendlyLender.com.

Do Mortgage Brokers Need a License?

A: Yes. Mortgage Brokers working in California must have both a Department of Real Estate (DRE) License and a Nationwide Mortgage Licensing System (NMLS) license. The state license certifies that the Broker knows how to do both real estate sales and loan origination and knows the regulations associated with both. The NMLS license certifies that the Broker knows the latest national regulations on mortgages and also involves an extensive background check to certify the Broker has not been guilty of criminal activities or financial irregularities (e.g., bankruptcies).

Note: Loan officers working in banks are not required to have either a DRE nor an NMLS license. Bank employees have been exempted from these rules.

What is a “No Points” Loan, and Do You Offer These?

A “No Points” loan is defined in different ways. The best description is a loan that has no lender fees (or points). (A “point” is equal to 1% of the loan amount.) But, there is “no free lunch.” When you hear these offered, the lender will give you a higher interest rate so that you pay back these fees (and points) over time with the higher payments.

Please note: With a No Point loan you will still have other costs associated with the loan (title, escrow, appraisal, etc.).

Yes, we can work out options for you to have some or all of your lender fees paid. We can even get the lender to pay some of the other costs associated with your loan.

-David

If I Am Purchasing a Home, Why Should I Use a Mortgage Broker?

A Mortgage Broker is a professional independent real estate financing professional who specializes in the origination of residential mortgage loans. As such, the Broker is not limited to one loan source, but has many lenders from which to choose the best program for your needs. By combining his professional expertise with direct access to hundreds of lenders, a Broker provides the most efficient and cost-effective method of obtaining the right loan program for you.

A good Broker will follow your transaction from beginning to end, protecting your interests and security. I give you peace of mind that your loan is being handled correctly and any “breakdowns” will be prevented. I monitor the hundreds of variables that can affect the outcome of your mortgage and act as a liaison between all the parties to a transaction (real estate agents, escrow, title, appraiser, credit agency, loan underwriters and processors, termite and other repair services).

You simply do not get this service from an institutional loan officer, nor an online service. And, the rates I offer are very competitive, usually less than banks offer. You get comprehensive service and you don’t pay more.