Let’s not go jumping to any conclusions here, but San Francisco Federal Credit Union just announced a zero down payment loan for home purchases that will go as high as $2 million. Yup, you read it right, no down to $2 million! It’s a 5/5 year adjustable rate with a present start rate at 4% plus a 1 point origination…
Is it Tight Credit Standards or Just Prudent Lending?
Some experts believe that a slight rate hike may actually increase lending by loosening credit standards (Rate Hike). They believe the higher rates will entice lenders to make it a little easier for people to get mortgages. Is that because the higher rates may restrict some at the lower end of the scale from affording a home? So, in turn,…
FHA Mortgage Limits to Remain the Same – except 188 Counties
HUD/FHA announced that their FHA maximum mortgage limits will remain the same in 2016, in a press release dated December 9, 2015. There will be no change in the national loan limit “ceiling” of $625,500 or the “floor” of $271,050. This announcement will end all speculation that the FHA ceiling and/or floor would be increasing due to rising home prices…
Pre-Closing (or Pre-Funding) Reviews Are Now Required on FHA Loans!
Most lenders are aware that Fannie Mae has an established policy that requires the processing of pre-funding (or pre-closing) reviews as part of a lender’s overall written Quality Control Plan. These documented procedures must include (at a minimum) the timing of the reviews, the loan selection process, verification of data & documents and reporting. However, with the numerous policy &…
Walking a Thin Line on Disability Income Verification
Should a lender ask an FHA loan applicant the nature of their disability and how long they expect to be receiving any benefits? Be careful. A Michigan lender had to enter into an agreement with HUD to settle alleged discrimination against an applicant with a disability. Under this agreement the lender, Mortgage One, is required to make a monetary settlement…
Taking the Long Way Around to Increased Housing Demand
Recently, it was reported that many consumers still believe they need at least 20% down to buy a home. Although that may be true, a recent Freddie Mac survey finds that most renters do not have savings for this down payment as their top priority. In fact, it’s not one of their top 3 goals (Renters). The Freddie survey found…