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FHA Lowering Mortgage Insurance Premium by .5%

Submitted by Joseph Pettinella on January 9, 2015 - 1:25pm

It has just been announced that the FHA will lower its mortgage insurance premiums from 1.35 percent to 0.85 percent. This reduction could save a borrower $1,000 a year on a $200,000 loan.  That $84 per month can make a significant difference for first-time homebuyers who will be able to qualify for more home for their money.

It appears the FHA made this decision to increase its share of the mortgage market.   Since Fannie Mae and Freddie Mac are now offering a 3% down payment loan program, many buyers looking to buy with the least amount of money down will be attracted to this new financing option.

This is all good news for borrowers and for home ownership, and we expect to get more good news in the near future.  

FHA Lowers Its Harangued Mortgage Costs -

Responding to recent calls from industry leaders and associations, the Federal Housing Administration announced it will lower its insurance... [NAR Daily News Magazine]

Qualifying for a Loan After a Short Sale - Is the Waiting Period 2 Years or 4?

Submitted by Joseph Pettinella on December 18, 2014 - 10:08am

If you sold a property on a Short Sale within the past few years, you were probably informed by the lender that according to Fannie Mae guidelines you could qualify for a new loan after a 2-year waiting period.

Unfortunately Fannie Mae recently changed those guidelines to a 4-year waiting period.  

Read more about it here:  Buying after a Short Sale? The Wait Just Got Longer - (TNS)—Q: We completed a short sale about two years ago. We have been renting and saving our money to buy a new home after the two-year waiting period imposed by Fannie Mae. When we applied for our new loan, we were told that now we have to wait another two years. We are very upset […] [RisMedia Consumer News]

Will the Easing of Fannie & Freddie's Lending Guidelines Make a Difference For You?

Submitted by Joseph Pettinella on December 3, 2014 - 2:31pm

Although Fannie and Freddie released new lending guidelines on Monday, it looks like many of the large lenders are not all that anxious to make any changes as yet.  Eventually these new guidelines will have an affect to help loosen the tight credit market, but you may need to be a little patient.

Shopping around for your mortgage is certainly recommended.  Some lenders may adopt new rules quicker than others.  There is a good possibility you will soon start seeing some different kind of promotions from the lenders who will lead the way.  

We are optimistic that more opportunities for home loans will be opening up.  Read more about what the experts have to say.  Did Mortgages Just Get Easier to Obtain? -

Fannie Mae and Freddie Mac's new lending guidelines went into effect Monday, which are expected to help loosen up the tight credit standards... [NAR Daily News Magazine]