“Guideline Changes for the Mortgage Industry”

To continue with our theme for 2008 “Guideline Changes for the Mortgage Industry” we have another update!

FHA loan limits will be decreasing to $355,350 for the County of Riverside for all loans that have an approval dated after Jan 1, 2009.

There will no longer be a classification of Jumbo Gov 30, just Gov 30.

Yesterday was the last day to lock loans Agency or FHA Jumbo between $417,000 to $500,000.

Conventional loans will also be lowering their loan limits in Riverside County back to $417,000 down from $500,000. Call me with questions and make it a great weekend!

The FHA Loan to Value Requirements

Good Morning!

Mortgage backed securities are up on the day today and getting a good start for the week! I am carefully floating as of right now and if I see the market turn I am ready to pull the trigger and capitalize on this quarters best rates for your clients.

It may have been confusing regarding Mortgage Insurance Premiums (MIP), Monthly Mortgage Insurance (MMI), Private Mortgage Insurance (PMI) information updates I provided. Let me clarify:

Conventional financing only has PMI if you put down less than 20%.
The minimum down payment for a primary residence is 10% for conventional.
FHA minimum down today is 3%, as of January 1, 2009 it will be 3.5%.
FHA financing has a one-time MIP, now 1.75% of the loan amount, which can be financed into the loan, along with MMI payment paid monthly.
MIP and MMI are two separate insurance premiums.
MIP is paid to HUD directly at closing and the borrower pays the MMI monthly to HUD.

Sorry about the confusion. I hope this helps.

The FHA Loan to Value Requirements are staying at 3% until January 1, 2009. Attached is the mortgagee letter from HUD which gives example and can help you understand. Please call with any questions.

Oh by the way, I am Never too busy for any of your referrals!


June’s monthly newsletter

Dear Clients, Family & Friends,

The summer is here can you feel it? The real estate market is not slowing down this summer so if you’re thinking of buying a property I can get the financing ready for you! There are many programs for 1st time home buyers and FHA is a great way to get lowest monthly payments and low to little money down.

June’s monthly newsletter can give you some tips to save money with retailers on how to use your stimulus check. It’s all about the plastic… credit cards! See this issue to get money saving tips!

FRANKLIN LOAN CENTER IS NOW FHA APPROVED!!

FRANKLIN LOAN CENTER IS NOW FHA APPROVED!! This means great things to come when you have clients who are in need of NO and LOW down payment assistance.

Wow, I hope you’ve had an exciting week like I have! Yesterday we got the announcement that the conforming loan limit / FHA limit for Riverside County has increase to $500,000 for single family homes. We are still waiting to be able to lock loans at the new limits. You’ll notice on my rate sheet (attached) that I am still using the conforming loan limit of $417,000 until I am able to lock. Also, there are specifics we are verifying regarding these new limits! As I get more information I’ll pass it along.

This week I’ve attached two articles you should read.

DO YOU HAVE CLIENTS WAITING FOR ANOTHER FED RATE CUT? Read the first article, “Fed Cuts Mortgage Rates Go Up?” to knock them off the fence as mortgage rates will most likely go up after a cut! PRINT COPIES TO PASS OUT!

DO YOU HAVE CLIENTS WAITING FOR PRICING TO COME DOWN? Read the second article, “Ignore All the Headlines” to encourage them to take advantage of low interest rates. PRINT COPIES TO PASS OUT!

Attached is my weekly rate sheet! I’m NEVER too busy for ANY of your referrals! Make it a great week.

FHA Mortgage Limits List – FHA Forward

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday March 05, 2008
(1 records were selected, 1 records displayed.)
MSA Name
MSA Code
Division
County Name
County
Code
State
One-Family
Two-Family
Three-Family
Four-Family
Last Revised
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
40140

RIVERSIDE
065
CA
$500,000
$640,100
$773,700
$961,550
03/05/2008

FHA Mortgage Limits List – Fannie/Freddie

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday March 05, 2008
(1 records were selected, 1 records displayed.)
MSA Name
MSA Code
Division
County Name
County
Code
State
One-Family
Two-Family
Three-Family
Four-Family
Last Revised
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
40140

RIVERSIDE
065
CA
$500,000
$640,100
$773,700
$961,550
03/05/2008