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FHA and VA LOan changes

Date post:23-Jan-2015
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FHA VA programs
  • 1. The Come Back Kids VA and FHA Presented by: David Johnston San Diego Funding [email_address] 619-977-6497

2. Program Emphasis *HigherDebt Ratios * Low/Nodown payment * 100%Gift money OK *BKs only2yrs old(FHA/VA) *Seller paid closing costs *Declining Markets OK *Manufactured Housing *Not a magic wand 3. FHA Basics * Donthave to be 1 stTime Buyer * 3.5%Down Payment *NeedCondoapproval no PUD approval *Cannot dospotapprovals on condos-*Seller can payall closing costs-not to exceed 6% of sales price*BKs only2years old *High debt ratios FNMA does not apply *$697,500max loan amount (see chart) *Can do Units!May require larger down payment + reserves*Owner Occupied Only* NoFICOscoresOKwith alternative credit 620 FICO *Cash out refi 95% to $417,000, 85% above*203K Streamline The Renovation Loan * NO mandatorysellers fees(except $60) * TermiteclearanceIS NOT mandatory 4. FHA Loan Programs

  • FHA Mortgage Programs (02/20/09)
  • Introduction
  • This section outlines the FHA Mortgage Programs which are eligible for submission to the Chase Correspondent Division.
  • Section 203(b),203K, 234C
  • Section 203(b) is the standard FHA program.
  • Refer to the following table for applicable loan parameters:
  • Loan Purpose
    • Purchase
    • Refinance
  • Term
    • 30
    • 15
  • Property Type
    • 1-4
    • PUD, Condo
    • New or existing
  • Temporary Buydown 2-1 or 1-1Borrower must qualify at Note rate

5. FHA BK and Foreclosure

  • If foreclosure due to hardship, then.
  • If seasoned >36 months but < 84 months minimum, max LTV is 90%.
  • If seasoned > = 84 months standard down payment policies apply
  • If foreclosure due to financial mismanagement, must be seasoned at least 84 months
  • Re-established credit

6. FHA Bankruptcy

  • Chapter 7:
  • Two years from discharge date; evidence the borrowers have demonstrated ability to responsibly manage their financial affairs; and that the borrowers have reestablished acceptable credit (or chosen not to incur new credit).
  • Between one and two years from discharge date; must provide evidence that the cause of bankruptcy was caused by an extenuating circumstance beyond the borrowers control, the borrowers have demonstrated the ability to responsibly manage their financial affairs, and the borrowers current situation indicates that the events that led to the bankruptcy are not likely to recur.
  • Less than one year from discharge date - not eligible.
  • Chapter 13:
  • Satisfactory performance for at least one year of pay out period and permission from court to enter into the mortgage transaction.

7. FHA 203K Streamline Features 8. FHA Basics *Non Occupant co-borrowers areallowed on FHA loans 100% debt ratio for primary Combine all income and debt *MIP and MMI 1% MIP .90 MMI OTMIP can be financed and MMIdrops off at 78% LTV *Rate and Term Refis to 96.5% LTV-- appraisal *High Balance FHA 2 ndappraisal -over $417,000 -LTV =/> 95% -SD/Riverside/SB Counties *Be aware of FHAs Flipping rule 9. FHA Example 10. FHA S.D. Loan Limits 11. FHA Riverside Loan Limits 12. 13. FHA Condo List 14. FHA Link

  • https://entp.hud.gov/idapp/html/condlook.cfm
  • Call me and I will forward the link 619-977-6497
  • [email_address]

15. VA Basics * ZeroDown payment *$ 417,000max loan amount * High BalanceVA to $437,500 partial down payment required above $437,500 *100%gift/ loanOKfor closing costs *Seller can payallclosing costs -VA No No max 4% of sales price* Sellercanpay offbuyersdebts * No FICO minimum alternative credit OK 620 FICO *BK13 1 year and Court approval *Veteran can re-use eligibility *VAFF waived with perm disability *Seller Mandatory Costs *Must have termite clearance 16. VA Programs

  • Purchase
  • A VA purchase transaction secures the acquisition of a residence.
  • Only purchases qualify for temporary buy-downs.
  • Borrower must qualify at Note rate.
  • Terms
    • 30 and 15 year
  • Property
    • 1-4
    • Condo and PUD
    • New and existing
    • Owner occupied only
  • Condos
    • Must appear on VA approved list

17. VA Bankruptcy

  • Bankruptcy (10/19/10)
  • Chapter 7:
  • At least two years from discharge date; bankruptcy may be disregarded. Reason must be documented and not likely to reoccur.
  • Between one and two years from discharge date; credit has been reestablished for that period of time and was caused by circumstances beyond the borrowers control and evidence the borrowers have demonstrated their ability to handle their financial affairs.
  • Less than one year - not eligible.
  • Chapter 13:
  • Satisfactory performance for at least one year of pay out period and permission from court to enter into the mortgage transaction.

18. VA Foreclosure

  • Foreclosure/Deed-In-Lieu (10/19/10)
  • If loan was a prior VA loan, determine if any amount of entitlement was forfeited and whether remaining entitlement is sufficient to support the transaction.
  • Apply the same requirements as a Chapter 7 bankruptcy.

19. VA Payments 20. VA Condo Condo PUD 21. Search by City and State 22. VA Link

  • http://condopudbuilder.vba.va.gov/2.2/frames.html
  • Call me and I will forward the link.

23. Double Check Legal 24. Thank You! David Johnston 619-977-6497 [email_address]

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