It seems that every time I see a lender, I hear “Oh by the way did you hear that….” and it’s not about Mike and Anna having a baby or that someone else lost their job or got a job. It’s usually some new rule change that FHA or Freddie Mac or Fanny Mae has decided to throw our way.
So, without further ado, here they are:
- FHA mortgage insurance is going up on April 1. The upfront premium will go from 1.00% to 1.75%, an approximate increase of $17 a month on a $200,000 mortgage.
- Freddie Mac will now loan on condo projects that are considered “unwarrantable” because of investor concentration (not enough owner occupants) if the buyer is going to use it as their primary residence or second home and be able to put 20% down.
- The FHA suspended the 90 Day Rule for fix ‘n flips last year and it is still suspended but some banks require the seller to hold title for 90 days. It has enabled investors to get in and fix up foreclosures and sell them right away helping them move on to the next one and hopefully, getting a neighborhood back on its feet.
- A lot buyers who are self-employed rely on tax`returns to to qualify for a loan. Just make sure that if you are closing in the next month or so that you either close on or before April 13 or you may have to file for an extension. Once again, Fannie and Freddie need to verify your 2011 returns before the loan can be approved and since the IRS can take up to 12 weeks to process your return, your closing may be in jeopardy. A number of local lenders are recommending that you file an extension. Be sure to talk to your CPA.
Enough is enough. There will be more but not today.