203(h) – DISASTER RELIEF
• Up to 100% financing available for qualified borrowers that meet specific
requirements as outlined in Credit Policy Manual.
203(h) Disaster Relief
June 25th, 2009Property Flipping
June 25th, 2009PROPERTY FLIPPING
• On June 9, 2008 HUD issued a property flipping waiver that homes that were
foreclosed on and are being sold (on initial sale, not subsequent) by the mortgage
holder, or on its behalf, may be purchased by FHA borrowers without regard for the
90 day seasoning period. This waiver expires for all sales agreements signed after
June 9, 2009.
• If the above waiver does not apply – 90 days or less since property was last sold
– Property is NOT eligible for FHA financing; AND
• 91 days to 180 days since property was last sold – If the new sales price exceed
the previous sales price by 100% or more, FHA will require a second appraisal
completed by a different appraiser, and the second appraisal cannot be charged to
the borrower (it must be paid by the seller or broker).
• Mortgagee Letter 2008-37 provides property flipping exemptions to certain
Presidentially Declared Disaster Areas until 9/30/2009
Ratios
June 25th, 2009RATIOS
• Manual underwriting on existing properties over one year maximum ratio is
31/43%; With automated underwriting these ratios may be exceeded
Minimum Fico
June 25th, 2009MINIMUM FICO
• All Purchase, R/T, or Cash out Refinance transactions minimum FICO 620;
Streamline Refinance transactions do not have a minimum FICO requirement
Available Programs
June 25th, 2009AVAILABLE PROGRAMS
• 15, 20, 25, and 30 Year Fixed, and 1 YR, 3/1 & 5/1 ARM’s
Eligibility
June 25th, 2009US Citizens, Permanent and Non-Permanent Resident Aliens, Non-Occupant Co-
Borrowers – Owner Occupied Primary Residence only (Investment Property only
allowed on Streamline without an appraisal)
Free Home Buyers Scouting Report!
June 10th, 2009
Current Mortgage Rates
February 28th, 2009Check out Rates on the Right Sidebar
Three types of Title Insurance
January 27th, 2009Refinance: Usually in a refinance the owner purchases a lender title policy.
Purchase: Usually in a purchase where no loan is involved.. i.e. a cash sale
the owner will purchase an owners policy.
Purchase with a loan involved:
Is called a Simultaneous Policy
First: A standard policy for a standard rate.
Second: a Lenders Policy and an extended Policy for 75.00.
How Title Insurance is covered on a sale
January 27th, 2009Usually in a sale Title Insurance is handled as follows.
1. The seller usually purchases the owners policy.
2. The Buyer will purchase a simultaneous issue lender policy.
