This morning HUD announced a 25 basis point reduction in the annual MIP fee effective for loans with a closing/disbursement date on after January 27, 2017. That takes the fee from 80 to 55 bps for the loan terms of <= $625.5k loan size and <=95% LTV. The new MIP for loans >95% LTV is now 60 bps vs. 85 bps earlier.
This reduction makes FHA even more competitive for first time homebuyers, especially those buyers with lower credit scores. If you are looking at homebuying this year, this just made it more in reach for many. Call me today to become pre-approved to buy your first home! 503 581 8100
Please use the following link to view this morning’s HUD notice.
A question on many peoples mind is whether or not they can still get a loan in todays market? The answer is yes! There are still many programs and plenty of money out there to lend.
The dilemma(which is really just a mindshift) that consumers face now is that we have to return to basics. We need to save money and have good credit and control of our credit, meaning we can’t have too much. This is not a detriment, this is a good thing in our lives. We need to remember to not stretch ourselves too thin and return to the ideas of living within our means. Without the stress of worrying about paying the bills, our lives will be richer and full of more enjoyment!
When I first started my mortgage career, in 1993, the only program that did not require a down payment was a VA (veterans) loan. We have returned to that mind set in the mortgage industry. A VA loan is a great benefit to those individuals that give so much of themselves to keep our Country free!
FHA loans only need 3% (until Jan 1st when the down increases to 3.5%). This is a great first time homebuyer program. This is how I purchased my first home and many others did as well. FHA has great interst rates, lower mortgage insurance and the down payment can actually be a gift from a relative. So you truly could still buy a home with little or none of your own money.
There is one other program that will stll allow 100% financing. The Rural Development program. The only caveats are that the property must be in a rural area and there are income limitations as well. Please call me to discuss this option and see if it would work for you.
I don’t want this spot to be a laundry list of what we can do, but I did want to give you a brief taste that yes there are still loans out there for you! Call me today and we can discuss your personal situation and find a loan that would work best for you either now or in the future.
A goal of home ownership is powerful, it gives you something to work towards and a reason to celebrate once its achieved!