Archive for 'First Time Home Buyer'

FHA Loan limits and MIP Fees changed October 1st!

Posted on November 17, 2011, by , under Benson NC Mortgages, Buyers, Fayetteville NC Mortgages, FHA, First Time Home Buyer, Interest Rates, Jacksonville NC Mortgages, Main Section, Raleigh NC Mortgages, Refinance, Sellers, Wilmington NC Mortgages.

I thought it might be helpful to show the reduced loan limits and recent changes to FHA’s mortgage insurance program.  Effective October 1st, 2011, the loan limit for Wake county (Raleigh, Garner, Zebulon, Knightdale), Durham, Johnston (Clayton, Willow Spring, Fuquay Varina), Brunswick, Pender and most North Carolina counties have been reduced by HUD to $271,050 for a one unit property.

Pasquotank, Perquimans, and Camden county FHA loan limits are set at $625,500 and Dare county is the next highest at $391,000.  If anyone would like a detailed list by county please send me a request and I’ll be happy to send you the FHA loan limit chart.

The FHA upfront MIP fee is the same for all loans at 1%.  This fee is financed into the loan amount.  There is also an annual mortgage insurance premium charged which is financed into the monthly payment and is dependent on the loan-to-value and loan term.  Effective April 18th, 2011 they are as follows:

Terms greater than 15 years:

  • LTV > 95% 115 BPS (equal to 1.15% annually)
  • LTV < 95% 110 BPS (equal to 1.10% annually)

Terms 15 years or less:

  • LTV > 90%: 50 BPS
  • LTV > 78.01 to < 90%: 25 BPS
  • LTV < 78%  0.00 BPS (No charge)

As you can see, the annual insurance is much cheaper if you can afford to go with a 15 year mortgage over the 30 year.

Our current guidelines allow us to offer FHA loans with credit scores as low as 600.  With scores above 640 we are able to offer improved pricing.  There are four programs to chose using FHA:

  • 30 year fixed rate
  • 15 year fixed rate
  • 3/1 treasury ARM; 30 year amortization
  • 5/1 treasury ARM; 30 year amortization

FHA still requires a 3.5% down payment for purchase transactions and will refinances up to 97.75% of the appraised value allowing you to add closing costs and prepaids.  They will also allow a borrower to do a cash-out refinance up to 85% of the appraised value.   NC Housing is able to assist borrowers with an $8,000 down payment on FHA loans if they are first time home buyer (haven’t owned a home for past three years) and meet their income and credit quidelines.

As always, these figures and guidelines can change at any time.  If you should have questions about an FHA loan, please give me a call or send me an email.  Take care and God bless!

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Market Update on Interest Rates – New Lows

Posted on October 7, 2010, by , under Benson NC Mortgages, Buyers, Fayetteville NC Mortgages, FHA, First Time Home Buyer, HomePath, Interest Rates, Jacksonville NC Mortgages, Main Section, Raleigh NC Mortgages, Refinance, USDA Home Loans, VA Loans, Wilmington NC Mortgages.

Here’s an update on what is happening in the securities market which affects interest rates for mortgage loans in Wilmington, Jacksonville, Fayetteville, Benson and Raleigh, North Carolina as well as the rest of the nation.  The market affects interest rates for FHA, VA, Conventional, USDA, HomePath Loans, and NC Housing loans for first time home buyers and those wanting to purchases or refinance as well.

5 year treasuries set a new record low, yielding 1.122%.  The old low was set in December 2008 at 1.18%.  10 year notes traded as low as 2.36% before giving up some ground to finish at 2.39%.  Real money accounts stepped up to buy, especially once the ADP report showed continuing pain in the employment sector.  Rumor also had it that a West Coast Hedge Fund (Pimco?) was in the market buying 2 billion 10 year notes as their position was believed to be underweight that duration.  Mortgage backs performed like dogs, widening out to treasuries while closing up 10/32’s on the day.  Since we priced plus 8/32’s today, the market is a little rich to our pricing which should help you with overnight expectations.  We see traders and money managers taking a neutral bias, waiting for pullbacks (consolidation) in the market to buy.  We like the range on the 10 year between 2.34% and 2.42% so on balance, you’re close to the top and the best mortgage pricing we’ve seen.  Keep in mind that tomorrow will be “square up day” where trading is typically quiet before a big release like Friday’s Employment Report.

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