Updates to FHA appraisal Guidelines

HUD has announced new rules requiring 2 appraisals on FHA loans that fall under the new stimulus package loan limits (those loans over $362K). While this may seem prohitibitive at first glance, and it will add to the time & expense of an FHA loan, it is a relatively easy hurdle to work with.

First of all, it is important to remember that FHA loans are more affordable alternatives to their Fannie & Freddie counterparts. FHA loans also still allow downpayments of just 3%, whereas Fannie & Freddie require 3% minimum now, and for loan amounts over $417K, 5% is required. In Declining markets such as Riverside, Ca, Sacramento, CA, Miami, FL, and San Diego, CA Fannie & Freddie increase the minimum another 5%. FHA does not require extra down payment in "declining markets". Even better, with Down Payment Assistance programs such as the Nehemiah program, homeowners can get into a new home for zero down payment.

Back to the second appraisal. Here is the good news part of the program. It will give the buyer some confidence that the appraisals are legitimate and accurate, and also give the opportunity to renegotiate price or exit a contract if the appraised value won't support the sales contract price. There is some latitude given to the second appraisal process in the HUD regulations. It can vary by up to 5% without effecting the original appraisal's use for the financing. It is a less invasive appraisal, as SFR 2nd appraisals won't require interior photos. Downside: the 2nd appraiser comes from the HUD list, which may result in slower turn times due to volume in high cost areas. (this is good news for FHA approved appraisers though!).

If you could benefit from an FHA loan, it is wise to work with a lender with strong FHA experience. VanDyk Mortgage has been a direct FHA lender for over 20 years. Call Brian Skaar at 866-900-2342 (toll free) or visit us online at www.vandykfunding.com to find out if FHA is right for you. FHA offers security, safety and affordability.

Another Score for FHA loans

FHA Loans guaranteed by HUD are fast becoming the loan of choice again for first time homebuyers and also those buyers who do not want to put 5, 10 or 20% down payment on their new home (there is good reason to keep your assets in other areas, that will be another post, or call me to find out why). The FHA loan requires just 3% down payment. Sellers can contribute to down payment and closing costs as well, it just requires the use of one of our Down Payment Assistance programs to administer the transfer of funds. (HUD requirement). So an FHA Loan can be a 100% loan in that regard.

With Fannie & Freddie declaring many metro areas "Declining Markets" it is now harder to qualify (if at all) for low down payment loans from Fannie & Freddie in many markets. For instance, if you live in Riverside California, a widely recognized trouble spot for foreclosure activity, your maximum loan to value (LTV) with Fannie & Freddie is now 95%. But wait, there's more. Fannie & Freddie also limit the fico's that qualify for 95%, and add to the price.
That makes it difficult and expensive to go with a Fannie or Freddie low down payment loan.

So what? FHA is what. FHA doesn't ding you for a declining market, they still go to 97%.
FHA also doesn't have the FICO minimums that Fannie & Freddie do. It is not only easier to qualify, but more cost effective.

Work with the FHA loan pros, call Brian Skaar and VanDyk Mortgage to handle your FHA loan.
Brian Skaar 866-900-2342 www.vandykfunding.com

FHA Secure is now available

I have great news for distressed homeowners, FHA Secure is now available at VanDyk Mortgage. Through several of our investors, we are now able to offer the new HUD program, FHA Secure. FHA Secure is the new program that helps distressed homeowners refinance out of their ARM, or Adjustable Rate Mortgages into Secure, Fixed Rate FHA products. FHA Secures can even work with homeowners who have been late on their mortgage as a result of the rate adjustment and higher monthly payment. The program offers a great solution for many folks that have been turned down, or have been unable to find reasonable financing options to get out of their Adjustable Rate Loan. I will be posting more details soon.

FHA Secure and more changes coming soon

FHA Secure is Due to roll out January 2, 2008, and we are very excited. We are excited to be able to provide the Solid FHA loans to those families who are in distress over their ARM loans that they may have had difficulty refinancing. We have heard that HUD is busy working out the pricing schedules for the "risk based premiums" that will allow HUD to help folks outside their current guidelines.

Keep checking here for new information on this new loan program which will help hundreds of thousands of homeowners into more secure fixed rate loans.

Introducing the FHA secure page

Thank you for visiting our new Blog on FHA secure, the new Bush Administration loan program designed to assist American Homeowners transition from ARM's (adjustable rate mortgage) into secure fixed rate FHA loans. Many more details will be forthcoming as HUD releases to lenders the guidelines for this new program.

Here is a link the the official announcement:
FHA to implement new "FHASecure" refinancing product

Keep checking our blog to stay updated on the latest FHA Secure News.