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 moves to the forefront in lending again

The past couple weeks have seen significant news for Mortgage holders, lenders, and banks. Loan amount increases are official (for details click here) for FHA, FNMA, & Freddie Mac loans. This will help hundreds of thousands of US homeowners get lower rates for the purchase, refinance, or construction of their home. The benefits aren't just for people in Los Angeles ( now $729,750), Seattle, (now $569,500), San Diego (now $697,500) and other high cost areas though. Prior to the new limits, the minimum FHA loan amount in much of America was $200,160, which has now been increased to $271,050. This will help many families refinance out of Adjustable Rate Mortgages, ARM's, 80/20 combo mortgages, Option ARM's, and other risky mortgages into safe, secure, affordable FHA & FHA secure mortgages to up 97% of their homes appraised value.

Meanwhile FNMA (Fannie Mae) & FHLMC (Freddie Mac) loans became more affordable and less obtainable during the same week. While the loan limits increased for these loans, which should help many homeowners, it is now much harder to qualify for a Fannie or Freddie loan over 80% Loan to value. The reason for this is the recent changes (which start 3-17) for Mortgage insurance on these loans. The Mortgage Insurers have seen losses mount in the Billions, and have put limits on minimum ficos (anything less than 680 will be effected).

Fannie & Freddie have also limited the maximum Loan to Value (LTV) in "declining markets" such as specific counties in California, Florida, Arizona, and many more by 5-10% from prior levels. This also makes it more difficult for borrowers (even the best credit risk borrowers) to get Low Down Payment or High LTV financing in many markets.

There is the good news amidst all this doom & gloom!
FHA loans are not affected by either of these issues, the Mortgage Insurance limits on LTV or the Declining markets adjustments.

Good old FHA to the rescue.
FHA mortgage insurance premiums are self-funding. They all go into a fund that guarantees the mortgage banks in the case of default by the borrower. This program is self-funding, it is not subsidized by tax payer money, contrary to public opinion.

VanDyk Mortgage is a direct lender of FHA loans, and we have been making FHA loans for over 20 years. We are proud to have achieved the "Full Eagle Direct Endorsement" underwriter designation from HUD. This is the highest level of approval from HUD (US Department of Housing & Urban Development).

1. FHA loans require just 3% down payment (up to 97% LTV)
2. FHA loans are not limited by "declining markets" for Maximum LTV
3. FHA loans are safe, secure & affordable
4. FHA loans can work with lower credit scores than conventional loans

VanDyk Mortgage can work with tarnished credit histories to get you approved for FHA financing. Bankruptcy is OK (must over 24 months discharged for chapter 7, preferably 24 months from filing for chapter 13, although you can remain in Chapter 13 and refinance with trustee approval). FHA does prefer to see 12 months of on-time mortgage payments, 24 is even better. The FHA Secure program does allow for some late payments in certain circumstances.

Please call us at 866-900-2342 to see if you might benefit from FHA or FHA Secure financing. Brian Skaar and VanDyk Mortgage are your source for FHA financing.

www.vandykfunding.com for news, market updates, and secure loan application.