The mortgage limits set by HUD for FHA loans (Federal Housing Administration) for California counties were raised in March. The new limits are set relative to the median price of homes in each county. The bad news: the new limits will only be effective until the end of 2008.
San Diego’s limit has been raised to $697,500 from just over $362,000, while Orange County and Los Angeles county are both at the max of $729,750 now. This change comes as part of the effort to support the origination of larger mortgages, which should lead to lower interest rates. Many Jumbo loan holders or home buyers have been hesitant to finance given the high rates that Jumbo loans have experienced the past few months.
FHA Mortgage Limits in California by County
Alameda County
Median home price $995,000
new FHA Limit $729,750
Alpine County
Median home price $438,000
new FHA Limit $547,500
Amador County
Median home price $355,000
new FHA Limit $443,750
Butte County
Median home price $320,000
new FHA Limit $400,000
Calaveras County
Median home price $370,000
new FHA Limit $462,500
Colusa County
Median home price $318,000
new FHA Limit $397,500
Contra Costa County
Median home price $995,000
new FHA Limit $729,750
Del Norte County
Median home price $249,000
new FHA Limit $311,250
El Dorado County
Median home price $464,000
new FHA Limit $580,000
Fresno County
Median home price $305,000
new FHA Limit $381,250
Glenn County
Median home price $230,000
new FHA Limit $287,500
Humboldt County
Median home price $315,000
new FHA Limit $393,750
Imperial County
Median home price $260,000
new FHA Limit $325,000
Inyo County
Median home price $350,000
new FHA Limit $437,500
Kern County
Median home price $295,000
new FHA Limit $368,750
Kings County
Median home price $260,000
new FHA Limit $325,000
Lake County
Median home price $321,000
new FHA Limit $401,250
Lassen County
Median home price $200,000
new FHA Limit $271,050
Los Angeles County
Median home price $710,000
new FHA Limit $729,750
Madera County
Median home price $340,000
new FHA Limit $425,000
Marin County
Median home price $995,000
new FHA Limit $729,750
Mariposa County
Median home price $330,000
new FHA Limit $412,500
Mendocino County
Median home price $410,000
new FHA Limit $512,500
Merced County
Median home price $378,000
new FHA Limit $472,500
Modoc County
Median home price $125,000
new FHA Limit $271,050
Mono County
Median home price $370,000
new FHA Limit $462,500
Monterey County
Median home price $599,000
new FHA Limit $729,750
Napa County
Median home price $615,000
new FHA Limit $729,750
Nevada County
Median home price $450,000
new FHA Limit $562,500
Orange County
Median home price $710,000
new FHA Limit $729,750
Placer County
Median home price $464,000
new FHA Limit $580,000
Plumas County
Median home price $328,000
new FHA Limit $410,000
Riverside County
Median home price $400,000
new FHA Limit $500,000
Sacramento County
Median home price $464,000
new FHA Limit $580,000
San Benito County
Median home price $790,000
new FHA Limit $729,750
San Bernardino County
Median home price $400,000
new FHA Limit $500,000
San Diego County
Median home price $558,000
new FHA Limit $697,500
San Francisco County
Median home price $995,000
new FHA Limit $729,750
San Joaquin County
Median home price $391,000
new FHA Limit $488,750
San Luis Obispo County
Median home price $550,000
new FHA Limit $687,500
San Mateo County
Median home price $995,000
new FHA Limit $729,750
Santa Barbara County
Median home price $615,000
new FHA Limit $729,750
Santa Clara County
Median home price $790,000
new FHA Limit $72,9750
Santa Cruz County
Median home price $719,000
new FHA Limit $729,750
Shasta County
Median home price $339,000
new FHA Limit $423,750
Sierra County
Median home price $228,000
new FHA Limit $285,000
Siskiyou County
Median home price $235,000
new FHA Limit $293,750
Solano County
Median home price $446,000
new FHA Limit $557,500
Sonoma County
Median home price $530,000
new FHA Limit $662,500
Stanislaus County
Median home price $339,000
new FHA Limit $423,750
Sutter County
Median home price $340,000
new FHA Limit $425,000
Tehama County
Median home price $250,000
new FHA Limit $312,500
Trinity County
Median home price $200,000
new FHA Limit $271,050
Tulare County
Median home price $260,000
new FHA Limit $325,000
Tuolumne County
Median home price $350,000
new FHA Limit $437,500
Ventura County
Median home price $599,000
new FHA Limit $729,750
Yolo County
Median home price $464,000
new FHA Limit $580,000
Yuba County
Median home price $340,000
new FHA Limit $425,000
Thursday, April 3, 2008
Wednesday, April 2, 2008
FHA Jumbo loans
They are now here. FHA Jumbo loans. The new stimulus bill allows FHA loans up to $729,750 in the highest cost markets. Even if you are not in one of these markets, your loan limits have increased. Click here to access the limits for your area. (pdf will take a moment to load).
The FHA jumbo loan is fast becoming our most popular loan with the wider range of qualifying rules, (lower fico's, credit hiccups, etc), but also for the sheer economy of the loan.
The FHA jumbo loan is fast becoming our most popular loan with the wider range of qualifying rules, (lower fico's, credit hiccups, etc), but also for the sheer economy of the loan.
- FHA Mortgage Insurance is cheaper on a monthly basis
- FHA loan are the most affordable loans on the market today
- FHA loans still go to 97% loan to value (require just 3% down payment)
- There is no "declining market" hit for FHA (other loan programs have increased the down payment to 5, 10 or 20%)
- no Rate Adjustments
- no Interest Only
- no Negative Amortization.
Call the FHA loan pros to help with your safe, secure, affordable FHA loan. Call me at 866-900-2342 (toll free) or apply online at www.vandykfunding.com .
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
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
Wednesday, March 12, 2008
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).
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.
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).
- FHA loans require just 3% down payment (up to 97% LTV)
- FHA loans are not limited by "declining markets" for Maximum LTV
- FHA loans are safe, secure & affordable
- FHA loans can work with lower credit scores than conventional loans
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.
Saturday, March 8, 2008
New Loan Limits released for FHA loans
HUD has finalized the new 2008 loan limits for FHA Government backed loans. The new limits increase the max loans for FHA from just over $368K up to $729,750.
Although the highest amounts are for high cost metropolitan areas such as Los Angeles, New York, & San Francisco, Every county in America benefits from an increase in the FHA loan limit from $200K to a new minimum limit of $271,050. This helps to increase the number of US households that can qualify to purchase and refinance their homes.
You can find the new limits for your area here: 2008 Loan Limits .
FNMA & FHLMC, AKA Fannie Mae & Freddie Mac, are both GSE's or Government Sponsored Enterprises that purchase loans made by Mortgage Banks that meet their criteria. The new loan limits for Fannie & Freddie rose from $417K up to $729,750 as well in many areas, depending on Geographic area based on housing prices. Many areas did experience a significant increase in this amount, even if it didn't go to the max ceiling. For instance, Seattle homes can now qualify up to $569,500, and San Diego homes now qualify up to $697,500.
Please do not hesitate to call us to find out if the new loan limits can help your financial plans.
Our toll free number is 866-900-2342, ask for Brian Skaar.
You may also apply online to get your home loan quote at http://www.vandykfunding.com/ , simply click on the Loan Application button at the top of the page.
Although the highest amounts are for high cost metropolitan areas such as Los Angeles, New York, & San Francisco, Every county in America benefits from an increase in the FHA loan limit from $200K to a new minimum limit of $271,050. This helps to increase the number of US households that can qualify to purchase and refinance their homes.
You can find the new limits for your area here: 2008 Loan Limits .
FNMA & FHLMC, AKA Fannie Mae & Freddie Mac, are both GSE's or Government Sponsored Enterprises that purchase loans made by Mortgage Banks that meet their criteria. The new loan limits for Fannie & Freddie rose from $417K up to $729,750 as well in many areas, depending on Geographic area based on housing prices. Many areas did experience a significant increase in this amount, even if it didn't go to the max ceiling. For instance, Seattle homes can now qualify up to $569,500, and San Diego homes now qualify up to $697,500.
Please do not hesitate to call us to find out if the new loan limits can help your financial plans.
Our toll free number is 866-900-2342, ask for Brian Skaar.
You may also apply online to get your home loan quote at http://www.vandykfunding.com/ , simply click on the Loan Application button at the top of the page.
Thursday, December 20, 2007
Senate Passes FHA legislation
The Senate has passed Legislation that could help hundreds of thousands of American Homeowners get into a secure FHA Fixed Rate Loan. These are affordable, safe loans designed to help American Homeowners Purchase and also Refinance their Homes. The American Dream of Home Ownership is the main mission of the FHA, or Federal Housing Administration.
The loan limits in the bill would be increased to $417,000. This would open the door for many who are unable to get financing in our current tight credit economy, and those living in high cost states such as California, Washington, Florida, etc.
If you would like to review your options, and see if an FHA loan is right for you, Give us a call at 866-900-2342, toll free.
Thanks,
Brian Skaar
VanDyk Mortgage
The loan limits in the bill would be increased to $417,000. This would open the door for many who are unable to get financing in our current tight credit economy, and those living in high cost states such as California, Washington, Florida, etc.
If you would like to review your options, and see if an FHA loan is right for you, Give us a call at 866-900-2342, toll free.
Thanks,
Brian Skaar
VanDyk Mortgage
How to figure out your ARM Payments (Adjustable Rate Mortgage)
When we first start working with a client, We tell you that our company is different from others in the mortgage industry. We would always keep you up-to-date on the major changes in the market that could affect your financial goals or the goals of those close to you.
This is one of those times. In a recent New York Times article, the subprime lending collapse was faulted for “industry-wide problems” that affect more than just those borrowers with poor credit or subprime Adjustable Rate Mortgages (ARMs). Now, because of credit tightening, even borrowers with good credit and A-paper ARMs are expected to feel the effects of the changing market.
If you or someone you know has an ARM that is scheduled to reset anytime in the next 18 months, I urge you to share with them the following worksheet for estimating the new interest rate they will face once their ARM resets. Unfortunately, foreclosures are on the rise throughout the country, and many of these situations could've been avoided if the borrowers better understood how to read their loan documents and anticipate the fluctuating component of their home loan. Don't let this happen to you, your friends, or your loved ones. If you have any questions or trouble filling out the ARMs worksheet, please do not hesitate to call me. I'll be glad to sit down with you or your loved ones, and we can complete the worksheet together. Call me and set up a free consultation. My number is 866-900-2342 toll free. We are here to help.
Adjustable Rate Mortgage Worksheet Calculating Your Risk
Congress, many state legislatures, and the Federal Reserve are currently reviewing how ARM disclosures are presented to borrowers to ensure a better understanding of the mortgage process. Until then, it's up to you to protect yourself and your family. Don't get caught off guard. Pull out your ARM loan documents and use this worksheet to estimate what your payments will be when your ARM resets. (Note: If you have a Payment Option ARM, please call me right away. Payment Option ARMs have special features not covered in this worksheet.)
As you know, the initial interest rate on an ARM is generally locked for a predetermined period (typically between 12 months and 120 months). When this fixed-rate period of the ARM expires, the interest rate is then subject to change. Find your initial interest rate on your paperwork and write it down in the space provided. Now let's examine the initial interest rate cap, which is the highest rate your ARM can reach on its first adjustment. This interest rate cap typically ranges between 2 to 5 percentage points, depending on the terms of the note. The initial interest rate cap will be in effect for 6 to 12 months before it is subject to adjust or reset. (The cap on all subsequent adjustments to the interest rate should be either 1.00% or 2.00%.) If this is the first adjustment to your ARM, write in your initial interest rate cap in the space provided. Be careful not to confuse this with your life-time cap, which is the highest rate your loan can adjust to throughout the life of the loan. If you have a life-time cap on your ARM, write it in below.
Initial ARM Interest Rate Adjustment
__________________Initial Interest Rate
__________________Initial Interest Rate Cap
__________________Life-Time Cap
_______________Interest Rate Index + ______Margin =_________Adjusted Rate
(or Initial Rate Cap, whichever is less)
Subsequent ARM Interest Rate Adjustment(s)
____________________Current Adjusted Rate
__________________Adjustment Cap
__________________Life-Time Cap
___________Interest Rate Index + _______Margin
=_________Adjusted Rate
or (whichever is less)
___________Current Rate + ________ 1% or 2%, Per you loan terms =_____________Adjusted Rate
(must not exceed Life-Cap)
In addition to the initial interest rate cap, there are two other components that determine the interest rate when the ARM adjusts. The first component is what is known as the interest rate index. The index is the fluctuating component of the new interest rate and is based on, or tied to, any one of several indices tracked by the Wall Street Journal. These include, but are not limited to: the various London Interbank Offer Rates (LIBOR) and U.S. Treasuries, as well as the Prime Rate. Locate your interest rate index and write in the current rate above. Finally, we have what is known as the margin. The margin is the fixed number that, when added to the index, determines the interest rate the borrower will be charged upon adjustment. Locate your margin and write it in above. To calculate your adjusted rate, add the interest rate index to the margin and, if the rate is less than your initial interest rate cap, this is your new rate. Remember, your first adjusted rate cannot exceed your initial interest rate cap. If your adjusted rate is higher, then your initial cap rate will be your rate until your next adjustment. The cap on all subsequent adjustments to the interest rate should be either 1.00% or 2.00%, depending on the terms of your loan. In addition, your adjusted rate cannot exceed the life-time cap. Insert the appropriate figures into the table above. If your adjusted rate is less than your life-time cap, then this is your new rate. If your adjusted rate is higher than your life-cap, then your new rate is the life-cap rate. Below is a sample ARM with the first two adjustments calculated for you. Notice the change in the monthly mortgage payments! Don't let this happen to you or someone you love.
If you don't like what you see, or you're still having trouble working out the numbers, call me for a free consultation right away. There are a variety of fixed-rate products and government programs designed to help you get out of your ARM today.
Brian Skaar
VanDyk Mortgage
bskaar@VanDykfunding.com
apply online at www.vandykfunding.com
This is one of those times. In a recent New York Times article, the subprime lending collapse was faulted for “industry-wide problems” that affect more than just those borrowers with poor credit or subprime Adjustable Rate Mortgages (ARMs). Now, because of credit tightening, even borrowers with good credit and A-paper ARMs are expected to feel the effects of the changing market.
If you or someone you know has an ARM that is scheduled to reset anytime in the next 18 months, I urge you to share with them the following worksheet for estimating the new interest rate they will face once their ARM resets. Unfortunately, foreclosures are on the rise throughout the country, and many of these situations could've been avoided if the borrowers better understood how to read their loan documents and anticipate the fluctuating component of their home loan. Don't let this happen to you, your friends, or your loved ones. If you have any questions or trouble filling out the ARMs worksheet, please do not hesitate to call me. I'll be glad to sit down with you or your loved ones, and we can complete the worksheet together. Call me and set up a free consultation. My number is 866-900-2342 toll free. We are here to help.
Adjustable Rate Mortgage Worksheet Calculating Your Risk
Congress, many state legislatures, and the Federal Reserve are currently reviewing how ARM disclosures are presented to borrowers to ensure a better understanding of the mortgage process. Until then, it's up to you to protect yourself and your family. Don't get caught off guard. Pull out your ARM loan documents and use this worksheet to estimate what your payments will be when your ARM resets. (Note: If you have a Payment Option ARM, please call me right away. Payment Option ARMs have special features not covered in this worksheet.)
As you know, the initial interest rate on an ARM is generally locked for a predetermined period (typically between 12 months and 120 months). When this fixed-rate period of the ARM expires, the interest rate is then subject to change. Find your initial interest rate on your paperwork and write it down in the space provided. Now let's examine the initial interest rate cap, which is the highest rate your ARM can reach on its first adjustment. This interest rate cap typically ranges between 2 to 5 percentage points, depending on the terms of the note. The initial interest rate cap will be in effect for 6 to 12 months before it is subject to adjust or reset. (The cap on all subsequent adjustments to the interest rate should be either 1.00% or 2.00%.) If this is the first adjustment to your ARM, write in your initial interest rate cap in the space provided. Be careful not to confuse this with your life-time cap, which is the highest rate your loan can adjust to throughout the life of the loan. If you have a life-time cap on your ARM, write it in below.
Initial ARM Interest Rate Adjustment
__________________Initial Interest Rate
__________________Initial Interest Rate Cap
__________________Life-Time Cap
_______________Interest Rate Index + ______Margin =_________Adjusted Rate
(or Initial Rate Cap, whichever is less)
Subsequent ARM Interest Rate Adjustment(s)
____________________Current Adjusted Rate
__________________Adjustment Cap
__________________Life-Time Cap
___________Interest Rate Index + _______Margin
=_________Adjusted Rate
or (whichever is less)
___________Current Rate + ________ 1% or 2%, Per you loan terms =_____________Adjusted Rate
(must not exceed Life-Cap)
In addition to the initial interest rate cap, there are two other components that determine the interest rate when the ARM adjusts. The first component is what is known as the interest rate index. The index is the fluctuating component of the new interest rate and is based on, or tied to, any one of several indices tracked by the Wall Street Journal. These include, but are not limited to: the various London Interbank Offer Rates (LIBOR) and U.S. Treasuries, as well as the Prime Rate. Locate your interest rate index and write in the current rate above. Finally, we have what is known as the margin. The margin is the fixed number that, when added to the index, determines the interest rate the borrower will be charged upon adjustment. Locate your margin and write it in above. To calculate your adjusted rate, add the interest rate index to the margin and, if the rate is less than your initial interest rate cap, this is your new rate. Remember, your first adjusted rate cannot exceed your initial interest rate cap. If your adjusted rate is higher, then your initial cap rate will be your rate until your next adjustment. The cap on all subsequent adjustments to the interest rate should be either 1.00% or 2.00%, depending on the terms of your loan. In addition, your adjusted rate cannot exceed the life-time cap. Insert the appropriate figures into the table above. If your adjusted rate is less than your life-time cap, then this is your new rate. If your adjusted rate is higher than your life-cap, then your new rate is the life-cap rate. Below is a sample ARM with the first two adjustments calculated for you. Notice the change in the monthly mortgage payments! Don't let this happen to you or someone you love.
If you don't like what you see, or you're still having trouble working out the numbers, call me for a free consultation right away. There are a variety of fixed-rate products and government programs designed to help you get out of your ARM today.
Brian Skaar
VanDyk Mortgage
bskaar@VanDykfunding.com
apply online at www.vandykfunding.com
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