“It won’t go FHA.” 

Those 4 words drive me crazy and I hear it all the time.  Whether it comes from clients or real estate agents, it’s a common misconception with FHA loans and many times is dead wrong.

The reasoning behind it is apparently years ago property condition requirements were much stricter with FHA financing than conventional.  That is not true anymore and hasn’t been for at least the last 4+ years.

The other day I was at a broker’s tour and listened to an agent pitch a listing of theirs.  They mentioned some of the windows were cracked so FHA financing wouldn’t work.  Guess what?  Without fixing those windows prior to close of escrow nothing would work except for Cash or FHA 203k financing. If you look at the property guidelines for conventional and FHA financing below you’ll notice they’re the same!

Conventional Guidelines:

FHA Guidelines:

So please from now on, if a property won’t work with FHA financing, it won’t work with conventional financing either no matter how much you put down!

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

While new FHA loan costs keep increasing HUD released some great news for those who already have one. 

If you’ve been current on your payments and got your FHA loan on or before May 31, 2009 you’re eligible for the new program that begins on June 11^th 2012.

Here are the details:

-New upfront mortgage insurance premium will be .01% of your base loan amount

-New monthly mortgage insurance premium is 55 basis points

Normally with FHA streamline loans the current rules apply.  An example:  Your original FHA loan in January of 2009 included a 2.25% upfront premium and a 55 basis point monthly premium.  If you did a streamline refinance today (3/6/12) you would have to pay the current 1% upfront premium and 115 basis point monthly mortgage insurance premium.  Because of the increased monthly mortgage insurance your savings, even with a lower interest rate, would be small.  In this example on a $300,000 purchase price with your original FHA purchase loan, if you refinance under the current rules you’d save $182/month and under the new rules as of June 11, 2012 you’ll save $343/month or $161 more.

Click here to read more about FHA Streamline Refinances

Click here to see HUD’s press release

Contact us today to start your refinance!

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

The California Academy of Science is located in Golden Gate Park in the heart of San Francisco.

It features animals and displays from all over the world, including one of the best aquariums north of Monterey Bay; there’s even an albino alligator!

There’s something for every age group; the planetarium and rain forest are the two most popular exhibits.

If you’re going for the first time I encourage you to take the behind the scenes tour.  A tour guide will take you through the academy and you’ll get to see their famous gem collection that only private tour guests are able to view.  You’ll also get to the front of the line for the planetarium shows and rain forest exhibit; it’s worth it!

For more information and to plan your visit: www.calacademy.org

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

Over the past few years FHA has increased their premiums to cope with mounting losses to their mortgage insurance fund; starting April 1^st 2012 they’re at it again.

With case numbers assigned on or after April 1^st 2012 the upfront mortgage insurance premium will increase from the current 1% to 1.75%; on a $300,000 loan that’s additional $2250.

The monthly mortgage insurance will also increase 10 basis points.  On a $300,000 loan with a 30yr fixed FHA loan with a 3.5% down payment the monthly premium will jump from 115 basis points or $287.50/month to 125 basis points or $312.50/month; an increase of $25/month.

On loans over $625,500, for all case numbers assigned on or after June 1^st 2012, the monthly premium will increase 25 basis points to 140; on a $700,000 loan that’s an increase of $145.84/month.

This change will encourage more potential homebuyers to look into traditional conventional financing with 5% down and lower overall costs.

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

With all the media coverage on the HARP refinances that Fannie Mae and Freddie Mac allow, the FHA streamline hasn’t gotten much attention.

This refinance program is not new and is a great tool for FHA borrows to save on their mortgage payment.

You don’t need to provide income documentation (you do need to be employed) and there’s no appraisal. 

As long as your payment decreases by at least 5% and you’ve been current on your FHA loan you probably qualify.

Here’s what you need to provide:

-current mortgage statement
-homeowners insurance policy
-your note (it’ll be in the papers the title company gave you when you signed for your current mortgage; it may say note or promissory note at the top)
-last 2 months bank statements to verify you can pay closing costs
-drivers license and social security card

Many times there are options to refinance with no closing costs. 

What you may have to pay even if you choose the no closing cost option (most times it’s a wash):

-prepaid interest (you won’t have a payment for 30 days so it equals out)

-money to create a new impound/escrow account (once your old loan is paid off whatever money is in your current escrow account will be refunded to you so that equals out too) Your current escrow/impound account can’t be transferred to the new loan, a new one must be created.

One thing to note is your new FHA loan will be under the current FHA rules.  An example: you purchased your home in March 2009.  At the time FHA’s monthly mortgage insurance was .55% of the loan amount and the upfront mortgage insurance premium was 2.25%.  As of 2/24/12 the monthly mortgage insurance is 1.15% and the upfront premium is 1%.  Your new loan will have the current 1.15% monthly mortgage insurance and you’ll pay the current 1% upfront premium (that can be rolled into the new loan).  You’ll notice than while your total payment has decreased your monthly mortgage insurance has increased.

The bottom line is that as long as your new payment is 5% (or more) less than your current it may be a financially savvy decision to refinance. 

Contact us today to see if it makes sense for you.

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties.  You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

A client of mine recently told me about a great program that Pacific Gas & Electric offers to some low income clients called the Weatherization Assistance Program.

If you income qualify PG&E will come to your house and do a free energy audit.

Based on the results of the energy audit they can fix/replace the following: attic insulation, caulking, water heater blanket, heating/cooling system repair, and other conservation measures.  The client who had this service performed also got a new lamp for their living room and had a cracked window replaced; this was all done at no charge.

For more details on this program and to see if you qualify click here: PG&E Weatherization Program

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties.  You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

On Wednesday January 25^th HUD released an announcement detailing how it would monitor lenders default rates and the consequences for not meeting their guidelines.  Later in the press release there was a small mention on a topic that could make FHA loans more expensive for the consumer.

They announced they’re going to issue a proposal to limit seller concessions.  Currently FHA allows up to a 6% seller credit for closing costs, under the proposed rules mentioned in their July 15^th 2010 memo, it would be reduced to 3%.

How would this make a difference?

FHA loans require tax and insurance impounds and there are times when up to 9 months of property taxes need to be collected.  In high costs areas this cost alone would eat up a large portion of a 3% seller credit and cause the buyer to come in with additional money.

With the reduction it could also prevent borrowers the ability to pay the 1% upfront mortgage insurance premium to be paid by the closing costs, forcing them to roll it into the loan amount and paying interest on it for the term of the loan.

Once HUD publishes the proposal there will be a 30 day public comment period before they make a final ruling; there’s no set date for this to take effect.

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties.  You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.

Every year the weekend after Thanksgiving, Theater Square in downtown Petaluma, CA fills with hundreds of people. They come to watch the beautifully decorated tree light up the night sky. There’s music, dancing, vendors, and a lot of holiday cheer; it’s a perfect family friendly outing.

For more family events in Petaluma visit the Petaluma Visitors Center Calendar.

Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties.  You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.