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Proposed Rule Change from the FHA
29 Jan 2010
The Federal Housing Administration, more commonly known as the FHA, is proposing a new rule that could reshape the mortgage industry. The rule, Strengthening Risk Management through Responsible FHA-Approved Lenders, focuses on increased net worth requirements for mortgage lenders. In short, with this change, the lender will assume more liability on originating FHA loans.
To date there are about 13,800 registered lenders in the country originating FHA loans. The new proposed rule increases the net worth requirements for these lenders. As the rule stands, it would eliminate about 93% of currently approved mortgage lenders. Although the rule has not yet been implemented, it is already changing the lending industry. For instance, many brokers are now making the decision to either shut down or move to another company to originate FHA loans.
So what can you do to protect yourself as a new home buyer? Research your lender before committing to financing with them. Consider asking your lender the following questions:
- Are you owned by a bank? If they are, they typically will meet the new net worth requirements.
- Do you meet the new FHA net worth requirements? The safest bet is to look for a well-known name for lending. With this ruling, safety comes in the size of the lender.
In the end, it is important to do your research. Ask questions and be informed.
Authored by Jeff Sickeler, Sales Manager for WFS Mortgage, LLC an Affiliate of Wells Fargo Home Mortgage
Without question now is the time to purchase your new home. However, not every home is equal. In today’s market, many buyers are getting what they think is their dream bargain home, only to find out that they bought a money-pit nightmare.
In her article “Beyond the mortgage payment”, MarketWatch writer Amy Hoak points out that homeowners need to “expect the unexpected.” For instance, furnaces typically last 12-15 years and can cost anywhere from $1,000 to several thousand dollars installed, while water heaters typically last 10-12 years and can cost from $350 up to more than $1,000. These are just two examples of major home components that wear out over time. Other minor repairs like small leaks that are not fixed in a timely manner can lead to major bills for things like wet or rotting floors, walls and ceilings.
Experts suggest that homeowners should have at least 1% of the value of their home, but preferably 2-3%, set aside in savings for home improvements or unplanned home-related expenses. Few owners have that safety savings, especially new homeowners, who often put most or all of their savings into their down payment. One exception to that savings rule of thumb is for those who are buying a new home with a new home warranty.
John Wieland Homes and Neighborhoods offers the best new home warranty in the business, a 5 year - 20 year warranty that no other builder can match or beat. Having a new home warranty can save you thousands each year compared to purchasing a resale or foreclosed home that comes ‘as is’. In today’s market make sure you take all factors into account to find your dream home and don’t end up with a nightmare.
Authored by, Barry Gittleman, VP of Land and Strategy for John Wieland Homes and Neighborhoods
Thankful for Sales Up Over 66 Percent
In: Best Time to Buy
2 Dec 2009At John Wieland Homes and Neighborhoods, we are thankful for a much better market in 2009 compared to 2008. Our sales are up 66% year-over-year as homebuyers return to the market.
Driven by the trifecta of the extended/expanded federal tax credit, historic low interest rates and low home prices (down at least 20% from their peak), homebuyers realize that now is the time to buy. However, it is only a buyers’ market if you buy, and the combination of rates, prices and selection will not last through the spring. This is your moment to buy a new home from the builder you trust before the market edges higher. Thank your government for the incentive and make the move, now is the time.
Authored by, Jeff Kingsfield, Sr. VP of Sales for John Wieland Homes and Neighborhoods
There is great news for potential new homebuyers! The very popular $8,000 first time homebuyer tax credit has been extended and expanded. In addition to the $8,000 credit for first time homebuyers, the new legislation will allow qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years to be eligible for a $6,500 tax credit.
In addition to expanding the tax credit to current homeowners, the legislation increases the income caps for eligibility. Single taxpayers who earn up to $125,000 are eligible for the total credit amount, which is considerably higher than the previous income limit of $75,000. Single taxpayers who earn up to $145,000 are eligible to receive a partial credit. Married taxpayers filing a joint return who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap will receive partial credit up to $245,000.
So what types of homes will qualify for the tax credit? Any home that will be used as a principal residence. This includes single family homes and townhomes. The only requirement is that the home purchase price must be less than or equal to $800,000.
When it comes to your new home purchase, the time is now! To take advantage of the extended and expanded tax credit you must be under contract by April 30th, 2010 and close no later than June 30, 2010.
When you combine the historic low interest rates with competively priced homes and a tax credit for purchasing, you have a once in a lifetime opportunity to purchase your new home. For more information on the tax credit visit FederalHousingTaxCredit.com.
Authored by Jeff Sickeler, Sales Manager for WFS Mortgage, LLC an Affiliate of Wells Fargo Home Mortgage
About this blog
Welcome to GetHousingMoving.com, a blog designed to raise awareness of the importance of housing to America’s economic recovery and to share knowledge that we’ve collected over our 40 year history. Enjoy!
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- Proposed Rule Change from the FHA
- Hidden Home Costs Can Be Huge Without Warranty
- Thankful for Sales Up Over 66 Percent
- Tax Credit Expanded to Include Current Homeowners
- Luxury Showers vs. Whirlpool Tubs, Thoughts?
- Why a New Home is a Better Option than a Resale or Foreclosure
- New Homes and the Laws of Supply and Demand
- Act Now to take Advantage of the $8000 Tax Credit
- Some Real Data on the Atlanta Housing Market
- Right-Sizing, The Future of New Homes
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