Important Changes in Mortgage Lending and Loan Programs
March 16, 2011 Leave a comment
New changes in mortgage lending and loan programs will take effect in 2011. The details follow.
FHA Loan Changes: There will be an increase of 25 basis points or .25% in the annual MIP (monthly insurance premium), meaning .25% of your loan amount. For instance if your loan amount is $275K, this will amount to $60 per month or $687.50 per year. This will impact new loans on or after April 18th, 2011.
VA Loans: The VA loan limit in Nevada is the standard $417,000, allowing home buyers to finance up to 100% of a home worth that much. A Certificate of Eligibility (COE) is the first thing you need to obtain a Nevada VA loan. Via the VA website or a VA-approved lender, COE’s affirm that you meet the qualifying terms for the program.
Generally, people who may qualify fall into one of three categories:
- Military members who served on active duty for 181 days or 90 days during peacetime or wartime, respectively.
- Reservists or members of the National Guard who served for at least half a dozen years.
- Spouses who have not remarried and survived their husband or wife who died in the line of duty or because of a service-related injury.
Portfolio Loans: Portfolio loans are loans that will not be sold to an institutional investor. Financing is now available 12 months after the close of a short sale, 12 months after bankruptcy or 12 months after a foreclosure. Although, this is good news to some, there is a required minimum of 20% down.
Conventional Loans:
- 100% financing with 20% down, NO mortgage insurance
- One loan, no mortgage insurance with 10% down
- If you are buying a second home, 15% down payment
Home Path Financing: Foreclosed homes that are now owned by Fannie Mae qualify for Home Path Financing. This means 10% down on second homes and investment properties! Call me at 702.419.9231 for a FREE list of homes in your area that qualify for Home Path Financing.
If you’re ready to learn more about these programs, give me a call at 702.419.9231, or email me at nathan.petrosian@gmail.com. Nathan Petrosian is a Las Vegas Based Real Estate Agent, with over 15 years of experience in Real Estate Sales and Mortgage Lending.