Archive for the ‘FHA’ Category

Oregon Mortgage Options

Shopping for the Right Mortgage
Finding a mortgage that’s right for you should be easy. But there are often many different programs to choose from, as well as a myriad of ways to structure the loan in terms of the amount, term, payment, rate, closing costs…the list of options may seem endless.

However, because there are so many options available, it’s important to seek advice from an experienced mortgage professional who has your best interest at heart. The first step in determining which program is right for you is to ask yourself the important questions listed below. These questions can also help you confirm that you’ve chosen the right mortgage professional as well, because he or she should be asking you the same questions before trying to put any mortgage in place:

  • How long do you anticipate living in your home?
  • Do you expect any changes over the next few years, such as expanding your family or having children go off to college or even move away?
  • Do you expect any changes in income due to promotions, relocations, retirement, inheritance, or pensions?
  • Are you expecting a change with regard to your investments?
  • When it comes to investment strategies, are you conservative, aggressive, or somewhere in between?
The reason these questions are so important is that different loan programs will offer specific benefits that will appeal to borrowers at different stages of life. What one homeowner might find desirable might cause another to reach for the Rolaids®.

In the end, be sure you are given a complete picture of exactly how much your mortgage will cost you over the period of time you anticipate having the loan in place. This is the single most important factor you should consider when shopping for a mortgage. Not only does this data illustrate the bigger picture of your financial goals, it allows for adjustments should things change a little sooner than expected. A good time frame for this projection is anywhere from three, five, or even up to seven years.

When shopping for a mortgage, you should always evaluate your choices carefully and consider how they will fit in with your long-term financial plan. Answer the important questions listed above and call me for a free consultation. Together, we’ll find the program that’s best for you. Give us a call at 503.931.4490


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Big Changes to FHA


Good Friday! There are some (big) changes to the FHA program beginning on September 7th, 2010.

FHA is lowering their Up Front Mortgage Insurance (Financed on top of the loan) from 2.25% down to 1%. Yes, this sounds great doesn’t it? Not so much, they are raising the monthly mortgage insurance from .55% to .90%. It may not sound like much, so let’s take a look at the example below:

 How does this affect you? 

$200,000 Purchase price

4.5% Interest Rate (apr 4.71%)

 PRE- September 7th

Principal interest and mortgage insurance payment: $1,127.16 

AFTER- September 7th

Principal interest and mortgage insurance payment: $1,172.45 

As you can see the payments will rise by $45.29 in this example. 

If  a borrower is looking for a home now (or on the fence waiting), it’s important to know about these changes. This can alter their “approved for” amount by as much as $10,000!

It’s important to work with someone who understands how these changes will affect you. 

Please let me know if I can help in any way. 

Have a wonderful Weekend!


Below you will find the actual letter sent out from David Stevens.

August 5, 2010 LINKS

Over the past week, Congress has taken quick action and passed H.R. 5981.

The bill gives FHA the authority to adjust its annual mortgage insurance premium, yielding approximately $300 million per month in value to the FHA Mutual Mortgage Insurance Fund at a time when its reserves are perilously low.

As I have previously stated in my testimony before Congress, FHA will lower its upfront premium simultaneously with the increase to the annual premium¹. It is our intention that effective on September 7 insurance premium will be adjusted down to 100 basis points on all amortization terms and the annual mortgage insurance premium will increase to 85–‐90 basis points on amortization terms greater than 15 years². A Mortgagee Letter will be forthcoming once President Obama signs the bill into Law schedule, I wanted to immediately inform the industry of our plans so the lending community can begin preparing for the operational and system structure on all new case numbers by September 7, 2010. 

With this authority, FHA is in a better position to address the increased demands of the marketplace and return the MMI fund to congressionally mandated levels without disruption to the housing market. While we appreciate and applaud this recent action, there is still work to be done. HUD remains steadfast in its commitment to comprehensive FHA reform legislation, similar to the FHA Reform Act passed earlier this year by the and risk management efforts.

We hope Congress will take swift action to pass management efforts will not be complete without the ability to monitor lender performance and ensure compliance with our rules.

Although the transition timeframe is short, implementation by September is critical. Thank you in advance for the efforts of you and your organization to make this change happen on such short notice. We appreciate your hard work and continued partnership.  

¹The upfront and annual premium changes do not apply to the following FHA Programs: Title I, HECM, HOPE for Homeowners (H4H), Section 247 (Hawaiian Homelands), Section 248 (Indian Reservations), Section 223 (e) (declining neighborhoods), Section 238(c) (Military Impact areas in Georgia and New York).

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If you are looking for an FHA loan in Oregon, get on the ball! Changes are coming! On April 5th, 2010 FHA is changing the guidelines of some of their programs.

Although most investors have had overlays in place for some time, FHA now requires prospective buyers to meet tougher stipulations including credit scores and UPMIP increases.


Some of the changes made by FHA include:

~An increase in Upfront MIP from 1.75 percent to 2.25 percent

~Reduce the maximum seller contributions from 6% to 3% by summer.  This may be the change being protested the most.

Yes, the changes may make it harder for a few prospective home buyers to qualify for an FHA loan, but the one widely speculated change did not happen; the increase in down payment from 3.5% to 5%. Sure the extra 1.5% doesn’t sound like a huge increase, but that’s $3,000 extra(!) buyers in Salem Oregon would have to come up with to buy a $200,000 home! FHA may re-visit the down payment increase at a later date, but for now, we’re safe!

In short…the FHA route is still a wonderful loan option. Whether you’re a First Time Home Buyer or not, this could be the best loan for you and your family!

Feel free to contact me with any questions you may have!

I can always be reached at 503.931.4490

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