Mortgage Blog

I wanted to provide you with an update on what is happening in the mortgage industry. Please read through this completely as this DOES and WILL affect current and future business. Don’t let ANYONE say, “I am going to wait and see if I can get a better deal” because chances are they will have a more difficult time (like its not hard now) to even GET financing!!! Get them closed now before it’s too late…

Effective December 12, 2009 new debt-to-income limits will be at 45% per Desktop Underwriting (DU - computerized approvals)!!!

Additional changes and upcoming guidelines:

* FHA is changing how long an appraisal is good for and stays with a property from 6 months to 4 months.

* FHA Condo Project Approval: Effective date currently is 11/1/09 and it might be pushed to 12/1/09. FHA is reviewing the announcement which caps the maximum number of financed Condos in a complex from 30% to potentially changing that up to 100% on existing and new projects could go up to 50%! This is big news because the announcement they made about 1 month ago, would have completely destroyed the nations Condo markets. Spot approvals still look like they will be going away so getting project approvals will definitely take longer and it will be more expensive to actually get a Condo closed going with FHA financing.

* 5 yrs from foreclosure, in order to qualify for new loan a minimum 680 FICO w/ a 10% down, no 2^nd home or investment property will be permitted w/ in 7 yrs of a foreclosure, no cashout refinances for those who have a foreclosure in the last 5 yrs.

* If a borrower has a Deed-in-lieu (not short sales) within 4 years from date listed on credit report can not obtain financing.

* CHFA is tightening credit guidelines and will be taking a closer look at borrowers who have credit scores below minimum guidelines (620). Even though they will go to 580 on a FICO they will be more critical on low credit scores along with debt-to-income ratios over 45% but chances are they will require ratios at or below the 45% requirement which is what the rest of the industry will be moving towards starting on December 12, 2009!!!