Wednesday, March 14, 2012

HOA Fees

"Why are my HOA fees included in the loan payment section of the loan application if I don't pay my HOA fees to the lender?"

HOA fees are part of your monthly housing payment, even though they get paid directly to the HOA management company and not to the lender. HOA fees are a recurring debt and must be counted in the calculation of the debt-to-income ratio (DTI). The easiest way to do that is to include them in the monthly housing payment section of the loan application.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Wednesday, March 7, 2012

FHA Underwriting Just Got Tougher


Here is an important underwriting change for FHA loans.

At the moment, collection accounts do not have to be paid to qualify for an FHA loan.  However, for FHA loans with a case number assigned on or after April 1, 2012, the borrower must pay off collection accounts if the total amount of all collection accounts is $1,000 or greater.  The borrower can either pay them off prior to closing (not recommended because their credit scores will go way down), pay them off at the closing, or provide documentation that they have made payment arrangements with the creditor and they have already made three monthly payments.

Also, if the borrower has disputed accounts on their credit report, and if those disputed accounts total more than $1,000 and they are not at least 2 years old, they must be paid off or proof must be provided showing that payment arrangements have been made with the creditor and three monthly payments have been made.

How does this affect you?  Simply put, it will prevent a lot of people from getting FHA loans unless they can pay the disputed accounts or the collection accounts. 

What should you do about this?  First of all, NEVER use a credit repair company.  Credit repair companies will dispute every account on your credit report, and that means you will have to pay them all off.

The best thing to do is to use a lender who is as knowledgeable as we are.  We can advise you correctly.  



Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

How the FHA Increase Will Affect You


HUD just announced that they are increasing the up-front mortgage insurance premium and the annual mortgage insurance premium for FHA loans that have case numbers assigned on or after April 1, 2012.

The up-front MI payment will increase from 1.0% of the loan amount to 1.75% of the loan amount.

The annual MI payment will increase from 1.15% of the loan amount to 1.25% of the loan amount.

Here's how that will affect you:
  • For a $100,000 loan, the total mortgage payment will increase by about $13 per month.  
  • For a $200,000 loan, the total mortgage payment will increase by about $25 per month.
These are very small increases, and it is very unlikely that they will prevent anyone from being able to qualify for an FHA loan.  So when uninformed people tell you how the government is once again destroying the real estate industry, don't believe it.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.