Blogging About Loans: FHA Changes ... yes... MORE!

An office of elite mortgage lending professionals with a common interest and goal focused on providing customer service that exceeds expectation. Thereby building our business from repeat and referral opportunities. Ruth Vogt. LMB 100023827. NMLS 257576. Regulated by the Division of Real Estate. Fairway Independent Mortgage is an Equal Housing Opportunity.

FHA Changes ... yes... MORE!

FHA Changes.

Two FHA changes happening right now that aren't related... or are they?

There is a proposal (scheduled to go into effect Jan 1, 2010) that indicates one of the FHA changes is that brokers will no longer be approved by FHA to participate in FHA mortgages without going through an approved sponsoring lender. The responsibility and loan liability of mortgage brokers would fall squarely on the shoulders of the FHA sponsoring mortgage company. Net worth for FHA mortgage lenders is going from $250,000 to $2.5 million!

What does that mean? Long story made short: FHA is expecting sponsoring mortgage companies to create a sort of "Neighborhood Watch Program" for brokers.

How will these proposed FHA changes affect mortgage brokers? Dangerous position. Extremely volatile right now.

Secondly, we've all heard about FHA proposing HUGE changes with condo approvals. The desired outcome is to put the burden of proof on the shoulders of the lender. To be considered with the new FHA changes, the property would be subject to the following (as an example)

1. Due to noise concerns, FHA insurance will be unavailable for properties that are within 1000 feet from a highway, freeway or heavily traveled road, 3000 feet from a railroad, one mile from an airport, five miles from a military airport

2. FHA financing will not be available to properties located within 2,000 feet of any facility handling or storing explosive or fire prone materials like gas station, fire cracker sales or manufacturing operation, facility that stores or uses flammable or explosive chemicals.

3. FHA loans are not available if a property is located within 300 feet of dump, landfill, etc.

See the article for more information: FHA Changes (note: these changes have again been delayed, this time until January 1st).

How will these FHA changes affect condominiums? Dangerous position. Extremely volatile right now!

The FHA changesthat are being proposed would suggest that more responsibility is being placed on the shoulders of the remaining lenders still participating in FHA financing thus lessening the burden of FHA.

FHA was created in 1934 to provide adequate financing alternative and stabilize the mortgage/ housing marekt. Even with the proposed FHA changes today, it remains the best financing option available whether buying your first home or a move up home.

 


Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.

Ruth Vogt Colorado Mortgage Lender Ruth Vogt, Sales Manager

 #LMB100023827, NMLSR# 257576

 Equal Housing Opportunity. 

 Regulated by the Division of Real Estate.

   www.ColoradoHomeLender.com

   ruthv@fairwaymc.com  303-881-7849.

 

Twitter Icon           http://www.facebookloginhut.com/facebook-login/

 


by Twitter Buttons

Timer

Comment balloon 10 commentsRuth Vogt • December 09 2009 12:27AM

Comments

That is bizarre. Most of the newer complexes in our area are sandwiched between the freeway and of course nearby gas stations. I haven't measured the feet, but if the complex soundwall is at the end of the parking lot...

Posted by Michelle Carr-Crowe Just Call 408-252-8900 Top 1%!, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty) almost 9 years ago

Ruth, I liked your post so much I re-blogged it.

Posted by Michelle Carr-Crowe Just Call 408-252-8900 Top 1%!, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty) almost 9 years ago

Michelle, Thanks for your interest in the blog, as unfortuante as it is. You'll notice the title of the link is titled: Condominiums Face Lack of Affordable Financing Due to Changes in FHA Rules. AND conventional low dowpayment options have already moved toward tightening guidelines due to mortgage insurance issues. ugh!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) almost 9 years ago

Thanks for sharing --- lots of good info!

Posted by Norma J. Elkins, Realtor - Elkins Home Selling Team ( Elite Realty Group) almost 9 years ago

Great info Ruth! You are the BEST! :)

Posted by Jackie Connelly-Fornuff, "Moving at The Speed of YOU!" (Douglas Elliman Real Estate in Babylon NY) almost 9 years ago

Are the powers that being trying to stop EVERYONE from buying a home?

Posted by Jane Peters, Connecting you to the L.A. real estate market (Home Jane Realty) almost 9 years ago

Norma, not sure about the "good" part, but lots of info.

Jackie, oh gee, thanks!   :)

Jane, I agree. What in the world is going on these days??? Everytime we think it can't get worse... it does!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) almost 9 years ago

Hi Ruth, I read your post twice, thinking I must have missed something ...this is very unfortunate if these changes occur on January 1

Posted by Mary Douglas, REALTOR, Red Feather Lakes, Colorado (United Country Ponderosa Realty, Red Feather Lakes, Colorado) almost 9 years ago

Ruth, This is unbelieveable!  What about the sellers that have these properties, purchased the with an FHA loan, and won't be able to sell them in the future because the only people who want to buy them can't get the financing!  Amazing.  I'm going to re-blog to let my followers know this may be coming.

Nancy

Posted by Nancy Murray, Your NICE Real Estate Agent in Colorado Springs (Keller Williams Clients Choice Realty, Colorado Springs, CO) almost 9 years ago

Mary, I completely agree... unfortunate is a good word!

Nancy - yep, in a nutshell. Look at what happened in the manufactured home market. Even though FHA didn't force lenders out, investors did. Values decreased further due to the inability for new buyers to get affordable financing.

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) almost 9 years ago

Participate