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@Anonymous wrote:You get a kudos for having enough moral fiber
to share unpleasant but essential information
with the very people who need it.
CanDo
"The right attitude is everything"
Agreed!
Here is a PDF from Fannie Mae about what they term "updates to the standard pricing requirements for mortgage loans with certain risk characteristics," meaning higher rates for many borrowers:
so in a nutshell, the new *fha minimum* is really 620 OR you really get raked over the coals.
Is there any consideration given as far as larger downpayments? What's the max downpayment on FHA allowed?
Uh oh! Does that also impact refinancing (FHA Streamline)? Broker said he locked me at at 5.00% but now I'm worried..........because my FICO score took a pretty big HIT when the mortgage reported.
Hi Suzie,
You don't "qualify" for an FHA Streamline the same way
you do for an original mortgage. They just verify that your
mortgage is in good standing and that you've made your
payments on time. As long as you've done that (especially
since your lender already locked in the rate) you're fine...
CanDo
"The right attitude is everything"
A couple of questions for either Dallas or Matt,
First of all, thanks for posting that pdf chart, Matt.
It's very helpful, and not all consumers get to see
this type of information. So a BIG Thank You!
When you pull up the pdf chart and look under
LLPA's by Credit Score/LTV, there's a "1" next to it,
Scroll down to the bottom of the page, and it says that
these price adjustments do not apply to the following:
-- Loans with an amortization term of 15yrs or less
-- MyCommunityMortgage loan products
-- Most Government Loans
Question: Since "most government loans" won't be effected,
does that mean FHA, VA and USDA loan prices will stay
the same?
And a quick followup: Using this same chart, it says that
applicants with a below 620 FICO score who want a loan
to value of 75% or greater will have a price adjustment of
3%. What does that mean exactly? Are they referring to
someone with a sub-620 score paying a rate that's 3%
higher than someone with a 720+ score? Or does it mean
that people with sub-620 scores will see mortgage rates
go up 3% higher than what are currently available to them?
Thanks in advance for the clarification. This is really
terrific information.
CanDo
"The right attitude is everything"
@Anonymous wrote:A couple of questions for either Dallas or Matt,
First of all, thanks for posting that pdf chart, Matt.
It's very helpful, and not all consumers get to see
this type of information. So a BIG Thank You!
When you pull up the pdf chart and look under
LLPA's by Credit Score/LTV, there's a "1" next to it,
Scroll down to the bottom of the page, and it says that
these price adjustments do not apply to the following:
-- Loans with an amortization term of 15yrs or less
-- MyCommunityMortgage loan products
-- Most Government Loans
Question: Since "most government loans" won't be effected,
does that mean FHA, VA and USDA loan prices will stay
the same?
And a quick followup: Using this same chart, it says that
applicants with a below 620 FICO score who want a loan
to value of 75% or greater will have a price adjustment of
3%. What does that mean exactly? Are they referring to
someone with a sub-620 score paying a rate that's 3%
higher than someone with a 720+ score? Or does it mean
that people with sub-620 scores will see mortgage rates
go up 3% higher than what are currently available to them?
Thanks in advance for the clarification. This is really
terrific information.
CanDo
"The right attitude is everything"
Message Edited by CanDoAttitude on 01-22-2009 03:16 AM
Glad you found that PDF useful, but I'll have to let Dallas or somebody else answer your questions because I am not a morgage expert: my total lifetime experience with mortgages comprises one condo purchase and one refinancing when rates dropped. I am pretty good at finding information on the Internet; however its interpretation had best be done by those with actual experience!
@Anonymous wrote:A couple of questions for either Dallas or Matt,
First of all, thanks for posting that pdf chart, Matt.
It's very helpful, and not all consumers get to see
this type of information. So a BIG Thank You!
When you pull up the pdf chart and look under
LLPA's by Credit Score/LTV, there's a "1" next to it,
Scroll down to the bottom of the page, and it says that
these price adjustments do not apply to the following:
-- Loans with an amortization term of 15yrs or less
-- MyCommunityMortgage loan products
-- Most Government Loans
Question: Since "most government loans" won't be effected,
does that mean FHA, VA and USDA loan prices will stay
the same?
And a quick followup: Using this same chart, it says that
applicants with a below 620 FICO score who want a loan
to value of 75% or greater will have a price adjustment of
3%. What does that mean exactly? Are they referring to
someone with a sub-620 score paying a rate that's 3%
higher than someone with a 720+ score? Or does it mean
that people with sub-620 scores will see mortgage rates
go up 3% higher than what are currently available to them?
Thanks in advance for the clarification. This is really
terrific information.
CanDo
"The right attitude is everything"
Message Edited by CanDoAttitude on 01-22-2009 03:16 AM
1. <620 will pay higher rates if they can get a loan. for now, lenders will still do them below that, but at a premium.
2. when it says that these do not apply to govt loans, it doesnt mention that govt loans have their own LLPAs
3. 3% on that chart represents the delivery charge to fannie mae. so the client can either take a higher rate or pay 3% of the loan amount on the discount line. right now, yield spread premiums are so low, that i would NOT be able to roll it all into the loan. it would be best to just pay it up front. in the past, rolling that 3% delivery charge into the loan would result in a 1 - 1.5% higher rate. basically, we call this 3% to the 'price' of the rate. not 3% add to the 'rate'.
Thanks, Dallas. It's much clearer now.
CanDo
"The right attitude is everything"
Dallas,
Thanks for the information. I have a middle score of 648, and a Ch 7 BK that was discharged June 2007. I've been told I will qualify for an FHA 2 years from discharge with a score of 620+.
Do you think I could have problems qualifying in light of the declining economy?