BIG Changes for AMY, FNMA and FHA

As you can see there have been some changes in my world...as Sheryl Crow croons, "A Change Will Do You Good." I could not agree more! I am so excited to announce my change to Citywide Home Loans, a Utah-based mortgage banking firm that is agressively moving into the Valley.

Citywide is one of the most dynamic mortgage banking firms in the country and is very happy to make this entrance into Arizona. As a correspondent lender, we are able to offer an array of products, make-sense underwriting and quick turn-times. Citywide wants to facilitate strong lending choices to our local real estate market.

Combined with my team's knowledge, experience and proven success in the Valley, Citywide Home Loans will be who YOU and YOUR CLIENTs will want to know!

I look forward to speaking with you soon about how this change can positively assist YOUR business.

FNMA Makes BIG Change
Source of Down Payment Options Expanded

This change, positions FNMA loans to directly be able to compete with conventional loans. In addition to the flexibility of private mortgage insurance options quality, higher loan to value, conventional loans may start making a comeback in to our market.

For loans originated AFTER December 13, 2010, Fannie Mae WILL NO LONGER require a conventional buyer to have a minimum or 5% of their own funds into the transaction! Fannie Mae will allow the use of gifts, grants, employer assistance, Community Seconds®, and other sources to comprise the borrower contribution across all LTV ratios for the purchase or limited cash-out refinance of one-unit principal residences.

FHA Changes Mortgage Insurance Lenders Change Credit Requirements
Mortgage Insurance Changes:

After October 4, 2010, new borrowers may have noticed that their FHA mortgage insurance payments were different. All loans will now have an Up Front Mortgage Insurance Cost of 1.0% and a monthly amount as indicated below:

For LTVs = or < 95%: Annual Premium is .85%
For LTVs > 95%: Annual Premium is .90%

Although the upfront cost has dropped, the increase in the annual premium will increase the monthly payment costs for borrowers making it more difficult to qualify.

Lenders Require Higher Credit Scores for FHA Borrowers:

In October, we also saw most mortgage lenders increase their minimum credit score for FHA borrowers from 620 to 640. The change is most likely attributed to FHA's increased focus on loan quality and Lender performance ratings.