FHA Loan Criteria

Another Interest Rate Cut By The Fed And Other FHA News!

Hi, its Craig.

I’m coming to you today to keep you updated on a
few things happening in the mortgage market and economy overall.

First, it looks like the Federal Reserve is set to reduce the prime rate again. The projection is to reduce it by 3/4% by tomorrow.

The Fed has reduced the rate 2.25 percentage points since September to try to keep the U.S. from going into a recession.

This rate cut is another attempt to try to do the same, and hopefully it will have the desired effect.

Now, a lot of people mistakenly assume that a reduction in the prime rate by the Federal Reserve actually equates to a direct reduction in all the mortgage interest rates for all the mortgage programs out there.

It doesn’t really work like that.

When the Federal Reserve reduces the Prime Rate, it affects the interest rate that banks charge each other. Now, mortgage interest rates are tied-in to the bond market and the 10-year treasury, which are tied-in to the Federal Reserve and the overall economy.

What happens, though, is that the various economic markets, including the mortgage market, anticipate Prime Rate changes, like the one expected to take place tomorrow. They kinda know ahead of time which way the Federal Reserve is likely to go with interest rates, so they price that change into the market ahead of schedule.

Now…as of this past Friday, I hadn’t seen any noticeable mortgage pricing change, but there may be by today or tomorrow. If there is, I’ll be sure to let you know.

Rates are still really good, so any improvement is gravy, although there has been a slight up-tick in the past week or so.

It’s definitely something I keep an eye on, so it’s a very important factor in any mortgage financing.

It’s important to point out, though, that interest rate is not THE most important factor. Your bottom line benefit it, so keep that in mind. What I mean is: sometimes your interest can get over-shadowed by the goals you’re able to achieve with you new mortgage. You’re gonna want to keep the overall picture in focus, to avoid just focusing in on one aspect of the entire situation.

Also, I wanted to talk about the FHA loan limit increases I talked to you about last week. To refresh your memory, FHA (The Federal Housing Authority) raised it’s loan maximum to $729K in high cost areas around the country, like the Washington, D.C. Metro area.

Other areas had increases, too, but not to the level high cost areas have seen.

Now these loan increase represent a significant shift for FHA and for a lot of homeowners. It opens up a lot of opportunity for folks, maybe even you, to make use of the flexibility and benefit that FHA is providing in today’s more restrictive and conservative market.

The loan increase also represents a lot of changes that need to take place on the part of all the funding sources that provide FHA loans. All of their pricing engines, automated underwriting systems, and guideline documentation have to be upgraded to reflect the loan limit increase.

These changes were just rolled-out last week, so these FHA lenders have been very busy getting everything up-to-speed. As of Friday, only one FHA funding source out of the main 3 I use had completed their upgrade. That’s understandable, because there’s a lot of work to be done and it is a major change.

Now I know that there are a lot of analysis requests that’ve come in that’re waiting for all 3 to get upgraded so we can make use of whoever ends up having the best pricing, so just know that I’m on top of it and will let you know as-soon-as we can move forward.

Another thing I wanted to talk about here is the media and how the talk about the economy and the “mortgage crisis credit crunch thing”. It’s enough to get you down, isn’t it? I know it is.

It’s unfortunate. I’m here to tell you that you just can’t let yourself get too emotionally involved with what you hear. A lot of what you hear is being read right off a script, so you’re gonna want to keep in mind that there’s a solution for everything, it’s a big, big country with a lot of people in it doing good things for themselves and for others.

Now I’m not saying that there aren’t many people in need and that there aren’t problems to be solved, because there definitely are.

But there’s a lot to be said, and wonders can be done, with a positive outlook and the right focus.

So I’m just suggesting that, no matter what your circumstance is right now, taking an honest look at your personal economy and moving forward with it with enthusiasm, focus, and the right mindset can lead ya to the solutions you’d hope for.

There’s really no reason not to. Can you think of one? I can’t. Hey, it’s been more and more Spring-like over the past couple days here in the Washington, D.C. Metropolitan area, so that always gets my attention. I can’t help it. We’re getting to head into one of my favorite times of year. And now that the time has changed, it brighter longer, so what’s not to like?

Warmer weather on it’s way, longer, brighter days, and FHA there to help you save money, get CASH, erase debt, build wealth, and get back some priceless peace of mind.

How can you NOT be encouraged?

All I’m saying is: don’t put to much weight on what the media script readers try to drill in your head, letting it have too much affect on your day-to-day life, OK? I’m sure you already are mindful not to, I’m just reminding you.

Anyway, as things change I’ll make sure to stay on top of it for you and help keep you up to speed, OK? But, if you have any questions about what I’ve talked about here today, or about anything else, just call me at my office: 301.740.1808 or respond to the email I sent.

There are other ways to contact me too, and you can find them on my website. So be sure to visit me here online at:

www.GotDebtCallCraigColeman.com!

Thanks again for taking the time to watch this video and visit my website. Hopefully you got something out of it you can use and is helpful to you. For now, this is Craig Coleman signing off. Bye bye.



                       Craig Coleman
              The Credit And Debt Insider

Another Key Benefit: NEW FHA Loan Criteria

Yesterday, new FHA Loan Criteria were announced as increases to its maximum loan amounts. These increases are in effect nationwide, primarily in high-cost areas. The increased loan amounts are not in effect everywhere, so you need to make sure if this change affects you where you live. You can do this online but visiting: www.HUD.Gov. Click on the “FHA Loan Limits” link. You can search easily by state and county.

New FHA Loan Criteria has resulted in a new maximum loan amount of $729,750.00! This is a significant increase of many 100’s of 1000’s of dollars! This increase couldn’t come at a better time, so get in touch to find out how FHA can help you!

Visit me online at: www.GotDebtCallCraigColeman.com for more information on all of this FHA Loan Criteria. Request your 100% FREE, Zero Obligation Analysis Request. Save money, erase debt, get CASH, build wealth, and peace of mind!

Craig Coleman Financial Wiz-Bang Your Debt, Savings, Credit, And Wealth Insider

The Attractive Benefits Of Key FHA Loan Criteria

    With the fall of subprime, as a result of all the “mortgage mess”, the FHA (Federal Housing Authority), and specifically, its FHA Loan Criteria, has really come to shine. This is a function of the government that has been there all along, doing its job and doing it quietly…until now, it seems. FHA provides government backed mortgage loans to a still very hungry mortgage market that now needs it more than ever.

    There’s a huge section of the market out there that’re in trouble and really need the help. The problem is, well…those people can’t get the financing they need due to traditional and conventional mortgage financing guideline, which have become more and more restrictive in recent times. Things continue to change and it hasn’t been easy on the homeowner that needs them so much. The subprime mortgage loans that used to be so widespread are now gone. What’re you to do?

    Well, that’s a good question that’s easier and easier to answer thanks to the FHA Loan Criteria, that’s available in more prominence, kinda saving the day. It’s always been there, but the focus has changed as the need has. It’s become so popular recently there’ve even been some new programs and updates that’ve been made. You might’ve heard about it in the media recently. Why is the FHA getting this attention and able to be there for homeowners that need it? Well, they’ve got flexibility in a time when the lenders that’re still around don’t seem to. Conventional lenders have really clamped done on program availability and flexibility as a result of fallout and more assumed risk. This is leaving out a whole, huge swath of folks out. FHA is taking up that slack in a big, big way. Here’s some of what makes FHA Loan Criteria so attractive in today’s market:

1. There’s no specific credit score guideline. This is huge for folks, most of which don’t really even realize it. I’ve seen homeowners with scores below 500 get automatic approvals because they had other compensating factors in place, making their case stronger. Things like a strong equity position in the house, notable reserve money, a good payment history, a significant improvement as a result of the refinance, etc. You’d be very hard pressed to find another lender come close here.
2. FHA allows for a much higher Loan-To-Value (LTV) than any other lender will even think about. And FHA will allow for these higher LTV’s on both purchases and refinance. Look at this…on a refinance with no mortgage lates, a homeowner can borrow up to 95% of their home’s value. That percentage is reduced to 85% if there has been 1 mortgage payment made late at the 30 day level, but still…that’s pretty darn good. On a new home purchase, FHA allows for a maximum LTV of 97%, meaning the borrower only has to make a down payment totaling 3% of the purchase. That’s almost unheard of in these times. Except for FHA!
3. Despite the fact that FHA has these flexible criteria, the rates offered are still very competitive. I’m talking competitive like almost as good as the interest rates offered by the more and more conservative, conventional lenders to borrowers of the highest credit grade and financial stature. To think that someone with a sub-600 credit score could get financed up to 95% LTV with an interest rate similar to the best rates in the market is amazing. You might call it “attractive” and “of interest” to a particular portion of the homeowner population that is kinda drifting in the wind.

    These 3 points are giant positives, I feel. Maybe you do, too. The question is: as a consumer, did you know about them? I talk to a lot of people looking for financing. These are folks having a hard time, or needing to save more, or needing to erase debt, or needing to get CASH, or needing to do all of these and more.

    What I’m finding is that most folks don’t realize the options that’re available in a time when options are scarce. I have to tell ya, that’s kinda why I’m writing this article. Communication is key here. And, with further changes for the better looming on the FHA front, I think its gonna become more and more important to bring attention to the FHA Loan Criteria that’ll be of such benefit to a large group of people.

To get more information that just might be of benefit to you, visit www.GotDebtCallCraigColeman.com.