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Hud slides webinar nov 30 2010
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Hud slides webinar nov 30 2010


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  • 1. FHA Programs: Session 3Thank you for joining the Webinar!• We will begin at 9:30 a.m.• Your phone will be muted, as there are hundreds of Members on the call. Don’t forget to turn on your computer speakers or call in to hear the audio.• You can shrink the control window by clicking on the right hand arrow.• You can type your questions in the chat window and we will do our best to answer in the course of the session. Connect to the audio by 1) Teleconference Or 2) VoIP: Ensure that your computer speakers are on (a headset is recommended)
  • 2. FHA TODAYU.S. Department of Housing And Urban Development November 2010 Company LOGO
  • 3. Today’s Agenda Previous changes affecting industry partners HERA changes affecting industry partners Reverse mortgage program Manufactured housing Disaster relief Hope for Homeowners
  • 4. Closing Costs Mortgagee Letter 2006-04;-07Eliminated non-allowable closing cost fee scheduleBorrowers may pay anything that is reasonable and customary with any real estate transaction  One Exception Tax Service  Normally $69 to $79
  • 5. Appraisal Protocol Mortgagee Letter 2005 – 48 Adoption of FNMA forms Done “subject to” or “as is” May be appraised without review of plans and specs if =/> 90% complete Eliminated VC (Valuation and Condition) Sheets Homebuyer Summary eliminated
  • 6. Appraisal Protocol - Continued Inspections no longer  Items no longer required mandated but may still to be repaired: be required:  Missing handrails  Pest Inspection  Cracked window glass  Well Cert  Minor plumbing leaks  Septic Cert  Poor workmanship  Flat and/or  Defective floor unobservable roof coverings
  • 7. Housing and Economic Recovery Act of 2008 - HERAKey FHA Provisions Permanently increases loan limits  Effective January 1, 2009  Maximum county limit will be $625,500  Lowest county limit will be $271,050  Limits vary by county (MSA)  Fannie Mae, Freddie Mac, and FHA may all have same limits (subject to change)  Home Equity Conversion Mortgage limit $417,000
  • 8. Housing and Economic Recovery Act of 2008Key FHA Provisions Revised downpayment and maximum mortgage calculation  Effective January 1, 2009 Bans Seller-Assisted Downpayment Assistance Programs  Effective October 1, 2008
  • 9. American Recovery and Reinvestment Act of 2009Temporary Mortgage Limit Increase – Mortgagee Letter 2009 – 07 Temporary increase in ceiling/limit  175% of GSE ($417,000 x 1.75%)  $729,750  Determined by county MSA’s  Possibly higher in Alaska, Hawaii, Guam, and U.S. Virgin Islands Home Equity Conversion Mortgage nationwide limit  $625,500 Expires December 31, 2010 (reverts to HERA limits)  Loan must be fully approved by 12/31/10
  • 10. Housing and Economic Recovery Act of 2008Minimum Required Investment - Purchase Effective January 1, 2009 Minimum cash investment  3.5% of appraised value or sales price (whichever is less) Secretary of HUD has authority to amend  Can set higher, but not lower required borrower investment
  • 11. Revised Downpayment and Maximum Mortgage RequirementsMortgagee Letter 2008 – 23 September 2008  Maximum loan-to-value (LTV) simplified  96.5% on purchase  Maximum LTV not to exceed 100 percent of appraised value or sales price (whichever is less)  Including Upfront Mortgage Insurance Premium Example: 96.5% loan-to-value + 1% Up Front Mortgage Insurance Premium = 97.5% (okay)
  • 12. Home Equity Conversion Mortgage Programs (a.k.a. HECM) Known in the industry as a reverse mortgage Two programs  HECM Standard  HECM Saver (announced September 2010)  Lowers up front cost for borrowers/buyers that want to borrow smaller amount than would be available under HECM Standard Availability of program features same for both
  • 13. HUD’s Web-Site for HECM
  • 14. Differences Between ProgramsHECM Standard HECM Saver Higher principal limit  Lower principal limit factor factor Initial Mortgage  Initial Mortgage Insurance Premium – Insurance Premium - 2% .01% Annual Mortgage  Annual Mortgage Insurance Premium – Insurance Premium – 1.25% 1.25%
  • 15. Home Equity Conversion Mortgage Programs – Cont.Purchase, refinance, or cash outBorrower brings in difference between purchase price and maximum claimUnlocks and converts equity to cashAge of borrower, value of property, and interest rate determine funds available to the customer
  • 16. HECM - ContinuedYoungest borrower =/> 62No credit qualifyingNo income requirementsNo monthly re-paymentsBorrower must occupy property majority of year (183 days)Five (5) payment options
  • 17. HECM Payment Options = 5$ Line of Credit = money when needed $ Similar to bank withdraw$ Tenure = Fixed monthly payment$ Term = Fixed payment defined in years or months$ Modified Tenure = Line of credit & fixed monthly payment$ Modified Term = Line of credit & fixed monthly payment for months/yearsNOTE: Payment option may be changed at any time for a max. $20.00 service fee
  • 18. Manufactured Housing Must have HUD I.D. Tag(s) Must have been manufactured on or after June 15, 1976 Must be affixed to permanent foundation – Per FHA guidelines Can only have been moved from factory to subject home site once; or factory to dealership lot to home site once  Cannot be moved from one home site to another home site
  • 19. Manufactured Homes - Continued Must be taxed as real property Must have engineer’s certification that permanent foundation meets FHA guidelines Can purchase land and home with one loan If borrower already owns land, may be used for minimum required investment
  • 20. Disaster Relief – 203(h)Available to homeowners and renters100% financing 3.5% minimum investment not required Must pay closing costs and pre-paidsNew home can be anywhere in the U.S.Must apply within one (1) year When President declared disaster areaMust document residence and condition
  • 21. Hope for Homeowners (H4H) Temporary program approved by Congress  Expires December 2010 Refinance from non-FHA insured mortgage to FHA Current or in default on existing mortgage Have not intentionally defaulted on mortgage Have made minimum of 6 full payments during life of existing senior mortgage Must reside in property
  • 22. H4H Eligibility - Continued Mortgage must have originated on or before 1/1/2008 Must be borrower’s primary residence May not have any other ownership interest in any other property  Non-occupant co-borrowers will need to quit claim interest prior to occupants applying for mortgage 1 – 4 unit properties eligible  Maximum mortgage amount $550,440
  • 23. Where to Get More Information 1 – 800 – CALL – FHA (1 – 800 – 225 – 5342)  A source for all FHA questions  Industry partners and Consumers  On-line resource for info about FHA and FHA programs  On-line source for all other HUD programs, grants, forms, press releases, etc.  User friendly  On-line resource to frequently asked questions
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  • 27. Agenda For Webinar Dec. 14th FHA Rehabilitation Loan Programs (203k’s)  Regular Rehabilitation Loan  203(k)  Streamline Rehabilitation Loan  Streamlined 203(k) Energy Efficient Mortgage  EEM Other Repairs Solar and Weatherization Programs
  • 28. The U.S. Department of Housing and Urban Development would like to thank theCalifornia Association of Mortgage Professionals And Oregon Association of Mortgage Professionals for your interest in FHA and FHA programs