Changes to FHA Jumbo Loan Limits in Maryland and Pennsylvania for 2009 December 17, 2008
Posted by Patti Shawgo in Local News, Mortgage News.add a comment
The “temporary” loan limit increases for FHA jumbo loans expires at the end of 2008 (that’s loans that are above the “regular” FHA loan limits, which vary from area to area). So what’s that mean for 2009? Well, regular FHA loan limits have increased permanently *in some areas*, but they are a little lower than before (at least in Maryland, Pennsylvania, Virginia, DC). While there is no specific FHA Jumbo program and all loan amounts now fall under regular FHA, don’t expect the rate to be exactly the same. FHA sees more risk in the higher loan limits, and the rate will be just a little higher to compensate for the risk.
Here are the new FHA loan limits for single family homes for the areas I typically serve:
Baltimore Metro Area: $494,500
Washington DC Metro including Metro Virginia, Maryland: $625,500
Wilmington Deleware including Cecil Co. MD: $379,500
Western Maryland/Eastern Shore: $271,050
York/Adams Counties, Pennsylvania: $271,050
You can look up limits at this site: https://entp.hud.gov/idapp/html/hicostlook.cfm (just be sure to change limit year to 2009)
What the Latest Fed Cut means for Mortgage Interest Rates December 16, 2008
Posted by Patti Shawgo in Interesting Stuff, Mortgage News.1 comment so far
You know, the Fed Funds rate does not directly correlate to mortgage interest rates. In fact, oftentimes mortage interest rates rise when the Fed cuts the Fed Funds rates (which does directly correlate to “prime” rate and your interest rate on credit cards and home equity loans).
But, today, something happened that was a little bit different, as we are in quite a different than “normal” environment. The Fed cut rates to a target rate of 0-.25%, that means when the Fed is loan money to banks, they are pretty much doing it for free. But what is more interesting and what is going to effect mortgage interest rates is what the Fed said in their statement (you can read the whole statement HERE).
The Fed has re-committed to buy Mortgage Backed Securities, and in their statement has said they plan to do so in large quantities. That’s big news! That’s great news for interest rates going forward, for purchasing and refinancing alike. The hope is that the lure of historic lows will bring more buyers into the marketplace. At the same time, it will allow borrowers to refinance out of subprime mortgages and ARMs. The only qualm you will hear from me is this: FHA needs to allow people with negative equity that want to keep their home to refinance to a lower rate.
Have Negative Equity and an FHA loan? You Can Refinance! December 16, 2008
Posted by Patti Shawgo in Local News, Mortgage News.add a comment
This is one of the those little known facts that makes perfect sense when you think about it. The other day I wrote THIS POST about FHA Streamline refinances. If you have a current FHA loan and the payments have been on time, you can refi with little to no documentation and fees. Well, if you don’t need an appraisal, it doesn’t matter what the appraised value is!
If you have an FHA ARM or higher rate but have been worried that you can’t refinance because of your equity position, you don’t need to worry. I’ve found that many people want to keep their house, even if you are a little upside down, and this might be a great tool to help make your payment a little more affordable, being that 30 year fixed rate FHA interest rates are at historic lows.
While this is of little comfort to those with subprime or conventional ARM’s with negative equity. If you are in that position, there are loan programs from the State of Maryland, like the Lifeline and Homesaver that may be able to help. I happen to work for a bank that is signed up with this program, and would love to help you find a way to refinance. If you are not in Maryland, check out the website of your state’s local housing authority, as many states have similar programs.
Maryland CDA aka More House 4 Less Lowers Rates, Gets New Domain December 16, 2008
Posted by Patti Shawgo in First Time Home Buyers, Local News, Mortgage News, down payment assistance.add a comment
Rates for CDA had been at 6.75% for a 30 year fixed! Way higher than market rates, they have now reduced their rates to 6% for a 30 year loan FHA/VA/Conventional with 0 points. While this might not seem like the most fantastic deal, if you are buying a house, say with FHA, and you need 3% (soon to be 3.5%) of the sales price from your own funds/gift funds, it’s important to remember that CDA will give buyers purchasing less a than $200,000 sales price home $2500 towards closing costs/down payment. This $2500 counts towards the buyer’s 3%.
So….let’s say you are looking at a $150,000 home, and you can get the seller to give you some money towards closing costs. You will still need your 3%, which comes to $4500. CDA will give you $2500 of that $4500, meaning you only need $2500 of your own funds (note the $2500 is a 0% interest 0 payment loan). So while you may be able to get a slightly lower interest rate outside of CDA right now, if you have $200 and can no way get $4500, CDA is still a very viable option.
Also, I guess www.morehouse4less.com seemed a little too commercial for the state department of housing and community development. They are now located at www.mmprogram.org (that’s for Maryland Mortgage Program). If you aren’t familiar with what the CDA loan program is, check these past posts:
CDA Income Limits
Baltimore City and CDA
Free Tax Prep & More from the Baltimore Cash Campaign December 6, 2008
Posted by Patti Shawgo in Credit, Events, Interesting Stuff, Local News.1 comment so far
Here’s something cool I just learned about. If you are a low to moderate income earning family in Baltimore, Maryland you can get your tax prepared for free! Check it out at: http://www.baltimorecashcampaign.org
Besides tax preparation, a big part of the Cash Campaign’s mission is to make people aware of the Earned Income Tax Credit and offer financial planning services.
Do you have an FHA loan? Do you know about FHA Streamline Refinances? December 3, 2008
Posted by Patti Shawgo in Mortgage News, Mortgage Stuff.1 comment so far
It’s funny, because I was looking back at past posts, and almost exactly a year ago today I was writing about FHA Streamline refinances. At that time, rates were at 6% with 0 points and now they’re even lower, as low as 5.5%!
Have an FHA loan and don’t know about streamline refinances, here’s the skinny:
- No appraisal is needed
- No income or assett information needed
- Extremely minimal closing costs
- No cash-out allowed, shift to a lower rate (and payment) only
Basically, if you have an FHA loan, FHA doesn’t want to penalize you if you’ve been paying your mortgage on time, you can get the lower rate and there the whole process if virtually effortless.
So, if you’re looking to streamline your FHA loan in Maryland, Pennsylvania, Virginia, DC, or Deleware, I hope you’ll remember your friendly, neighborhood mortgage blogger (me).
Specifics of the $7500 First Time Home Buyer Tax Credit December 3, 2008
Posted by Patti Shawgo in First Time Home Buyers, Mortgage News, Real Estate.add a comment
The National Association of Realtors put out this fantastic FAQ about the $7500 tax credit that first time home buyers may be eligible if they purchase a home between April 9, 2008 and July 1, 2009. Included is info on repaying the tax credit, which was not fully fleshed out when the credit was announced, and sounds like it still totally isn’t. Basically, you don’t have to start repaying the tax credit until 2010 if you purchased in 2008 and 2011 if you purchase in 2009.
While repaying the tax credit makes it sound less exciting, understand the government is giving people the money at 0% interest, plus renters will go from having no tax advantage to lots of deductions with property taxes and mortgage interest. So, even though the credit has to be repaid, home buyers won’t notice the repayment as they are suddenly getting deductions they weren’t used to getting.
But read the whole thing here: NAR Tax Credit FAQ
