FHA-DPA UPDATE
FHA UPDATE- October 1st, 2008 FHA increases the borrower’s contributions from 3% to 3.5% and provides that the borrower’s downpayment towards the purchase may not be provided by the seller or any third party that is reimbursed by the seller. Example <Ameridream> This new law does not mean that the seller may not provide downpayment assistance to borrowers obtaining FHA insured home loans. Contributions by the sellers will not count as the downpayment as current law allows. You must have 3.5% of your own money.H.R. 6694 was introduced on July 31, 2008. Congress adjourned very soon after that date and as of September 2, 2008 have not come back to work. They are scheduled at convene September 8, 2008 and in the meantime the bill has been referred to the appropriate committee <Financial Services>.
-
Brent Mendelson
Choice Finance Senior Mortgage Banker
O-301-881-8900 X123
www.choicefinance.net/brent.htm
Brent’s testimonials
Tags: dc government refinance, Downpayer assistance programs, fha refinance, government loans, md refinance, va refinance
November 6th, 2008 at 12:31 pm
you can get 6% in seller concessions right now.
The borrower must have 3% of their own funds into the transaction however, but that money can come in the form of gift from any one of the following parties:
*borrower’s relative,
*borrower’s employer or labor union,
*a charitable organization, a governmental agency or public entity that has a program to provide homeownership assistance to low- and moderate-income families or first-time homebuyers,
*or a close friend with a clearly defined and documented interest in the borrower.
October 3rd, 2008 at 9:47 am
Yes again thanks for catching my error. I heard the other day about it not changing until Jan 1, 2009 but forgot to change my blog.
October 3rd, 2008 at 9:45 am
- FHA still allows 3% minimum down payment. Starting January 1, 2009, that goes up to 3.5%
- The new FHA UFMIP structure is in place with case numbers ordered October 1st and on.
September 5th, 2008 at 12:03 pm
Michael,
You are right and I should have made that clear. Thanks for chipping in.
Paymentdown; You are correct but the lenders are the ones placing deadlines. Most won’t accept anything past Sept 30th and some have stopped as of Sept 19th. Even if a DPA is willing they may not be able according to lender guidelines. Do you work for Nehemiah? Thanks for writing in as well.
September 5th, 2008 at 10:06 am
Clarification on October 1st DPA deadline from H.R. 3221
What happens on and after October 1st?
Nehemiah has confirmed with HUD/FHA that, contrary to information that has been circulating, the home sale/closing date generally is irrelevant when determining whether downpayment assistance may be provided. It is the credit/loan approval date that is relevant, as the law and HUD have made clear.
What is the precise definition of “credit approved” as described in the housing bill (H.R.3221)?
If a loan is manually underwritten, the approval date is the day on which the underwriter signs the Mortgage Credit Analysis Worksheet (MCAW) or the FHA Loan Underwriting and Loan Transmittal (LT).
When is the last day gift funds can be requested from Nehemiah?
As long as the mortgage lender receives the credit/loan approval in accordance with the law and HUD/FHA guidelines, Nehemiah will provide gift funds regardless of the date.
September 2nd, 2008 at 11:13 pm
i just want to emphasize, you can still have the seller contribute 6% closing help even AFTER October 1st. the only thing that changes is the Seller’s contribution can’t be used towards your down payment. If you have the 3.5% to put down you are good to go… Get your Closing Costs covered!