Archive for the ‘Mortgage Information’ category

Is Your Condo Complex Still HUD Approved?

August 10, 2011

In general, condominiums are popular among first time homebuyers. In addition, FHA mortgages are a popular financing option for first time homebuyers because of the low down payment (3.5%). However, if a buyer is purchasing a condominium and is obtaining an FHA-insured Mortgage, the condominium complex must be on a list of HUD approved complexes and meet certain criteria.

Prior to December 7, 2009, once a condominium complex received HUD approval, it remained on HUD’s list of approved condominium complexes. However, for each FHA loan, lenders would ask condominium associations to complete a questionnaire to confirm that the complex continued to meet FHA guidelines.

As of December 7,  2009, condominium complexes have to be re-approved by HUD every two years to stay on the list of HUD approved complexes. (more…)

Changes To FHA Mortgage Insurance Premiums

April 15, 2011

Effective April 18, 2011, mortgage insurance premiums will increase for 30-year FHA mortgages assigned a FHA case number on or after April 18, 2011:

Loan to Value Down Payment Old Annual Premium % New Annual Premium %
96.5%-95.01% 3.5% – 4.99% .90% 1.15%
95% or less 5% or more .85% 1.10%

Effective April 18, 2011, mortgage insurance premiums will increase for 15-year FHA mortgages assigned a FHA case number on or after April 18, 2011:

Loan to Value Down Payment Old Annual Premium % New Annual Premium %
96.5%-90.01% 3.5% – 9.99% .25% .5%
90% or less 10% or more None .25%

The upfront mortgage insurance premium is not affected and will remain 1%.

 

What does this mean to you?

If you are buying a home for $200,000 and are making a down payment of 3.5% ($7,000), the monthly mortgage insurance premium will be:

$200,000 – $7,000 = $193,000 x .0115 = $2,219.50/12 = $184.96 per month.

Prior to this change, the monthly mortgage insurance premium would have been:

$200,000 – $7,000 = $193,000 x .009 = $1737.00/12 = $144.75 per month.

The new FHA monthly mortgage insurance premium will increase a buyer’s mortgage payment by $40.21.

Although the Mutual Mortgage Insurance Fund (MMIF) is financially sound, HUD was under a legislative mandate to further strengthen MMIF to make sure FHA could continue its mission of helping borrowers with low down payments during these challenging economic times.

If you are interested in purchasing a home or a condominium or have any questions about the home buying process, please feel free to contact me either by email at mhagan@prudentialct.com or on my cell 860-305-8044.

Maria Hagan

Hartford CT Real Estate Agent
East Hartford CT Real Estate Agent
Wethersfield CT Real Estate Agent
Rocky Hill CT Real Estate Agent
Homes for Sale in Greater Hartford CT

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CHFA Homebuyer Mortgage Program

December 23, 2010

Each Thursday at noon, CHFA publishes the mortgage interest rate for its Homebuyer Mortgage Program for the upcoming week. CHFA interest rates are subject to change weekly but are “fixed” for the term of the mortgage once a buyer goes to contract on a property and the lender locks the interest rate (120 day rate lock).

The State of Connecticut offers excellent programs for first time home buyers purchasing their dream home. Several special mortgage programs are available in addition to the Homebuyer Mortgage Program, including Down Payment and Closing Cost Assistance (known as “DAP”) for eligible buyers requiring 100%+ financing to purchase their first home. More information about all of CHFA’s mortgage programs, the applicable interest rates, and other eligibility guidelines is available at www.chfa.org.

(more…)

Special CHFA Mortgage Program For Bank Owned, Abandoned & Short Sale Properties

November 11, 2010

The Connecticut Housing & Finance Authority (CHFA) is modifying the HERO Program to promote neighborhood stabilization by providing mortgages to eligible first time and existing home buyers who buy bank owned, abandoned or short sale:

  • Condos in FHA approved complexes,
  • Detached single family homes, and
  • Detached two, three or four family properties.

Although CHFA is normally a first time home buyer program, under HERO, existing home owners can buy an eligible property provided that upon closing the buyers make the eligible property their primary residence. Existing home buyers do not have to sell their existing homes, they can rent them!

(more…)

CHFA Interest Rate is Low…

October 24, 2010

Connecticut has a wonderful first time home buyer mortgage program administered by CHFA (Connecticut Housing & Financing Authority). The CHFA program (as it is known) offers 100% financing and down payment assistance to eligible buyers. The CHFA interest rate is published once a week on Thursdays at noon. The current CHFA is 3.625%! And is .25% lower (3.475%) if the buyer purchases a home or condo in a targeted area. What a great time to buy a home or condo at a historically low interest rate!

Maria Hagan
Hartford CT Real Estate Agent
East Hartford CT Real Estate Agent
Wethersfield CT Real Estate Agent
Rocky Hill CT Real Estate Agent
Homes for Sale in Greater Hartford CT

Follow Maria Hagan on Twitter
Find Maria’s Guide to Living in the Greater Hartford, CT Area on Facebook
Connect with Maria Hagan on LinkedIn


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