FHA and the “Flipper”

As foreclosures increase across the United States and that includes Indiana, banks are looking for ways to sell their overloaded REO inventory.

FHA has devised a plan that should be able to help many of those that buy homes, do some fixing up of the home and put it back on the market.  In the hopes of turning a profit.  FHA has waived the 90 day seasoning rule for sellers.  Here are the guidelines broke down.

1. The waiver takes effect February 1st, 2010 for a period of at least 1 year unless extended. (we will see if it gets abused)
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must me arms-length. (no relation amongst the seller & buyer)
4. No identity of interest can exist between buyer and seller. (ie. land contract)
5. If sale price is 20% or greater than the seller’s acquisition cost, the lender must:

a. provide supporting documentation and/or a second appraisal and
b. order an inspection of the property and provide it to the buyer.

6. The waiver is limited to forward mortgages only. (you cannot use a reverse mortgage)

I have uploaded for your convenience the Indiana FHA mortgagee letter that further explains the “90 day waiver”

any questions feel fee to give me a call

Dave

Mad Mortgage Machine Ep.1

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- Where do mortgage rates come from?

• Certainly, not the Mortgage Rate Fairy and certainly not the 10 year T-bill, but from mortgage backed bonds.
• My “shopping around” tool is not quite ready for prime time it will be uploaded very soon
• How a little change in rates have an affect on your monthly principle & interest (very little)
  

  Monthly Payment

• Short Sale Business Booster please leave your name and email and I will get it emailed to you ASAP.

(I will never spam you)

1. Business Booster
2. Your Name(required)
3. Email(valid email required)

 

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Mad Mortgage Machine Podcast Ep. #0

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This week is the first show, full of “ums” and “ahs” as I bumble along trying to edit and get better.  I miss radio where I had a partner and I could bounce things off of them.  Enjoy the show, Episode #1 will be out tomorrow sometime.

Dave

Indiana FHA Loan Limits for 2010

This week HUD updated the FHA Loan Limits for Indiana.  The good news they remain unchanged from 2009.

Porter and Lake Counties FHA Loan Limits will remain with:

• 1 unit – $410,000
• 2 unit – $524,850
• 3 unit – $634, 450
• 4 unit – $788, 450

The rest of Indiana including LaPorte, St. Joseph and beyond

• 1-unit : $271,050
• 2-unit : $347,000
• 3-unit : $419,400
• 4-unit : $521,250

Id you ha eany questions or would like to be pre-approved please give me a call or download one of my two mortgage applications.

Dave

Who in Indiana needs me?

I was thinking just the other day, “who needs me”.  No, I was not feeling sorry for myself ready to drive into the oncoming traffic and end it all, but who out there needs my services.  Who NEEDS me! Who can use my services?

This is what I came up with (in no particular order), and would love any additions……

1) Young couple talking about moving in together.
2) Young couple talking about getting married.
3) Someone expecting a new baby.
4) Someone who’s last child is in college.
5) Someone who is always talking about “investing in real estate”.
6) Someone who is looking to buy a bigger home in state of Indiana.
7) Someone who just got a job promotion in Indiana.
8 ) Someone who has an Indiana house for sale now.
9) Someone who seems to spend, spend, spend and might need to consolidate.
10) Someone who is moving into the state of Indiana.
11) Someone who recently lost a spouse.
12) Someone talking about doing renovations or additions to their current home.
13) Someone talking about ARMs in the media (if they pay attention, they usually have one)
14) Someone who hasn’t started saving for retirement or is unhappy with their current retirement savings strategy.
15) Someone whose FIRST child hasn’t even started college yet.
16) Someone who just bought a brand new house and got their financing through the builder’s lender.

There are more than that, but that is a nice kicking off point.

Dave Woodson

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