Miami Valley Moving Numbers to Know
Are you moving or know of someone who is?
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Are you moving or know of someone who is?
We love the convenience of this listing of contact numbers. Our customers frequently thank us for this great resource at their closings.
Need a copy? Stop by our office!
The following news is shared from an announcement by the National Association of Realtors.
HUD to announce long-awaited FHA condo rules | will give affordability a boost
The U.S. Department of Housing and Urban Development is expected to release updated guidance tomorrow on FHA-insured condominium financing. The new rules should benefit real estate clients and customers by allowing more buyers to obtain low down-payment mortgages on affordable housing options.
Specifically, the new rules will:
The full guidance will go into effect in mid-October, 60 days from publication.
“Condominiums are often the most affordable option for first-time homebuyers, small families, and those in urban areas,” said NAR President John Smaby, in a statement issued to the media Wednesday morning. ‘We are thrilled that (HUD) Secretary (Ben) Carson has taken this much-needed step to put the American dream within reach for thousands of additional families.”
Since 2008, NAR has championed policy changes in condo lending. NAR has sought rules that would allow the owner-occupancy level to be determined on a case-by-case basis and that
would extend the approval period for project certification to five years.
NAR’s existing-home sales report for June showed condominium and co-op sales at a seasonally adjusted annual rate of 580,000 units, a decline of 3.3% from May and 6.5% from the same time last year. With more than 8.7 million condo units nationwide, only 17,792 FHA condo loans have been originated in the past year.
NAR Chief Economist Lawrence Yun recently noted that even though median prices for existing condos have risen slightly, their relative affordability means condominiums remain a natural answer to inventory shortages holding back home sales growth.
“Condos are typically more affordable than a detached single-family home, but only a small fraction of condos are FHA-certified,” Yun said last month.
NAR has advocated for changes to FHA’s condo policies that include allowing owner-occupancy level determination on a case-by-case basis, granting up to 45% commercial space without documentation and including a five-year approval period for project certification.
The FHA issued proposed changes to its condo rules in 2016 that would have allowed individual condo units to become eligible for FHA financing, but the proposed rules were never finalized.
HUD estimates that these new rules could cause anywhere from 20,000 to 60,000 condominium units to become eligible for FHA-insured financing annually.[/vc_column_text][/vc_column][/vc_row]
The following is excerpted from a notification from the Ohio Mortgage Bankers Association.
VA Releases Circular 26-19-23 on August 12, 2019
Circular 26-19-23, interim guidance for the Blue Water Navy Vietnam Veterans Act of 2019. Some key provisions of the Act, effective with loans closed on or after (and not before) January 1, 2020, are:
Veterans with loans amounts over $144,000, with full entitlement, will not need a down payment regarldess of purchase price;
The guarantee for loans at $144,000 and less will not change;
For Veterans who have previously used entitlement that has not been restored, the maximum amount of guaranty is the lesser of 25 percent of the loan amount OR the maximum amount of guaranty entitlement available. The maximum amount of guaranty entitlement is 25 percent of the Freddie Mac Conforming Loan Limit, reduced by the amount of entitlement previously used (not restored). In other words, the loan amount without a down payment could be 4 times the remaining entitlement. 25% down payment would be required over and above that loan amount.
Funding Fees will be as follows for all veterans, regardless of whether Regular Military, Reservist, or National Guard:
Type of Loan | Downpayment | Percentage for First Time Use | Percentage for First Time Use |
Purchase and Construction Loans | None 5% but less than 10% 10% or more |
2.30% 1.65% 1.40% |
3.60% 1.65% 1.40% |
Cash-out Refinance Loans | n/a | 2.30% | 3.60% |
IRRRLS | n/a | 0.50% | 0.50% |
Loan Assumptions | n/a | 0.50% | 0.50% |
Purple Heart recipients will be exempt from paying the Funding Fee.