Jumbo FHA Loans No Longer Need 2nd Appraisal – Good For FHA Loan California is a post from: FHA,VA and Conventional Home Loans in all 50 States

Great news for home buyers in more expensive areas of California and the rest of the U.S. wanting to use a FHA loan to purchase their house.  FHA has now removed the requirement for two appraisals on ”high balance” FHA loans.  A high balance FHA loan is considered a loan over $417,000.  Currently, a borrower in many more expensive parts of the U.S. can go up to a maximum FHA loan of $729,750 on a FHA loan.   Previous to this change, a borrower would need to pay for two full separate appraisals on any FHA loans over $417,000.

This is a nice change as having to get two appraisals added to expense and made purchases with FHA jumbo loans much more complicated and drawn out.   This rule also includes FHA rate/term and cash out refinances.  You can get a cash out refinance on a FHA loan up to $729,750 and only one appraisal will be required. 

With an FHA loan limits in the more expensive counties of the U.S. and California being $729,750, this means you could purchase a home for $756,217 and only put the FHA minimum down of 3.5%.  This will be handy in 2010 as many of the coastal properties in Los Angeles, San Diego, Orange County, San Jose and other areas are coming down to fit into this price range.  Deals can be had.  Additionally, if you have not owned in three years you are likely eligible for the $8,000 home buyer tax credit if you go into contract on a house by April 2010, or also the $6,500 tax credit if you own currently and will be moving to a new primary residence.

And here are some highlights to FHA loans:

• More flexible qualification with FHA loans vs conventional loans
• FHA loan interest rates are still extremely low
• Maximum FHA loan $729,750 in many areas of California and the U.S.
• Only 3.5% down payment required and that 3.5% can even be a gift from a relative
• Non-occupying co-signers are allowed to help your qualify
• FHA loans are for everyone not just first time home buyers!
• You can have up to 9 other mortgage loans and still get a FHA loan

Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a FHA Loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer (and FHA specialist)

858-922-7899

homeloan8@gmail.com

Home Loans For Investors is a post from: FHA,VA and Conventional Home Loans in all 50 States

Most articles on this blog are geared towards FHA loans, which are for people purchasing their primary residences .  But we also handle all other available residential financing such as conventional loans, Jumbo home loans for large loan sizes over the conforming limits, and investor home loans to purchase rental property.  In this blog post I will write a quick blurb as to what is available right now for investors.

Basically right now if you buy a rental property you will have to put 20% down.   The interest rates will be better with 25% down.  You will have to qualify with full income documentation, that means if you are a W-2 employee 2 years of w-2′s + last 30 days paystubs.  If you are self-employed that means your last 2 years tax returns.   One nice thing is if you buy rental property is you can use the estimated rent as income to help qualify even if the property is vacant.  When the appraiser appraises the property they will estimate the market rent.  That is what you can use as income to offset the new housing payment.  This means you can buy a lot of property without if affecting debt ratios because the rent will cover a lot of the rental house payment.  You can also buy up to 10 total financed properties. 

I don’t usually comment on the housing markets, but in many high quality areas of the U.S. that have come down in price significantly (California, Arizona, Nevada Florida especially), there are some tremendous buys.  You can buy a property in a premium market and it will “cash flow”.  Meaning the rental income will cover the total housing payment and all expenses.  In many places in California for example, it has probably been nearly a decade since an investor could achieve this!

So if you have any questions or would like to get pre-approved to buy rental property, give us a call or email.

Warm Regards,

Rob Chomentowski

Sr. Loan Officer

rob@affinity-financial.com

858-922-7899