FHA is set to drop the monthly mortgage insurance factor from 1.35% to .85 % on January 26th. What does this mean to the FHA consumer? A $200,000 mortgage under the 1.35% factor would have monthly mortgage insurance of $225/mo. With the 0.85% factor the monthly MI will be $141.67/mo. That is a saving of $116.67/month, this will help people who did not qualify before to qualify now, or to bump up their maximum qualifying amount by $20-30k. Good news for the housing market!
Down payment assistance is becoming a better deal through the Colorado Housing and Finance Authority (CHFA). To compete with some of the down payment assistance bond programs that are out there, CHFA is changing their down payment assistance second mortgages to grants. They will no longer need to be repaid!
CHFA is also removing the purchase price limits. You will still be limited to the county limit for the county your home you are purchasing is located in. These changes go into effect on 2/2/2015. Please feel free to contact Dave Slater at Academy Mortgage for any info or questions!
Did you know you can own two homes with VA loans on them? It is a misconception that you can only have one VA loan at a time. You can in fact have 2 VA loans going simultaneously. VA allows you to have loans 100% financing up to $417k, so if you have a home loan for $200k, you can have another loan up to $217K with no down payment (these loan amounts do include the VA funding fee). You can go above the total amount of $417k, you just need to have a down payment of 25% of the difference. So, if you have $217k left and want to buy a home that is $250k, you would just need 25% of the difference, $250k – $217k = $33k x 25% = $8,250. Not a bad down payment for not having any mortgage insurance. Please call me at 719-522-6952 and I will be happy to answer any questions and analyze your situation!