This is hilarious. I honestly do not know whether to laugh or cry.
HLS, Pasadena Broker, Arraya perhaps and other brokers can correct the stuff printed below and this was basically emailed to me. So, some of the new hocus pocus regarding financing:
**
House Republicans said they had agreed to temporarily raise loan limits for Fannie Mae and Freddie Mac to $625,500 while Democrats said the deal would boost limits to $729,750.
Either way, the increased limit on loans eligible to be bought by Fannie Mae and Freddie Mac would be temporary, expiring Dec. 31, 2008. It was not clear if the higher FHA limit would be temporary or permanent.
It is not clear if these new limits are permanent or expire 12/31/08
**
**
The plan also would more than double the size of loans insurable by the Federal Housing Administration, from $362,790 to $729,750.
(Are you kidding me??)
By utilizing FHA, the buyer will not have to adhere to the stringent underwriting guidelines that have made Conforming and Jumbo loan programs difficult to qualify for. Higher loan to values, lower
minimum credit scores, and flexible underwriting will make buying, selling, and financing a home in California much easier. Here are just some of the features of an FHA loan:
97% LTV on Purchases
Down Payment Assistance of up to 6%
95% LTV on cash out refinancing
No minimum credit scores
Liberal credit guidelines
No prepayment penalties
SFR, Condo’s, Town Homes, and Manufactured
Seller contributions of up to 6%
Non-occupying cosigners
Higher income to debt ratios
Loans are assumable
Let’s not forget the “5% DECLINING MARKET” hit that has affected nearly every Conventional loan program above 75%. FHA still allows 97% LTV’s on purchase transactions and up to 105% when using some Down Payment Assistance Programs.
And FHA does not have a “credit risk adjustment” based upon credit score such as the one recently implemented on Conventional loan’s.**
