Residential Lending in U.S. to citizens of other countries:
For conventional financing, there are documentation requirements for your legal status. If you have a Social Security Number and a Green Card, you have satisfied that requirement (Permanent Resident). For non-permanent residents, you still need an SSN, and either a VISA evidencing legal entry to United States for temporary residence, or a passport and an Employment Authorization Document.
You must have documentation of legal entry into the U.S.
Special rules apply if your income is passive only (not self-employment or salaried).
The documentation guidelines above are universal. Different lenders will add more restrictions than are shown here.
Tuesday, December 29, 2009
FHA Mortgage Insurance Premiums
Up Front Mortgage Insurance Premium (UFMIP):
Purchase Money Mortgages and Full Qualifying Refinances are 1.75%.
Monthly Premium:
For loans over 15 years, the monthly premium is .50 for LTV's of 95% or less, and .55 for LTV's greater than 95%. For 15 year or less loans with 90% LTV or less, there is no monthly premium, over 90% LTV carries a .25 monthly premium.
Cancellation of Monthly Premium:
For mortgages with terms greater than 15 years, the annual MIP will be cancelled when the LTV reaches 78% based on the original value of the loan, provided the borrower has paid the annual MIP for at least five years.
For mortgages with terms of 15 years of less, the annual MIP will be cancelled when the LTV reaches 78%.
Purchase Money Mortgages and Full Qualifying Refinances are 1.75%.
Monthly Premium:
For loans over 15 years, the monthly premium is .50 for LTV's of 95% or less, and .55 for LTV's greater than 95%. For 15 year or less loans with 90% LTV or less, there is no monthly premium, over 90% LTV carries a .25 monthly premium.
Cancellation of Monthly Premium:
For mortgages with terms greater than 15 years, the annual MIP will be cancelled when the LTV reaches 78% based on the original value of the loan, provided the borrower has paid the annual MIP for at least five years.
For mortgages with terms of 15 years of less, the annual MIP will be cancelled when the LTV reaches 78%.
Monday, December 28, 2009
High Cost Area Loan Limits 2010
Conventional
High cost area loan limits for individual counties can range anywhere between $417,000 and $729,750, and are based on the area median home price as established by HUD. There are no changes to the Conventional loan limits for 2010, including those for counties considered high-cost areas.
A complete schedule of Conventional loan limits by county may be found on the HUD website at
https://entp.hud.gov/idapp/html/hicostlook.cfm.
FHA
FHA minimum (floor) loan limits are set at 65% of the national conforming loan limit and will remain at $271,050 for 1-unit properties in 2010. The maximum (ceiling) loan limit for high-cost areas is equal to the conforming limit and remains at $729,750 for 1-unit properties in 2010.FHA loan limits for individual counties can range anywhere between $271,050 and $729,750 and are based on the area median home price as established by HUD. The limits for most counties are unchanged for 2010 however, as a result of an increase in median home prices in certain areas; approximately 24 counties will have higher FHA county loan limits for 2010 vs. 2009. A complete schedule of FHA loan limits by county may be found on the HUD website at
https://entp.hud.gov/idapp/html/hicostlook.cfm.
(See previous post for California limits by County.)
High cost area loan limits for individual counties can range anywhere between $417,000 and $729,750, and are based on the area median home price as established by HUD. There are no changes to the Conventional loan limits for 2010, including those for counties considered high-cost areas.
A complete schedule of Conventional loan limits by county may be found on the HUD website at
https://entp.hud.gov/idapp/html/hicostlook.cfm.
FHA
FHA minimum (floor) loan limits are set at 65% of the national conforming loan limit and will remain at $271,050 for 1-unit properties in 2010. The maximum (ceiling) loan limit for high-cost areas is equal to the conforming limit and remains at $729,750 for 1-unit properties in 2010.FHA loan limits for individual counties can range anywhere between $271,050 and $729,750 and are based on the area median home price as established by HUD. The limits for most counties are unchanged for 2010 however, as a result of an increase in median home prices in certain areas; approximately 24 counties will have higher FHA county loan limits for 2010 vs. 2009. A complete schedule of FHA loan limits by county may be found on the HUD website at
https://entp.hud.gov/idapp/html/hicostlook.cfm.
(See previous post for California limits by County.)
Maximum California Loan Limits 2010
County Maximum
ALAMEDA $729,750
ALPINE $547,500
AMADOR $443,750
BUTTE $400,000
CALAVERAS $462,500
COLUSA $397,500
CONTRA COSTA $729,750
DEL NORTE $311,250
EL DORADO $580,000
FRESNO $381,250
GLENN $287,500
HUMBOLDT $393,750
IMPERIAL $325,000
INYO $437,500
KERN $368,750
KINGS $325,000
LAKE $401,250
LASSEN $285,000
LOS ANGELES $729,750
MADERA $425,000
MARIN $729,750
MARIPOSA $412,500
MENDOCINO $512,500
MERCED $472,500
MODOC $271,050
MONO $529,000
MONTEREY $729,750
NAPA $729,750
NEVADA $562,500
ORANGE $729,750
PLACER $580,000
PLUMAS $410,000
RIVERSIDE $500,000
SACRAMENTO $580,000
SAN BENITO $729,750
SAN BERNARDINO $500,000
SAN DIEGO $697,500
SAN FRANCISCO $729,750
SAN JOAQUIN $488,750
SAN LUIS OBISPO $687,500
SAN MATEO $729,750
SANTA BARBARA $729,750
SANTA CLARA $729,750
SANTA CRUZ $729,750
SHASTA $423,750
SIERRA $285,000
SISKIYOU $293,750
SOLANO $557,500
SONOMA $662,500
STANISLAUS $423,750
ALAMEDA $729,750
ALPINE $547,500
AMADOR $443,750
BUTTE $400,000
CALAVERAS $462,500
COLUSA $397,500
CONTRA COSTA $729,750
DEL NORTE $311,250
EL DORADO $580,000
FRESNO $381,250
GLENN $287,500
HUMBOLDT $393,750
IMPERIAL $325,000
INYO $437,500
KERN $368,750
KINGS $325,000
LAKE $401,250
LASSEN $285,000
LOS ANGELES $729,750
MADERA $425,000
MARIN $729,750
MARIPOSA $412,500
MENDOCINO $512,500
MERCED $472,500
MODOC $271,050
MONO $529,000
MONTEREY $729,750
NAPA $729,750
NEVADA $562,500
ORANGE $729,750
PLACER $580,000
PLUMAS $410,000
RIVERSIDE $500,000
SACRAMENTO $580,000
SAN BENITO $729,750
SAN BERNARDINO $500,000
SAN DIEGO $697,500
SAN FRANCISCO $729,750
SAN JOAQUIN $488,750
SAN LUIS OBISPO $687,500
SAN MATEO $729,750
SANTA BARBARA $729,750
SANTA CLARA $729,750
SANTA CRUZ $729,750
SHASTA $423,750
SIERRA $285,000
SISKIYOU $293,750
SOLANO $557,500
SONOMA $662,500
STANISLAUS $423,750
Friday, December 11, 2009
New FNMA DU Guidelines are effective Dec.12, 2009
Here is a summary of the most important changes:
TOTAL EXPENSE RATIO: Maximum (DTI) is 45%, (up to 50% with strong compensating factors).
MINIMUM CREDIT SCORE REQUIREMENT: 620
FORECLOSURES: For completion dates of more than 5 years, but within 7 years from the credit report date:
Purchase of principal residence permitted with minimum down payment 10% and minimum credit score of 680.No second home or investment property. Cash Out refinances will not be permitted for any occupancy type.
DEED IN LIEU OF FORECLOSURE: Completed more than 4 years, but within 7 years from the credit report date.
Principal residence, purchase transactions permitted with an LTV or CLTV maximum: 90%.
BANKRUPTCIES: Chapter 7 discharged is 4 years. Chapter 13 discharged is 2 years, filed but neither discharged nor dismissed is 4 years.
Less than these time frames will now receive a "Refer with Caution/IV recommendation".
EXPANDED APPROVAL (EA) ENHANCEMENTS
DU Version 8.0 will no longer issue EA-II and EA-III recommendations,except on DU Refi Plus.
High Balance mortgage loans will be ineligible with any EA recommendation.
REVISED MORTGAGE INSURANCE (MI) COVERAGE LEVEL REQUIREMENTS
Loans with a loan to value (LTV) ratio greater than 80% will now be subject to new simplified MI coverage requirements.
Reduced MI and Lower Cost MI will no longer be offered.
Financed MI is not available.
Fannie Mae will be updating Desktop Underwriter (DU) to version 8.0 the weekend of December 12, 2009. Detailed changes will be effective with all new submissions submitted to DU on or after December 14, 2009.
TOTAL EXPENSE RATIO: Maximum (DTI) is 45%, (up to 50% with strong compensating factors).
MINIMUM CREDIT SCORE REQUIREMENT: 620
FORECLOSURES: For completion dates of more than 5 years, but within 7 years from the credit report date:
Purchase of principal residence permitted with minimum down payment 10% and minimum credit score of 680.No second home or investment property. Cash Out refinances will not be permitted for any occupancy type.
DEED IN LIEU OF FORECLOSURE: Completed more than 4 years, but within 7 years from the credit report date.
Principal residence, purchase transactions permitted with an LTV or CLTV maximum: 90%.
BANKRUPTCIES: Chapter 7 discharged is 4 years. Chapter 13 discharged is 2 years, filed but neither discharged nor dismissed is 4 years.
Less than these time frames will now receive a "Refer with Caution/IV recommendation".
EXPANDED APPROVAL (EA) ENHANCEMENTS
DU Version 8.0 will no longer issue EA-II and EA-III recommendations,except on DU Refi Plus.
High Balance mortgage loans will be ineligible with any EA recommendation.
REVISED MORTGAGE INSURANCE (MI) COVERAGE LEVEL REQUIREMENTS
Loans with a loan to value (LTV) ratio greater than 80% will now be subject to new simplified MI coverage requirements.
Reduced MI and Lower Cost MI will no longer be offered.
Financed MI is not available.
Fannie Mae will be updating Desktop Underwriter (DU) to version 8.0 the weekend of December 12, 2009. Detailed changes will be effective with all new submissions submitted to DU on or after December 14, 2009.
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