FHA and VA Increase Loan Limits for 2017

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FHA and VA increase loan limits for 2017

 

Last week, we announced the news that the FHFA increased conforming loan limits. As a result, the Federal Housing Administration (FHA) and Department of Veteran Affairs (VA) have also increased the limits for FHA loans and VA loans, respectively.

FHA loan limits have increased from $271,050 to $275,665. These new loan limits apply to FHA-insured loans that have an application date of January 1, 2017 or later.
VA loan limits will follow the new limits set for Fannie Mae and Freddie Mac conforming loans. The VA will use these limits to determine how much of the loan they will guaranty and how much an eligible veteran can borrow without requiring a down payment. Veterans should consult their loan officer for further details. You can also visit the Department of Veteran Affairs website for additional information about VA home loans.

A loan limits will follow the new limits set for Fannie Mae and Freddie Mac conforming loans. The VA will use these limits to determine how much of the loan they will guaranty and how much an eligible veteran can borrow without requiring a down payment. Veterans should consult their loan officer for further details. You can also visit the Department of Veteran Affairs website for additional information about VA home loans.

If you are looking to buy a home in 2017, this is excellent news for you! With rising home prices and the market’s return to pre-recession growth, the loan limit increase signifies a growing market. Many homebuyers will now be able to afford larger homes or homes in more expensive areas with better loan terms. If you need help getting started on your home loan journey, check out our blog for more details on the home buying process, FHA loans, and VA loans.

 

 

FHA & VA Loan Programs

fha_vaFHA & VA Loan Programs

With mortgage rates still low, now is a great time to buy! There are many different loan options out there today that make buying a home achievable, and it is important to understand your options throughout the home buying process. Continuing our discussion on government loans from last week, we want to take some time to discuss your options with FHA & VA loan programs.

 

FHA Mortgage Loans

The FHA, or Federal Housing Administration, offers a low down payment option that can help low income or first time homebuyers purchase a home. Since the Federal Housing Administration insures your mortgage, individual lenders may be more willing to give you loan terms that make it easier for you to qualify. To qualify, you must have proof of steady employment and clear CAIVRS, which is the government’s Credit Alert Interactive Verification Reporting system, to qualify. CAIVRS is a database of those who have defaulted on government loans, owe back taxes, or have other federal debt. If you are on this list, you will not be able to receive the loan unless you can get your report cleared.

Compared to other loan programs, FHA has lower credit score requirements. It does, however, require a minimum score of 580 to qualify for a low down payment. If you are concerned about your credit score, consult your loan officer to find out if you might still qualify. These loans can also have a lower down payment requirement than a conventional loan. Conventional guidelines call for two months of asset reserves at closing, meaning two months of mortgage payments, including taxes and property insurance. FHA has no reserve requirements which means less money spent at the closing table.

Not only can closing costs be paid for by the seller, but the down payment of an FHA loan can also be gifted to the homebuyer. This has become a trend for buyers who are getting married and prefer that their gifts go towards a down payment on a home rather than a wedding registry. If you are getting a gift for your down payment, make sure you document it by getting a gift letter from the person you receive the gift from and be able to document any large deposits to your bank account. This will be required when your application is looked at by an underwriter.

It is important to note that FHA loans can only be used towards the purchase of a primary residence, so if you are looking to purchase a second home or vacation home, you will need to look at other programs. In addition to FHA purchase loans, other FHA options include streamlined and cash-out refinancing, as well as FHA 203k rehabilitation loans, which allow you to combine renovations and the purchase of your home into one loan.

 

VA Loans

If you have served our country, you may qualify for a VA loan. These loans are available for active, non-active, and retired Army, Air Force, Marine, Navy, National Guard, and Coast Guard vets who meet the established service requirements. To qualify, the veteran must have served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum or 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981. There is six-year requirement for National Guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.

VA loans offer many great benefits to veterans that are worth looking into eligibility for. These benefits include:

  • No Down Payment
  • No monthly mortgage insurance (PMI)
  • Gift Funds are acceptable for closing costs
  • No Cash reserves requirement
  • A variety of terms or loan types available
  • Available for purchase and refinance
  • Reduced costs for disabled veterans
  • Seller can pay closing costs
  • Seller pays for any required repairs
  • No pre-payment penalty

Both of these programs can offer many great benefits to qualified borrowers. If you think one of these programs would be a good match for you, contact one of your local Inlanta Mortgage loan officers to get pre-approved today!

 

OUR MISSION STATEMENT

Our mission is to be the home financing partner that you trust to serve your family, friends, and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty, and ethics is the foundation of all of our relationships.

ABOUT INLANTA MORTGAGE

Headquartered in Brookfield, Wis., Inlanta Mortgage was established in 1993. The company has grown to 35 branches in 16 states and over 240 employees. Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac, Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs.

Inlanta Mortgage was recently named a Top Workplace for a third time in 2016. Inlanta has also received the Platinum Million Dollar USDA Lender Award and has been recognized as a Top Mortgage Employer by National Mortgage Professional and a Top 100 Mortgage Banking Company and 100 Best Mortgage Companies to Work For by Mortgage Executive Magazine.

PARTNERSHIP OPPORTUNITIES

Inlanta Mortgage continues to expand its branch network and encourages ethical lending professionals to learn more about our support platform and discover how an Inlanta branch partnership with Inlanta Mortgage is essential to long-term success.

Locate an Inlanta Mortgage loan officer at www.inlanta.com/locations. For current employment opportunities, visit www.inlanta.com/join-our-team/employment-opportunities. Learn more about Inlanta Mortgage branch partnership opportunities at www.inlantapartners.com, call 262-439-4260, or email partners@inlanta.com.

Inlanta Mortgage, Inc. NMLS #1016.

FHA Mortgages & FHA Streamline Refinance

FHA Mortgage Information and Frequently Asked Questions

What should you know about FHA mortgages?

FHA Mortgage Loans

FHA mortgage loans are very competitive loan programs. FHA mortgages allow the homebuyer to put down a low down payment and have less than perfect credit. Other benefits of the FHA mortgage loan program include:

  • lower closing costs
  • down payment can be gifted to the homebuyer
  • available on 1-4 unit properties
  • cash reserves not required
  • closing costs can be paid by seller
  • flexible qualifying debt to income ratios
  • streamline refinance available

FHA Mortgage Loan FAQs

Q. How can the FHA help me buy a home?
A.
Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify

Q. What are basic eligibility requirements for FHA financing?
A.
Generally, to be eligible for an FHA loan, you must have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in your state. Your lender will verify income, assets, liabilities, and credit history for all parties on the loan.

Q. How do I find a FHA approved lender?
A.
Inlanta Mortgage is an FHA approved lender. Find a licensed mortgage loan professional near you here.

Q. Does bankruptcy disqualify a borrower from being eligible for a FHA mortgage?
A.
No, you may be eligible if more than two years has elapsed since the date of the discharge of the bankruptcy.

Q. How is an FHA Mortgage Loan structured?
A.
FHA Mortgage loans require a mortgage insurance premium to be collected at closing (upfront MI) and an annual premium is collected in monthly installments. The FHA mortgage insurance premium is not the same as your homeowner’s insurance and is required of all borrowers with less than 20% down payment. A typical monthly mortgage payment on a FHA mortgage loan includes principal and interest, taxes, mortgage insurance premium (MIP), homeowner’s insurance (assuming you have elected to make monthly payments on taxes and homeowner’s insurance).

~New developments regarding MIP~
HUD announced that upfront mortgage insurance premiums for FHA loans will increase April 1, 2012 and again on June 1, 2012 for high cost areas only. IF you think you’ll want an FHA loan for your next mortgage, the best way to avoid the new FHA fees is to apply for an FHA loan before the new FHA MI premiums go into effect April 1, 2012. Contact a licensed mortgage loan professional for more information on increasing upfront mortgage insurance premiums for FHA mortgage loans.

Q. Am I eligible for a FHA Streamline Refinance?
A.
The mortgage to be refinanced must already be FHA insured. The mortgage to be refinanced should be current (not delinquent). The refinance is to result in a lowering of the borrower’s monthly principal and interest payments. No cash may be taken out on mortgages refinanced using the streamline refinance process. Contact a mortgage loan professional near you to discuss FHA Streamline Refinance opportunities.

~BREAKING NEWS REGARDING FHA STREAMLINE REFINANCE~
Recently announced changes from the White House affects loans the Federal Housing Administration insures and would reduce fees on those mortgages for borrowers previously unable to borrow at lower rates.
The Obama administration said it will lower the costs on up-front mortgage insurance premiums to 0.01 percent for streamlined refinancing of FHA loans. The White House said it will cut the annual fee for these refinancings in half to 0.55 percent.
The eligible borrowers for the streamline refinance program must have taken out those FHA loans on or before May 31, 2009.
Contact your licensed mortgage loan professional for more information!

Inlanta Mortgage is proud to be a direct endorsed lender of the Federal Housing Authority (FHA) mortgage loans. Apply now for a loan or find a licensed mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

New Oak Brook Branch Manager Joins Inlanta Mortgage

Mark Schulenburg joins Inlanta Mortgage in Oak Brook, Illinois

Inlanta Mortgage is pleased to announce the addition of Branch Manager Mark Schulenburg to its Oak Brook, Ill office. Schulenburg comes to Inlanta with over 26 years of mortgage industry knowledge along with proven experience in building thriving sales teams.

Schulenburg began his career in the industry as a loan officer but quickly moved up to a sales manager position for Wells Fargo, where he successfully grew a team of three to 34 loan officers and was recognized as the number one team out of 800 branches. During his time in the industry, Schulenburg worked with Countrywide, Bank of America and MetLife before making the decision to join Inlanta.

Schulenburg’s decision to make the switch was an easy one, “Inlanta Mortgage is uniquely positioned to support managers and loan officers seeking to grow market share because of their superior technology, market capitalization, extensive product line, number of investors, dedicated marketing team, superior operations and delivery platform, and their committed and experienced executive leadership team,” Mr. Schulenburg said.

Schulenburg has been dedicated to providing the best customer service for his clients and Inlanta will be able to help him achieve that goal. “My commitment to excellence in mortgage banking demands that I assume a role more valuable than just quoting rates, taking loan applications, and hiring loan officers. It’s important to help our customers choose the financing option that best meets their short term and long term financial objectives, their payment comfort level, and their equity accumulation goals.”

Inlanta Executive Vice President Nicholas DelTorto explained why Schulenburg is such a good fit for Inlanta, “Mark has the drive and knowledge to be a top producer and leader. We are all looking forward to having him on board; his experience in the industry makes him a very valuable asset to the Inlanta Mortgage team.”

Schulenburg specializes in Federal Housing Administration (FHA) loans and first time homebuyer financing programs. The Oak Brook branch can be found at 2803 Butterfield Road, Suite 130, Oak Brook, IL 60523 or at 630-368-0311. Visit Mark online at marks.inlanta.com.

Inlanta Mortgage welcomes qualified mortgage loan professionals seeking full service support in today’s mortgage industry. Read our blog post Why Loan Officers Choose Inlanta?

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.