Middletown, CT

The second up coming change that Kim Neilson our Senior Vice President at McCue Mortgage recently made us aware of, are changes to FHA Streamline Refinancing. Unlike the up coming change that I wrote about yesterday, this change will only affect existing FHA Borrowers, but given the number of FHA Loans that have been done over the last few years, this change will still an impact on a significant number of homeowners.

The up coming changes to the FHA Streamline refinance guidelines will become effective with FHA case numbers assigned on or after 11/18/09, and are as follows:

• Borrower must be receiving a net tangible benefit as the result of the streamline refinance in one of the following ways:
  • 5% reduction in total mortgage payment.
  • Adjustable Rate (ARM) to Fixed Rate.
  • Reducing the term of the mortgage
• Evidence borrower is employed and has income at time of application. A current paystub and verbal Verification of Employment (VOE) will be required. If self employed, YTD Profit & Loss (P&L) statement from an accountant will be required.
• If assets are needed to close, borrower must provide evidence of sufficient assets to close.
• If subordinated financing is remaining in place, the max Cumulative Loan To Value (CLTV) is 125%. For streamline refinance WITHOUT appraisal, the LTV/CLTV calculation is based on the original appraised value for the property. For streamline refinances WITH appraisal, the CLTV is based on the new appraised value.
• The Maximum Mortgage Amount calculation is as follows:
  • Streamline WITHOUT appraisal - the outstanding principal balance minus the applicable refund Upfront Mortgage Insurance Premium (UFMIP) PLUS the new UFMIP. Closing costs CANNOT be added to the mortgage.
  • Streamline WITH appraisal - the lower of outstanding principal balance minus the applicable refund UFMIP, plus closing costs, Prepaids and the new UFMIP OR 97.75% of the appraised value plus the new UFMIP. Discount Points* MAY NOT be included in the new mortgage. If the borrower agrees to pay discount points, documentation of sufficient assets must be verified.

*Discount points are defined as total borrower points greater than 1.00.

I will cover the third change tomorrow, which is also an FHA change, and that change will affect all FHA Borrowers.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Kim Neilson our Senior Vice President just released some information to all our Loan Officer about Industry Changes that will be happening over the next two to three months. These are changed that will affect many of us in the Real Estate Industry, especially the change that I am writing about in this blog, Fannie Mae Automated Underwriting (DU) Eligibility Changes. If all of us are up to date on the up coming changes, than we can all better serve and advice our Borrowers and Buyers.

This first change, Fannie Mae Automated Underwriting (DU) Eligibility Changes, is going to have a major impact on 2 Unit Multi-Family Properties, and the sooner the word gets out about it the better. Fannie Mae will be releasing Automated Underwriting (DU) Version 8.0 on December 12. Changes included with the release are as follows:

• Minimum FICO score 620 (was 580)
• 2 Unit Owner Occupied Property - maximum LTV 80% for purchase & rate/term refinance (was 90%)
• 2 Unit Owner Occupied Property - maximum LTV 75% for cash out refinance (was 85%)
• 2 Unit Investment Property - maximum LTV 75% for purchase & rate/term refinance (was 80%)
• Unit Investment Property - maximum LTV 70% for cash out refinance (was 75%)

All new cases submitted to DU on or after December 12 will be scored with the 8.0 version and the new eligibility will be applied. New cases submitted prior to December 12 will be scored with the current version DU 7.1 and will continue to score as DU 7.1 on subsequent submissions, however, loans using DU version 7.1 must close by February 12, 2010.

Similar changes were already put in place several months back on 3 & 4 Unit Multi-Family Properties, and those requirements will continue as is. These changes continue to make FHA an even more attractive loan product for Multi-Family Owner Occupied Properties (FHA does not do loans on Non-Owner Occupied Properties), and making Conventional Loans even tougher to do.

Tomorrow I will write about the second change that will go into affect very soon. Stay tune!!!

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, andConventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Bob Stewart announced a new ActiveRain Challenge on Thursday called Using Your Blog To Enhance Existing Relationships. The purpose of the Challenge is exactly what it says but please follow the link to get all the details.

My purpose for blogging is to provide information and to better educate Home Buyers as well as to keep Realtors that follow my blog. I have taken many of my blogs and created packets as well as flyers that I give to my clients and Realtors whom I call on.

Examples of blogs that I have created packets for my Borrowers are:

First Time Homebuyer Seminars.....Part #1.

First Time Homebuyer Seminars.....Part #2.

First Time Homebuyers Seminars.....Part #3

First Time Homebuyer Seminars.....Part #4

Major Impact on Credit Scores (edit/delete)

Credit Scores Where Did They Come From & What Are They???

Why Are Credit Scores Different Between Credit Reports & Reporting Agencies???

Most of my business comes from Realtors who refer me to their Buyers, so a major part of my work week is to stop by Realtor Offices and provide them with information on loan programs like FHA, CHFA, VA, and USDA Mortgages.

FHA The Main Loan Program In Connecticut!!!
FHA & CHFA Condo Lists
PMI Changes Making FHA and VA Much More Go To Loan Products
FHA Condominium Approvals
HUD Website Great Resource For Homebuyers

CHFA Not For Just First Time Homebuyers.
New Tax Credit .................... Connecticut Housing Finace Authority (CHFA)
CHFA ................ Federal Recapture Tax

VA Mortgages

USDA Loan Program
USDA Loan Program ........... Part II
FHA Appraisals

I also provide flyers that Realtors use and make part of their Open House Packets. Lately many of the Realtors that I partner with have also started to include these flyers as part of the material that they leave at each of their listings. My most popular flyer that Realtors request is the I wrote the following blog about.

Open Houses Not Just For Realtors...A Great Marketing Tool For Loan Officers Also!!!

There are many blogs that I have written, that I have then converted to into material that I hand out to my Borrowers and Realtor partners, such as resent blogs that I have written on FHA Condo Approval changes. I see a major part of my job as a Loan Officer keeping the public and especially the Realtors that I partner with, informed of many industry changes that we are experiencing these days. Writing a blog and then using the blog to create flyers to hand out to my Borrowers, and Realtor Partners, is a great way for me to do that, and I would encourage others to do the same.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, andConventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or

HARVEST PORK DINNER FOLLOW-UP

THIRD CONGREGATIONAL CHURCH

94 MINER STREET (just off Route 217/East Street)

MIDDLETOWN, CT

Last night was the Third Congregational Church's Annual Harvest Roast Pork Dinner. The event started at 5:00pm and continued to 7:00pm.

The picture below shows just how busy it was... and ... it was NON-STOP.

On the menu was Roast Pork (obviously) with mash potatoes, gravy butternut squash and green beans. Then of course there is dessert....where you have a choice as well. There was apple and pumpkin pies and ice cream to choose from. Coffee and tea were made available throughout the meal.

Above is my son, Kyle and Larry serving coffee... yes, Kyle tried some.

Wondering how much food they went through???? Here is the run down.

128 pounds of potatoes

170 pounds of pork

30 pounds of green beans

2 restaurant serving trays of squash (which were donated)

of course with the pork was applesauce.. but they ran out toward the end of the evening on this.

All of this was for the low cost of $9.00 for adults, and $4.50 for children under the age of 10. The same price as last year. With seconds (and thirds in some cases) how can you go wrong? All proceeds from this event go back to the community... such as food for the local food bank, gifts for the needy, and the church's building fund.

Is your mouth watering? Sorry you missed this event.. the dinner will be in February (hopefully) and this will be the annual pasta dinner, with the corned beef one after that.. You have now had a heads up... so great ready and plan for next years dinners.

FOR ACCURATE INFORMATION ON REAL ESTATE.. CONTACT YOUR LOCAL AGENT

Info about the author:

Valerie Osterhoudt is a Cromwell Connecticut Residential Realtor who can assist you with the purchase and/or sale of real estate in the Middlesex County of CT, which includes Cromwell, Rocky Hill, Berlin, Middletown, Wethersfield, Newington, as well as all other surrounding areas. Please visit me at www.CTrealtorMLS.com for all your relocation and/or local needs.

For real estate... all you need to know, is VALERIEO

If you're thinking about buying a home in Cromwell CT there are plenty of great buys in today's market. There is no better time than now to take advantage of these homes while interest rates remain at an all time low. For more information on Cromwell CT real estate's homes and/or condos please visit Johnson Real Estate to access the newest listings.

Valerie Osterhoudt, ABR - Johnson Real Estate, Inc. - 860.883.8889 cell- valerierealtor@sbcglobal.net.

Copyright © 2009 By Valerie Osterhoudt, ABR, All Rights Reserved...*HARVEST PORK DINNER... FOLLOW-UP*

I do not have all the details yet, but was I informed this morning at out Monthly Sales Meeting, that we have received word that the New FHA Condominium Approval Guidelines will now not go into effect until December 1, 2009. This is great news, because it means that Spot Approvals will continue to be available until then.

We also received word that even though the New FHA Condominium Approval Guidelines will not go into effect until December 1st, that the change on "The Right of First Refusal" restriction will still go away on November 2nd. This would mean that for at least one month (and in my opinion FHA will continue to delay the New Approval Process) that we will be able to do Spot Approvals on Condominium Complexes that have "The Right of First Refusal". There is also early indication that the new proposed 30% limitation on available FHA Loans within each Condo Complex will be increased to 50%.

No this is not official yet, and I would normally wait to put out this kind of information until it was made official, but our source is excellent, and there is a lot of concern about the new changes with only 2 1/2 weeks left before they were to go into effect. Even though a new Mortgagee Letter will be published within the next couple of weeks announcing these changes, I felt that a little heads up notice was appropriate. As soon as I know that the New Mortgagee Letter has been published, I will provide a link to it.

There will be other changes besides the ones that I have mentioned, but I do not have any details on those yet.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, andConventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com