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Dave Woodson

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Important Indiana FHA Change

01-06-09
Dave Woodson

All Indiana loans: (FHA, VA, Conventional)

A Credit report must be dated within 60 days of final loan approval. May be 120/180 days old at time of close.

Effective immediately Indiana FHA:
We are seeing an influx of building on own land. We have to do it as a purchase. However, this loan can be closed as a refinance if there is no builder involved. Please remember these type of loans require an enhanced desk review on EVERY loan.

All Manual UnderWrites:
Minimum allowed FICO score is 620, but this is a case by case basis

Indiana FHA Cashout refis:
approved min FICO 600, again this is a case by case situation. I am known for getting some of the tougher deals done.
Manual UW - max LTV 90% w/ 620 FICO

Effective for Indiana FHA for 1/1/09 and after:
- Maximum purchase LTV is 96.5% - I can no longer use closing costs to meet the down payment figure. But, if you consult with me first we can have the seller pay your closing costs. Join my VIP Indiana home buyers program
- Maximum rate/term refinance /streamline w/ appraisal LTV is lower of 97.75% of the appraised value or the
payoff + closing cost + pre-payment penalties.
- Total loan amount may not exceed 100% including the UFMIP of the appraised value
- For cash out refi’s over 85% LTV they will require a 2nd appraisal performed by an FHA appraiser - I will advise as to whether borrower can pay for this appraisal.

Hope this helps as a reminder.

Dave Woodson
Indiana’s #1 FHA Expert

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Indiana FHA Refi and streamline Changes now in effect

01-03-09
Dave Woodson

Changes have come to an Indiana FHA Lender near you. The HUD Mortgagee Letter 08-40 gives us changes to Indiana FHA refinances and are effective January 1st. This Mad Mortgage Machine update will include guidelines that are not being changed, but I have listed them anyway as a review for those Average Joe LOs that read my blog and a refresher to the rest of you already familiar with FHA guidelines.

There are 10 Things that you really need know about the recently updated Indiana FHA Refinance Guidelines:

1. The max LTV for rate & term Indiana refinances (including streamlines WITH an appraisal) is 97.75%*

2. The max LTV for cash-out refinances is 95%* for loan amounts less than the conforming limit and 85%* for loan amounts at or above the conforming limit. (Must be on time 12 months and no 30 day lates)

3. Two appraisals will be needed for all cash-out refinances with an LTV > 85%

4. The mortgage has to be current for the month due

5. New or current 2nd mortgages are eligible with no maximum CLTV

6. Loan amount for the streamline refi WITHOUT an appraisal cannot be greater than the original loan amount

7. Up Front Mortgage Insurance Premium rates are 1.75% for all rate & term and cash-out refinances & 1.5% for all streamlines

8. The FHA Secure refinance has now been taken out behind the barn and shot

9. Loan amount CAN include: Closing costs, current month's interest, any prepayment penalty, prepays, any late charges,escrow shortages and points

10. Cash back on rate & term and/or streamline refinances CANNOT exceed $500

(All LTVs are before adding the UFMIP)

If you have any questions about Indiana FHA home loans or Indiana FHa Streamlines please give me a call at your earliest opportunity. I will be more than glad to help you any way possible.

I am the Mad Mortgage Machine

Dave Woodson

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Indiana Loan Limits for 2009

01-02-09
Dave Woodson

As part of the Economic Stimulus Act of 2008, Congress had authorized a conforming loan limit increase in “high-cost” areas around the country. This really does not affect NW Indiana. Versus the national conforming loan limit of $417,000, for example, a Manhattan home buyer could secure a 2008 mortgage for $725,000 and still be within “conforming” guidelines.

Effective January 1, however, those limits rolled back. Conforming mortgages in the 59 designated high-cost regions are now capped at $625,500.

The 2009 conforming Indiana Home Loan limits will remain unchanged from 2008.

  • 1-unit properties : $417,000
  • 2-unit properties : $533,850
  • 3-unit properties : $645,300
  • 4-unit properties : $801,950

The 2009 Indiana FHA loan limits in most of the state will be.

  • 1-unit properties : $271,050
  • 2-unit properties : $347,000
  • 3-unit properties : $419,400
  • 4-unit properties : $521,250

However, for The counties of Jasper, Lake, Newton and Porter those Indiana FHA loan limits will be a little bit higher than the rest of the state.

  • 1-unit properties : $365,700
  • 2-unit properties : $468,150
  • 3-unit properties : $565,900
  • 4-unit properties : $703,250

With rates being at a near all time low, 2009 will be a great year to buy a home in Northwest Indiana. I would suggest to anyone to take advantage of the free offers on my website for this in the market to buy a new home including my VIP Indiana Buyers program.

Please visit the ever evolving blog at Mad Mortgage Machine. It is a great way to stay informed on man things that afect the mortgage world.

For questions or comments you can reach me at (219)872-8000 or email me at dave@madmortgagemachine.com

Dave Woodson

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Too Many Home plus Low Rates...

12-28-08
Dave Woodson

Equals Good News

For the first time in about a year, the sale of homes fell below 5-million units, this helps push the total home inventory just a bit higher by 0.1% nationwide.

Believe it or not, but based on that rate it would take over 11 months for the existing home supply to be exhausted.

For new home buyers in northwest Indiana, this is a true opportune time for negative news on housing.

To read the the rest of this great article on Too Many Homes Plus Low Rates

This great article is brought to you by an Indiana Home Lender

Dave Woodson

4 Comments
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Store Charge Cards = bad idea

12-19-08
Dave Woodson

During this holiday season, and every other holiday this year. Retailers continually bombard you with the at-the-register offers to “open a charge card and save 10% to 15%”.

Hey, it is a great immediate money-saver, but for many Americans in the market for a new home, but by taking this in-store savings ploy could make them a long-term loser.

Why?!?!?

It is because new credit applications are damaging to credit scores. myFICO.com says that, “new credit” accounts for 10 percent of a credit score; recent applications may signal weakness in a borrower’s profile.

Meanwhile, mortgage lenders will make a rate adjustments for lower credit scoring applicants. An example of this, a home buyer with a 20% downpayment and a 720 plus credit score would face an interest rate adjustment of 0.125% and it could be up to .250% on an Indiana FHA Home Loan.

To keep reading this blog, head on over to the Mad Mortgage Machine blog. It will open in a new window and it is full of new ideas

Dave Woodson

Indigo Financial Group

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