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Rodney Mason - FHA 203K/ USDA /VA / HomePath Renovation Specialist - GA / AL

HUD Expands Identity of Interest Definition for FHA Mortgages

For all FHA mortgages, HUD recently revised its Family Member definition for Identity of Interest. The definition of a family member, for purposes of Identity of Interest transactions has been expanded to include:

· Brother, stepbrother

· Sister, stepsister

· Uncle

· Aunt

These changes are in addition to the previous definitions including:

· Child, parent or grandparent

· Spouse

· Legally adopted son or daughter, including a child who is placed with the borrower by an authorized agency for legal adoption

· Foster child

An identity of interest transaction is a sale between parties with family or business relationships. Financing above the 85% maximum LTV for identity-of-interest transactions is permitted under certain circumstances.

Family Member Purchase

The 85% LTV limit may be waived if the family member has been a tenant in the property for at least six months immediately predating the sales contract. A lease or other written evidence must be submitted to verify occupancy.

Tenant Purchase

A current tenant, including a family member tenant, purchases the property where he/she has rented for at least six months immediately predating the sales contract. A lease or other written evidence to verify occupancy is required. The maximum financing calculation is not impacted in a sales transaction between a tenant and seller with no identity of interest.

REBuildUSA Partners With Lowe's for FHA 203K Renovation Mortgages

REBuildUSA has partnered with Lowe's Home Improvement Stores to assit home buyers and home owners. An FHA 203K loan allows you to purchase or refinance and renovate a home in one easy loan. Your loan is based on the after-improved value – what the house will be worth once the renovations are complete.

REbuildUSA on NBC Miami

There are no costs to you to enjoy the convenience and time saving benefits of REbuildUSA™. As your 203K Renovation Lending Specialist, I will help you understand all the features of the loanI look forward to answering your questions about the loan program and guiding you through the renovation financing process.

MetLife Ceases Mortgage Operations

After months of pursuing a sale of its mortgage division, MetLife announced today that it would instead wind down its operations. Rumors of potential suitors have been widely reported over the last few weeks. In the end, none ever materialized. As of 5 pm today, the company has stopped accepting new mortgage loan applications. Their press release stated that they would continue to originate reverse mortgages.

Their announcement states that "MetLife Home Loans will continue to service its current mortgage customers. In addition, MetLife Home Loans will honor all contractual commitments for loans in process and expects the majority of loans to close in 90 days."

MetLife entered the forward mortgage business in 2008 with the purchase of First Tennessee Bank's First Horizon Home Loan division. The company announced in December that GE Capital Finance would acquire most of its banking business. Fortunately for their employees, many have had time to pursue other employment opportunities.

HUD Extends FHA 90 Day Flip Waiver Until December 31, 2012

As anticipated, HUD has announced that the 90 Day Flip Waiver for FHA mortgages has been extended once again. On January 15, 2009, HUD announced a waiver to its restriction of a borrower being able to obtain FHA financing on a property that had been acquired by the seller in the 90 days preceding the sales contract date.

The inital waiver took effect on February 1, 2010. The expiration date of the waiver was set as 12 months from its starting date. That originally had waiver set to expire on January 31, 2011. HUD issued an extension through December 31, 2011.

The 2nd extension is now effective through December 31, 2012, unless otherwise extended or withdrawn by FHA. All other terms of the existing Flip Waiver will remain the same. The Waiver continues to be limited to sales meeting the following conditions:

  • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction
  • In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value

This is good news for investors purchasing properties to then re-sale them soon afterwards.

Fannie Mae & Freddie Mac Announce 2012 Conforming Loan Limits for Georgia

Fannie Mae & Freddie Mac Announce 2012 - Conforming Loan Limits for Georgia

The Federal Housing Finance Agency (FHFA) has announced 2012 conforming loan limits. The agency base conforming and high-cost area loan limits will remain at the existing 2011 levels through December 31, 2012. The only county to see an increase is Fairfield County, Connecticut.

The base conforming loan limit remain at its current level ($417,000 for 1-unit properties in the contiguous United States). Some high-cost areas of the country can exceed the $417,000 limit though. For those areas, the current maximum high-cost limit is $625,500 for a 1-unit single-family property in the continuous United States.

For GA, the conforming loan limit is $417,000 except for Greene County. The Greene County conforming loan limit is $515,200 for 2012.

To search conforming loan limits from across the country, visit Nationwide County Loan Limits.