Tucson Arizona Mortgage & Real Estate Blog

I’ve received alot of calls asking me to summarize the “wassup in FHA?” Here’s quick run-down for your reference:

2/1       New condo rules begin.  All condos must show as “Approved” on the FHA website  https://entp.hud.gov/idapp/html/condlook.cfm. Select the HRAP/DELRAP option for searching.  I usually just enter the zip code and select “All”.  Many condos have different names or spellings and I find it helpful to check all of them in a zip code.  There aren’t that many.  No more “spot approvals” allowed by FHA. 

2/1       Effective until 2/1/2011 the 90 day flipping rule has been suspended.  HOWEVER, the loan must be an arm’s length transaction and if the value increases 20% over the seller’s acquisition price then we have to get a home inspection and justify all repairs, renovations, etc. with documentation.

2/15    HVCC rule applies to FHA loans.  The FHA Connection has been revised (which is what caused the delay in implementation). No more Originator-to-Appraiser communication allowed, just like with Conventional loans.

4/5       New up front MIP for all loans including streamline refinances is 2.25%. This will make every loan at least 1/2 point MORE EXPENSIVE.

Other changes “coming this summer to a Lender near you”… increased Monthly Mortgage Insurance and increased downpayment requirements for low-FICO borrowers. Standby for updates as they are announced.

Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson, Arizona for all your Mortgage needs!