Two days ago, Congress restored the loan limits for the Federal Housing Administration (FHA) for two years.  As you know, in late September the FHA, Fannie Mae; and Freddie Mac loan limits were reduced in 42 states pricing potential home buyers out of the American Dream of home ownership and holding back the housing recovery. NAR immediately went to work with the goal to get the loan limits restored in Congress. For weeks that goal seemed unlikely. They finally listened. Because we were...continue reading...

I was asked the following questions regarding FHA insured financing this past week and thought that the answers were worth sharing: Q: Are modular homes treated in the same manner as manufactured homes? A: Fortunately, no. Modular construction is also a factory-built home, but is treated the same as stick-built housing. Q: Can the Upfront Mortgage Insurance Premium (UFMIP) be paid in cash or must it be financed into the loan? A: The UFMIP must be either entirely financed into the mortgage or paid...continue reading...

There are three types of financing: FHA, VA, and Conventional.  Conventional has three subsets: Conforming, High Balance Conforming, and Jumbo.  A question I have been asked frequently these days is, “So what is the minimum down payment?”   FHA: For purchase prices up to $722,750 in San Diego County, the minimum down payment is only 3.5%, all of which can come from a gift.  There is upfront mortgage insurance charged by the FHA of 1.75% of the base loan amount (going to...continue reading...