Jumbo Loans In Peril Because Of Commercial Bank Issues

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EVERYTHING IS FINE…UNTIL IT ISN’T The former owner of RPM Mortgage (now merged with Cross Country) told me about a particularly harrowing ordeal he went through in 2008. His company had locked tens of millions of dollars of loans with the intention of selling them to particular investors when they closed. RPM underwrote and funded […]Read More

FHA Rates Even Lower! I Hope Buyers Stay Home :)

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BOOMER ERROR! On Friday, I pointed out how FHA rates are now often far better (by over 1%) than Fannie Mae Rates in this blog: FHA Keeps Beating Fannie Mae! And, I tried to impress everyone with an FHA rate quote – that I got wrong! I quoted 6.125% for a no-points loan, but the […]Read More

FHA Keeps BEATING Fannie Mae! This Is SHOCKING!

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Today’s FHA rate for a $1.1 million purchase with only 3.5% down is 6.125%* at no points.     To paraphrase MC Hammer: Fannie Mae Can’t Touch That – not even close.  FHA has been the redheaded stepchild of the mortgage world pretty much forever.  This is because of misconceptions about FHA and because Fannie Mae’s […]Read More

FHA Just Got Even MORE AMAZING! (MIP Cut By 30 Basis Points!!)

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I used to blog quite often about how advantageous FHA loans are for a variety of reasons – In Defense of FHA/Misconceptions Persist. The reasons include: 1. Rates much lower than Fannie Mae rates; 2. Fast closes – only 14 calendar days; 3. Don’t need clear pest inspections; 4. Can get large lender credits for […]Read More

How To (& Why) Buy a $1.1MM Home With Only $39,000 Out of Pocket

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Marketing Rate Buydowns: This is a quick reminder that we love to help listing agents market temporary interest rate buydowns with their listings. We are still seeing agents offer buydowns as very enticing incentives with tremendous success. Please reach out if you’d like more info. How To Easily Buy A $1.1 Million Home With Only […]Read More

In Defense of FHA! Misconceptions Persist!

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FHA financing is ideal for first-time homebuyers or borrowers with low credit and limited savings. FHA loans have lower rates than conforming (Fannie/Freddie) loans. This is especially the case for borrowers with low credit scores (under 680).Read More

“Private” Mortgage Insurance vs. FHA Mortgage Insurance – Huge Difference!

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I recently blogged about three options to eliminate Private Mortgage Insurance (PMI), and I received several notes asking why I did not mention FHA Mortgage Insurance. By the way, I love reader-feedback, so please keep it coming – as it often makes for great blog fodder! I didn’t cover FHA Mortgage Insurance because I was […]Read More

FHA Financing – Why & When Listing Agents Should Not Be Leery

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INTRODUCING JVM’S BLOG PODCAST We have turned our blog posts into podcast episodes – perfect for listening on the go. You can listen to this blog as well as some of our most popular blog posts in podcast form for free HERE. We’ll be posting new blogs in audible format every week so stay tuned! […]Read More

2021 FHA Loan Limits Don’t Always Match Conforming Limits; Beware!

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FHA recently announced its conforming loan limits for 2021. The “High Cost” limits mostly match conforming (Fannie and Freddie) loan limits, but the low cost limits are much lower than Fannie’s and Freddie’s. So, here are FHA’s 2021 maximum high cost and low cost loan limits: 2021 FHA LOAN LIMITS CONFORMING LOAN LIMITS DO NOT […]Read More

Legal Sources of Funds; FHA Purchase to $800,000

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I received the following questions from a very seasoned real estate agent the other week: “I have a 3.5% down offer for $795,000 on my desk – A. Does FHA even go that high; and B. What are the legal sources of funds for a down payment and closing costs?” MAX FHA LOAN AMOUNTS In […]Read More

No Bubble Here; FHA Condo Spot Approvals

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FHA CONDO SPOT APPROVALS ARE BACK STARTING TOMORROW Starting tomorrow, an entire condominium complex will no longer need to be “FHA Approved” for a buyer to use FHA financing to purchase a unit within the complex. Buyers can now obtain what is called a “Spot Approval” to get just get a single unit “FHA approved.” […]Read More

FHA: “Condo Complexes No Longer Have to Be FHA Approved” – Spot Approvals Return!

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About ten years ago “FHA Spot Approvals” went the way of the dodo bird, in that they disappeared. This was devastating to a lot of FHA buyers b/c condos were all that they could afford in their markets and so many condo complexes are NOT FHA approved. Fortunately, however, HUD/FHA will again allow for “Spot […]Read More

Why FHA’s BETTER Than Conventional In Hot Markets

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My wife Heejin was “on call” for weekend referrals yesterday, and she had two buyers who wanted to switch from FHA financing to 5% down conventional financing. The buyers were making offers over list price in very competitive markets, and they were convinced their offers would be stronger with conventional financing. And Heejin screamed,“NOOOOOO, DON’T […]Read More

Both VA and FHA Require Formal Condo Approvals; Alternatives

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Most agents and borrowers know that condo complexes need to be “FHA approved” before a unit within the complex can be purchased with FHA financing. What many don’t know, however, is that VA has the same requirement. VA and FHA do not unfortunately maintain the same list of approved condo complexes. You can find FHA’s […]Read More

What’s The Difference Between an FHA and VA Appraisal?

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Agents and borrowers alike often find the appraisal process confusing and opaque – it’s why we consistently field questions on what appraisers look for when inspecting a property and how agents can best prepare. Not only can appraisers’ opinions on value make or break a deal, but they also play a crucial role in determining […]Read More

First Time Homebuyer Program Limitations; First Time Homebuyer Programs = FHA

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Our first time homebuyers almost always ask about special financing programs for first time homebuyers. With the exception of a few down payment assistance programs and city-specific programs, there are no effective first time buyer programs other than good old fashioned FHA. JVM has access to various first time buyer programs, but they have significant […]Read More

FHA Loan Limits Up Too; Why & When To Use FHA?

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HUD recently released FHA Loan Limits for 2018, and in high cost counties they largely (but not always) match the new loan limits for conforming loans. In high cost counties (most of the CA coast), the FHA Loan Limit ranges from $679,650 for a one unit property, all the way up to $1,307,175 for a […]Read More

FHA Financing Is Fast, “As Is,” & Easy; 15 Day Close

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Heejin and I did a presentation yesterday on marketing for real estate agents, based on everything we have seen work and not work with the hundreds of agents we have worked with. It went really well, and if anyone would like to see it, please let us know. But, this blog topic surfaced after the […]Read More

What If Spouse Has Horrible Credit? Too Much Debt?

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We frequently get husband/wife borrowers where one spouse has stellar credit and the other has awful credit. Most people know that the solution is simply to do the loan in the name of the “good-credit-spouse” only, as long as the good-credit-spouse has sufficient income to qualify on his or her own. The bad-credit-spouse can do […]Read More

FHA Reminders: Attached PUDs, Refi’s to 96.5%; Cash-out Refi to 85%

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A few quick but important reminders about FHA Financing, as we get questions often: 1. FHA financing is available for all Planned Unit Developments (PUDs) or “townhomes,” even if they are attached and in large complexes that look like condos. As long as they are not zoned as condos, they are eligible for FHA financing […]Read More

FHA Mortgage Insurance LOWER Than PMI In Many Cases; FHA = Good

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FHA = Good. That is one of the primary points we make during our “Mortgage 101” Seminars. This is b/c too many Realtors labor under the myth that FHA financing is inferior to conventional financing. The myth stems from the days when FHA financing took longer to close and required clear Section I termite reports […]Read More

FHA Offers – Higher Esteem; Speed, Flexibility and “As Is”

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One of the biggest takeaways from our “Mortgage 101” Seminars is to hold FHA offers in higher esteem. Here are a few reasons why: Speed: FHA Financing does not take longer than other types of financing. Skilled lenders can often close FHA loans faster than other types of loans. We have no trouble closing them in 17 days in […]Read More

BK’s & FHA Financing; 2 Years Seasoning Unless In Chapter 13

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FHA requires only two years of seasoning from the date a bankruptcy is discharged. This is relatively well-known. What is not well known is that borrowers in a Chapter 13 bankruptcy do not need any seasoning to qualify for FHA financing, as long they have a one year history of timely payments to the bankruptcy […]Read More

What If Spouse Has Horrible Credit?

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We frequently get husband/wife borrowers where one spouse has stellar credit and the other has awful credit. Most people know that the solution is simply to do the loan in the name of the “good-credit-spouse” only, as long as the good-credit-spouse has sufficient income to qualify on his or her own. The bad-credit-spouse can do […]Read More

Credit Score Under 700 And Less Than 20% Down – FHA’s Better Deal

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We have a borrower with a 670 credit score and 5% down payment who is comparing interest rates on the web, and getting severely misled. Borrowers often do not understand how significantly low credit scores affect interest rates with conventional financing. For borrowers with less than 20% down and lower credit scores (under 700, and […]Read More

FHA Is Faster Than Conventional; Myth That FHA Is Slower

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We beat this dead horse often, but it keeps rearing its head. So we are re-beating it: FHA loans do not take longer to close than conventional loans (at least at JVM). They are often faster b/c of FHA’s flexibility. We got the below email from a listing agent yesterday after we closed his listing. […]Read More

FHA Better than 80/10/10 Conventional in Tight Market

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We can close almost any purchase transaction in 14 days, using our uber-systematic, assembly-line process. One major exception is 80/10/10 loans with 10% down and a 1st and 2nd mortgage. 80/10/10 loans take us 21 days to close b/c we have to get two loans approved. Hence, if a borrower is making offers in very […]Read More

The Case For FHA: Lower MI; Good for Low Credit Scores; Fast Closing

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We are making the case for FHA once again now that MI is so much lower (down to 0.85% from 1.35%). FHA interest rates are much lower than conventional rates, often over 1/2 percent lower. FHA rates are especially competitive for borrowers with low credit scores. It is a myth that FHA properties need to […]Read More

FHA No Longer Finances FLIPS

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FHA will no longer finance “Flips.” A “Flip” is any property that was purchased and re-sold within 90 days of the purchase date. This means the contract for 2nd purchase cannot have any dates on it that are within 90 days of the previous purchase. If a buyer goes into contract within the 90 day […]Read More

Lender Credits For Closing Costs Again – Effect on Payment?

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Yesterday, we recommended Lender Credits for closing costs for borrowers who are tight on cash. We pointed out how such credits result in higher rates, but we failed to mention the effect on a mortgage payment. Our borrower yesterday had a loan of approximately $400,000. If she locked in a rate of 3.75%, with a […]Read More

FHA Not ONLY For 1st Time Buyers; Who Uses FHA Financing?

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FHA Financing is not just for first time buyers. FHA financing can be used by anybody who does not currently have an FHA loan. FHA financing is best for borrowers with limited cash, tight debt ratios, and/or credit issues. FHA is the most forgiving type of financing when it comes to all of these issues. […]Read More

FHA Financing for “Fixer;” Save Cash For Repairs; Refi Later

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We sometimes have buyers, with ample cash, use FHA financing to buy total “fixers” and then use their cash savings (from the smaller down payment) for improvements. Once their improvements are done, they come back to us and use their much higher appraised value to do a no-cost refinance into a conventional loan. For example, […]Read More

FHA Loans Do Not Take Longer Than Conventional

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We are frequently asked by Realtors if we can close FHA loans as fast as conventional loans, and our answer is always the same: “of course.” FHA loans do not take longer to close than conventional loans if a lender has well-trained staff. It is a myth that FHA loans take longer. There are few […]Read More

FHA Properties Do Not Have To Be In Better Condition; Misconception

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We continue to hear Realtors express concern about whether or not properties are in good enough condition for FHA financing (as opposed to conventional financing). This is a misconception left over from years ago when FHA properties needed to have all Section I work cleared. We address this often, but FHA financed properties do not […]Read More

FHA Appraisals – Only One Is Allowed;Value Can’t Change w/ New Lender

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We had a borrower leave us for an online lender about a month ago. The online lender screwed up the loan, and the appraisal came in low (despite ample comps that supported value). The borrower came back to us with 8 days left to close escrow, and we could have closed on time but for […]Read More