Government Loan Changes Effective October 1st

Government loan changes effective October 1st, will bring some tricks and some treats (in the spirit of Halloween)

 Trick or Treat?

Photo from Vegnews.com

FHA Loans will have lower sales price limits in the Washington DC Metro Area from $729,750 to a $625,000 for a single family home purchase.  This decrease is definitey a trick as many homebuyers will find it difficult to find purchase money loans for larger size homes and sales prices with lower down payments. 

Here is a list of counties affected from the HUD mortgagee letter in May. 

USDA Loans are a trick and treat. USDA is lowering its upfront financed guarantee from 3.50% to 2.00% but it has now added monthly mortgage insurance, which the no mortgage insurance was a great feature of this zero money down home loan. This is still a great loan product for buyers in "rural areas", but it will cost slightly more on a monthly basis. 

Veteran Home Loans are the treat of the bunch as the VA funding fee for VA Loans is set to decrease from 2.15% to 1.40% for first time users of the VA Home Loan Benefit. And from 3.30% to 2.80% for susbsequent use of the loan.This is great news for Veterans and active duty military looking to purchase a home with no money down in the Washington DC Metro Area.

Contact your Woodbridge FHA and VA Loan Lender @ 703-497-3936, I promise we make the mortgage process not so SPOOKY!

Contact Markita Aldridge-Woods at (703) 929-2274 or via email for custom tailored mortgage solutions.

 

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Comment balloon 47 commentsMarkita Woods NMLS#196099 • October 01 2011 12:09AM

Comments

Is it October already?

You could buy a mansion for that top price down here in Sierra Vista, AZ near Fort Huachuca, AZ

Thanks for the updates

http://www.BriansRealty.com

 

Posted by Brian Schulte, SFR, Sierra Vista, AZ (Allison James Estates & Homes) about 7 years ago

Hi Brian:

 

Its amazing how a couple time zones can change your buyng power...and yes it is October already, wow!

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) about 7 years ago

For eligible home buyers, the VA loan always has been, is now, and likely will be the

BEST BUY IN TOWN.

 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) about 7 years ago

Thank you for the reminder. I  hope buyers who were qualified a few months ago will realize that limits have changed.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 7 years ago

Markita another trick is USDA has not been funded yet for the new fiscal year.

Posted by Shay Campbell, Raleigh, NC (Universal American Mortgage Company) about 7 years ago

Markita -thanks for the reminder. I am going to re-blog. This change definately impacts the higher end market here in Prince William County Virginia. This could force many luxury homeowners who receive job transfers. The pool of Conventional Buyers with ten percent down payments is very slim. If a homeowner cannot rent their home anywhere near the mortgaged amount, this could force them into a short sale situation. Note- I learned recently that USDA Loans can be used for purchases in the Gainesville area. That is considered rural. Can you confirm that information?

Posted by Peggy James, Woodbridge Virginia Area Real Estate Specialist (EXIT Realty Associates) about 7 years ago

Markita-for our area both FHA and VA loans are hot hot hot.  Thanks for sharing the updated information.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) about 7 years ago

Markita, VA Loans have always been popular in the Washington DC Metropolitan Area. Thanks for the update.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA about 7 years ago

Markita: This is important information for many home buyers, especially ones in my area. Thanks for writing it.

Posted by Julissa Jumper, Fayetteville, NC Real Estate (Select Properties of Fayetteville, LLC) about 7 years ago

@Lenn yes indeed , the best financing in tow!

 

@Gita hopefully those buyer have a Plan B called more cash...

 

@Shay thats more than a trick that is downright scary.

 

@Peggy yes USDA loans can be used in parts of Western Prince William County.

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) about 7 years ago

@Cindy...red hot for our area. I would say 4 out of 5 of my clients are closing with government loans right now.

 

@Michael...of course, thanks for stopping by

 

@Julissa...FHA loan limits dropped for hundreds counties/areas was Fayetteville included in the group.

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) about 7 years ago

Markita. Lowering that FHA amount may be discouraging for some home buyers in your area, but it appears that those VA and USDA loans are still a good deal. In Texas, we can offer our vets a Texas vet home loan to add to their VA loan to get their interest rates even lower.

Posted by Jerry Newman, Texas REALTOR, San Antonio Military Relocation (Brown Realty, 210-789-4216,www.JeremiahNewman.com) about 7 years ago

Jerry I would agree USDA and VA are still great programs for buyers. FHA, is as well, buyers will need adjust expectation at the sales prices.

I am convinced we need a "Texas Vet Board" in Virginia!

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) about 7 years ago

Love the VA loans, they are the best way to go right now.  Thanks for the update.  I haven't done a USDA loan, so I'll be looking into that program as well.

Posted by Tamara Inzunza, Close-In Alexandria and Arlington Living (RE/MAX Executives) about 7 years ago

The government doing everything it can to kill the housing industry...question is why?

Posted by Karen Fiddler, Broker/Owner, Orange County & Lake Arrowhead, CA (949)510-2395 (Karen Parsons-Fiddler, Broker 949-510-2395) about 7 years ago

I guess they were trying to coincide with Halloween. We do have a strange government don't we??

Posted by Robert L. Brown, Grand Rapids Real Estate Bellabay Realty, West Mic (www.mrbrownsellsgr.com) about 7 years ago

Nice post and congrats on the feature, I'm jealous ;-)

Posted by Justin Dibbs, REALTOR® - Ashburn Virginia Homes for Sale (Pearson Smith Realty) about 7 years ago

Sis I will definitely look more into the USDA loan. I will have to talk to you about that. And thanks for the remainder on the Government Loan changes today on the FHA Loan. Congratulations on the Feature. The "Outside the Box Lender" is not playing in the 4th quarter of this year:-)

Posted by Lanre-"THE REAL ESTATE FARMER" Folayan, I don't make promises.I deliver results.SOLD HOMES (Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC) about 7 years ago

I am going to do a hyperlocal on VA loans in my area! I am fairly excited about that because you know that is going to help out some people! Have a good weekend!

Posted by Rosalie Evans, The Evans Group, Sioux Falls, SD Homes For Sale (Meritus Group Real Estate) about 7 years ago

@Tamara USDA is a good program, but the borrower has to meet income requirements and the property has to be located in what they deem a rural area.

 

@Karen excellent question...I would love to know the answer

 

@Robert yes our government is "funny" that way...

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) about 7 years ago

@ Justin , thanks!

 

@Lanre lets chat about USDA in Maryland you have some areas that are excellent for the loan right outside of Prince Georges County. 

 

@Rosalie good for you and yes you will be a huge help to veterans and activity duty military in Sioux Falls.

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) about 7 years ago

Hi Markita, this is the first I've heard about that VA loan fees droping like that. Very good news since I've been working with a decent number of VA purchasers lately.

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) about 7 years ago

Hi Markita, I almost forgot! Thanks for the reminder.                        

Posted by Sandy Acevedo, RE/MAX Masters, Inland Empire Homes for Sale (951-290-8588) about 7 years ago

Hey Markita:  Congratulations on the Feature!  Great job .. great article .. great info ...

Gene

Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) about 7 years ago

Markita -  We used those higher loan limits a lot here in Orange County, CA, and I don't think the new ones are going to help our recovery.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) about 7 years ago

Hi Markita,  Thanks for the udated info and very informative article.

Posted by Bob Miller, The Ocala Dream Team (Keller Williams Cornerstone Realty) about 7 years ago

Hi Markita, thanks for the update. I am very sorry to see the changes added to USDA, but it is still a fantastic product. I can't use it in my county, but surrounding areas that I work in can access it.

Posted by Dawn Maloney, 330-990-4236 Hudson & Northeastern Ohio (RE/MAX Haven - Northeast Ohio Real Estate Specialist) about 7 years ago

Our loan limit here is $429K I think. Don't do many FHA loans here. Lots of VA and conventional. it is just getting harder to get financing no matter which program. Needs to change.

Posted by Bill Reddington, Destin Florida Real Estate (Re/max Southern Realty) about 7 years ago

Markita, thanks for sharing the new changes that took place this month.  I like your analogy!  Congrats on a well deserved 5 Featured Posts

Pamela

Posted by Lee & Pamela St. Peter, Making Connections to Success in Real Estate (Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522) about 7 years ago

Thanks for getting it all on one fine post.  I've reblogged for our area.  all three, FHA, USDA and VA are important in our market.   

Posted by Beverly Femia, Broker Realtor Stager - Greater Wilmington, NC Are (BlueCoast Realty Corporation) about 7 years ago

Markita  - Thanks for the updates on the financing changes.  Great info for agents to have.

Posted by Karen Steed, Associate Broker Haralson Realty (Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton) about 7 years ago

Thanks for Sharing!!   I particularly am pleased to see the HUD document attached with the MAP!  boy it tells a story doesnt it!

Posted by Gloria Matthews, MAKING CLARK COUNTY HOME (Principal Property Brokers) about 7 years ago

Thank you for sharing. A needed update.

Posted by Juan Bassett, GRI (Long & Foster) about 7 years ago

Good Post Markita!

The Gov't just can't leave anything alone!

Then they wonder why there is still a housing crises!

 

Posted by Ben Yost - 303-587-4297, FHA, VA, Conventional - Mortgage Loans in De (First Time Home Buyer, Mortgage Rates, Pre-Approval) about 7 years ago

Regardless of circumstances securing financing has been and shall remain difficult for most buyers until the fed is fixed. 

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) about 7 years ago

Great and timely post.  Thanks for the information and have a great weekend.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) about 7 years ago

FYI - the reduced VA funding fee change has been delayed becauae the President has not signed the legislation. According to my lender, it will go into effect the ealier of November 17 or the date the Presdient signs it

Posted by Phil Amodeo ABR,CRS,e-PRO,SFR, Carmel, Fishers, Geist, Indianapolis North (C21 Scheetz) about 7 years ago

Yep, there are many people all upset about the lowering of those limits. I'm not sure that for a 729K home 3.5% down is the way to go? Is there really a market for it or are they just offering it? I've never had one EVER.

Posted by Lyn Sims, Schaumburg IL Real Estate (RE/MAX Suburban) about 7 years ago

Timely reminders about some upcoming changes in the mortgage industry.

Posted by Daniel H. Fisher, MCRP - Charlotte Real Estate, NC or SC (www.FisherHermanRealty.com (704) 617-3544) about 7 years ago

Seems like Congress is playing games again - they just passed new legislation that will keep the VAFF at previous levels though November 17th - and will be effective as soon as the president signs it.  This means the announced lower fees might only be in effect for a very short time, and maybe not at all :{

This last minute craziness is, well, driving me crazy!  Need I mention the games with Flood Insurance... ?!!

Jana

Posted by Jana Holmstrup (Jana Holmstrup - CEO - Kings Mortgage Services, Inc.) about 7 years ago

Ah...they kept telling us this was going to happen and I'm glad some buyers were on top of the news with open ears. For those that weren't, well, if they find the house of their dreams, rates are still low;)

Posted by Elisa Uribe Realtor #01427070, California Homes for Sale in the East Bay (Golden Gate Sotheby's International) about 7 years ago

Thank you for posting. The VA portion of this is good news and will hopefully have a positive impact on local housing markets.

Posted by Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572, Angel Realty, LLC (CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents) about 7 years ago

VA announced on Friday that the Funding Fee reduction will not go into effect until November 18, 2011

Posted by Rodney Mason, FHA 203(k) & HomeStyle Renovation-AL,FL,GA, SC, TN (On Q Financial) about 7 years ago

Thanks for everyones comments and I learned as stated above the VA Funding Fee decrease has been delayed until November 17th nonetheless it is still a "treat" for Veterans and active duty military looking to purchase a home. 

 

While mostly all other loan types have had stricter guidelines and increases in fees, VA loans have remained unchanged for credit guidelines and found a way to decrease costs.

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) about 7 years ago

Good to hear on the va loans. I have a va buyer now.

Posted by Terry Gerling (Ultimate Realty) about 7 years ago

Hi Markita,

Good post on the intricacies of the changes that just happened.

We do not always keep up on each detail of each loan.

Thanks

Phil

Posted by Phil Leng, Phil Leng - Retired (Retired) about 7 years ago

Thanks for the update.  The USDA loan is a very important option here in my rural market.

Posted by Jeanne Dufort, Madison and Lake Oconee GA (Coldwell Banker Lake Country) about 7 years ago

Participate