Oregon Mortgage ConneXion

"Tell 'em what they've won Bob!"

2016-01-15T07:27:00.000-08:00

Well, I didn't win the record setting Powerball so here I am, back at work... asking you for your business.

Do you find it ironic how a one in 292,000,000 chance at $1.5 billion sparks the community, but the normal day-to-day conversation about the fostering of actual money is lost on people? Now all of a sudden, all we can talk about is how everyone would handle it. Everyone is bragging about how they would be smart with their money, weigh annuities versus cash options, educate themselves and learn how to get the most out of it. Experts come out and give their advice… and only now does it go viral.

My question is why isn't everyone talking about it when it's not a windfall? Tax shelters, debt structure, philanthropy, annuities, mutual funds, ETF, IRA, RMD, ROI -- The list goes on. You don't really hear folks talking about all of these terms until a huge amount of money is involved. All these things you say you would do if you won... Why not get started now? Meet with an advisor, plan for taxes, better structure your debt, give more, live within a budget, work harder towards retirement... simply set your goals and work toward them. You don't have to come in to fast money to gain financial security; the security is gained from putting a plan into action with the income you've already been blessed with.

I guess it's easier for most to manage imaginary money than it is to manage real money. Perhaps our society is broken and disillusioned when the almighty dollar is involved. The population in general needs a reality check... there's your real prize. Now go, take care of it!

What's the disclaimer? "Lottery games are based on chance, should be played for entertainment only and should not be played for investment purposes." Well, I've definitely been entertained! Not to mention the fifteen seconds of stress relief that follows each fantastical dollar spent as I banter with friends and strangers alike... just dreaming about what we could do with that kind of money. [SIGH] There is my take away... That and maybe a glimmer of hope. Hope for "the masses" to open their eyes to all that they've been blind to... even if "the masses" might include me.

#powerball #realitycheck #letsgetrealwithrealmoney #fosteringwealth #abetterlife

New 2016 Loan Limits

2016-01-04T07:12:00.000-08:00

NEW LIMITS IN EFFECT FOR 2016!

FannieMae and FreddieMac have updated the high-cost loan limits for 2016 per the Federal Housing Finance Agency. The loan limits remain at $417,000 for Contiguous States, District of Columbia, and Puerto Rico; and at $625,500 in Alaska, Guam, Hawaii, and the U.S. Virgin Islands. These loan limits apply to one-unit conventional loan products with the exception of certain high cost areas designated in California, Colorado, Massachusetts, Tennessee, and Washington. FannieMae reported an increase in thirty nine counties with some of the areas being "newly assigned". There are no exceptions for any Oregon counties however three counties in Washington State welcome increased loan limits by $23,000 to $540,500 (one-unit) in King, Pierce, and Snohomish Counties.

As with Fannie and Freddie, VA loan limits continue to follow FHFA guidelines. County loan limits have a direct impact on the Veteran's entitlement benefit and guarantee amount and does not apply to IRRRL’s (Interest Rate Reduction Refinance Loan).

FHA loan limits were updated on December 9th... Quite a few increases here and no areas saw a decrease in the maximum mortgage amount.

USDA does not set loan limits however the maximum income allowed for each area will dictate "maximum loan amounts". As debt thresholds and underwriting variables come into play there is not a hard and fast limit for this program... a common misconception.

Keep in mind there are many financing options a side by side comparison will guide you in choosing the right home loan based on your individual needs and goals. If you would like more information or to apply for any of these loan products contact me today!

Additional Resources:

FNMA Limits Resource Page

FHA Limits Announcement

VA Limits and Entitlement Info

Get Ready for HomeReady

2015-12-14T08:29:00.000-08:00

FannieMae has officially rolled out it's HomeReady product a week ahead of expectations. This program replaces their MyCommunity loan program which has been phased out. You must meet the income guidelines which are based on the area's median income as designated, unless the property is within a low income census tract and designated disaster areas. Properties may include manufactured housing, accessory dwelling units (ADU / Mother in Law or basement Apartment), 1-4 units, condos, and PUDs. Debt-to-income may be allowed as high as 50% with compensating factors as allowed in the automated underwrite, otherwise that limit is 45%. An online course on homeownership education is required for this 97% loan to value product. The down payment and closing costs may also be gifted, granted, and Community Seconds are allowed. Non-occupying borrowers are allowed as well but with a max loan to value of 95% and need not be related, however the relation should make sense. Manual underwriting may be available down to credit scores as low as 620. Aside from greater flexibility in underwriting HomeReady's main attraction its "lower than standard mortgage insurance coverage – 25% for LTVs above 90% to 97% " according to FannieMae.

I am excited to see this loan product applied in real world scenarios as an attractive mortgage option! Keep in mind there are other low down financing options such as the VA Loan for qualified Veterans, USDA Rural as eligible, FHA, or Conventional with private mortgage insurance that may be a better fit. A side by side comparison will guide you in choosing the right home loan based on your individual needs and goals. If you would like more information or to apply for any of these loan products contact me today!

Additional Resources:

FannieMae Fact Sheet

HOME by FannieMae (APP)

HomeReady vs. MyCommunity

Oregon Refinance Pilot Program for Distressed Borrowers Expands

2015-11-23T14:30:00.000-08:00

Similar to a current Pilot Refinance Program (a test under "HARP 3.0") now running statewide in Oregon - RAHAPP, another pilot program - LRAPP is expanding to a handful more counties within the sate. The lesser stringent program LRAPP does not necessarily require mortgage payments be current and has a greater need for the current lender to accommodate the borrower(s) in distress. Read the press release for more information.

...

For Immediate Release
November 23, 2015

Loan Refinancing Program for Underwater Borrowers Expands
Contact:
Alison McIntosh, OHCS, Government Relations & Communications Liaison, 503-510-1678

Oregon Housing and Community Services (OHCS) and the Oregon Homeownership Stabilization Initiative (OHSI) are pleased to announce the expansion of the Loan Refinancing Assistance Pilot Project (LRAPP).

LRAPP is designed for homeowners who have suffered financial hardship and have substantial negative equity in their homes, but could afford a payment at the current value of their home. LRAPP has been operating in Crook, Deschutes, Jackson, Jefferson, and Josephine counties since 2011. These counties experienced the highest rates of negative equity and were extremely hard hit by the foreclosure crisis.

“For homeowners who continue to be underwater, meaning they owe more than their home is worth, this program can help them get back on their feet,” said Margaret Van Vliet, Director of Oregon Housing and Community Services. “In some communities, more than 1 in 10 homeowners are still underwater on their mortgage. LRAPP is an innovative, one-of-a-kind refinance program to help people avoid foreclosure.”

On December 2, 2015, OHSI will open LRAPP to homeowners in 17 additional counties in the eastern, central, and southern portions of Oregon including: Baker, Coos, Curry, Douglas, Gilliam, Grant, Harney, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wasco, and Wheeler counties. In January and February, OHSI will open LRAPP to homeowners in additional counties. The full opening schedule can be found here.

OHSI anticipates opening 50 application slots every two weeks for eligible homeowners in those counties. Homeowners can take an eligibility quiz on the OHSI website here: http://www.oregonhomeownerhelp.org/en/homeowner-education-program/lrapp-program.

Homeowners who may qualify for LRAPP include:
- Homeowners with significant negative equity in their homes;
- Homeowners who may be behind on their mortgage payments;
- Homeowners who could afford their mortgage at the amount their home is currently worth; and
- Homeowners whose incomes are at or below 150 percent of the state’s median income (details are included in the eligibility quiz.)

November 23, 2015 – Loan Refinancing Program for Underwater Borrowers Expands Page 2

All prequalified applications are subject to available funding at the time of closing or December 31, 2016 (the program close date). Participants are not guaranteed funding upon submitting an application. U.S. Treasury is expected to approve this program change on November 24, 2015.

Homeowners with questions about LRAPP can read more on the OHSI website or take an eligibility quiz: http://www.oregonhomeownerhelp.org/en/homeowner-education-program/lrappprogram.

Oregon Housing and Community Services | 725 Summer St. NE Suite B, Salem, OR 97301-1266 | (503) 986-2000 | FAX (503) 986-2020

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Additional Resources:

OHSI LRAPP Press Release

LRAPP Overview

OregonMortgageConneXion.com - RAHAPP

2016 USDA Funds Availability

2015-09-24T09:59:00.000-07:00

It's that time of year again... see below for an update from USDA Rural.

REMINDER: The Upfront Guarantee Fee will increase from 2.00% to 2.75%.

The Annual Fee will remain unchanged at .50%.

...
September 24, 2015

Fiscal Year 2016 Conditional Commitment Notice

As happens at the beginning of each fiscal year, funding for the Single Family Housing Guaranteed Loan Program (SFHGLP) will not be available for a short period of time at the beginning of Fiscal Year 2016 (FY 2016), which starts October 1, 2015. During the temporary lapse of funding, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions. An upfront guarantee fee of 2.75 percent accompanied by an annual fee of 0.5 percent will apply to both purchase and refinance transactions in FY 2016.

The following will apply:
• Rural Development will continue to accept complete SFHGLP applications for purchase and refinance loan transactions from lenders.
• Rural Development will process, approve, and issue Conditional Commitments (Form RD 3555-18) for those applications that are eligible “subject to the availability of commitment authority.”
• Lenders may close loans as scheduled.
• When funds become available, Rural Development will “Obligate” funds for Conditional Commitments issued for loans subject to the availability of commitment authority.
• Once loans are obligated, Rural Development will process lender’s Loan Note Guarantee requests as soon as the loans are verified as being closed and all conditions of the Conditional Commitment are satisfied.
• Lenders assume all loss default risk for the loan until Rural Development is able to obligate it and the Loan Note Guarantee is issued.

Questions regarding this notice may be directed to the Single Family Housing Guaranteed Loan Division, at 202-720-1452.

Keep in mind there are other low down financing options such as the VA Loan for qualified Veterans, FHA, or Conventional with private mortgage insurance that may be a better fit. A side by side comparison will guide you in choosing the right home loan based on your individual needs and goals. If you would like more information or to apply for any of these loan products contact me today!

Additional Resources:

USDA Bulletin

USDA Income Limits

USDA Property Eligibilty

ORVET Down Payment Assistance

2015-08-20T22:54:00.000-07:00

The Oregon Department of Veteran Affairs has added a Down Payment Assistance (DPA) program to be used in conjunction with the newer ORVET Plus Home Loan or the standard loan program. According to the bulletin put out by ODVA, "Oregon veterans can access up to $15,000 to meet down payment and closing costs. By accessing the DPA funds, coupled with the recently released OrVet Plus 97% LTV loan, or the 95% program, veterans can obtain the dream of homeownership with little to no cash out of pocket." Down Payment Assistance programs had been readily available prior to the Mortgage Meltdown but dried up after lenders tightens up the guidelines on lending. With the housing market now stabilized lenders and consumers alike are happy to see the return of these type of programs. ORVET is a unique loan program (QVMB) offered to qualified Veterans within the state and the addition of both the Plus and DPA gives Oregon Veterans yet another edge to first-time homeowners looking to get their foot in the door.

No ownership within the previous 3 years.
Homebuyer's Education to be competed prior to loan submission
Income limits by county
Max assistance available $15,000
Gift funds may be combined for down payment and/or closing costs.
Rate .25% above our standard OrVet Home Loan rates if used for down payment only
Rate .375% above standard rate if used for both down payment and closing costs
Allowed on OrVet 95%, OrVet 97%, or OrVet Plus home loan program as qualified
First mortgage funding must be made from Qualified Veteran Mortgage Bonds (QVMB)
Discharge date must be within 25 years from the date the loan is made.

Keep in mind there are other low down financing options such as the (Federal) VA Loan for qualified Veterans, USDA Rural as eligible, FHA, or Conventional with private mortgage insurance that may be a better fit. A side by side comparison will guide you in choosing the right home loan based on your individual needs and goals. If you would like more information or to apply for any of these loan products contact me today!

Additional Resources:

ODVA Bulletin

ORVET Rates

ORVET DPA Guidelines

Fee Increase Coming to USDA Rural Loans in October 2015

2015-06-25T12:30:00.000-07:00

USDA FEE INCREASE... AGAIN! Sorry I don't mean to yell but then maybe I do. See the bulletin from Rural Development below but the new Upfront Guarantee Fee will be 2.75% up from 2% and the Annual Fee will remain the same at .5%. This change will go into effect on October 1st, 2015.

...

June 25, 2015

Advance Notice:

Upfront Guarantee Fee and Annual Fee for Fiscal Year (FY) 2016

This message provides advance notice of the upfront guarantee fee and annual fee structure that will be effective for Single Family Housing Guaranteed Loan Program (SFHGLP) loans in fiscal year (FY) 2016. FY 2016 begins October 1, 2015 and ends at the close of business on September 30, 2016. The upfront guarantee fee will change from 2 percent of the loan amount to 2.75 percent of the loan amount. The annual fee will remain unchanged.

Guaranteed loans obligated on October 1, 2015, through September 30, 2016 will be subject to the following fee schedule:

Purchase and Refinance Transactions:

Upfront guarantee fee: 2.75 percent

Annual fee: 0.50 percent

A loan is obligated when USDA has approved a complete loan application package and issued Form RD 3555-18 “Conditional Commitment for Single Family Housing Loan Guarantee” to the USDA approved lender. Loan guarantee requests submitted to USDA prior to September 30, 2015, in which a Conditional Commitment has not been issued before close of business that day, will be subject to the FY 2016 fee structure.

The unnumbered letter “Upfront Guarantee Fee and Annual Fee Schedule Effective October 1, 2015” is available under “June 2015” online at: http://www.rd.usda.gov/publications/regulations-guidelines/unnumbered-letters.

A “Guarantee Fee and Annual Fee Calculator” is available online from the USDA LINC “Training and Resource Library”: https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do#GAF.

Questions regarding this notice may be directed to Kristina Zehr, at (202) 713-8779 or via email: kristina.zehr@wdc.usda.gov. The Single Family Housing Guaranteed Loan Division may also be contacted at (202)-720-1452.

USDA Income Limits

USDA Property Eligibilty

New Product - ORVET Plus 97% Home Loan

2015-05-28T16:45:00.000-07:00

Oregon Department of Veteran Affairs has announced a new home loan program offered to eligible Veterans with as little as 3% down on owner-occupied purchase transactions. The down payment and closing costs may also be gifted or granted, as allowed. This new mortgage program is being offered in addition to the ORVET Home Loan, a product that mimics Conventional loans. A few of the key highlights aside from the favorable interest rates are as follow:

Detached 1 unit:

Up to $250,000 loan amount

Min FICO 680

Max debt to income 45%

2 months PITI in reserves

Manufactured 1 unit:

Up to $200,000 loan amount

Min FICO 720

Max debt to income 41%

2 months PITI in reserves

Additional Resources:

ORVET Rates

ODVA 97% Bulletin

ORVET Plus Product Features

2015-01-30T09:00:00.000-08:00

The new maps are effective next week... be sure to refer to the property eligibility link to ensure your potential address falls into the USDA Rural boundary. The USDA Rural Loan is a popular loan product geared for low to moderate income households to purchase outlying properties with little to no money down. See additional links at the bottom of the page for more information on this mortgage product.

USDA Bulletin below...

...

January 29, 2015

Reminder: Amended Eligibility Maps Become Effective February 2, 1015

This is a reminder that the new eligibility maps become effective on February 2, 2015 as stated on the ListServ dated December 22, 2014 and shown below in full context.

On December 16,2014, President Barack Obama signed into law H.R. 83, the Consolidated and Further Continuing Appropriations Act, 2015 (Act), which provides fiscal year 2015 full-year appropriations through September 30, 2015, for all agencies except the Department of Homeland Security. With the signing of this Act, Rural Development will implement the eligibility maps in accordance with the Agricultural Act of 2014, Pub. L. 113-79 (“Farm Bill”) on February 2, 2015 with the following exceptions:

Because of the continuing re-examination of the “rural in character” policy, RD will continue its current policy regarding “rural in character” for the purposes of determining eligible rural areas.

The Act further provides that applicants in communities that have a current rural area waiver under section 541 of the Housing Act of 1949 (42 U.S.C. 1490q) shall be treated as living in a rural area for purposes of section 502 guaranteed loans. This means that the area of Tuscaloosa, Alabama will continue to be considered rural through September 30, 2015 for 502 guaranteed loans, even if their disaster waiver expires during the year.

While the reclassifications will largely involve areas going from rural to non-rural, areas that should have been made eligible during Phase 1 on May 6, 2014, but were missed will now receive the proper classification.

Thus, the ineligible area maps based on the above classifications will be effective on February 2, 2015. The changes will be those already published on the “Future Eligible Areas” maps posted on the Eligibility Website: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

...

Additional Resources:

Tag: USDA

USDA Loan Basics

USDA Income Limits

FHA Premiums to Drop by Half Percent on Certain FHA Loans

2015-01-26T17:25:00.000-08:00

As of today, January 26, 2015, the annual mortgage insurance premium on an FHA 30 year term just got a little more affordable. News of the new MI premiums broke on January 7th and President Obama confirmed this in a speech on housing policy the following day. In reasoning according to The White House press release...

"there’s more work to do: too many creditworthy families who can afford—and want to purchase—a home are shut out of homeownership opportunities due to today’s tight lending market."

There seems to be some mixed sentiment whether or not the reduction is a sound choice for the fiscal health of the FHA loan program which has been in the habit of increasing the rates over the last several years but of course only time will tell. Although I agree it will make a positive impact to the affordability for potential homeowners who are feeling the pinch of rising rents in the Portland Metro Area; the issue of the duration of the MI remains a concerning factor. As that annual mortgage insurance premium will remain in effect for the life of the loan for all loans where the loan to value is 90% or more, under 90% and your MI will cancel after a minimum of 11 years. Of course not everyone purchasing a home is going to commit to a mortgage for 30, or even 15 years, so if your looking to get your foot in the door, it is just that... a means to an end. Do proceed with caution if you're looking to go through with a streamline refinance, if your original loan was originated before June 3, 2013 when the new MI duration went into effect that reduction to the payment will likely be negated under the newer structure.

Other low down financing options such as the VA Loan for qualified Veterans, USDA Rural as eligible, MyCommunity, or Conventional with private mortgage insurance may be a better fit, and a side by side comparison will guide you in choosing the right home loan based on your individual needs and goals. If you would like more information or to apply for any of these loan products contact me today!

Additional Resources:

White House Press Release

HUD Press Release

Mortgagee Letter 2015-01

FHA Loan Limit Lookup

2015 VA Loan Limits

2014-12-24T10:00:00.000-08:00

According to the latest VA Circular out today the VA maximum guaranty amount (aka VA Loan Limits) will now be based on the One-Unit (single-family residence) limit, as prescribed by the Federal Housing Finance Agency and are now published. We are reminded that only the amounts in the "one-unit column" will apply. A total of 46 counties saw increases this year... three of those being in Washington State which included King, Pierce, and Snohomish County.

Additional Resources:

VA Circular 26-14-39

2015 FHFA Loan Limits

2015 Loan Limits for 46 Counties

VA Loan Limit Historical

Oregon Mortgage ConneXion - VA Loans

VA Guarantees its 21 Millionth Home Loan

2014-10-29T14:30:00.000-07:00

I thought this was pretty cool so I thought I would pass it along!

PRESS RELEASE:

October 29, 2014, 12:30:00 PM

VA Guarantees its 21 Millionth Home Loan

Milestone comes during year-long commemoration of 70 years of the GI Bill

WASHINGTON – The Department of Veterans Affairs (VA) announced this month that it has guaranteed 21 million home loans since the Home Loan Guaranty program was established in 1944 as part of the original Servicemen’s Readjustment Act of 1944, better known as the “GI Bill.” This achievement comes during the year-long commemoration of 70 years of the “GI Bill,” which established a wide range of benefits for Veterans returning from World War II, including low-cost home loans, education and vocational training.

“This vital program offers Veterans, Servicemembers and their families the keys to homeownership and is truly a testament to our Nation’s commitment to enhancing the lives of those who served our country,” said Allison A. Hickey, VA’s Under Secretary for Benefits. “Twenty-one million home loans guaranteed, with the last one million guaranteed in just two years, is just one example of how VA employees are privileged to continue to serve and give back to our Veterans through the GI Bill.”

VA’s Home Loan Program provides housing-related benefits and services to make home ownership possible and affordable for eligible Veterans, Servicemembers and surviving spouses, who want to buy, build, repair or adapt a home. Nearly 90 percent of all VA loans are made with no down payment. In fiscal year (FY) 2014, the Home Loan Program guaranteed roughly 35,000 loans per month, resulting in a total of 438,398 VA home loans guaranteed for the year. The total value of all outstanding VA loans exceeds $380 billion. During FY 2014, the program also approved 1,253 grants to seriously disabled Veterans for the purchase, modification, or construction of a home specially adapted to meet their individual housing needs.

Through loan servicing efforts, the Home Loan Program also assisted nearly 80,000 borrowers avoid foreclosure in FY 2014. These actions saved taxpayers nearly $2.8 billion in avoided claim payments. Data from the Mortgage Bankers Association show that mortgages guaranteed by VA have had the lowest foreclosure inventory rate for the last 25 quarters when compared to all other types of home loans in the nation, including prime loans.

Veterans may obtain a certificate of eligibility for a VA-guaranteed home loan through the joint Department of Defense—VA web portal eBenefits, at http://www.ebenefits.va.gov, or by contacting their lender.

For more information about the VA Home Loan Program, visit the program’s home page at www.benefits.va.gov/homeloans.
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To apply for this or any other loan program contact me today! That's okay if you don't have your Certificate of Eligibility (COE) we can get that for you electronically all you need is your DD-214, no need to make a special trip.

Additional Resources:

Oregon Mortgage ConneXion - VA Loans

USDA Rural Area Changes Delayed Once Again

2014-09-25T11:00:00.000-07:00

Big news from the national USDA RD Office in DC...

Implementation of New Rural Area Ineligible Area Maps Delayed!
On September, 19, 2014, “Continuing Appropriations Resolution, 2015,” (Public Law 113-164) was signed by the President. The continuing resolution extends a current general provision regarding housing program eligibility. This means that if a community is eligible today, they will remain eligible under the continuing resolution. Barring further Congressional action, RHS will delay implementation of the revised rural area maps based on the changes to the rural area definition as revised in the Agricultural Act of 2014 (Pub. L. 113-79). During the continuing resolution and as provided in the FY 2014 Appropriations Act (P.L. 113-76), RHS will not reclassify any area eligible for rural housing programs on September 30, 2013 as not eligible for such programs. The “Future Eligibility Maps” are posted on the Eligibility Website.

It appears this delay to the first phase is in effect through the end of the 2015 fiscal year unless/until further congressional action is made. A little more insight to the delayed changes are explained in an update we received from USDA last week regarding the determination of eligibility by the loan guarantee application date.

The “Farm Bill” revised the eligible rural area definition for USDA housing programs by amending population limits used to determine eligibility for program benefits. It also retained the requirement for eligible areas to be rural in character and have a serious lack of mortgage credit. However, on August 21, 2014, the Secretary of Agriculture suspended any changes to an eligibility determination based solely on the “rural in character” clause through September 30, 2015.
On October 1, 2014, the USDA Rural Housing Service will update maps used to determine property eligibility. The updated maps will include all eligibility changes. Changes that were originally slated to take effect due to the "rural in character" clause will not be implemented at this time."

This is very good news... we will be revisiting this change again next fall unless another act of congress takes place. In the meantime it is status quo for those seeking to take advantage of the USDA Rural Loan. To apply for this or any other loan program contact me today!

Additional Resources

USDA Guaranteed Housing Loan

OregonMortgageConneXion - USDA

USDA Rural Loan to Increase Fee

2014-09-05T09:30:00.000-07:00

The annual fee that is charged by the USDA is set to increase "on October 1,2014. The annual fee for both purchase and refinance loans will increase from .4% to .5%. This change is required to maintain a neutral cost of the program" according to the national RD office and has been in effect since October 1, 2011. This is the second increase to this fee, which was effective October 1, 2012.

The upfront fee charged remains the same at 2% and may be added to the initial loan amount.

Additionally USDA RD offices suggest that... "Lenders should communicate with Rural Development (RD) State Offices to understand current processing timeframes and determine which annual fee structure should be utilized..." Many RD State Offices are currently working through a backlog of guaranteed applications and lenders will need to begin processing loans using the .5% annual fee when it is estimated that RD will be unable to issue a conditional commitment prior to the close of business on September 30, 2014." ...by backlog they mean 35 business days, at least here in Oregon due to budget cuts and staff reductions.

The compounding effects of the upcoming changes and the current underwriting turn-times are astronomical between the impending boundary changes, aging documents, increased debt to income ratios due to the increasing fees, and re-disclosure / compliance requirements. We might see some serious fallout if all parties aren't on their toes. Hopefully we will see some relief to that "backlog" sooner rather than later and we see the boundary changes delayed albeit again and/or temporary.

To apply for this or any other loan program contact me today!

Additional Resources:

USDA Eligibility

OregonMortgageConneXion - USDA

USDA Rural Loan Service Area Definition Remains an Ongoing Battle

2014-05-07T17:25:00.000-07:00

In the umpteenth release from USDA Rural Development regarding eligible areas read on...

New Rural Area Maps for USDA Rural Housing Programs!

The rural area definition was revised with the passing of the Agricultural Act of 2014, H.R. 2642 (Farm Bill) by modifying the second sentence of section 520 of the Housing Act of 1949 (42 U.S.C. 1490). The rural area definition is amended as follows:

(1) by striking "1990 or 2000 decennial census shall continue to be so classified until the receipt of data from the decennial census in the year 2010" and inserting "1990, 2000, or 2010 decennial census, and any area deemed to be a 'rural area' for purposes of this title under any other provision of law at any time during the period beginning January 1, 2000, and ending December 31, 2010, shall continue to be so classified until the receipt of data from the decennial census in the year 2020;" and

(2) by striking "not in excess of 25,000" and inserting "not in excess of 35,000."

Additionally, section 737 of the Consolidated Appropriations Act, 2014 (H.R. 3547) authorized any area that was eligible as of September 30, 2013, to remain eligible until September 30, 2014.

As a result of the legislation, Rural Development revised the eligible area maps, based on the Farm Bill, on May 6, 2014. At this time, only areas that could be transitioned from “ineligible” to “eligible” are reflected in the map changes. The maps are available on the Eligibility website (http://eligibility.sc.egov.usda.gov). Select “Single Family Housing” under the Property Eligibility menu.

Stakeholders are advised that additional changes to eligible rural areas for USDA Rural Housing Programs as outlined in H.R.933, Consolidated and Further Continuing Appropriations Act of 2013 and the 2010 Census will take effect on October 1, 2014, barring further Congressional action. A preview of the “Future Eligible Areas” will be available on the USDA Income and Property Eligibility Site later this summer.

The USDA Rural loan remains a popular loan program in the outlying areas in the Portland Metro Real Estate Market. The loss of a program that allows for low-moderate income families to finance 100% would not go unnoticed. See the link below for more insight...

To apply for this or any other loan program contact me today!

Additional Resources

OregonMortgageConneXion - USDA

USDA Eligibility

Rural Areas Redefined for USDA Loan Program

2014-03-13T14:30:00.000-07:00

The eligible boundaries for the USDA Rural Development Loan Program are slated to change over 2014 in two phases in order to allow more time to consistently identify what is considered "rural in character". The loan program is available to qualified borrowers with low to moderate incomes and may allow for financing up to 100% loan to value. The elimination of some of the areas currently served will greatly impact the communities in question.

From USDA: New Rural Area Definition for USDA Rural Housing Programs!

(2) by striking "not in excess of 25,000" and inserting "not in excess of 35,000."

Additionally, section 737 of the Consolidated Appropriations Act, 2014 (H.R. 3547) authorized any area that was eligible as of September 30, 2013, to remain eligible until September 30, 2014.

As a result of the legislation, Rural Development is in the process of implementing the new rural area definition and revising the rural areas maps located on the Eligibility website (http://eligibility.sc.egov.usda.gov). The new rural area definition will be implemented in 2 phases as follows:

Phase 1, May 6, 2014:

Areas meeting any of the three following criteria shall be classified as eligible:

The area was eligible as of September 30, 2013;
The area was eligible prior to October 1, 1990, or was deemed eligible at any time between January 1, 2000 and December 31, 2010, but subsequently became ineligible and was ineligible on September 30, 2013. In addition, the area population does not exceed 35,000 and the area is rural in character.
The area population decreased following the 2000 decennial census, and the 2010 decennial census indicates it is now below the population limit for the area. (Unless the area meets the criteria outlined in either Phase 1 Map Changes 1 or 2, then it can only be eligible if (i) it is located in a Metropolitan Statistical Area (MSA) and the population does not exceed 10,000; or (ii) if it is not in a MSA and the population does not exceed 20,000.)

Phase 2, October 1, 2014

Areas meeting any of the following criteria shall be classified as ineligible:

The area was eligible prior to October 1, 1990, or deemed to be eligible between January 1, 2000 and December 31, 2010 AND the population exceeds 35,000 per the 2010 decennial census.
The area has been annexed into a larger ineligible area and has become part of the larger Census Data Place.
The area was formerly eligible but is no longer rural in character due to further development and urbanization that is inconsistent with the new rural area definition.

To apply for this or any other loan program contact me today!

Additional Resources

OregonMortgageConneXion - USDA

2014 USDA Income Limits

Refinance Pilot Program Expands Statewide in Oregon

2014-03-05T12:30:00.000-08:00

The Rebuilding American Homeownership Assistance Pilot Program or RAHAPP that initially included only Multnomah County, then later to Clackamas and Washington has now opened up to include all of Oregon as of March 3rd. Other eligibility criteria include, but are not limited to, the following:

Homeowners must be significantly underwater

Homeowners must be current on existing mortgage payments

Homeowners cannot own other residential property

Homeowners may not be party to an active bankruptcy

Existing mortgages cannot be owned or guaranteed by Fannie Mae or Freddie Mac

RAHAPP provides two refinancing options:

15-year mortgage at 4% fixed interest, with a $200,000 loan amount, the APR would be 4.129%.

30-year mortgage at 5% fixed interest, with a $200,000 loan amount, the APR would be 5.077%.

Press Release: Foreclosure assistance program expands statewide

Salem – Oregon Housing and Community Services Department (OHCS) is announcing the expansion of the Rebuilding American Homeownership Assistance Pilot Program (RAHAPP) to help more Oregon homeowners struggling to stay in their homes. The program is designed to help homeowners with high-interest loans who can’t refinance because they still owe more than their home is worth. The program has been in operation in Multnomah, Clackamas, and Washington counties since July 2013 and is now expanding to serve all Oregon counties. The program is based on the Rebuilding American Homeownership proposal by Oregon Senator Jeff Merkley. “Today, too many Oregonians continue to struggle to pay their mortgage, and the risk of foreclosure continues to have a significant negative impact on Oregon’s communities.” said Margaret Van Vliet, Director of Oregon Housing and Community Services. “We’re excited to expand this program statewide to reach more homeowners who are struggling with underwater mortgages and are stuck in high interest rates with no options.” The expansion of the program also includes changes to the eligibility criteria. More homeowners will now be able to access the program because of changes to the loan-to-value ratio, and a lower required credit score. To apply, homeowners need to be current on their payments, and ineligible for the Federal Home Affordable Refinance Program (HARP) because their loans are not owned or insured by Fannie Mae or Freddie Mac. Recent reports show that a significant number of homeowners across Oregon still owe more than their home is worth. In some of Oregon’s counties, as many as one in four homeowners are underwater. Homeowners are encouraged to visit www.OregonHomeownerHelp.org for information on the program, to take an eligibility quiz, and submit an online application. Homeowners are also able to submit applications online or in person through OHCS partner, Alpine Mortgage Planning, a division of Pinnacle Capital Mortgage Corporation. This program is funded through the Hardest Hit Fund, which the state received from the U.S. Treasury as a result of the economic downturn and foreclosure crisis. Oregon Housing and Community Services administer the Hardest Hit Fund through the Oregon Homeownership Stabilization Initiative (OHSI), which to date has provided more than $128 million in assistance to more than 9,300 homeowners. #

To determine which loan product is right for you contact me today!

Additional Resources:

Oregon Homeowner Help

OregonMortgageConneXion - RAHAPP

2014 VA Loan Limits and Program Highlights REVISED

2014-03-03T09:00:00.000-08:00

~Loan Limits REVISED February 28, 2014~

The 2014 VA loan limits have been published... see link at the bottom.

I say it time and again if I had to pick just one loan product to choose from to originate for the rest of my life it would be the VA Loan. It has a few little nuances so if you aren't experienced you can easily run into issues and not get the approval you thought was in the bag. The VA loan is called a benefit for a reason. Some highlights of the VA loan program include:

Purchase Loans:

No down payment may be required. *Depending on loan limits and entitlement.
Up to 4% of closing costs can be paid with seller concessions *this may include other debts owed by the Veteran.
Funding fee from 1.25% (regular military with 10% down) to 3.3% for subsequent use.

VA Streamline - IRRRL (Interest Rate Reduction Refinance Loan): VA to VA

Funding fee of only .5%
No credit report, appraisal, nor income verification may be required.
The loan to value will allow for up to 100% or more. *Lender requirements may vary
Notes: The new loan amount must be less than the original plus "allowable" closing costs. There is an exception to this if your loan is delinquent so that late charges and/or legal fees can be included. Your payment is only allowed to increase if you are refinancing out of an ARM. Funding fees may be financed if loan limits allow.

VA Cash-Out: Regardless if you are taking cash out or not, go figure.

Funding fee of 2.15%, 2.4% for Reserves/National Guard, or 3.3% for subsequent use.
Loan to value up to 100%
Loan being refinanced does not have to be a VA Loan.

Other perks:

Never any PMI (private mortgage insurance).
Loan amounts up to $417,000, higher limits available in certain counties around the states. *Funding fee included.
Flexible underwriting, we will leave it at that, too many what ifs, ands, or buts.
All VA loans may be assumed by another qualified Veteran with only a .5% funding fee.
For ALL loan types -Veterans with a service connected disability of 10% or more the funding fee is waived.
Jumbo loans available *Down payment equates to 25% of the VA county loan limit or 25% of the loan amount, whichever is less.
Construction, and Manufactured Home Loans are also available, other restrictions apply.

To apply for this or any other loan program contact me today! That's okay if you don;t have your Certificate of Eligibility (COE) we can get that for you electronically all you need is your DD-214, no need to make a special trip.

Additional Resources:

VA Circular 26-14-6 Revised Limits

2014 VA Loan Limits Revised

Oregon Mortgage ConneXion - VA Loans

2014 USDA Income Limits

2014-02-14T16:00:00.000-08:00

Just in from the local USDA office the 2014 income limits have been published. The USDA Rural Development Loan Program is offered only in eligible areas to qualified applicants and may allow up to 100% financing.

2014 Income Limits Published!
The 2014 Income Limits for the Single Family Guaranteed Loan Program were published on February 12, 2014. The Guaranteed Underwriting System and the Income Eligibility calculator in the Eligibility website have been updated to use the new income limits.

Income limits can also be viewed at: Income Limits

To apply for this or any other loan program contact me today!

Additional Resources

OregonMortgageConneXion -USDA

USDA Eligibility

USDA Loans and Eligibility Maps

2014-01-24T11:07:00.000-08:00

In a release from USDA Rural Development regarding eligible areas...

"Changes to the housing eligible areas map based on 2010 Census data scheduled to take effect 1/15/14, have been postponed to 10/1/14 by passage of the Consolidated Appropriations Act, 2014. View "Future Eligible Areas." Complete applications received before October 1, 2014, will continue to use rural area definitions based on 2000 Census data."

To apply for this or any other loan program contact me today!

Additional Resources

http://www.oregonmortgageconnexion.com/search/USDA

USDA Eligibility

3 Reasons to List Your Home with an Agent

2013-12-06T11:11:00.000-08:00

3 REASONS TO LIST YOUR HOME WITH AN AGENT | Create infographics

Refinance Pilot Program Opens up to Clackamas and Washington Counties

2013-11-12T11:19:00.000-08:00

The Rebuilding American Homeownership Assistance Pilot Program or RAHAPP that initially included only Multnomah County has opened up to include Clackamas and Washington counties as of October 1st. Other eligibility criteria include, but are not limited to, the following:

Homeowners must be significantly underwater
Homeowners must be current on existing mortgage payments
Homeowners cannot own other residential property
Existing mortgages cannot be owned or guaranteed by Fannie Mae or Freddie Mac
RAHAPP provides two refinancing options:
15-year mortgage at 4% fixed interest, with a $200,000 loan amount, the APR would be 4.129%.
30-year mortgage at 5% fixed interest, with a $200,000 loan amount, the APR would be 5.077%.

Whatever you call it... The Merkley Mortgage, HARP 3, or #MyRefi in social media circles, it is proving to help many underwater homeowners refinance out of otherwise expensive mortgages. Homeowners who had found themselves unable to refinance under earlier HARP products because they had loans that were not owned by Fannie Mae or Freddie Mac.

If you are not sure who owns your mortgage you can start by checking with either Freddie Mac or Fannie Mae by checking the following websites:

www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/

Read on for today's press release...

"For Immediate Release

November 12, 2013

Contact:
Ben Pray, Communications Manager, OHCS
503-986-2079, benjamin.pray@state.or.us

Refinance Program for Underwater Homeowners Expands

Salem, Oregon – The Rebuilding American Homeownership Pilot Program (RAHAPP) is now available to homeowners in Clackamas and Washington Counties. RAHAPP is administered by Oregon Housing and Community Services Department (OHCS) and was developed with the support of Oregon Senator Jeff Merkley to help underwater homeowners with high interest rates refinance. The program was previously only available to homeowners in Multnomah County. RAHAPP has already helped participants lower interest rates and reduce their monthly payments by an average of $427.

RAHAPP aims to help homeowners who are trapped in high-interest loans and underwater (owing more than their homes are worth) to refinance their loans. These homeowners are not eligible for the Federal HARP refinance program because their loans are not owned or insured by Fannie or Freddie, and therefore have little to no ability to refinance. The pilot is based on a proposal Senator Merkley introduced in a July 2012 white paper called Rebuilding American Homeownership, which can be read here (pdf).

“Current programs have been frustrating for homeowners who are underwater and not eligible for HARP,” said Senator Merkley. “This pilot tests a different approach. If successful, it could be a win-win, substantially lowering homeowners’ monthly payments and thereby reducing the risk of foreclosure. Moreover, the homeowners would have more funds to spend on other needs, strengthening their families and the local economy. Finally, the program has the potential to pay for itself. If it works, I hope it can be expanded to help underwater families across Oregon and in other states. I applaud OHCS for piloting this different approach.”

“We are excited to partner with Senator Merkley on this innovative program, and to now be able to offer it to homeowners in Clackamas and Washington Counties,” said Margaret Van Vliet, Director of the Oregon Department of Housing and Community Services. “RAHAPP provides assistance to a population that is otherwise not served, and we are glad that they will have the opportunity to gain some much needed relief.”

Initially, RAHAPP will allow approximately 60 underwater homeowners who are current on their payments refinance into a 30-year fixed rate of 5.0% (5.077% APR) or a 15-year fixed rate of 4% (4.129% APR) to refinance. There will be no up-front or monthly mortgage insurance payments required for RAHAPP loans.

Interested homeowners in Clackamas, Multnomah, and Washington Counties are encouraged to visit the RAHAPP page at http://www.OregonHomeownerHelp.org for information, an eligibility quiz, and an online application. Homeowners will be able to submit applications online or in person through OHCS’ partner, Alpine Mortgage Planning, a Division of Pinnacle Capital Mortgage Corporation.

RAHAPP is funded by the U.S. Treasury’s Hardest Hit Fund, a program designed to aid homeowners in states hit hardest by the economic crisis. Oregon Housing and Community Services administer Hardest Hit Funds through the Oregon Homeownership Stabilization Initiative (OHSI), which to date has provided more than $105 million in assistance to more than 8,500 homeowners."

To determine which loan product is right for you contact me today!

Additional Resources:

OHSI Press Release 11/12/13
https://www.alpinemc.com/rahapp/
http://oregonhomeownerhelp.org/
http://oregonhomeownerhelp.org/en/homeowner-education-program/raha-program
http://www.merkley.senate.gov/newsroom/press/release
http://www.oregonmortgageconnexion.com/multnomah-county-pilot

Disclaimer: Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.
If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.
You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/

2014 USDA Funds Available

2013-10-28T07:00:00.000-07:00

Just in from USDA Rural Development:

"FY 2014 Funds Available!

Funding for Rural Development’s Single Family Housing Guaranteed Loan program is now available for fiscal year (FY) 2014. The funding received is based on a Continuing Appropriations Act, 2014 (P.L. 113-46, H.R. 2775)...."

To apply for this or any other loan program contact me today!

USDA Rural Boundary Changes to Affect Portland Metro

2013-10-18T18:00:00.000-07:00

Update: Changes to the housing eligible areas map based on 2010 Census data scheduled to take effect 1/15/14, have been postponed to 10/1/14 by passage of the Consolidated Appropriations Act, 2014. View "Future Eligible Areas." Complete applications received before October 1, 2014, will continue to use rural area definitions based on 2000 Census data. -1/24/14

An update on shrinking USDA boundaries that will affect many Portland Metro as well as other rural areas in Oregon. This is a popular loan program for low to moderate income families that allows for financing up to 100%. The previously undetermined deadline has now been set for January 15th, 2014, barring any further Congressional action.

Affected rural areas in Oregon

Alert from USDA Rural Development in Oregon...

Changes to eligible areas for USDA Rural Housing Programs scheduled for Oct. 1, 2013, are currently on hold. (posted 10/18/2013)

Implementation of the 2010 Census data modifying eligible rural areas for USDA Rural Housing Programs had been scheduled for October 1, 2013. With the “Continuing Appropriations Act, 2014” (H.R. 2775) signed into law by the President of the United States on October 16, 2013, eligible areas for USDA Rural Housing Programs will remain unchanged and consistent with the 2000 Census through January 15, 2014, barring further Congressional action.

Background: On March 26, 2013, the President signed the “Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2013” (the FY 2013 Appropriations Act). This Act extends the authorities and limitations of the FY 2012 Appropriations Act for USDA Rural Development housing programs (Single Family Housing and Multi-Family Housing Programs) pursuant to the Housing Act of 1949. As a result, Rural Development deferred transition to the 2010 Census information for these USDA housing programs until the expiration of the FY 2013 Appropriations Act on September 30, 2013. On October 16, 2013, the President signed the “Continuing Appropriations Act, 2014” (H.R. 2775), which further defers transition to the 2010 Census information for USDA housing programs through January 15, 2014. (H.R. 2775 extends Sec. 731 of H.R. 933 “Consolidated and Further Continuing Appropriations Act, 2013.”) Until that time, and unless specifically directed otherwise, the RHS housing programs are instructed to use the data from the 2000 Decennial Census for program eligibility purposes.

Questions regarding this message may be directed to the USDA Rural Development National Office at (202)720-1452.

To apply for this or any other loan program contact me today!

Additional Resources

http://www.rurdev.usda.gov

http://eligibility.sc.egov.usda.gov

http://www.oregonmortgageconnexion.com/search/USDA

Delayed Updating of Rural Development Maps

2013-09-30T09:53:00.000-07:00

Update: Changes to the housing eligible areas map based on 2010 Census data scheduled to take effect 1/15/14, have been postponed to 10/1/14 by passage of the Consolidated Appropriations Act, 2014. View "Future Eligible Areas." Complete applications received before October 1, 2014, will continue to use rural area definitions based on 2000 Census data. -1/24/14

~~(NOTE: Oregon AN 1372 has been cancelled effective Oct. 18, 2013, due to the Continuing Resolution. See the above entry dated Oct. 18, 2013, for more information.)~~

Good news this morning from USDA... They have postponed the map changes!

Oregon AN 1372

Guidance passed along from from Rich Davis, Acting Administrator, RHS is as follows:

“We have received some questions regarding the implementation of the 2010 Census with respect to the SFH programs. As you may recall, on March 27, 2013, we issued AN 4711, (see link at: [www.rurdev.usda.gov] ) that provided guidance on the implementation of the 2010 Census data for use in the administration of direct loan, loan guarantee and grant programs across RD. The AN reported that On March 26, 2013 the President had signed the “Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2013” (the FY 2013 Appropriations Act). The AN stated that language in the FY 2013 Appropriations Act extended the authorities and limitations of the FY 2012 Appropriations Act for the Rural Housing Service (RHS) housing programs (Single Family Housing and Multi-Family Housing Programs) pursuant to the Housing Act of 1949. The AN explained that this meant that RD would need to defer transition to the 2010 census information for these RHS housing programs until the expiration of the FY 2013 Appropriations Act on September 30, 2013. However, it now appears likely that in light of the proposed continuing resolution (CR), the RHS deferral of transition to the 2010 census will not expire on September 30, 2013 but will need to continue for some period after that. Consequently, all plans for implementing the 2010 Census, including three or five year periodic reviews, should be put on hold until further notice from the National Office. As mentioned during the State Director teleconference on Wednesday, Sep 25, 2013, we will be in a holding pattern until a CR is signed. We will provide further guidance as soon as we can."

To apply for this or any other loan program contact me today.