What is a community property state?
In the U.S., nine states have tried to alleviate the pressure of divorce by passing community property laws.
In Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, community property laws require divorcing couples to split assets acquired during a marriage equally. Marital property includes earnings, all property bought with those earnings, and all debts accrued during the marriage.
When getting a mortgage in a Community Property State, a spouse might not be on the new mortgage but their credit report will still be pulled and their debts will be added to the debt-to-income ratios of the mortgage borrower. However, this only applies to FHA & VA mortgages taken in the above states, not on Conventional loans. Read the rest of this entry »
When you’re buying a home or thinking of buying one, you’ll need to factor in many costs other than the home loan. If you’re not making a 20 percent down payment, and most people don’t, private mortgage insurance, or PMI, is at the top of the list of costs to consider. Read the rest of this entry »
FHA, known as the Federal Housing Administration, offers a mortgage loan requiring borrowers to have mortgage insurance on the loan. The FHA loan originated during the great depression and has contributed to the growth of the housing market ever since. Read the rest of this entry »
Fannie Mae has recently changed a policy that was very difficult for many people. This policy, imposed during the height of the financial 2008 crisis, was intended to be temporary in nature. So it was expected to change at some point, but it sure did take a long time. The policy formerly said in order to rent out your current primary residence Read the rest of this entry »
Since you can no longer drop the MIP on an FHA loan, I wanted to show a comparison between a 3.5% down payment FHA loan and a 5% down payment Conventional loan. I think it may encourage some buyers to save up a bit more to get 5% down for a Conventional loan. Read the rest of this entry »
FHA is in some financial trouble and as a result they made some changes to their rules lately. They now require that new FHA borrowers, as of April 1 2013, continue to pay mortgage insurance premiums for the life of the loan. An old FHA rule, dating from 2001, had allowed borrowers to cancel their mortgage insurance when their outstanding balance reached 78% of the original principal balance.
However, as of April 1, 2013 you will pay the FHA mortgage insurance for the life of the loan. However, Read the rest of this entry »
Interpretations can vary and different people will oftentimes see different things in the same picture. It is really interesting how one thing can be interpreted in so many different ways. A perfect example of this is how people interpret the FHA mortgage loan.
Most listing realtors will advise their sellers not to take an offer when the buyer is using FHA financing, at least as long as there are other conventional financing offers that are acceptable. There is a perception that FHA financing comes with some baggage that realtors want to have their seller avoid, but below is how I see the reality of an FHA loan. Read the rest of this entry »
FHA (The Federal Housing Administration), is soon going to raise their mortgage insurance costs, again. FHA is the largest insurer of low down payment mortgages, and it has been announced recently that they are in trouble, and may be in need of a taxpayer bailout. This told me at that time that their fees would increase soon, and soon has finally arrived. The FHA mortgage fee details are: Read the rest of this entry »
FHA mortgage insurance costs are going up…again. It is almost like watching the price of stamps constantly creep up. However, postage prices creep up due to inflation, whereas FHA mortgage insurance cost goes up due to waste, inefficiency and massive losses at FHA. Here is a breakdown of the increases: Read the rest of this entry »
There was some confusion as to how long the latest FHA loan limit increase is going to last, which I blogged about here. Was it through the end of 2011, or 2 full years through 2013, or just through next year and it ends 2012? So the verdict is in, and the latest FHA loan limit increase expires at the end of 2012. So come December 2012, there will be another political fight, Read the rest of this entry »