We'll do Flips for you! part 2: conventional Flips.

We'll do Flips for you! part 2: conventional flips. Our Flip Rules for Conventional Loans - We only require that the seller own the home for 1 day prior to resale.

Our Seller seasoning requirement on our Conventional Loans is one day. One Day. Many lenders require that sellers own a home for 90-180 days before it is eligible for their Conventional Financing through Fannie Mae and Freddie Mac, both examples of Conventional Financing. VanDyk Mortgage does not require a waiting period.

We do not require these waiting periods. Seller Seasoning simply means how long the current owner has owned the property (ie how long on Title). VanDyk Mortgage requires that the seller is the owner of record on the day the contract is signed. Many other lenders have added restrictions that reduce the eligibility for homes that were recently purchased and rehabbed to be sold again within 90 - 180 days. Investors may have purchased the home at a foreclosure auction, or direct from a bank. Many of these homes have been completely rehabilitated, making them a more desirable home to buy - They are Turn key homes.

Our Underwriting Rules can help you avoid the issue of seller seasoning, Flip Rules, and big bank rules that restrict access to quality Conventional Loans. Get started on your New Home loan with the Loan Pros at VanDyk. Visit us at http://www.vandykfunding.com/ to apply online, or call 760-752-4480 and ask for Brian Skaar.

Ask about our FHA Flip program and VA Flip Program as well!

We'll do Flips for you! part 1: FHA Flips

We'll do Flips for you! part 1: FHA Flips. Our FHA Flip rule - 1 day owned by seller OK

We require one day of Seller seasoning for our FHA Loans. Yes, one day. While FHA has released guidance for lenders allowing the Flip Rule to be Waived for all Sellers until Feb 1, 2011, many lenders still require that sellers own a home for 90-180 days before it is eligible for their FHA Financing. We do not require these waiting periods for FHA Loans.

Seller Seasoning simply means how long the current owner has owned the property (as recorded on Title Records). Seller seasoning is also called Owner seasoning. The contract date must be after the date of acquisition for the seller, a redated contract is not allowable.

This is in complete alignment with the HUD guidelines for FHA Loans. The other lenders that have added restrictions are reducing the eligibility for Homebuyers to use FHA Loans to purchase homes from investors who may have purchased the home at a foreclosure auction, or direct from a bank. This opens the door for more homes to be eligible for safe, secure, and sound FHA financing. Many of these homes have been completely rehabilitated and reconditioned, making them a more desirable home to buy: they are Turn key homes.

Our FHA Rules can help you avoid the issue of FHA seller seasoning, FHA Flip Rules, and big bank rules that restrict access to quality FHA Loans.

Get started on your FHA Home loan with the FHA Loan Pros at VanDyk. Visit us at http://www.vandykfunding.com/ to apply online, or call 760-752-4480 and ask for Brian Skaar.

There are some guidelines for FHA Flips under 90 days that will require some attention. If the home increased in price more than 20% from the sellers acquisition cost, the increase in price will need to be justified with renovation records, the sale must be arms-length (No Idendity of Interest between buyer and seller), multiple flipping within previous 12 months is a red flag, no assignment of contracts, property inspection may be required, and buyer's agent cannot be the seller of the home.

VanDyk Mortgage is a FHA Direct Lender offering FHA & FHA Jumbo Loans throughout our lending areas including California, Washington, Los Angeles, San Diego, Riverside, Temecula, Murrieta, Orange County, San Jose, San Francisco, Seattle, Puyallup, Auburn, Kent, Everett, Tacoma, and everything in between.

also check out our articles on VA Flips and Conventional Flips

FHA Loans - helping homeowners where conventional loans leave off, part 2

FHA Loans - Helping homeowners where conventional loans leave off part 2

I just posted a FHA Refinance Case Study for a loan over $417K, here is another FHA Refinance Case Study to show another area where FHA can help homeowners.

Let's say you live in Los Angeles California. Your home is now worth $400K. Your First Mortgage is $340K, and you have a small second mortgage of $36K, which you used to finance your child's college expenses. Your first loan has been denied for a HARP (Home Affordable Refinance Program, aka DU Refi +) due to the fact that it was a Non-conforming mortgage from Ameriquest. That rate is now set to adjust, and you explore Refinance options further before your payment increases. The big bank says no, because you live in California, their limit for a conventional loan is 90% in CA. Also, Fannie Mae and Freddie Mac consider your second mortgage payoff as a Cash Out Refinance. Fannie Mae and Freddie Mac limit the maximum Loan to Values for Cash out refinances as well as charging higher rates for all of their cash out refinances, even at lower LTV's or Loan to values.

The solution is a FHA Refinance. We can offer you a FHA refinance that will pay off your first mortgage and second mortgage. The FHA Loan will combine these into one fixed rate 30 year mortgage and will not penalize you for paying off the second mortgage with this refinance. This scenario is considered a FHA Refinance, not a FHA Cash Out Refinance.

With a FHA Cash Out Refinance, you can consolidate debts, get cash for home improvement, college expenses, etc. We offer FHA Cash Out Refinances up to 85% of your homes value (85% LTV).

Call us to find out if an FHA Loan can help you. 760-752-4480 - ask for Brian Skaar. VanDyk is a FHA Direct lender and VA Direct Lender. We have been making FHA, VA, and Conventional Loans since 1987.

FHA loans - helping homeowners where conventional loans leave off

FHA Loans - helping homeowners where conventional loans leave off, part 1.

Here is a scenario to show why it can be beneficial to Refinance your loan or loans into a safe, secure, fixed rate FHA Loan. Let's say you live in Seattle, Washington. Your home is worth $600K and you currently owe $460K on your first mortgage, and you have a second mortgage for $100K. Let's say that you used the $100K to completely remodel and upgrade your home. New Kitchen, Baths, flooring, windows, etc. You have put alot of love and effort into your home and want to stay there for a few more years. Your first mortgage is a 5/1 ARM that you got in 2005 or 2006, and you are worried about the rate and payment increasing, and what that may translate to in the future. You owe 93.3% of your homes value. (93.3% LTV or Loan to Value).

It is now time to refinance the two mortgages into one fixed rate mortgage. From all the headlines, it might seem like the government has set up a nice safety net for you. Here is the bad news: Your first mortgage doesn't qualify for HARP (Home Affordable refinance program) from Fannie Mae or Freddie Mac, since it was not a Fannie or Freddie loan in the first place. The next problem is that Fannie Mae and Freddie Mac Jumbo Conforming (aka high balance, or Super Conforming) limit new loans to 90% Loan to value. But that is not the end of the problems of qualifying for a Fannie Mae High balance refinance for your loan - Fannie Mae now considers the second mortgage payoff to be a "Cash Out Refinance". even thought you are not receiving cash, but that is how Fannie Mae now classifies it. So now for your scenario, the max Loan to Value is 75%, the Fannie Mae Cash out refinance limit. You may think you are Stuck. What did the government do to help me? (note - Freddie Mac guidelines mimic Fannie Mae in all of these areas, so they aren't much of a help either).

Don't despair, this is where FHA Jumbo comes to the rescue. The FHA Jumbo (aka FHA High Balance) allows you to refinance the first and second mortgage on your home without considering this a Cash out Refinance. You might be thinking " I don't want to pay Mortgage Insurance". The choices are clear: do nothing with your Adjustable rate mortgage and keep paying two mortgages, or Refinance into a fixed rate FHA Loan. The FHA Loan can help you get the security of knowing your rate and payment without rate increases for years to come. **FHA also allows true cash out refinances up to 85% LTV, as in debt payoff, cash for home improvement, etc.

Call the FHA Loan pros at VanDyk Mortgage to find out if you can benefit from a FHA Refinance. No cost, no obligation, just honest information and help. Brian Skaar 760-752-4480 or visit online at http://www.vandykfunding.com/ . In addition to being a FHA Lender, We are also a proud VA lender serving our veterans.

Part 2: One size shoe does not fit all borrowers.

Part 2: Why FHA Loans will still be the better choice for many homebuyers (and refinancers!)

In our previous article, Part 1: Why FHA Loans will still be the better choice for many homebuyers (and refinancers!), we compared the new FHA Mortgage Insurance premiums and compared the monthly cost to a 95% conforming loan with MI, and a 95% conforming loan with NO MI. While the monthly payment leads us to think that the conforming (or conventional) loans are now the best option, one size shoe does not fit all borrowers.

First let's compare and discuss the conforming loan options:

• MI is cancellable before 60 months if your property increases in value a sufficient amount Whereas FHA MIP is required for a minimum of 60 months before cancellation, regardless of property value growth.
• Rates are similar to FHA rates - so that is not a pro or a con.
• The conforming loan with no MI has the lowest overall payment of the 4 options.
• Require 5% down payment
• Requires a 680 fico score
• requires a debt ratio of 41% or lower

Benefits of the FHA Loan option (3.5% downpayment):

• Low downpayment required - 3.5%
• Down payment can be from Gift Funds
• lower ficos required (We offer FHA Loans down to a 580 middle score).
• FHA allows higher debt ratios, up to 50%
• FHA allows non-occupant co-borrowers such as parents helping their kids get a start

As you can see, one shoe doesn't fit everyone, and every borrower's finances and goals are a little different. Let us work with you to find the most suitable loan option to meet your needs, for now and the future. Contact VanDyk Mortgage direct at 760-752-4480, ask for Brian Skaar.

Part 1: one size shoe does not fit all borrowers.

Part 1: Why FHA Loans will still be the better choice for many home buyers ie. one size shoe does not fit all borrowers!

We just posted information on the new FHA Mortgage Insurance Changes. I examined the options that now come to mind as potential competitors for the selection of a loan with low downpayment, or little equity.

We compared the following loan options:

1. FHA Loan with 3.5% down
2. FHA Loan with 5% down
3. 5% down Conventional loan (yes, we offer this in california with a 680 fico)
4. 5% down conventional loan with no MI (we pay the MI for you).

As the table below illustrates, the payment is similar between the 95% conventional loan with PMI and the FHA Loan with 3.5% down. The FHA loan requires less downpayment, and is therefore more beneficial in my analysis. However, the 95% Conventional loan with no MI now becomes the lowest payment option, in spite of a higher interest rate (required to cover the cost of the Mortgage Insurance, which is paid as a lump sum upfront by the lender at no cost to the borrower).

Check out our next post for more reasons why FHA will still be the loan of choice for many.

Here is a link to the spreadsheet of the numbers for these low down payment options.

VanDyk Mortgage is a FHA Lender offering FHA, FHA Jumbo, FHA Streamline, and FHA 203K Renovation and 203K rehab loans thoughout California and Washington state. Call Brian Skaar direct at 760-752-4480 to get started.

Click on the table below to enlarge:

House Bill 5981 authorizes increased FHA Mortgage Insurance Premiums

House Bill 5981 authorizes increased FHA Mortgage Insurance Premiums

Congress passed house bill 5981 this week, authorizing FHA, The Federal Housing Administration, to increase the Annual Mortgage Insurance Premium. Here is a letter from FHA Commissioner Stevens on the MIP changes.

There is good news and bad news. The good news is that the Upfront Mortgage Insurance Premium (UFMIP on your HUD1/Good Faith Estimate) is being reduced to 1.0% from the current level of 2.25%. Now the bad news: The Annual Mortgage Insurance Premium (which is paid monthly by the FHA Borrower) is increasing from .55% to .90% for FHA loans above 95% Loan to value, and from .50% to .85% for FHA Loans at 95% or lower loan to value.

So the important questions are:

When does it go into effect? The new rates will apply to all FHA case numbers dated Sept 7, 2010 and later. FHA Case #'s prior to this date can still qualify for the existing MIP rates.

How does it effect my FHA loan? This will only effect new FHA Loans, existing FHA Loans will adhere to the their current MIP Rates (ie no changes).

Is it more expensive or cheaper than now? The overall cost to the borrower actually increases with the new MIP Rates. On a $100K home purchase, with a 4.5% 30 year fixed FHA Loan, the monthly PIMI (Principal, Interest, Mortgage Insurance) payment will be $566.94 on the new plan. The old MIP rates would have yielded a PIMI of $554.12, about $12 per month lower. You can also extrapolate your effect for your potential loan as this payment sample is per $100K purchased.

Now $12 per month is not the end of the world, but the increased monthly cost of MIP will reduce the homebuying power of Americans in a time we are trying to keep housing strong with good financing options. The cost over 5 years is about $2,133 total. FHA Jumbo Loans will feel the impact the most, as the loan amounts are much higher (up to $729,750)

However, FHA Loans still offer huge benefits to qualified borrrowers for many reasons. Check out our next post as we examine why FHA Loans are still a better choice for many homebuyers and refinancers even with the higher MIP rates.

What should I do? If you have been thinking about refinancing with a FHA Loan, purchasing with an FHA Loan, or Streamline Refinancing your FHA Loan, the time to move is now. Call us to get started, and lock in the old MIP rates for your loan before they go up.

Check out the FHA Loan Limits for your County:

2010 FHA Loan limits for California

2010 FHA Loan limits for Washington

Please contact Brian Skaar direct at 760-752-4480 or visit us online to get started now at www.vandykfunding.com. We are Direct Lenders offering FHA, FHA Jumbo, FHA 203K, and FHA Condo Loans. (plus VA, VA Jumbo, and VA Condo Loans).