FHA’s Mortgage Requirements are Changing Faster Than the Speed of Sound.

Basking Ridge Homes For SaleThe FHA’s mortgage requirements are changing faster than the speed of sound. Where 3 1/2% was enough to put down on an FHA mortgage, the requirement is now going to increase. (first they give it – then they take it away? They are supposed to be helping, right?) AND if you are considering a townhouse, all condo associations (required by law as of February 1, 2010) must now supply a large amount of information to the FHA in order to be “certified” by them as an approved association so that a buyer can receive FHA financing to live in that development. The FHA wants to be sure these associations have enough funds and they are financially solvent in the event the buildings or roads require major repairs. To date, only 3 communities in the “Hills” in Bedminster have this certification. Not all mortgage companies will even be able to afford to be involved with this process as I am told it can run up to $1,000 per association for a mortgage company to approve them and there are probably 50 or more associations within the Hills, both Basking Ridge and Bedminster combined. So you must have a large and strong mortgage company giving you your pre-aproval. If you have not yet been pre-approved or if you were approved 6 months ago, you should do it again as the game has changed. It will also mean that the “closing package” that the associations send the attorneys will also go up considerably as someone has to pay for the time and reams of paper the FHA requires. (Can’t they do this on line?)

With the first time and move up buyers tax credits due to expire April 30th, (and everyone is making the mad dash to buy right now) and with these new FHA requirements in place, we are told it will hold up the mortgage approval process considerably.
Once you decide on a community in which to live and you put in an offer, if the community is not certified, the process does not move quickly. This combined with the already complicated
“Truth in Lending” statements that were recently revised, and which also take up to 10 days longer per closing, we are suicidal, to say the least. So, to re-cap, if you have not been pre-approved, get pre-approved. If you are looking to get in under the tax credit date, you need to get motivated now. The mortgage process will eat up what little time is left.

If you have 20% to milf porn put down, you are ahead of the game but buying a townhome in an approved community will still take a lot longer. And the Truth in Lending time extension has nothing to do with how much you put down. That’s an extra 10 days no matter what mortgage company you work with. If you have any questions, I would be happy to answer them or direct you to a qualified mortgage representative who can. My cell number is 201 259-4449.

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