Skip Schenker Of iMortgage Offers “FHA 203k Renovation Financing” EFlyers To Realtors And Homebuyers Wanting To See Possibilities Of Home Renovation

5 04 2011



Proposed “20% Down Payment” Requirement For “Qualified Residential Mortgages” (QRM) By FDIC Will Make FHA Financing For First-Time Homebuyers The Only Potential Option

30 03 2011


  • The Federal Deposit Insurance Corp. said March 29, 2011 that a minimum 20 percent down payment is required for “qualified residential mortgages”
  • The National Association of Home Builders (NAHB) feels this will “disrupt” the housing market
  • Homebuyers without huge cash reserves – which constitutes most first-time home buyers and many middle-class households – might be blocked from a chance to buy a home
  • First-time home buyers historically average 40 percent of home-buying activity
  • An average family would take 12 years to amass a 20 percent down payment
  • Under the Dodd-Frank financial reform law passed last year, lenders are required to have “skin in the game” by retaining 5 percent of the credit risk of each loan that they sell into the secondary market
  • The law also called for federal banking regulators to establish rules for a qualified residential mortgage, or QRM
  • The Dodd-Frank law exempts FHA and VA loans from the risk retention requirement
  • Proposed risk retention rules will not apply to Fannie Mae and Freddie Mac while they remain in conservatorship
  • The Obama Administration has announced its intention to shrink FHA’s share of the marketplace, lower FHA and conventional conforming loan limits and further increase fees on FHA, Fannie Mae and Freddie Mac home loans
  • Borrowers who can’t afford to put 20 percent down on a home and who are unable to obtain FHA financing will be expected to pay a premium of two percentage points for a loan in the private market to offset the increased risk to lenders
  • Critics state that ultimately about 5 million potential home buyers could be eliminated
  • This could result in 250,000 fewer home sales and 50,000 fewer new homes being built per year

For more:

Housing Industry Must See Return Of “First-Time Homebuyers” And FHA Financing Including FHA 203k Renovation Loans Are Critical To Stabilization Of Neighborhoods And Home Prices

28 03 2011


  • The National Association of Realtors (NAR) reported that last month 34% of existing-home purchases were made by first-time buyers
  • First-time homebuyers were 29% of the market in January, the lowest since NAR surveys began in late 2008
  • First-time buyers make up 40% to 45% of all purchasers in “healthy markets”
  • By purchasing starter homes, they allow those sellers to buy more expensive homes
  • Low mortgage rates and falling prices in many markets have still produced weak existing-home sales
  • Existing home sales were down 2.8% in February 2011 from a year earlier
  • Federal tax credits boosted home sales in 2009 and 2010 and lured some first-time buyers into the market
  • Those credits expired in April 2010, and March 2010 saw 48% of buyers being first-timers
  • Tightened underwriting standards have eliminated many first-time buyers who can’t meet credit or employment history requirements in a still-weak economy
  • These higher credit standards are reflected in loans bought by government-backed mortgage giants Fannie Mae and Freddie Mac
  • In 2010 Freddie Mac’s portfolio had an average credit score of 758
  • That was up from 720 five years ago
  • Many lenders are also requiring higher down payments
  • The best terms kick in with 20% or more down
  • Higher down payments are making FHA loans the only loan available to first-time buyers
  • FHA requires as little as 3.5% down for borrowers with good credit scores
  • FHA loans were 19% of the home purchase market last year vs. 14% a decade before
  • Cash buyers accounted for a record 33% of existing-home sales and this has squeezed out some buyers
  • Sellers often prefer cash offers because they’re more likely to close and will choose those offers over FHA buyers

For more:

Over 75% Of Homebuyers Purchased Homes Using Mortgage Insurance In 2010 According To National Survey

15 03 2011


  • 75% of all homes are bought with less than 20 percent down according to the National Association of Realtors
  • The was from a 2010 survey of buyers and sellers
  • Most buyers do not have the cash it would take to get a conventional loan without mortgage insurance
  • Comparing a conventional mortgage with 5 percent down and an FHA mortgage with 5 percent down is best
  • Both require mortgage insurance
  • FHA loans are insured by the federal government
  • FHA is more active in working with homeowners who get into trouble rather than filing a foreclosure
  • 73% of FHA delinquent loans were cured and not foreclosed in fiscal 2010
  • Conventional loans work just fine for many borrowers

For more:

First-Time Homebuyers Can Buy Homes With Little Or No-Down, Minimum 580 Credit Score, In California With FHA “CHF ACCESS” Program Up To 99.5% LTV

9 03 2011



  • Minimum FICO 580
  • Condos, PUD’s, SFR’s O.K.