Show Appeal Realty Lending Market Updates regarding distressed property market, GFE & HUD 1, FHA Appraisal Requirements, & Tax Credit:
Below is a quick reference of recent changes that are effective as of now and those that will be in the months to come
- Effective December 23, 2009- FHA released a notice that Borrowers are eligible for new FHA mortgage if they pursued a short sale agreement on his or her principal residence or a short pay off when refinancing their home as long as there were current on their mortgage and other installment debts for the proceeding 12 months at the time of the short sale of their previously owned property and the proceeds from the short sale serve as payment in full. There are some overlays to prevent current home owners taking advantage of the lower market so please contact your lender regarding.
- January 1, 2010 – New RESPA good faith estimate and HUD 1 settlement statements have gone into affect. Both the good faith estimates from lenders and HUD 1 settlement statements from the title companies have changed. They have been revised to be more similar so the borrower can better understand fees and cost for a transaction on both documents. Once a property has been defined for the borrower and an application has been taken for the borrower a good faith estimate from the lender must be given to the borrower within three days. There are lots of changes and guidelines to the new good faith estimate and if you would like more details on this on how this will affect our future transactions please contact your title professional and loan expert regarding specific transactional details and then call me with any questions.
- February 15, 2010- FHA appraisal requirements will change and fall under the current appraisal requirements for conventional loans. This means that after Feb 15th all new FHA loans will need to have appraisals through appraisal management companies contracted through the banks.
- April 30, 2010- First time home buyers and move up home buyers must be under contract on a primary residence home to submit for home buyer tax credit.
- June 30, 2010- All contracts written on or before April 30th 2010 must be closed in order to submit for home buyers tax credit.
Please let me know if you have an questions or concerns over the above updates. I am not a lender or CPA, however these are very important details to know relating to the lending environment and buying real estate in Arizona in 2010.
