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September 1, 2010 – The Federal Housing Administration (FHA) is giving homeowners and buyers until October 4 to lock in a low monthly insurance premium, according to Gibran Nicholas, chairman of the CMPS Institute, an organization that trains and certifies mortgage bankers and brokers. “After October 4, the monthly insurance premiums on FHA loans will increase by over 63%.”

What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.

“In this example, the home buyer would lose $59.55 per month, or $7,146 over a 10-year timeframe,” Nicholas said. “Although the upfront mortgage insurance premium is going down after October 4, the real impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer’s pocket with their mortgage payment each month.”

Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan.

“Home buyers with a short term time horizon may actually benefit from this change because the upfront premium will be reduced to 1% from 2.25%,” Nicholas said. This change will impact over 30% of the home buyers in today’s market who use FHA-insured financing. Home buyers considering an FHA loan should find and contact a CMPS professional in their area to discuss their options and what this means for their situation.

Also, you can follow CMPS Institute on Twitter to stay updated on these and other mortgage and housing industry developments.

By Howell Haunson

RISMEDIA, August 18, 2010–Mortgage fraud is not going away any time soon. The FBI has been working with bureaus of investigation in states that recently passed residential mortgage fraud acts to stay abreast of the latest fraud tactics.

The FBI has found that fraudsters are evolving new ways to take advantage of others and hide their intent. For this reason, anyone involved in the mortgage industry needs to be educated on the red flags of possible mortgage fraud, such as those outlined below:

Flipping vs. Serial Flipping:
A fraudulent flip is one that erroneously increases the value of the property by using an inflated appraised value. If a property was purchased for $175,000 and soon thereafter was sold for $500,000, most professionals would notice. However, serial flipping is trickier. Say a house sold for $175,000, soon after sold for $250,000, then $325,000, then $400,000 and then $500,000. Fewer professionals would even raise an eyebrow. This scheme takes more time, but the end result is the same: fraud.

Multiple Contracts & HUD-1 Settlement Statements
In this scheme, unbeknownst to the seller, the contract and settlement statement that is sent to lender shows inflated sales price. This enables the buyer to obtain a higher mortgage. In the end, the seller believes the property was sold for $300,000, but lender, agent and buyer believe the sales price was $500,000 (the amount on which the agent’s commission is calculated).
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WASHINGTON – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.

The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth – or ‘underwater’ – because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.

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NEW YORK (CNNMoney.com) — The housing bust has made owning a home a lot more affordable — but in some places, prices are extraordinary; you can buy a nice condo for less than the cost of a new family car.

Some cities have dozens of attractive condominium listings selling for $50,000 or $25,000. There are some selling for less than a new Toyota Corolla. And these are not derelict hovels in crime-ridden communities: These homes are often in move-in condition and located in nice neighborhoods.

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RISMEDIA, August 7, 2010–Now that summer has arrived, homeowners across the country are taking advantage of the warm weather by tackling home improvement projects they have been putting off. If you are looking for ways to add value to your home, the following home improvements may be just what you’re looking for.

Tip 1: Remodel your kitchen
Kitchen updates are one of the best ways to increase the value of your home. Adding modern appliances and refacing your cabinets to give it a more modern look is well worth the investment.

Tip 2: Add a Garage
Homes with at least a two car garage are more attractive to potential home buyers. Having a home with a small garage is almost as bad as having no garage, so consider upgrading before putting your home on the market.

Tip 3: Remodel your bathroom
Bathrooms are very important to home buyers. Just as with the kitchen, home buyers look for modern conveniences. Adding a Jacuzzi bathtub, painting the walls and adding appropriate flooring will go a long way toward increasing your home’s value.

Tip 4: Install the right flooring material
Natural materials such as wood and ceramic are popular among home buyers today. Laminate flooring is a good option, as well, as it creates a natural look without the headaches associated with natural flooring materials.

Tip 5: Install granite counter tops
Granite counter tops are popular in both kitchens and bathrooms. These countertops are low maintenance and quite attractive and can add significant value to your remodel.

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RISMEDIA, July 30, 2010 – The economy is stabilizing. Home prices are holding. It’s not just as good a time as ever to buy a house. It’s one of the best times ever.

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.

2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.

3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.

4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines…again. Now that appraisers have more flexibility to set values that reflect the current market, today’s deals will make it over the finish line.

5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by “workforce housing” programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today’s low mortgage rates.

By Stephanie Andre

RISMEDIA, July 16, 2010 — Sometimes all a home really needs is a littile bit of organization…in this case, not to sound cliche, but a little bit certainly does go a long way.

It’s easy to get bogged down by clutter throughout our daily lives. And, if you’re renovating, project remnants compound the problem. Here are some tips, courtesy of Lowe’s, to help you stay clutter-free:

Daily Clean-up
If you stay on top of simple chores every day, the bigger organization projects won’t appear as overwhelming. Keep the house tidy by doing the small stuff daily. Make your bed each morning. After meals, do the dishes. And keep dirty laundry off the floor and in the hamper.

Storage Under the Bed
A lot of people forget the amount of storage a bed (or any other raised furniture) provides. You can store a lot under your bed in storage containers and boxes. The same can apply for sofas and chairs that have ample clearance. Just make sure your storage is out of sight with skirts. Think outside of the closet. The underside of your bed is the perfect place to store comforters, bedspreads and pillowcases.
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By Paige Tepping

RISMEDIA, July 16, 2010 — Home appraisals are a necessary step in the process of selling or refinancing your home. While many homes today aren’t worth as much as they were when they were bought, it is crucial for homeowners to be realistic when it comes to getting their home appraised.

If you are in the process of getting your home ready to be put on the market or interested in refinancing, the experts at Equity Mortgage Lending offer the following things to keep in mind as you prepare for your home appraisal.

• The appraiser will need approximately 30 minutes to one hour to complete the inspection phase of the appraisal process, which includes: exterior photos of the front and rear of the home and a photo of the street in front of the property; measurements of the exterior of the home, garage and any outbuildings; a walk-through inspection of all rooms and levels of the interior of the home including the basement.

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From The Arizona Republic

In its annual rankings of America’s best small cities, Money Magazine named Gilbert among its top 100 places to live.

Scottsdale was the only other Arizona municipality recognized in the rankings. No Arizona cities made the list last year.

COMING IN AT No. 36

The rankings describe Gilbert as the 36th best place to live, a safe suburb of Phoenix that offers a lot to do. Gilbert’s Heritage District, Trilogy Golf Club and Gilbert Days celebration are mentioned, as is one caveat: “The housing market was hit here hard, though, and it has yet to recover.”

TOPS SCOTTSDALE

One other Arizona community made the top 100: Scottsdale. It was ranked No. 71 and praised for its “zillions” of golf courses, upscale shopping, restaurants and hiking. Like Gilbert, Scottsdale’s only knock was its shaky real-estate market.

ARIZONA BOUNCES BACK

No Arizona cities were recognized in Money Magazine’s 2009 rankings, but the state bounced back this year with two communities in the top 100. In 2008, four Arizona municipalities were ranked: Gilbert (28), Chandler (30), Scottsdale (47) and Peoria (55).

ARIZONA CITIES RANKED AS ‘HOTTEST’

The magazine also listed the 25 cities with the hottest summer temperatures.

Yuma, with average high temperature of 106.5 degrees in July took the No. 1 spot and was joined by 14 other Arizona communities. Eleven Valley municipalities tied for the second hottest behind Yuma, with an average high of 105.1 degrees in July, according to the magazine.

by Catherine Reagor – Jun. 2, 2010 12:00 AM
The Arizona Republic

There’s a shift in who is investing in metro Phoenix homes. Californians are no longer the region’s biggest group of out-of-state buyers.  Now, the dominant group of out-of-state buyers is from outside the country. Canadians bought 405 Phoenix-area houses in April, according to the Information Market.

About one-fourth of the people who bought homes in metro Phoenix during April weren’t from Arizona.

Californians purchased 368 Phoenix homes. Buyers from Washington state were third with 146.  More people from the Midwest are also investing in the Valley. Residents of Illinois, Minnesota, Wisconsin and Iowa bought a total of 332 homes.

Information Market analyst Tom Ruff believes the new makeup signals an important change.  Californians have long led the pack for buying Valley homes, and investors from that state are often speculating on the Arizona market.

But Ruff believes Canadian and Midwestern homebuyers are less speculative and will hold onto homes they purchase in metro Phoenix for much longer than Californians.