updates

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FHA

Concessions - Seller can now pay prepaids, discount, upfront MIP or buydown with out affecting the loan amount.
Simplified project approval with 51% owner occupancy or better.
Over 1 year- PUD - no owner occupied % requirement if there is no litigation in the property.
There is a new lead paint warning notice out - Ask your FHA lender.
You can "Gross up" non-taxable income to qualify your buyers.
If the borrower pays alimony you can either deduct from income or use it as a debt, which ever works out best for the client.
The lender can select the appraiser now but still has to be from the FHA approved list.
You don't have to count the 401K or other retirement loan payment inthe debt calculation for qualifying.
No child care expenses are counted against the client any more.
Clinton recently passed a bill lowering the upfront MIP to 2% insteadof 2.25% but it became affective in Oct.

On a purchase there is NO limit on the discount.
On a Regular Refi, you cannot finance any discount. It has to be paid out of pocket.
On a Streamline Refi, you can finance up to 2 points only. Above that the client has to pay out of pocket.
If the appraisal is less than 1 year old, will be condition for either termite soil treatment guarantee or a termite report.
The seller can pay ALL non-recuring closing costs and all discounts plus up to 4% of any of the buyers costs, including paying off bills to qualify, and the VA Funding fee.
The seller can carry a second mortgage higher than the current rate on the first, but it has to be reasonable for the market, and it has to be more than five years long.
There is pending legislation, if it passes, the lender can choose the appraiser from the VA list.