URGENT Reminder about UPMI!

Reminder…

Another reason for buyers to purchase and take advantage of the tax credits!

Beginning on April 5th Upfront Mortgage Insurance Premiums for FHA loans will increase from 1.75% to 2.25%.

Example on a $150,000 purchase price utilizing maximum FHA financing the financeable UFMIP will increase by $723.00 (again this is a financeable expense). This will increase the loan amount for all borrowers going forward (premium is calculated based upon the actual base loan amount with a minimum 3.5% down payment).

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Changes to HUD homes for buyers-

HUD BUYER AND BROKER INCENTIVES DISCONTINUED
  Effective February 12,2010, any properties listed and/or sold with FHA financing as of this date are no longer eligible for the $100 down payment incentive.

The Sales Allowance of $2500 for owner occupant purchasers will also be discontinued as of February 12, 2010 for all new contracts accepted on or after this date.

The $500 broker bonus for owner occupant purchasers who took advantage of the $2500 sales allowance is also discontinued as of February 12, 2010. 

Market Update: OHFA Rates Lower today

Just letting you know that Ohio Housing (OHFA Bond money) lowered their
rate to 5.00% this week.  And they still offer a 3% second mortgage for a buyer’s downpayment.

Who is OHFA

OHFA's MissionThe Ohio Housing Finance Agency (OHFA) makes affordable housing opportunities available to low- to moderate-income Ohioans, including first-time homebuyers, renters, senior citizens, and other populations with special needs. Formerly a division of the Ohio Department of Development, OHFA became an independent state agency on July 1, 2005 through Amended Substitute House Bill (HB) 431. Our independent status allows us to institute cost-saving measures and achieve efficiencies to better serve Ohio’s long-term affordable housing needs

 

For more about OHFA click here

http://www.ohiohome.org/programs.aspx

Market Update-Greater Cincinnati MLS

New Listings 144  
Back on Market 34  
Price Increases 4  
Price Reductions 111  
Pendings 77  
Solds 56  
Expireds 44  
Inactives 43  

The weekly numbers bounced around slightly this week, not only from volume but from avg.

New listings: 144

Avg LP: $164,587

Pendings: 77

Avg LP: $143,782-

Solds: 56

Avg SP:$168,206-

Our Hot Spots for action today was- Mason with 5 and West Chester with 3

Also with news from the lending world today courtesy of Nick Perino Attorney at Law

Despite what you may have heard, on January 1st everyone must use the new Good Faith Estimate mortgage disclosures and the new HUD-1 settlement statements.  This has not been delayed.

This will affect home buyers, lenders, Realtors and title agencies. Basically anyone involved in real estate is affected. The new disclosures will not allow lenders or brokers to “low ball” the estimated fees and then inflate charges at the closing. There will be zero tolerance for increasing some of the lender’s fees.

Title companies will not be allowed to show an increase greater than 10% above the estimate.

HUD spokesman Brian Sullivan told Realty Times that all consumers making loan applications on or after January 1 must receive the new forms at application and at closing. They are allowed to be a little lenient on violations for the first four months due to the fact that some items are clear-as-mud.

Overall, I find the new HUDs to be a little easier to follow, so hopefully closings will go smoothly and quickly.
 

This is very good research to know. We will report feedback as the market place starts to practice with these new guidelines.

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