To those looking for income properties...

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41

You sir have just ruined my life plans lol. Has this already taken effect?

This is terrible news to me and im very upset that I have not heard of this till now, and furthermore, that my deadbeat mortgage officer failed to mention this. So basically I have to pray conventional rates dont jump back up in the next few years that itl take me to build up to 30%, or else im locked into a lifetime of PMI? Well fuck my ass. I mean are people still defaulting and property values still falling so much that they need to be doing this???

42

Strongly suggest picking one area and focusing on that part of town.

I currently have 6 rental units, our key to success is we only rent to people who possess checking accounts, jobs, and we only accept payment by check.

Really cuts down on the number of evictions I have to do when you get quality people.

43

Keep in mind though that you can now write off your PMI on your taxes. A huge relief to some who are paying it every month. Once you hit 80% equity in your home, you can refi to a conventional loan and drop the PMI or just save up and come in with the difference when you save up enough.

44

Yeah but where will interest rates be in the next few years? Not rock bottom is all I know.

45

That is something you can’t control. I see your point, but as of right now, all you can do is put down 20% or pay the PMI and hope to pay it down ASAP to refi while the rates are low.

edit- I shouldn’t say ASAP because it is a min of 5 years you have to pay the PMI

46

I know but I want to complain and bitch some more about how everything cant be perfect in the world and it always seems to shaft me on timing… rabble rabble rabble.

No but in all reality, it really sucks that a matter of a few months is going to cost me thousands of dollars over a lifetime :frowning: First world problems.

47

I feel your pain. I bit the bullet and closed on a mortgage @ 4.25% and a month later it dropped to 3.25% and I kicked myself.

48

FHA’s monthly mortgage insurance payments will be automatically terminated when these conditions occur:

For mortgages with terms 15 years and less and with Loan to Value ratios 90 percent and greater, annual premiums will be canceled when the Loan to Value ratio reaches 78 percent regardless of the amount of time the mortgagor has paid the premiums.

For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78 percent, provided the mortgagor has paid the annual premium for at least 5 years.

Mortgages with terms 15 years and less and with loan to value ratios of 89.99 percent and less will not be charged annual mortgage insurance premiums.

sounds like it still automatically drops without refinancing

you can also only write off PMI if you are under a certain adjusted gross income…it is something just over $100k i think

49

Possibly not updated until the June 1 switch?

50

Upcoming Changes: According to Mortgagee Letter 2013-04, Revision of Federal Housing Administration (FHA) policies concerning the following are effective for all case numbers dated on or after June 3rd, 2013.

Revision to the period for accessing the annual MIP;
Removal of the exemption from the annual MIP for loans with terms of 15 years or less and LTV’s of less than or equal to 78% at origination;
Increase in the annual MIP for mortgages with terms less than or equal to 15 years and LTV ratios less than or equal to 78 percent at origination.

still sounds like it is automatic…just dropping the 90% exemption for 15 or less loans

this is all from the FHA page

EDIT- found the press release…it is life of the loan unless you are refinancing an existing FHA loan, my mistake.

that does suck…but FHA is basically the new sub-prime mortgage…instead of waiting for people to default and have the banks eventually ask for a bail out, now they will get right to business and get their government check as soon as the borrower defaults.

51

It sucks for those of us that would use FHA responsibly, as usual though a bunch of jokers ruined it for the rest of us.

At least Freddy and Fannie have a better chance of remaining solvent

52

For those of you whove done the mortgage thing before, at what point is the case number generated? Is it at closing or when you enter the contract or at some other point of the process?

Im gonna try to bang out two places before the deadline just to save myself the $60k+ but I need to know when I need to be entered into a contract by. Im sure hoping its at some point before closing so that I have more than a week to have a contract drawn up.

53

FHA case number is assigned pretty early on in the process…but after you have found a property. for example the appraisal must have the case number on it to be valid.

54

Alright so im good as long as im wrapping up everything by late May. This is great news, thanks a lot!

55

You’re not going to be able to use FHA and the 3.5% down for 2 at the same time you realize…right?

56

^this. you have to live in the property to get FHA.

but for one of them, i imagine if you have a pre-approval and a signed sales agreement you should be alright…assuming you live in it.

57

Thank god for a fiancé, and friends who want to rent from me :wink: … for now.

And were both getting FTHB funds as well. We gotz dat system cornered, im ready for my nice hearty helpin of dat guv’ment cheese.

And yes, were both pre approved

58

Have you found some worthwhile to buy?

59

lol I hate you 3% people I closed 3 years ago and I got 5% which was great the time…

Maybe its time to refi

60

did 0 down on our first place…seemed insane when we bought our next one and put down 10%…next one will probably be 25%