Beginning April 1, FHA Mortgages, which is the largest insurer of low-down payment mortgages, will raise the up-front insurance premium it charges borrowers by 75 basis points to 1.75% of the base loan amount.  (Currently it is 1.00% of the base loan amount).

In addition, annual insurance premiums will go up 0.1 percentage point for loans under $625,500 and 0.35 points for loans that exceed that amount.  This will make the new Monthly ratio 1.25 up from the current 1.15.

The impact of the increase, however, is less severe than it could have been because most of it is in the upfront fee, which is far less damaging than a boost in the premium, according to Jaret Seiberg, an Analyst with the Washington Research Group.

Combined, the higher up-front fees and the 0.1 point premium increase are expected to add about $5 to the average monthly mortgage payment for FHA loans, according to the agency.

Full Story at:  Money.cnn.com

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In December, a couple called in with scores that needed improving in order to become qualified for a home purchase.  This is an actual example, but for privacy reasons, we will call this couple Mitch and Brenda.  This is an example of how Maple Tree Funding can assist a client to get ready for a home purchase.  We do not outsource our credit improvement plans; we handle this within our company.

We ran separate Credit Repair Programs on each client; Mitch’s results showed that in 1 Month, his score could increase by 56 Points!   Cash needed for Mitch = ZERO Dollars.  All he needed to do was open a secured credit card with a credit limit of at least $300.  He then needed to charge $10 on the new amount; wait 30 days for this card to report, and his score would jump 56 Points!  This would make him credit-qualified.

Brenda was in the same situation as Mitch.  She would not have to pay down any debts (which can increase scores most of the time).  Brenda would need to open a secure card with at least a $500 limit and charge $10 as well.  This would increase her score by 36 points, then by making on-time payments on her other bills for 30 days, her score would increase a total of 41 Points!  This would put Brenda in a credit-qualified position as well and the couple will now be able to purchase their new home!  (They are now house hunting)

This is an actual Credit Repair Scenario that we have successfully run using our Credit Repair Software.  Results will vary; some may need to pay down balances as well.

If you don’t know your score and you are currently in the market or think you will be buying in the next few months, it’s best to get pre-qualified first.  This will give you a chance to work on your credit and get your score in the best possible condition for your future purchase.

Thank You,

Maple Tree Funding

Contact us at 655-LOAN or Blog@mapletreefunding.com for more information.

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New Finance Plan just announced.  If you have a mortgage that is more than what your house is worth and you have been rejected in the past for a refinance because of this, this may be your chance for a refinance!  The program is the latest administration effort to help homeowners in the face of a massive number of foreclosures and plunging house values that have left millions of borrowers owing more than their homes are worth.

Article Link is here: Click Here for High LTV Refinance Article

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Give us a call or email Blog@mapletreefunding.com for more info!  518-782-1202