FHA Spot Approvals are BACK

FHA8/15/19 I hope you are having a great week and I hope that life is treating you well.  Back to school “Fratrority party” at my house last night!  Get these kids back to College!
So yesterday FHA came out with SPOT APPROVALS on condos!  YAY!  They took away the ability to do spot approvals in 2008 and only about 6.5% of the condo complexes decided to get FHA Approved!  So what is a Spot approval?  Well, we don’t know the exact details this time around, but FHA is looking to do more financing in condo complexes and we will have to do their version of a certification of that complex and we can then get people FHA loans in probably 90% of the complexes.  They will likely limit their saturation in each complex and that will be part of the requirement, but this should open the door to many buyers who are struggling to get into a home.

FHA with 3.5% down will allow much higher debt to income ratios and they do not penalize borrowers heavily for lower credit scores.  If you have a buyer with $800.00 in credit cards and car payments looking to buy a $400,000.00 condo with 3.5% down with a 620 credit score then the FHA buyer will only have to make about $72,000.00 and the conventional buyer would have to make about $103,000.00 based on today’s interest rates.  The spot approvals will not take effect until Mid-October, which is perfect for the crazy fall buying season that I so look forward to!

I am a little surprised that interest rates have not really fallen much this week!  The reason for that is the volatility in the market and the lenders do not like the outlook that there could be a lot of refinances which affects the yields they have currently.  Time will tell where these rates will go, but if the yields hold at these levels then we will likely see lower rates in the near future!  Below are rates as of this moment:

  • 30-year fixed conventional 1st Mortgage with 25% down – 3.625% (3.673 APR). Loan amounts up to $484,350.00 = $2208.88
  • 15-year fixed conventional 1st Mortgage with 25% – 3.125% (3.210 APR). Loan amounts up to $484,350.00 = $3374.03
  • 5/1 ARM 1st Mortgage –  25% down – Fixed for 5 years and then becomes variable – 3.125% – (3.144 APR) Loan amounts up to $3,000,000.00 = $12851.26
  • 7/1 ARM 1st Mortgage – 25% Fixed for 7 years and then becomes variable – 3.250% – (3.261 APR) Loan amounts up to $3,000,000.00 = $13,056.19
  • 10/1 ARM 1st Mortgage – 25% Fixed for 10 years and then becomes variable – 3.375% – (3.385 APR) Loan amounts up to $3,000.,000.00 = $13,262.89
  • 30-year fixed 1st Mortgage FHA loan 3.50% down – 3.250% (4.663 APR). Loan amounts up to $484,350.00 = $2144.81 + $349.08 PMI = $2493.89
  • 30-year fixed 1st Mortgage VA loan 0% – 3.250% (3.296 APR). Loan amounts up to $484,350.00 = $2107.92
  • 30 Year Fixed rate 1st Mortgage Jumbo Loan 25% down – 4.125% (4.145 APR).  loan amounts up to $3,000,000.00 =14,539.49

I will be around all weekend and I hope to hear from all of you this weekend!  My cell # is  661-714-6258 and my office line is  661-260-2970xt. 2222!  My email is Mike@augustaFinancial.com.  I hope you have a great weekend and please let me know if you need anything as I am never too busy for you!