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The Good, The Bad, and The UGLY! ~ FHA Changes Again

Pamela Crim — Fri, 06 Aug 2010 15:31:05 +0000

September 7, 2010 marks a new era in FHA financing. There’s GOOD, there’s BAD and there’s UGLY . . .

Congress has taken quick action and passed H.R. 5981 which gives FHA the authority to adjust it’s annual mortgage insurance premium to strengthen the FHA Mortgage Insurance Fund back to a healthy level. Hmmm . . . translation please.

The GOOD:
FHA’s upfront mortgage insurance premium (which is typically financed) will be reduced drastically from 2.25% to 1.0%. Yip, that’s a good thing!

The BAD:
While they’re decreasing one fee, they are increasing another. The FHA annual mortgage insurance (this is reflected in the monthly payment as PMI) is increasing from .55% to .90%. OUCH!

The UGLY:
If all that made absolutely no sense to you, ah don’t be discouraged, it doesn’t make sense to our own Congress at times. Here’s the skinny . . .

On a sales price of $200,000 using FHA financing with the minimum down payment of 3.5%, the home buyer’s total monthly payment increases $44 when the good and bad are compiled. $44 per month is the equivalent of $8000 in sales price reduction.

The CONCLUSION:
As of September 7, 2010, home buyer’s utilizing FHA financing will qualify for less. Basically you just went from 2,000 square feet of living space to 1,800 – ahhh, your kids can share a room, right?

There’s time to secure the current lower total monthly payment, so don’t delay!!!! Who ya gonna call, Ghost Busters . . . no, Pamela Crim!

Meet My Family . . . The Driving Force!

Pamela Crim — Tue, 13 Jul 2010 19:25:38 +0000

In this modern day world of high tech/ low touch business, we often never meet face to face. I enjoy knowing who I’m working with and the story behind each individual client. So, please meet my family and get to know us! I’m proud to be a business woman, however I’m a family woman first. To learn more about my family, please visit “The Real Me” link.

Now, how can I assist your family? I truly look forward to getting to know you!

It's a YES on Homebuyer's Tax Credit Extension

Pamela Crim — Thu, 01 Jul 2010 17:10:22 +0000

The Senate voted to extend the closing deadline for the homebuyer tax credit which was originally scheduled to expire at midnight on June 30th. Homebuyers will now have until September 30th to close on their home purchase and still qualify for the tax credit (original purchase contract date had to be signed by April 30, 2010). There are a few thousand homebuyers breathing a sigh of relief! 8 Grand is no chump change here folks!

David Jones ~ Client

Pamela Crim — Mon, 28 Jun 2010 20:06:30 +0000

"We are so very happy, and impressed with the loan assistance provided by Pamela Crim. In addition to being very personable she was so tenatious in getting our loan approved, that we were able to close within 27 days of finding our new home. Pamela's knowledge and ability to quickly get the loan through also allow us to take advantage of the eight thousand dollar government First Time Home Owners' incentive. Also, Pamela continuosly communicated with us to ensure that we were always informed. We would strongly recommend Pamela Crim with Premier Lending if you are purchasing a home."

Will Griffin - Client

Pamela Crim — Tue, 18 May 2010 02:47:42 +0000

"We never imagined that we would have such a wonderful experience buying a home. You eased our concerns, kept us informed beyond expectations, and followed up with all of the loose ends. This eliminated any surprises during closing, and allowed us to walk in to Sierra Title and just enjoy the moment! We didn't have any worries about what was about to happen. You truly gave us a 5 star experience!
I don't want any one to miss out on the pleasure of working with you. I want all of my friends and co-workers to enjoy the homebuying process the same way we did, which wouldn't have happened without you. You are truly a leader in your industry!"

Debt-to-Income Ratio . . . Is that a bad word?

Pamela Crim — Mon, 08 Mar 2010 20:38:57 +0000

The lending world used to consist of strict guidelines. It was all black and white, no gray area on qualifying. The past few years lenders have lived in the gray area and we’ve all been spoiled to the “new way” of qualifying. You don’t have a job, don’t worry about it . . . you didn’t pay your last mortgage, ah, that’s ok . . . you don’t have any money now while paying only $500 rent and you would like to buy a $300,000 house, sure, we can make that happen.

Those were the days, right?!!! In the past 12 months EVERYTHING has changed and it continues to change on a daily basis. Our beloved, lenient “all qualifying” FHA loans are now undergoing major changes as well. Effective tomorrow (3/9/10), the maximum debt to income ratios for FHA financing through Premier Lending is 50%. There are no exceptions or compensating factors taken into consideration. In the past it was not uncommon for a buyer to be approved for FHA financing with debt to income ratios as high at 62%.

So, what is a debt-to-income ratio? Well, if you’re in the market to buy a house anytime soon, you need to know!

Geraldine Kriegbaum ~ Coldwell Banker

Pamela Crim — Mon, 08 Mar 2010 00:27:47 +0000

"I have known Pamela Crim for over 5 years, and must say is a shining example of what a great mortgage lender should be. I can always count on her immediate response to clients, follow through and preparedness. If there is ever an issue to be dealt with, she's right on it. She's always been able to meet our closing dates and most of the time closes them early! She's constantly keeping me, and all parties involved in the loop. I have always had very smooth dealings with her, and she has made each sale very pleasant at a time when most people are at their highest stress. I would refer her to any of my closest friends, family and clients without thinking twice."

FHA Changes . . . AGAIN!

Pamela Crim — Fri, 05 Mar 2010 19:33:21 +0000

FHA loans are the most popular financing option for homebuyers for many reasons. The low down payment of 3.5%, minimum credit score of 620, and flexible debt-to-income ratios makes FHA the financing of choice for over 70% of my clients.

There are many proposed changes for FHA and while they haven’t all been set into motion yet, we have certainty of one change which will negatively affect potential home buyers. As of April 5, 2010, FHA increased their funding fee from 1.75% to 2.25%

Further changes are in the works, so if you have found the home of your dreams, move quickly before FHA mortgages are further restricted and become more costly.

As always, I’m here to care for your family and save you some CA$H . . . it’s a pleasure serving you!

The Art of Correcting/Disputing Your Credit Report

Pamela Crim — Fri, 26 Feb 2010 18:40:28 +0000

With new lending guidelines and stringent credit score requirements, it is now more important than ever to care for your credit repor. However, correcting items on your credit is literally an art and need I say a real pain in the rear!

However, if there are mistakes on your credit report or you pay off collections and want those changes to be reflected, you must take action . . . I'm here to help you! First, you need the contact information for all 3 credit bureaus:

Joe Avila - Client

Pamela Crim — Tue, 12 Jan 2010 23:55:08 +0000

I closed on my house yesterday with no problems or hitches. I just wanted to thank you for helping me along the way. I know that it's your job, but you do it in a way that personalizes it and I don't think I would have survived all my obstacles without your guidance and assistance. Beyond your business expertise, you are a beautiful person in appearance and character. I think you went far beyond what you had to do to help and work with me and I really do appreciate it. It was as if you held my hand when it seemed the world was trying to keep me from getting this house. I will recommend you to anyone I come across. I will remember you and will always be grateful.

Joe Avila