Reduced Mortgage Insurance Premiums Allow More Buyers to Qualify

CF Funding is happy to share that the Department of Housing and Urban Development recently announced a 50 basis point reduction in MIP rates. In the HUD’s Mortgagee Letter 2015-01 , they shared that the new MIP rates will take effect January 26^th. The executive order announced January 8^th that the annual premiums on FHA backed loans with terms greater than 15 years will be reduced from about 1.35% of the loan balance to .85% of the loan balance.*

Since the change is only in effect for borrowers with case numbers issued on or after January 26^th, FHA is allowing cancellation requests for borrowers currently in process. Ask your CF Funding loan officer to see if you could be eligible for this cancellation!

According to Jann Swanson of Mortgage News Daily, “For borrowers who have recently closed an FHA loan which has been funded there will be no immediate recourse.  They will have to wait the mandatory 210 day period  and have made six payments on their existing FHA loan before refinancing through a streamline loan in order to secure the lower MIP.”

*for most FHA loans. 

New Year, New Goals for Homeowners and Homebuyers

Are you struggling to find a great New Year’s Resolution? As a homeowner, you may be wondering what you can do to improve your finances or keep your home safe. As a homebuyer, you may wonder what you can do to prepare yourself mentally and financially. Not to worry—CF Funding has a few ideas!

New Years Resolutions for Homeowners

One great resolution to kick off the new year is to improve and maintain your safe home habits. Check your alarm system and smoke detectors to make sure they are running properly. Reduce the risk of fire by checking for damaged appliance cords and “[Keep] clothes, curtains and other potentially combustible items at least three feet from all heaters,” according to the National Association of Home Builders. You can also implement a family emergency plan if you don’t already have one. For example, make sure contact information is easily accessible for children and an escape route is planned in case of a fire.

Another way to protect your family from disasters is to check up on your homeowners insurance. You may have purchased a great plan when you first bought a home, but if you have remodeled your home or purchased new items, you might need to expand your coverage. If your goal is to spend more time with family this year, consider taking on a home improvement project. Visit our new pinterest page at www.pinterest.com/cffunding/ for some fresh ideas.

A simple New Year’s resolution that many people overlook is to understand your credit history and credit score. Checking your credit history regularly can reduce the risk of errors, and knowing what affects your credit score both positively and negatively can help you to maintain a good score. A good score can lead to better rates on credit cards or a home refinance. If you are considering refinancing your home in the New Year, talk to a CF Funding loan specialist first. You may be able to reduce your interest rate or consolidate your debt.

Another way to save on your mortgage in the new year is to make extra mortgage payments. You could potentially cut years off your mortgage by making an extra payment each year.

New Years Resolutions for Homebuyers

One very important step in the homebuying process is to save for a substantial down payment on a home. If you have done your research or have purchased a home before, you know that down payments range from 5 to 20 percent, possibly lower if you are a veteran or qualify for an FHA loan. Saving up for a higher down payment can help to lower your interest rate and put more equity into your home from the start.

You may also want to check your credit report for inaccurate information before applying for a home loan. Understanding your credit is important for everyone, but especially for potential homebuyers. An error on your report could lead to a higher rate or denial of your application. One way to keep your credit in line is to watch your holiday spending. The holidays may be over, but the after-holiday sales are still in full swing. Opening store credit cards and raising your amount of debt for holiday spending can cause your credit score to go down and your loan rates to go up.

Attend a homeownership education course to learn more about the process of buying and maintaining your new home. There are plenty of classes available across the U.S. including seminars and online education. CF Funding also hosts classes for first-time homebuyers at local libraries. Check our

Facebook page or call 630-328-8900 for more info.

Build a great home-buying team to help you along the way. Your support team can make all the difference in the home buying process. That may include lawyers, agents, and of course our team of Loan Specialists here at CF Funding.

And finally, after moving in, Keep safety in mind by ensuring that your new home has working smoke detectors, locks, & alarm systems. Check to see that your homeowners insurance properly covers you in case of an emergency. If you don’t already have a family disaster plan, make one! You can find tools to help you at http://www.ready.gov/make-a-plan.

Do you have new years resolution ideas you would like to share with CF Funding? Visit us on Facebook at ww.facebook.com/cffundingcorp and leave us a comment!