How Will Changing FHA Guidelines Affect You?

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Today, Shelby Spencer of Primary Residential Mortgage joins us to discuss some of the changes to FHA Guidelines starting September 14.

The biggest change to look out for is with student loans, which can no longer be removed from the debt ratio if they are deferred. This means that all contracts or offers written after September 14 will be affected by these changes. Another change comes to large deposits; we used to only need to source large deposits of around 2% of the sales price, but deposits of 1% or more now need to be documented. In addition to these changes, know that funds can no longer be used as assets; you can't create a stronger profile with gift funds, although they can be used as a down payment.

With the inventory as tight as it is; there is a good chance some of the pre-approved FHA buyers may find themselves losing their previously issued pre-approved status before they get an accepted offer. The new FHA guidelines take effect with FHA case numbers assigned on or after 9/14/15. (Case numbers can only be assigned when a property has been identified.)

The following bullet points are just a few of the areas that could affect buyers. I recommend that all FHA pre-approved buyers contact their loan officer to review their situation against the new guidelines. Here are some of the areas that are affected (I will cover them in more detail soon):

• Federal Tax Liens
• Mixed Use Property
• Bankruptcy less than 2 years
• Occupant borrower has no credit score
• Self-employed borrower's income is greater than 20% declining from the previous year
• Installment debts with less than 10 months remaining
• Deferred loan payments (student loans)
• 30-day credit accounts
• More than 3 jobs and/or profession changes in the last 12 months
• 2- to 4-unit properties
• Retaining current home as a rental
• Nontaxable income (like social security income)
• Earnest money deposits greater than 1% of sales price
• Using gifted funds for any reserve requirements

As long as everyone is aware of these changes up front, closing times shouldn't be too affected. Of course, the best way to prepare yourself for these changes is to reach out to a professional and begin the process sooner than later. You can reach Shelby at SSpencer@Primeres.com or (503) 572-8865. Of course, if you have questions or concerns on the real estate side of things, don't hesitate to reach out to us. We would love to hear from you!

The Top 10 Renovations that Are Sure to Save You Money

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Selling a home? Click here for a FREE Home Price Evaluation 
Call me at (503) 427-9233 for a FREE home buying or selling consultation

Today I'd like to share an interesting video I found on HGTV. It documents the ten best renovations that you can make on your home that won't cause you to go broke! Renovations can get expensive, but here are some ideas to help you get more bang for your buck.

10. Using subway tiles is an inexpensive way to redo your kitchen and add a retro feel to it.

9. Speaking of a retro feel, using vintage furniture and fixtures can look and feel great on your wallet. 

8. You can create an 'art wall' by collecting used wood. This hand-crafted, old-school look is sure to impress your guests.

7. Instead of ripping out your hardwood floors entirely, just replace the ones that cannot be used anymore. Lacing new boards in with old ones has an eye-catching look.

6. Changing the knobs on your cabinets and doors can create a whole different feel in a kitchen.

5. Instead of updating your entire bathroom, just refinish your tub. It makes everything else look new again.

4. Painting your home by yourself can be a huge money-saver.

3. Hiring a good Realtor can save you money as well. They know how to negotiate deals and get you the best price on a home that you're buying or selling. Talk to me about this!

2. Waterproofing your roof can save you tons and tons of money down the road. Being proactive about major structural issues in your home is always a good idea.

1. The last couple saved nearly $20,000 renovating their home because they knew a good mill-worker. While I can't promise that you'll save that much, I do know good contractors that can offer you discounts on their services!

So, there you have it. Ten easy ways to save money while renovating your home. While these are all great ideas, I'd prefer if you spoke with me before you went about ripping up your house.

Not all renovations are necessary if you're trying to get top dollar before a sale. Often times the most expensive renovations will not make you the most money back - if you get any money back at all.

Please don't hesitate to reach out to me if you have any questions about this video, or if you have any Portland real estate needs!