Eagle Home Mortgage has tripled in size so far this year!  With the addition of eight loan officers and four operations staff to its existing Reno office,  Eagle is more than ready to make 2010 the best ever.  With Eagle’s local processing and funding, they can close loans quickly, and their experienced team of loan officers stand ready to provide superior service to builders and their buyers.

   Over the past year, there have been quite a few regulatory changes on top of the many loan program changes that had already occurred, but many competitive financing programs remain to help prospective homeowners, and Eagle Home Mortgage is excited to offer them. 
   FHA financing is one excellent way to purchase a new home.  A low minimum down payment of 3.5 percent as well as market interest rates and low monthly mortgage insurance costs make it a great way to buy.  FHA loans come in several varieties:  30-year fixed, 15-year fixed, and adjustable rate.  FHA also offers the “Streamline K” loan, available to upgrade and renovate homes needing cosmetic repairs up to $35,000.  This special program allows homeowners to purchase a home with an FHA loan with the funds needed for repairs included in the loan.  This program does not allow for any structural improvements but would allow for new flooring, paint, kitchen appliances, cabinets, etc. to increase the livability and marketability of the new home.
   VA loans are available to eligible veterans with today’s low interest rates and no required down payment.  This is another great way to finance a home and has the additional advantage of no monthly mortgage insurance. 
   Conventional loans are another good way to finance a home and currently require a minimum down payment of 10 percent.  The interest rates may have adjustments for credit scores and down payment, but are often chosen by borrowers, particularly those who have 20 percent down payment or more and want to obtain a lower payment.  Both fixed rate and adjustable rate mortgages are offered.
   Some of the regulatory changes merit comment since they affect the timing of the transaction .  A new Good Faith Estimate form was implemented by the Department of Housing and Urban Development (HUD) on January 1, 2010.  It was created to give borrowers what it perceived to be an easy way to compare rates and costs between lenders.  It has presented challenges to lenders and title companies in closing dates, fees, and time frames.  In order to prevent last minute surprises at closing, several of the estimated costs on the new Good Faith Estimate either cannot change by more than 10 percent or cannot change at all. 
   Lenders and title companies are working hard to coordinate at the beginning of a transaction to make sure the fees match at the end of the transaction.  Since the Good Faith Estimate must be sent within 3 days of a property being selected and a loan application submitted to the lender, there is often not much time to coordinate fees.   The process does allow for certain changed circumstances, but if this occurs, sometimes a minimum 3-day waiting period is required before the borrower can sign closing documents and close the transaction.  This process continues to be studied by HUD, so perhaps some future changes will help to eliminate the confusion we are all experiencing.
   Last year, the Home Valuation Code of Conduct was also implemented.  This is primarily around appraisals ordered for FannieMae and FreddieMac conventional loans, and requires lenders to communicate and order appraisals through a third party.  Once received, the lender is required to furnish a copy to the borrowers and obtain written confirmation of receipt.  There is a 3- day waiting period after this occurs before loan documents can be signed.  In some instances, a waiver by the borrowers of this 3-day waiting period can be signed, but it must be signed 3 days before closing documents are signed.  Although the process is simple enough, the timing is affected, once again.
   Eagle Home Mortgage has worked hard to develop a loan file flow and speed up the process as much as possible with these new regulations in mind.  It’s working out well!