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We are building our house, and understand the new October 1st deadline to have your loan underwritten by. Our builder is telling us we have to close by October 31st or this goes away. They made a mistake and are pressuring us to accept what they have done, so they don't have to start all over again. I can't find anything as to the rules on which a loan has to be closed by under the new law. Can anyone help me with this? Thanks!
September 30 is the LAST DAY to use down payment assistance.
If you're not using DPA then you won't have nothing to worry about it.
If you are then you need to CLOSE on September 30th.
Anything after that will not accept DPA.
Quote:
Originally Posted by arbrowncu
We are building our house, and understand the new October 1st deadline to have your loan underwritten by. Our builder is telling us we have to close by October 31st or this goes away. They made a mistake and are pressuring us to accept what they have done, so they don't have to start all over again. I can't find anything as to the rules on which a loan has to be closed by under the new law. Can anyone help me with this? Thanks!
In order to get DPA you must have final loan approval by the 30th of Sept. After that (if you are building new) NO changes can be made to your paperwork (ie: add in options, get more incentives etc) because the loan cannot go back into underwriting after the 30th. It must be a finaled ready to go loan and you must close by year end to get it. And yes, the downpayment requirement has changed from 3% down to 3.5%. Seller contribution still remains at 6% max.
I have read everywhere that they're shutting it down start October 1st.
Even Nehemiah is stating this on their website.
Quote:
Originally Posted by Elyse Margardino
No no, you don't have to close by Sept 30th
In order to get DPA you must have final loan approval by the 30th of Sept. After that (if you are building new) NO changes can be made to your paperwork (ie: add in options, get more incentives etc) because the loan cannot go back into underwriting after the 30th. It must be a finaled ready to go loan and you must close by year end to get it. And yes, the downpayment requirement has changed from 3% down to 3.5%. Seller contribution still remains at 6% max.
I think my deadlines are more along the lines of building a new home from a builder. As long as the loan has been approved w/ DPA by the 9/30 deadline you are good to go, even if your new construction home isn't completed yet (thats why you cannot make any changes that would cause your loan to go back into UW)
Nehemiah/Ameridream are stating that they will 'cease' to fund any DPA on October 1st.
Quote:
Originally Posted by Elyse Margardino
I think my deadlines are more along the lines of building a new home from a builder. As long as the loan has been approved w/ DPA by the 9/30 deadline you are good to go, even if your new construction home isn't completed yet (thats why you cannot make any changes that would cause your loan to go back into UW)
Nehemiah/Ameridream are stating that they will 'cease' to fund any DPA on October 1st.
Genesis and a few others will still fund them after 10/1. There are a few lenders that will still do it up until 10/31 as well. The rule is the funds need to be requested and the loan be cleared to close by 10/1.
No changes can be made to any loan terms after then because the MCAW and 92900A need to be finalized and signed by the underwriter by the 10/1 deadline. The closing can take place AFTER 10/1 as long as the loan is locked and the lender and DPA agency agree.
As you mentioned not too many will, I looked around and only 2 lenders that I know are willing to fund a DPA loan past 10/1 and both of those require it by 10/31.
My builder offered the DPA of 5k, and my mortgage guy said this has to be approved by September 31. WE are closing in the middle of November. He said this was fine as long as full approval is done by September 30th. He also said if for whatever reason I didn't get my last bit of paperwork in by the deadline then the builder would just take the 5k off the price of the house. Which would not change my initial downpayment amount. We were putting down 20% including the DPA, if he had to take the DPA away then the price would be lowered and I would put down 15%. Making it the same out of pocket costs.
On another note: My mortgage rep called me last night to lock in the rate since they went down. Then today, I hear Frannie and Freddie have been taken over. All the stories about this I've been reading online are saying this is going to drop the interest rate even further. CNN says rates could go down a full percentage point. Is there no way out of my lock? Do I have to wait the full year to refinance at a lower rate with the FHA. I remember my last house when the rate went down I got a call saying they could refinance the FHA to the going rate and It didn't cost me anything. But , I don't remember if I had to wait a full year.
Streamline refinance ...you can do it 1month after the closing date.
Most lenders will want you to do it 6months after so they wont have to pay back any monies received on the loan.
It WILL cost you money. Whether you pay with the rate or with the closing costs.
Quote:
Originally Posted by NC little foot
My builder offered the DPA of 5k, and my mortgage guy said this has to be approved by September 31. WE are closing in the middle of November. He said this was fine as long as full approval is done by September 30th. He also said if for whatever reason I didn't get my last bit of paperwork in by the deadline then the builder would just take the 5k off the price of the house. Which would not change my initial downpayment amount. We were putting down 20% including the DPA, if he had to take the DPA away then the price would be lowered and I would put down 15%. Making it the same out of pocket costs.
On another note: My mortgage rep called me last night to lock in the rate since they went down. Then today, I hear Frannie and Freddie have been taken over. All the stories about this I've been reading online are saying this is going to drop the interest rate even further. CNN says rates could go down a full percentage point. Is there no way out of my lock? Do I have to wait the full year to refinance at a lower rate with the FHA. I remember my last house when the rate went down I got a call saying they could refinance the FHA to the going rate and It didn't cost me anything. But , I don't remember if I had to wait a full year.
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FHA DPA Closing Date Question
