Posted by LynnNC on 6/24/08 3:41pm
Msg #252741

Piggybacks

I have been aware that I am getting a lot of FHA loans, but, was surprised when I checked my spreadsheet to see that out of 234 loans I have handled since the beginning of the year, only 5 were piggybacks and the last one was 3/21.

FHA's might work out better for the borrowers as they can probably get a lower rate than a conventional, and while they have an FHA insurance premium, they don't have the higher rate of a 2nd loan. Last night I closed an FHA loan with a 98% LTV.

Reply by MikeC/NY on 6/24/08 5:18pm
Msg #252776

FHA just announced today that all loans over 95% LTV OR over $417K OR for homes determined to be in a declining market will require a second appraisal. That might slow things down a bit.

I don't have all the details yet - this was just thrown at us by our mortgage guy during the weekly meeting at the real estate company I work for, and the fax he got was still warm in his hand when he shared the info with us.

Reply by Therese on 6/24/08 6:26pm
Msg #252796

I just did one this month that had two appraisals. One for the lender, one for FHA.

Reply by Vince/KS on 6/24/08 6:50pm
Msg #252803

Re: Piggybacks vs FHA - fee

The FHA's seem to take nearly as long as the piggybacks we were doing - but typically pay fees at standard refi rate (at least around here). When discussing why with others - one said it reminded him of a fellow that ran a Chinese food restaurant. He wanted to know why the luncheon was such a comparatively good buy - response was because that's what everyone else does.

Reply by LynnNC on 6/25/08 9:20am
Msg #252862

Re: Piggybacks vs FHA - fee

I now ask if a loan is an FHA, and if it is, I tell them that I charge 25 cents a page for each page over 125...in my mind it is 10 cents for printing and 15 cents for time per page.. Two copies of a 175 page document would be an additional $25, which probably isn't enough, but 50 cents a page would sound like a lot when I quote it.