FHA Lowering Requirements

[J Grant]

The requirement to observe the attic has not been removed, only the photo requirement has been struck.

I think they are one and the same intent.

 

[J Grant]

I will wait for the directive from the clients on when to stop doing the inspection and photo protocols.

I wonder if PMI requirements are changing on the lender side. If not, these changes will do little to nothing to make home ownership more affordable via an FHA loan. It is the lifetime of loan PMI requirement that adds a burden different than normal PMI, which can be removed after a certain portion of the loan is paid down.

 

[Non Sequitur]

I think they are one and the same intent.

If you believe that, remove the language that you observed the attic and found no deficiencies in your next FHA report. Let us know how it works out.

 

[Non Sequitur]

I wonder if PMI requirements are changing on the lender side. If not, these changes will do little to nothing to make home ownership more affordable via an FHA loan. It is the lifetime of loan PMI requirement that adds a burden different than normal PMI, which can be removed after a certain portion of the loan is paid down.

FHA is funded by an upfront MIP, there are no lifetime PMI requirements.

 

[Digger88]

The requirement to observe the attic has not been removed, only the photo requirement has been struck.

gotcha, I'll carry a collapsible stick around and pop the hatch

 

[Terrel L. Shields]

The requirement to observe the attic has not been removed, only the photo requirement has been struck

it seems nonsense to not photo the attic if you are already there. And I am looking for specific things - broken trusses, evidence of fire, missing truss plates. Same with crawl spaces. We have a lot of very low crawl spaces in old houses and often I find wood in ground contact. You need a flashlight and a ladder for FHA, and it's not bad policy to do those inspections for non-FHA as well.

Same with comp photos. With a GoPro set on time lapse and rubber suction cup to attach to the window, I don't need to stop in the middle of the road or get out. No one is going to chase you because no one is going to see you. And if the house is up a long driveway, then that's what a telephoto lens is for. If too far away or behind a screen of trees, use the MLS photo, add a pix of the entry and state it in the report. I bet 2 of 3 instances of MLS photos only reported lie about driving past the place.

 

[Mike Ault]

I think we should probably do away with the Highway Patrol as well. Just require each motorist to sign a certification which states "all speed limits were obeyed" prior to refilling their tanks.

 

[J Grant]

If you believe that, remove the language that you observed the attic and found no deficiencies in your next FHA report. Let us know how it works out.

I will do it, then the client removes the photo requirement for the attic, and I will check with them if they need it inspected anyway.

 

[J Grant]

PMI and how much you pay can be different than PMI, too. Read on to learn more!

FHA Loan Mortgage Insurance Requirements​

The first thing to understand is that all FHA loans require mortgage insurance. This is different than the PMI you might need to pay when you get a Conventional loan.

When you buy a home with a Conventional loan, you need to pay for PMI if you make a down payment of less than 20%. When you refinance with a Conventional loan, you need to pay for PMI if your home equity is less than 20%.

FHA loans require you to pay for mortgage insurance when you buy or refinance a home regardless of the amount of your down payment or home equity. You are also required to pay for two kinds of mortgage insurance. FHA loans have a one-time upfront fee you need to pay at closing (called "UFMIP") as well as monthly insurance payments (called "MIP").

 

[J Grant]

• AI Overview
  
  For FHA loans, whether MIP (Mortgage Insurance Premium) payments get paid off depends on the down payment amount and the loan's origination date. If you made a down payment of 10% or more, MIP will be removed after 11 years for loans originated on or after June 3, 2013. If your down payment was less than 10%, or if the loan originated before June 3, 2013, you may need to pay MIP for the entire loan term unless you refinance.
  
  Here's a more detailed breakdown:
  • Loans Originated On or After June 3, 2013:
    • If you put down 10% or more, you'll pay MIP for 11 years.
      
      
    • If you put down less than 10%, you'll pay MIP for the life of the loan unless you refinance, according to LendingTree.