Page 5 - AUGUST-2021-2021-0004_Active

The Real Estate Local Buzz AUGUST 1st, 2021 Page 5 Page 3

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Redwood House Of Real Estatee
We Are Here To Help! 1 (614) 365-1455 | (740)545-6768 Niza Rodriguez
Available 7 days at week 5:00 am to 11:00 pm Mobile Call or Text Residence Broker/Owner
when you consider more and more baby boomers You meet debt to income ratios for your loan type.
FHFA Tosses Extra Refinance are moving into bigger homes rather than
Fee for Fannie, Freddie Loans downsizing,” says Rob Cooper, national sales Homebuyer Education
leader at Reverse Mortgage Funding LLC, which Qualified buyers are required to complete free
The Federal Housing Finance Agency has conducted the study. “Our study found there is a homebuyer education. OHFA's streamlined education
announced that Fannie Mae and Freddie Mac will lot of room for improvement when it comes to program allows you to complete a course offered by
no longer charge an extra refinance fee on loans recommending reverse mortgage for purchase any U.S. Department of Housing and Urban
starting Aug. 1. financing because most people are not even aware Development (HUD)-approved counseling agency in
The Adverse Market Refinance Fee was added at of this option—or have not been well informed Ohio. Please note, OHFA homebuyer education is not
the end of 2020 to cover losses that were projected about it.” completed until after homebuyer has submitted their
to occur from the pandemic. But the FHFA says The majority of borrowers who used a reverse loan application with their loan officer. Homebuyer
Fannie and Freddie policies shielded the mortgage to purchase a new home said they were Education is not required for borrowers who are only
government-backed mortgage financing firms able to buy a more expensive home or a property registered for our MTC Basic program.
from severe losses, and the housing market has in a more desirable location because of it.
stayed strong. Therefore, the extra fee is no longer Reverse mortgages are for borrowers ages 60 or Free Homeowner Resources
needed, FHFA says. older. The home they are purchasing must be their Qualified buyers will be eligible to join Power of
Lenders will no longer be required to pay Fannie primary residence. Buyers also must participate in Home, a new program that provides free homeowner
Mae and Freddie Mac a 50-basis-point fee for mandatory loan counseling to use these loan resources through the digital app, Keep by
mortgages they refinance, the cost of which has types. There are risks to using a reverse mortgage, Framework®. New tools and resources will be
largely been passed down to borrowers. For and borrowers will want to ensure they understand available to help you manage, maintain and build
example, the fee could have amounted to $1,400 in all the nuances and risks before taking one out. equity in your home.
extra costs on an average $300,000 GSE-backed Source: Reverse Mortgage Funding LLC You can download Keep to guide your homebuying
refinanced loan. Certain loans were exempt from process:
the added fee. – Track to-dos that come up during the home
DOWN PAYMENT
But now that the extra fee is being eliminated, the inspection
ASSISTANCE
FHFA says it expects lenders to offer some cost – Do your own inspection following a quick
savings to refinancing borrowers. “The COVID-19 assessment guide
pandemic financially exacerbated America’s If you're in the market to purchase a home and You'll also have the opportunity to test new features
affordable housing crisis,” FHFA Acting Director need help with a down payment and closing costs, and participate in a research study with The Ohio State
Sandra L. Thompson said in a statement. the Ohio Housing Finance Agency (OHFA) can University when you complete the homebuyer
“Eliminating the Adverse Market Refinance Fee help. OHFA offers 30-year, fixed-rate education.
will help families take advantage of the low-rate conventional, FHA, VA and USDA-RD
environment to save more money.” government loans with generous income and How Do I Apply?
The FHFA had anticipated billions of dollars in purchase price limits, designed especially for OHFA works with lenders, credit unions and mortgage
loan losses due to expected forbearance defaults homebuyers with low- and moderate-incomes. companies across the state. Find an OHFA-approved
once pandemic aid expires. But the majority of Your Choice! Down Payment Assistance allows lender in your area, along with tips to help you with
borrowers with Fannie Mae- and Freddie Mac- homebuyers to choose either 2.5% or 5% of the the application process, or call us toll-free at
backed loans have already exited COVID-19 home's purchase price. Assistance can be applied 888.362.6432.
forbearance plans, the FHFA says. In April, about towards down payments, closing costs or other
2% of single-family mortgages guaranteed by pre-closing expenses. This assistance is forgiven Source:
Fannie Mae and Freddie Mac remained in after seven years. If you sell or refinance your https://myohiohome.org/downpaymentassistance.aspx
forbearance, down from a high of about 5% in home within seven years, you must repay all of
May 2020. Source: FHFA.gov the assistance provided. .

More Trade-Up Buyers Use Reverse Am I Eligible?
Mortgages to Finance Move You may qualify for an OHFA homebuyer
program if you meet the criteria listed below:
More home buyers are using reverse mortgages to You meet income and purchase price limits.
purchase their next home. A new study finds that a You meet credit score requirements.
quarter of 170 new home buyers surveyed Conventional, USDA and VA Loans: 640 or
wouldn’t have purchased a new home without higher
using a reverse mortgage for financing. FHA Loans: 650 or higher
“This is incredibly important insight, especially
All Information is believed to be true but not guaranteed. The information contained in this newsletter is intended for general informational purposes. It should not substitute as legal, financial, accounting, investment,
medical or other professional services advice. This newsletter is not intent to solicit real estate properties currently listed for sale through a licensed real estate company.