In offering the best mortgages for all of Sonoma County, CA including Santa Rosa Refinance Loans and Petaluma Home Loans, its important to be aware of some underwriting guidelines changes set to occur October 1, 2011. USDA Loans, Conventional Loans, even FHA Mortgages and VA Mortgages have some slight changes.

So far the biggest change is with the conforming loan limits which are set to expire. Comes October, the maximum loan limit for mortgages in Sonoma County will be $520,950. This blanket change affects all mortgage loans.

Find the Best Sonoma County Mortgage by staying ahead of the curve with regular loan updates.

Here are the underwriting/guidelines changes to USDA and VA mortgages

Highlights include:

USDA

• Refinance section has been modified to NOT require a 1% reduction in the interest rate from the current USDA loan interest rate.
• Streamline refinances are not eligible, meaning an appraisal is needed
• Guarantee Fees are changing effective with CONDITIONAL COMMITMENTS issued by USDA on or after October 1, 2011. The new upfront guarantee fee is changing from 3.50% to 2.00%, however, there is now a new monthly premium of .30%.
  • Effective with Loan Applications taken on or after October 1, 2011, the minimum credit score requirement will be increased to 640.

VA

• VA Funding Fees are lowering, effective with FUNDING DATES on or after October 1, 2011.

Not sure what this information means for you? Call me Scott Sheldon Santa Rosa Mortgage Lender at 707 217-4000. We can go over this grid together.

The best mortgages have slight changes coming down the pike, get a rate quote.

FHA Mortgages

• Temporary Loan Limits are set to expire on October 1, 2011 meaning $520,950 for Sonoma County.

Conventional Mortgages

• Changes have been made again to the AVM’s
  • If property is located in California an AVM (no charge automated valuation) is required if the loan to value is greater than 70%.
  • Changes have been announced regarding our ability to obtain Private Mortgage Insurance.
    • We have the ability to obtain delegated MI simply utilizing our AUS Approve/Eligible or Accept/Eligible AUS feedback. There are NO OTHER MI OVERLAYS other than the following:
      • Credit score must be 620 or greater when the loan to value is 95% or less, or a credit score of 680 if loan to value is greater than 95%.
      • This means we can get mortgage insurance on purchase or refinance loan much faster because of our “direct relationship” with the M.I. companies.
      • “No Overlays” is lender lingo term for easier mortgage loan qualifying

If you want only the best mortgage with a local lender whose on top of the guideline changes contact Santa Rosa Mortgage Lender Scott Sheldon at Scott.Sheldon@nafinc.com. Get a free mortgage rate quote for the “best mortgage” for the October 1, 2011 updates.