RISMEDIA, August 9, 2010--In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth – or ‘underwater’ – because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.
“We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,” said FHA Commissioner David H. Stevens. “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”
FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA’s refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner’s primary residence. And the borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower’s combined loan-to-value ratio to no greater than 115%.
In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
Showing posts with label fha. Show all posts
Showing posts with label fha. Show all posts
Tuesday, August 10, 2010
Saturday, July 31, 2010
FHA has its day
5 tips to secure a federally insured mortgage
Mary Umberger
Inman News
In the heady days of the housing boom, so-called FHA loans ended up being the lonely guy sitting on the sidelines.
After all, at that time the mortgage market had a free-flowing and apparently limitless pipeline of funds for borrowers who had little to no money for a downpayment. Demand for the Federal Housing Administration's programs to help first-time and low-income buyers dwindled.
That was then, as they say. This is now, when lending policies have gotten considerably more stringent in the wake of the housing downturn.
Suddenly, the government program that's been around since 1934 is looking a lot more attractive to a lot more people: The agency went from being involved with just 464,000 loans in 2007 to 2 million loans in fiscal 2009, according to a recent speech by its commissioner, David Stevens.
Its share of the market, depending on the region, is 30 to 50 percent.
So, for many homebuyers, FHA is the name of the game these days. Five things to know about FHA mortgages:
1. The FHA doesn't make loans, it insures them. Participants in FHA-insured mortgages get their loans through conventional lenders whose standards meet the FHA's.
The agency's guarantees mean that lenders can be confident that they won't lose money on the loans and can make more of them -- thus, in theory, helping to keep the housing market flowing.
2. FHA loans are attractive to many borrowers because they require as little as 3.5 percent down, compared to the so-called conventional market, which these days typically requires 10 percent down or more for competitively priced rates.
They're relatively easy to qualify for: The FHA places no income restrictions. Borrowers can have middling credit histories. In addition, FHA policies allow borrowers to include gifts from family members in their downpayments.
Currently, the FHA doesn't set a qualifying credit score for borrowers, according to FHA spokesman Lemar Wooley.
"We don't really have a hard minimum score requirement," he said. "We ask our lenders to look at the entire credit picture, with the major requirement being the ability to repay the loan."
However, Wooley said, a 580 score (on an 850-point scale) is set to become the minimal requirement, though an implementation date has not been set. Currently, applicants with scores below 500 do need to increase their downpayments to 10 percent, he said.
The FHA allows borrowers to allocate as much as 43 percent of their income to housing and long-term debt costs, which in the mortgage business is called a back-end ratio; conventional loans vary slightly in that cap, although they generally limit their borrowers to a back-end allocation that's several percent less.
3. FHA's insurance isn't free: Homebuyers with FHA-insured loans will pay an upfront premium at the time of closing (2.25 percent of the purchase price) and then for an extended period will make monthly payments to cover the annual cost of the insurance, 0.5 percent of the amount of the loan, Wooley said.
4. As popular as they are these days, FHA-insured loans aren't for all borrowers.
"I'm not a big fan of government loans," said Dale Robyn Siegel, a White Plains, N.Y., mortgage broker and author of "The New Rules for Mortgages" (Penguin/Alpha).
Siegel says that if conventional loan paperwork is significant, the FHA's is even more daunting. In addition, the FHA is strict about the physical state of the home that's being purchased.
"If the property isn't in good condition, FHA might reject it," Siegel said. "If the FHA borrower is lower-income, and then has lower savings after they close (on the house), you have less money to fix it. So the house needs to be in better condition, out of the gate."
Another potential roadblock: FHA limits the sizes of loans it will insure, from about $271,000 in low-cost areas to nearly $730,000 in high-cost areas.
5. Many borrowers these days think FHA is the only game in town, but it isn't, Siegel said.
"I would always say, 'Get a second opinion,'" she said.
She said some borrowers with bruised credit presume they'd be ineligible for loans in the conventional market, though that's not necessarily so. Borrowers with downpayments of less than 20 percent from those lenders still would have to get mortgage insurance from a private source, she said.
Siegel said the threshold for getting an FHA loan sounds more generous than it would turn out to be in the marketplace. "The FICO score (that FHA will permit) is 580, but good luck, try and get it approved," she said.
More information on FHA-insured mortgages, including its state-by-state listings of mortgage limits, is available at fha.gov.
In the heady days of the housing boom, so-called FHA loans ended up being the lonely guy sitting on the sidelines.
After all, at that time the mortgage market had a free-flowing and apparently limitless pipeline of funds for borrowers who had little to no money for a downpayment. Demand for the Federal Housing Administration's programs to help first-time and low-income buyers dwindled.
That was then, as they say. This is now, when lending policies have gotten considerably more stringent in the wake of the housing downturn.
Suddenly, the government program that's been around since 1934 is looking a lot more attractive to a lot more people: The agency went from being involved with just 464,000 loans in 2007 to 2 million loans in fiscal 2009, according to a recent speech by its commissioner, David Stevens.
Its share of the market, depending on the region, is 30 to 50 percent.
So, for many homebuyers, FHA is the name of the game these days. Five things to know about FHA mortgages:
1. The FHA doesn't make loans, it insures them. Participants in FHA-insured mortgages get their loans through conventional lenders whose standards meet the FHA's.
The agency's guarantees mean that lenders can be confident that they won't lose money on the loans and can make more of them -- thus, in theory, helping to keep the housing market flowing.
2. FHA loans are attractive to many borrowers because they require as little as 3.5 percent down, compared to the so-called conventional market, which these days typically requires 10 percent down or more for competitively priced rates.
They're relatively easy to qualify for: The FHA places no income restrictions. Borrowers can have middling credit histories. In addition, FHA policies allow borrowers to include gifts from family members in their downpayments.
Currently, the FHA doesn't set a qualifying credit score for borrowers, according to FHA spokesman Lemar Wooley.
"We don't really have a hard minimum score requirement," he said. "We ask our lenders to look at the entire credit picture, with the major requirement being the ability to repay the loan."
However, Wooley said, a 580 score (on an 850-point scale) is set to become the minimal requirement, though an implementation date has not been set. Currently, applicants with scores below 500 do need to increase their downpayments to 10 percent, he said.
The FHA allows borrowers to allocate as much as 43 percent of their income to housing and long-term debt costs, which in the mortgage business is called a back-end ratio; conventional loans vary slightly in that cap, although they generally limit their borrowers to a back-end allocation that's several percent less.
3. FHA's insurance isn't free: Homebuyers with FHA-insured loans will pay an upfront premium at the time of closing (2.25 percent of the purchase price) and then for an extended period will make monthly payments to cover the annual cost of the insurance, 0.5 percent of the amount of the loan, Wooley said.
4. As popular as they are these days, FHA-insured loans aren't for all borrowers.
"I'm not a big fan of government loans," said Dale Robyn Siegel, a White Plains, N.Y., mortgage broker and author of "The New Rules for Mortgages" (Penguin/Alpha).
Siegel says that if conventional loan paperwork is significant, the FHA's is even more daunting. In addition, the FHA is strict about the physical state of the home that's being purchased.
"If the property isn't in good condition, FHA might reject it," Siegel said. "If the FHA borrower is lower-income, and then has lower savings after they close (on the house), you have less money to fix it. So the house needs to be in better condition, out of the gate."
Another potential roadblock: FHA limits the sizes of loans it will insure, from about $271,000 in low-cost areas to nearly $730,000 in high-cost areas.
5. Many borrowers these days think FHA is the only game in town, but it isn't, Siegel said.
"I would always say, 'Get a second opinion,'" she said.
She said some borrowers with bruised credit presume they'd be ineligible for loans in the conventional market, though that's not necessarily so. Borrowers with downpayments of less than 20 percent from those lenders still would have to get mortgage insurance from a private source, she said.
Siegel said the threshold for getting an FHA loan sounds more generous than it would turn out to be in the marketplace. "The FICO score (that FHA will permit) is 580, but good luck, try and get it approved," she said.
More information on FHA-insured mortgages, including its state-by-state listings of mortgage limits, is available at fha.gov.
Mary Umberger
Inman News
In the heady days of the housing boom, so-called FHA loans ended up being the lonely guy sitting on the sidelines.
After all, at that time the mortgage market had a free-flowing and apparently limitless pipeline of funds for borrowers who had little to no money for a downpayment. Demand for the Federal Housing Administration's programs to help first-time and low-income buyers dwindled.
That was then, as they say. This is now, when lending policies have gotten considerably more stringent in the wake of the housing downturn.
Suddenly, the government program that's been around since 1934 is looking a lot more attractive to a lot more people: The agency went from being involved with just 464,000 loans in 2007 to 2 million loans in fiscal 2009, according to a recent speech by its commissioner, David Stevens.
Its share of the market, depending on the region, is 30 to 50 percent.
So, for many homebuyers, FHA is the name of the game these days. Five things to know about FHA mortgages:
1. The FHA doesn't make loans, it insures them. Participants in FHA-insured mortgages get their loans through conventional lenders whose standards meet the FHA's.
The agency's guarantees mean that lenders can be confident that they won't lose money on the loans and can make more of them -- thus, in theory, helping to keep the housing market flowing.
2. FHA loans are attractive to many borrowers because they require as little as 3.5 percent down, compared to the so-called conventional market, which these days typically requires 10 percent down or more for competitively priced rates.
They're relatively easy to qualify for: The FHA places no income restrictions. Borrowers can have middling credit histories. In addition, FHA policies allow borrowers to include gifts from family members in their downpayments.
Currently, the FHA doesn't set a qualifying credit score for borrowers, according to FHA spokesman Lemar Wooley.
"We don't really have a hard minimum score requirement," he said. "We ask our lenders to look at the entire credit picture, with the major requirement being the ability to repay the loan."
However, Wooley said, a 580 score (on an 850-point scale) is set to become the minimal requirement, though an implementation date has not been set. Currently, applicants with scores below 500 do need to increase their downpayments to 10 percent, he said.
The FHA allows borrowers to allocate as much as 43 percent of their income to housing and long-term debt costs, which in the mortgage business is called a back-end ratio; conventional loans vary slightly in that cap, although they generally limit their borrowers to a back-end allocation that's several percent less.
3. FHA's insurance isn't free: Homebuyers with FHA-insured loans will pay an upfront premium at the time of closing (2.25 percent of the purchase price) and then for an extended period will make monthly payments to cover the annual cost of the insurance, 0.5 percent of the amount of the loan, Wooley said.
4. As popular as they are these days, FHA-insured loans aren't for all borrowers.
"I'm not a big fan of government loans," said Dale Robyn Siegel, a White Plains, N.Y., mortgage broker and author of "The New Rules for Mortgages" (Penguin/Alpha).
Siegel says that if conventional loan paperwork is significant, the FHA's is even more daunting. In addition, the FHA is strict about the physical state of the home that's being purchased.
"If the property isn't in good condition, FHA might reject it," Siegel said. "If the FHA borrower is lower-income, and then has lower savings after they close (on the house), you have less money to fix it. So the house needs to be in better condition, out of the gate."
Another potential roadblock: FHA limits the sizes of loans it will insure, from about $271,000 in low-cost areas to nearly $730,000 in high-cost areas.
5. Many borrowers these days think FHA is the only game in town, but it isn't, Siegel said.
"I would always say, 'Get a second opinion,'" she said.
She said some borrowers with bruised credit presume they'd be ineligible for loans in the conventional market, though that's not necessarily so. Borrowers with downpayments of less than 20 percent from those lenders still would have to get mortgage insurance from a private source, she said.
Siegel said the threshold for getting an FHA loan sounds more generous than it would turn out to be in the marketplace. "The FICO score (that FHA will permit) is 580, but good luck, try and get it approved," she said.
More information on FHA-insured mortgages, including its state-by-state listings of mortgage limits, is available at fha.gov.
In the heady days of the housing boom, so-called FHA loans ended up being the lonely guy sitting on the sidelines.
After all, at that time the mortgage market had a free-flowing and apparently limitless pipeline of funds for borrowers who had little to no money for a downpayment. Demand for the Federal Housing Administration's programs to help first-time and low-income buyers dwindled.
That was then, as they say. This is now, when lending policies have gotten considerably more stringent in the wake of the housing downturn.
Suddenly, the government program that's been around since 1934 is looking a lot more attractive to a lot more people: The agency went from being involved with just 464,000 loans in 2007 to 2 million loans in fiscal 2009, according to a recent speech by its commissioner, David Stevens.
Its share of the market, depending on the region, is 30 to 50 percent.
So, for many homebuyers, FHA is the name of the game these days. Five things to know about FHA mortgages:
1. The FHA doesn't make loans, it insures them. Participants in FHA-insured mortgages get their loans through conventional lenders whose standards meet the FHA's.
The agency's guarantees mean that lenders can be confident that they won't lose money on the loans and can make more of them -- thus, in theory, helping to keep the housing market flowing.
2. FHA loans are attractive to many borrowers because they require as little as 3.5 percent down, compared to the so-called conventional market, which these days typically requires 10 percent down or more for competitively priced rates.
They're relatively easy to qualify for: The FHA places no income restrictions. Borrowers can have middling credit histories. In addition, FHA policies allow borrowers to include gifts from family members in their downpayments.
Currently, the FHA doesn't set a qualifying credit score for borrowers, according to FHA spokesman Lemar Wooley.
"We don't really have a hard minimum score requirement," he said. "We ask our lenders to look at the entire credit picture, with the major requirement being the ability to repay the loan."
However, Wooley said, a 580 score (on an 850-point scale) is set to become the minimal requirement, though an implementation date has not been set. Currently, applicants with scores below 500 do need to increase their downpayments to 10 percent, he said.
The FHA allows borrowers to allocate as much as 43 percent of their income to housing and long-term debt costs, which in the mortgage business is called a back-end ratio; conventional loans vary slightly in that cap, although they generally limit their borrowers to a back-end allocation that's several percent less.
3. FHA's insurance isn't free: Homebuyers with FHA-insured loans will pay an upfront premium at the time of closing (2.25 percent of the purchase price) and then for an extended period will make monthly payments to cover the annual cost of the insurance, 0.5 percent of the amount of the loan, Wooley said.
4. As popular as they are these days, FHA-insured loans aren't for all borrowers.
"I'm not a big fan of government loans," said Dale Robyn Siegel, a White Plains, N.Y., mortgage broker and author of "The New Rules for Mortgages" (Penguin/Alpha).
Siegel says that if conventional loan paperwork is significant, the FHA's is even more daunting. In addition, the FHA is strict about the physical state of the home that's being purchased.
"If the property isn't in good condition, FHA might reject it," Siegel said. "If the FHA borrower is lower-income, and then has lower savings after they close (on the house), you have less money to fix it. So the house needs to be in better condition, out of the gate."
Another potential roadblock: FHA limits the sizes of loans it will insure, from about $271,000 in low-cost areas to nearly $730,000 in high-cost areas.
5. Many borrowers these days think FHA is the only game in town, but it isn't, Siegel said.
"I would always say, 'Get a second opinion,'" she said.
She said some borrowers with bruised credit presume they'd be ineligible for loans in the conventional market, though that's not necessarily so. Borrowers with downpayments of less than 20 percent from those lenders still would have to get mortgage insurance from a private source, she said.
Siegel said the threshold for getting an FHA loan sounds more generous than it would turn out to be in the marketplace. "The FICO score (that FHA will permit) is 580, but good luck, try and get it approved," she said.
More information on FHA-insured mortgages, including its state-by-state listings of mortgage limits, is available at fha.gov.
Labels:
fha,
home loan,
loans,
piercy group,
wesley piercy
Tuesday, March 25, 2008
TEN FHA HUD FACTS TO KNOW
HUD Home Fact #1
About the FHAThe Federal Housing Administration (FHA), an agency of the federal government, insures private loans that are issued for new and existing housing, and loans that are approved for home repairs. Created by congress in 1934, the FHA became part of the Department of Housing and Urban Development's Office of Housing (HUD) in 1965. Today the mission of the FHA includes helping borrowers get amounts they qualify for, and assisting lenders by reducing their risk in issuing loans. To find out if you might be eligible for an FHA-insured loan, contact us.
HUD Home Fact #2
Credit Problems and a HUD Housing LoanIt is advisable to approach any FHA loan with your best possible credit rating. If you have had credit problems in the past, the FHA recommends a Consumer Credit Counseling program to avoid being denied an FHA loan. A good credit counselor can talk to you about income-to-debt ratio, maintaining satisfactory payments and challenging errors on your credit report. The FHA recommends creating a satisfactory payment history for at least one year before applying for any FHA loan program.
HUD Home Fact #3
The FHA TOTAL ScorecardIf you submit FHA paperwork electronically, the FHA TOTAL Scorecard is used to measure the credit risk of all FHA loans submitted through the automatic underwriting system. Your FHA loan is processed through a qualified and approved FHA lender. Applications submitted through FHA TOTAL are evaluated by a standardized scoring procedure creating a quick, fair and seamless evaluation. The FHA's TOTAL system is internet based and works in real time.
HUD Home Fact #4
Applying for an FHA LoanThe FHA asks for a lot of information on your FHA loan application. You will need to provide the FHA with a wide range of details including:
All addresses where you have lived in the previous two years.
Your employer's name and addresses for the last two years, plus the amount of your Gross Monthly Salary.
W2s for the past two years.
Income tax forms submitted for the last two years.
Gather all of this before you begin your FHA application so you will have everything handy to complete your FHA loan forms at one time.
HUD Home Fact #5
Additional Paperwork for VeteransThe FHA asks that veterans submit the DD Form 214 along with their FHA loan application paperwork. The DD Form 214 is the official record of discharge from the Armed Forces. If you have recently separated, retired or otherwise left active duty and don't have your DD Form 214, request a copy from either your final outprocessing base (call the orderly room, records office or outbound assignments/outprocessing office), or request the form electronically from the Department of Defense
HUD Home Fact #6
FHA/HUD Insured Mortgages and RefundsIf you have an FHA loan or HUD insured mortgage, you may have paid an "up-front" mortgage insurance premium at the closing of your house. Assuming you did not default on your mortgage payments, you may be eligible for a refund on part of your insurance premium. Loans granted after September 1, 1983 may be entitled to this refund. Check your FHA loan settlement paperwork or phone your lender to learn more. If you need further assistance, contact your FHA loan officer for help.
HUD Home Fact #7
Popular FHA LoansThe 203(b) FHA Fixed Rate Mortgage Loan Program is the widely used FHA home loan, especially among first time home buyers. The 203(b) FHA loan keeps your down payment to a minimum. Your closing costs may also be reduced. The 203(b) FHA loan will finance up to ninety-seven percent of your loan. You must qualify with some debt-to-income ratios, but the 203(b) does not have a minimum income requirement. Check with a financial planner about your debt to income ratio, or discuss your financial status with a lender. Find out how to maximize your credit rating before you apply for your FHA loan.
HUD Home Fact #8
Where FHA Mortgages Come FromFHA loans do not come directly from the FHA. The FHA guarantees home loans, reducing the risk to lenders and offering increased borrowing power to qualified applicants. You may bet better interest rates thanks to FHA home loan insurance. FHA loans are particularly helpful for who want a home, but have little or no money saved for a down payment; including those just graduating college, newly married couples, and also those who have had credit problems in the past because of foreclosure or bankruptcy. Check out your credit rating and get a list of lending limits for FHA loans in your area which vary from state to state, and may even vary by county.
HUD Home Fact #9
Pre-qualify for an FHA Home LoanTo pre-qualify for an FHA loan, you should be able to demonstrate employability, job stability and reliability. To the FHA, reliability includes holding a steady job for at least two years with the same company or employer and increasing or at least maintaining consistent income. The FHA would like to see that any foreclosures or bankruptcies on your record are at least three years old. The FHA loan bottom line: demonstrate that you have been a good credit risk for two years or more and you will have a much better chance at pre-qualifying for an FHA loan.
HUD Home Fact #10
The Increased FHA Loan AmountIn early 2006, a HUD press release announced an increase of nearly thirty thousand dollars in FHA-insured home loan money being made available to borrowers for single-family home mortgages. This increase signals more borrowing power with your FHA home loan, and it allows more people than ever the opportunity to own a home. With only a three-percent down payment and a single-family home mortgage limits coming closer to two hundred thousand dollars, now may be the best time to apply for an FHA home loan. First, evaluate your finances; your monthly housing costs should not exceed more than 29% of your gross monthly income. Use gross income, not net income, when evaluating your finances to apply for your FHA loan.
About the FHAThe Federal Housing Administration (FHA), an agency of the federal government, insures private loans that are issued for new and existing housing, and loans that are approved for home repairs. Created by congress in 1934, the FHA became part of the Department of Housing and Urban Development's Office of Housing (HUD) in 1965. Today the mission of the FHA includes helping borrowers get amounts they qualify for, and assisting lenders by reducing their risk in issuing loans. To find out if you might be eligible for an FHA-insured loan, contact us.
HUD Home Fact #2
Credit Problems and a HUD Housing LoanIt is advisable to approach any FHA loan with your best possible credit rating. If you have had credit problems in the past, the FHA recommends a Consumer Credit Counseling program to avoid being denied an FHA loan. A good credit counselor can talk to you about income-to-debt ratio, maintaining satisfactory payments and challenging errors on your credit report. The FHA recommends creating a satisfactory payment history for at least one year before applying for any FHA loan program.
HUD Home Fact #3
The FHA TOTAL ScorecardIf you submit FHA paperwork electronically, the FHA TOTAL Scorecard is used to measure the credit risk of all FHA loans submitted through the automatic underwriting system. Your FHA loan is processed through a qualified and approved FHA lender. Applications submitted through FHA TOTAL are evaluated by a standardized scoring procedure creating a quick, fair and seamless evaluation. The FHA's TOTAL system is internet based and works in real time.
HUD Home Fact #4
Applying for an FHA LoanThe FHA asks for a lot of information on your FHA loan application. You will need to provide the FHA with a wide range of details including:
All addresses where you have lived in the previous two years.
Your employer's name and addresses for the last two years, plus the amount of your Gross Monthly Salary.
W2s for the past two years.
Income tax forms submitted for the last two years.
Gather all of this before you begin your FHA application so you will have everything handy to complete your FHA loan forms at one time.
HUD Home Fact #5
Additional Paperwork for VeteransThe FHA asks that veterans submit the DD Form 214 along with their FHA loan application paperwork. The DD Form 214 is the official record of discharge from the Armed Forces. If you have recently separated, retired or otherwise left active duty and don't have your DD Form 214, request a copy from either your final outprocessing base (call the orderly room, records office or outbound assignments/outprocessing office), or request the form electronically from the Department of Defense
HUD Home Fact #6
FHA/HUD Insured Mortgages and RefundsIf you have an FHA loan or HUD insured mortgage, you may have paid an "up-front" mortgage insurance premium at the closing of your house. Assuming you did not default on your mortgage payments, you may be eligible for a refund on part of your insurance premium. Loans granted after September 1, 1983 may be entitled to this refund. Check your FHA loan settlement paperwork or phone your lender to learn more. If you need further assistance, contact your FHA loan officer for help.
HUD Home Fact #7
Popular FHA LoansThe 203(b) FHA Fixed Rate Mortgage Loan Program is the widely used FHA home loan, especially among first time home buyers. The 203(b) FHA loan keeps your down payment to a minimum. Your closing costs may also be reduced. The 203(b) FHA loan will finance up to ninety-seven percent of your loan. You must qualify with some debt-to-income ratios, but the 203(b) does not have a minimum income requirement. Check with a financial planner about your debt to income ratio, or discuss your financial status with a lender. Find out how to maximize your credit rating before you apply for your FHA loan.
HUD Home Fact #8
Where FHA Mortgages Come FromFHA loans do not come directly from the FHA. The FHA guarantees home loans, reducing the risk to lenders and offering increased borrowing power to qualified applicants. You may bet better interest rates thanks to FHA home loan insurance. FHA loans are particularly helpful for who want a home, but have little or no money saved for a down payment; including those just graduating college, newly married couples, and also those who have had credit problems in the past because of foreclosure or bankruptcy. Check out your credit rating and get a list of lending limits for FHA loans in your area which vary from state to state, and may even vary by county.
HUD Home Fact #9
Pre-qualify for an FHA Home LoanTo pre-qualify for an FHA loan, you should be able to demonstrate employability, job stability and reliability. To the FHA, reliability includes holding a steady job for at least two years with the same company or employer and increasing or at least maintaining consistent income. The FHA would like to see that any foreclosures or bankruptcies on your record are at least three years old. The FHA loan bottom line: demonstrate that you have been a good credit risk for two years or more and you will have a much better chance at pre-qualifying for an FHA loan.
HUD Home Fact #10
The Increased FHA Loan AmountIn early 2006, a HUD press release announced an increase of nearly thirty thousand dollars in FHA-insured home loan money being made available to borrowers for single-family home mortgages. This increase signals more borrowing power with your FHA home loan, and it allows more people than ever the opportunity to own a home. With only a three-percent down payment and a single-family home mortgage limits coming closer to two hundred thousand dollars, now may be the best time to apply for an FHA home loan. First, evaluate your finances; your monthly housing costs should not exceed more than 29% of your gross monthly income. Use gross income, not net income, when evaluating your finances to apply for your FHA loan.
$100 HUD REPO PROGRAM NOW AVAILABLE
March 7, 2008 – $100 HUD Repo Program Now Available in Kansas and Missouri
The FHA HUD Repo Program which allows the borrower to make only a $100 downpayment when purchasing a HUD repossessed home has now expanded to include Kansas and Missouri. Borrowers are only required to make a $100 downpayment instead of the normally required 3% investment. In certain cases the borrower and perhaps even the selling real estate agent may be eligible for additional incentives. The $100 HUD Repo program allows for a maximum LTV up to 110% in order to finance closing costs and prepaid expenses above 100%.
FHA continues to provide highly competitive interest rates and mortgage insurance premiums for borrowers who have had credit challenges in the past as well as for those that have not.
The FHA HUD Repo Program which allows the borrower to make only a $100 downpayment when purchasing a HUD repossessed home has now expanded to include Kansas and Missouri. Borrowers are only required to make a $100 downpayment instead of the normally required 3% investment. In certain cases the borrower and perhaps even the selling real estate agent may be eligible for additional incentives. The $100 HUD Repo program allows for a maximum LTV up to 110% in order to finance closing costs and prepaid expenses above 100%.
FHA continues to provide highly competitive interest rates and mortgage insurance premiums for borrowers who have had credit challenges in the past as well as for those that have not.
Subscribe to:
Posts (Atom)
Posts
