FHA-Loans-Information

There is hope you can refinance your mortgage by using the FHA Hope Loan Program.  Things may seem like there is no way you can keep your home, but refinancing with a FHA Hope Loan may be the way.

The author of this article briefly discusses the steps and conditions to qualify for a FHA Hope Loan.

Find Out How to Refinance Your Mortgage With the FHA Hope Loan

The government is trying to help decrease the housing crisis by offering the "Hope for Homeowners" program. It is a FHA refinancing choice for homeowners who have adjustable rate mortgage loans. Their goal is to decrease the rate of foreclosures in the country by putting them into fixed-rate mortgages. It is scheduled to run until September of 2011.

How to Qualify for FHA Hope Refinancing Program

Initially, you will have to get in touch with a lender who is approved to FHA loan and see if you are qualified for the FHA refinance Hope program. As usual, there are specific conditions for the program.

Some standard conditions for FHA refinancing include:

• Your current mortgage loan began on or before 1/1/08.
• Your monthly mortgage payments are more than 31% of your gross monthly income (as of 3/1/08).
• You did not intentionally become late on your payments.
• You have never been convicted of fraud.
• You do not own other residential real estate.
• You did not input false data on your mortgage application to get the original loan.

These are the minimum conditions to qualify for the FHA Refinance Hope program. Moreover, there may be additional conditions based on your file.

Common Questions and Answers

The main objective of the FHA Hope program is to assist at-risk homeowners (who are close to foreclosure) to refinance out of an ARM and into an affordable fixed-rate mortgage loan. This benefit should decrease the borrower’s monthly payments who enroll into this FHA loan program.

Are there any closing costs?

Just like as with any home loan, there will be closing costs for this refinance from the FHA. Borrowers are able to include these costs into the new loan, or they can pay them separately from their own funds. Ask for an estimate of closing costs from your mortgage company in the beginning stage.

How do I apply?

Discuss with your lender or mortgage broker regarding the documents required. It may vary from one lender to another. Although, it is quite customary to provide evidence of income (such as pay stubs, bank statements and W-2s), along with your current mortgage forms.

Upon receiving the required information for the FHA Hope refinance program (Hope for Homeowners) borrowers who are approved will be offered a refinancing choice for a fixed-rate mortgage amortized over 30 years.

Author: Mario Olivera Mario Olivera is a investor and contributor with ByOwner MLS Homes and iJumbo Loan

Article Source: http://EzineArticles.com/?expert=Mario_Olivera

Comments:  This United States Government loan modification program is meant to reduce the foreclosure rate.  If you think you may qualify for the FHA Hope Loan Program you should contact your lender immediately.  You can find another on the FHA Hope Loan here.

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Types Of FHA Housing Loans fha hope loan, fha hope loan program, hope for homeowners, loan modification

The United States Government is trying to reduce the housing crisis that we are currently going through by offering the FHA Hope Loan.  The FHA Hope Loan is also known as "Hope for Homeowners" program.

The program is to give hope to homeowners who are struggling with their adjustable mortgage loan.  The author of this article will give you a brief overview of the FHA Hope Loan Program.

 Don’t Give Up Hope – Refinance With an FHA Hope Loan!

 You may feel like there is no hope. Refinance options can seem out of reach. In this dire economy the banks and mortgage companies want very much to keep you in your home. Answer a few simple questions and see if you qualify for an FHA Hope loan.

First of all, if your mortgage originated before January 1st, 2008 and your monthly payments are more than 30% of you gross income you meet the first round of qualification.

Your loan must have an adjustable rate mortgage and your reasons for not being able to pay, or your future predictions for not being able to pay must not come as a result of fraud, theft or anything intentional on your part. Loss of job, illness, military deployment, and loss of income are all examples of things that are out of your control.

The best scenario is for those who have not yet become delinquent but are projected to do so. You are not yet deep into debt and so will be more easily able to secure a new loan with a good rate. Also, you show initiative in keeping hold of your finances and keeping your home. Banks will like this.

You cannot own other residential properties if you want to qualify for a hope loan through FHA. This program is really geared to the little guy. That middle level American who finally bought themselves a home and is suddenly faced with the possibility of losing it.

Before you discuss this option with your banker be sure that you understand that the basic goal of this program is to get soon to be defaulting homeowners with adjustable rate mortgages into fixed rate mortgages they can afford to pay on. If you already have a fixed rate mortgage then this is not the program for you. That does not mean you should give up hope.

When you apply for this loan and find that you don’t meet the criteria, be sure to ask your banker about other loan programs that can offer you hope and relief from mortgage debt. The more people that can stay in their homes and make their payments, the better the market will be in the long run.

Spend a day or two gathering up all of you financial information and getting familiar with your own situation. Once you have everything together and have reviewed it make an appointment with a loan officer at a bank you know and trust. Be sure to ask about the Hope for Homeowners program through FHA and any similar programs you may qualify for. Financial relief could be closer than you think.

Author: Jon Higgins A loan modification could be the better option for you right now. Find out how to get qualified for a home loan modification.

Article Source: http://EzineArticles.com/?expert=Jon_Higgins

Comments:  This article on the FHA Hope Loan Program is just a brief overview of this program.  You will find more articles here FHA Hope Loan Program.

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 Comments:  We all may not have a lot of cash laying around the house or stuffed in a mattress for a down payment on a new home.  Most conventional loans require 5% to 20% down payment in order to get a mortgage for a home.  But there is another way to get a home with only 3.5% down payment.  It is a FHA Loan and the article below will give you the basic FHA Loan Info to see if this type of a mortgage is what you are looking for.

Not only do most of us not have a lot of money for a down payment but our credit history may not be a shinning star.  That is another good thing about FHA loans; you can have less than perfect credit to get FHA Home Mortgage Loans.  The FHA Loan Info is the below article will touch on that area also.

FHA Loans – Can You Still Buy a Home With Little Money Down and Less Than Perfect Credit?

The simple answer is yes. There are still programs available that allow credit challenged borrowers to buy homes with as little as three and half (3.5) percent down payments.

I know the media makes it sound like the banks have stopped lending all together. This simply is not true! The program that I talked about in this article is still closing mortgages everyday. Plus it is one of the most secure programs available. The program has been around for a very long time, but got thrown by the wayside with sub-prime mortgage which caused the crisis our financial system is in right now.

The first program and you probably have heard of it is FHA.

FHA has been around since the 1930s. It was designed to increase home ownership, and reduce the required down payment. Today it still accomplishes these goals plus some. FHA today is used for first time home buyer, credit challenge borrowers, and borrowers with no credit scores. FHA is also a valuable program for borrowers who are looking to refinance their homes.

FHA does have credit guidelines, but they do not look at credit scores.

What is the difference you are asking, for example you can have a 540 FICO score which is a low score, but as long as you have not had any collection, judgments, or bankruptcies in the last twenty four (24) months there is a very good chance you will qualify for a mortgage with FHA. Bankruptcy, FHA does allow borrowers who have filled for bankruptcy. Generally the bankruptcy has to be discharge for twenty four months, but under extenuating circumstances it is possible to get an FHA mortgage after only twelve months after the bankruptcy has been discharge. But you will need to document the reason for the bankruptcy, and the reason you filled must be out of your control.

Qualifying for an FHA mortgage is simple.

First your debt to income ratios should be no more than 32/44. The first number is your housing ratio. The percentage of your monthly income going out to the proposed housing payment including, taxes, insurance, monthly mortgage insurance premium (MIP), and any homeowner association dues (HAO) – the second number is referred to as the total debt to income ratio. This is the total percentage of your income to total debt including the proposed housing payment. FHA does allow a non-occupying co-borrower as long as this person is a family member by blood or marriage.

For example if your debt ratios are to high to qualify for the home you want to purchase you could use a non-occupying co-borrowers income to qualify for the home you want. Also if your FICO score is in the low 500s adding a non-occupying co-borrower with good credit scores will strengthen the over all loan.

Second are the credit requirements, and these are only general rules.

FHA really has no set credit guidelines and allows for exceptions with documented extenuating circumstances. FHA is normally looking for no credit collection (medical collections are always overlooked), no judgments, and no bankruptcies in the last twenty four months (24). If you have no credit this ok as well, but you will need to provide your loan officer with nontraditional credit, acceptable nontraditional credit references include the following utility bills, phone cell or land line, cable, and auto insurance. You will need to provide three accounts with a twelve month payment history for nontraditional credit trade lines.

Third is down payment.

FHA does require a down payment of three and half (3.5) percent, conventional mortgages require at least five (5) percent down with minimum credit scores of 640. However the down payment can come from a gift from a friend or family member. There are also local grants, or bond money that are acceptable forms of down payment. So it is possible to get your down payment paid for. Plus the seller can pay up to six percent (6%) of the total purchase for closing cost , and pre-paid items such as taxes, insurance and days of interest.

FHA has very competitive rates.

Mortgage rates change daily, but on most days FHA has the same rates as conventional loans, so FHA borrowers are getting the same rate on a thirty year fixed mortgage as someone with excellent credit. FHA also has lower mortgage insurance premiums than conventional loans.

 Mortgage insurance is paid to the lender anytime a loan to value is greater than eighty (80) percent it is to protect the lender in case of loan default. Conventional mortgage insurance is based off credit score and loan to value. Rates start at fifty basis points (.0005) of the loan with excellent credit, and goes has high as two points (.02) percent.

FHA has a upfront premium that is financed into the loan of one and three quarter (1.75) percent, and a fixed monthly premium regardless of credit at fifty five basis points (.00055). To calculate your monthly mortgage insurance premium take your base loan amount multiply by your mortgage insurance factor. For example base loan amount of $90,000 * .00055 = $49.50 a month.

Author: D Clark DClark Sr. Loan Officer Cole Realty and Lending, Inc. http://www.midwestfhaloans.com

Article Source: http://EzineArticles.com/?expert=D_Clark

Comments:  As you can see if you have little money for a down payment for a home loan, the FHA Home Mortgage Loan may be what you are looking for.  FHA Home Mortgage Loan has become the key way to get a mortgage since the recent credit crunch.  You can get more FHA Loan Info by clicking FHA Loan Info-FHA Loan Financing VS Conventional.

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The FHA Housing loan had been crowded out in the past by sub prime loans.  With the recent demise of the sub prime loan in the recent bursting of the housing bubble, everyone is looking for FHA Loans Information.

The reason for the search for FHA Loans Information is that FHA only requires 3.5% down payment and lower credit scores. Most conventional loans requires from 5% to 20% down payment.

As a real estate agent it was easy to get someone approved for a sub prime loan, basically all they needed was a pulse.  I never could understand how a person had trouble coming up with a $100 earnest money check yet could get approved for a $120,000 house.

Those days are over.  Because of all of the foreclosures things have gotten a lot harder to get a mortgage for a house.  There is why most people that don’t have the money for a 20% down payment are looking for FHA Loans Information.

The low 3.5% down payment is not the only reason people are looking for FHA Loans Information.

Here are three more reasons you should consider FHA Housing Loans:

1.  It is much easier to qualify for a FHA Housing Loan.

Lenders are more willing to give you a FHA Housing Loan because FHA insures your mortgage so the Lender has less at risk than a conventional loan.  This makes it easier for you to qualify for a FHA Housing Loan.

2.  Most people’s credit is not perfect, yours may not be either.  That is OK with FHA, you don’t need perfect credit.  But you can’t have awful credit either.

3.  Interest rates may be lower than conventional loans.  Because the loans are insured by the Federal Government, they have competitive rates.  Always compare FHA interest rates with conventional rates.

FHA Housing Loans are becoming the primary source of mortgages for people with less than perfect credit and small down payment.  You can get more articles on FHA Housing Loans by clicking FHA Loans Information.

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Comments:  The author of this article discusses the basics of FHA Streamline Loan Refinancing.  The author goes into detail what is FHA Streamline Loan Refinancing, how do you qualify, and how do you apply for FHA Streamline Loan Refinancing. 

If things have changed since you first financed your home such as lower interest rates or improvement in your credit history,  you should consider FHA Streamline Loan Refinancing.

Home Financing 101: The Fha Streamline Loan

If you’re searching for a fast and easy way to refinance your existing FHA loan, then take a look at an FHA streamline Loan. Here, you will find basic FHA Streamline Loan information and information regarding how to submit an FHA Streamline Loan application.

FHA Streamline Loan Information – What Is It?

An FHA Streamline Loan is used when refinancing a loan on a current property. The Federal Housing Administration created the streamline loan so that people could refinance their loans. The term "streamline" simply refers to the kind of refinancing plan you are using. With an FHA Streamline Loan, information requirements are simplified which results in reduced paperwork, underwriting, and documentation. The trade off is higher restrictions on an FHA streamline refinance, however if your purpose is mainly to reduce your payment or change terms, you should seriously consider the FHA Streamline Loan. Information on qualifications and restrictions are included below. You can talk to an FHA lender for more specific FHA Streamline Loan application information that will speak specifically to your situation.

FHA Streamline Loan Information – Will My Costs Go Down?

With a successful FHA Streamline Loan application, your monthly costs and/or overall mortgage costs over the life of the loan will reduce, but a Streamline FHA loan is not cost free – closing costs either need to be: A) Paid out-of-pocket, B) Included in the loan amount, or C) Exchanged for a higher interest rate (yet one that is still lower than the current rate).

Depending on the details of your situation and your FHA Streamline Loan application, you may be able to obtain a streamline refinance without paying any out-of-pocket fees, though.

FHA Streamline Loan Information – Who Qualifies?

The requirements for an FHA Streamline Loan application are:

- The mortgage to be currently insured by the FHA – The mortgage to be currentnot in default, no late payments – The refinanced loan to result in lower monthly payments (principal and interest) for the borrower – Subject loan to be more than 6 months old.

Additionally, an FHA Streamline Loan may have other restrictions. For example, cash-out is not an option and there are limits on the term lengths relative to the current situation. Essentially, the new arrangement cannot significantly increase the life of the loan for loans that have been paid down a whole lot, and a 15 year mortgage cannot be changed to a 30 year term. Clarifying what you are able to accomplish will require more specific consideration of your specific FHA Streamline Loan information with the aid of a qualified FHA lender.

FHA Streamline Loan Information – How Do I Apply?

To have your FHA Streamline Loan application processed, you will need assistance from a competent FHA lender. If you feel that an FHA Streamline Loan is right for you, you should contact an FHA lender to discuss terms and rates. You will have a short FHA Streamline Loan Application to fill out, and the lender will give you more FHA Streamline Loan information regarding the process, your options, and what to do to move forward.

The focus of the FHA Streamline Loan Application is to make your home’s mortgage more affordable and more manageable for you. If you have held your current loan for a reasonable amount of time, improved your credit standing, or increased equity in your home, it is time to contact your FHA lender for more FHA Streamline Loan information to learn how you may benefit from an FHA Streamline Loan application.

By: AccessNational

Article Directory: http://www.articledashboard.com

This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions such as Alaska FHA home loan programs, Oregon VA home loan programs, debt consolidation loans, information about Washington FHA Refinance Benefits, and whole host of other mortgage product all across the United States.

Comments:  If you are looking to make your FHA Mortgage Loan more manageable or lower your mortgage payment, you should give your lender a call and check further about FHA Streamline Loan Refinancing. 

The lender will be able to help you to determine if FHA Streamline Loan Refinancing will help reduce your mortgage payments and how long will it take you to recover the closing costs.

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Comments:  This article is about FHA 203K Mortgage and is mostly for loan officers, but as a homebuyer or owner you will get a good idea how you will qualify and the basics of a FHA 203K Mortgage.

The author discusses the  FHA 203K Mortgage and also the FHA 203K Streamline Mortgage.  Most homebuyers and owners will be more interested in the 203K Streamline because it is a much easier process.

Fha Streamline 203k – The Basics

One of the most exciting opportunities today for loan officers and real estate agents alike is the opportunity to sell off the glut of foreclosed homes on the market.

A big problem with these potential deals is that most people who are losing their home because they can’t make the payments usually lack the money for routine maintenance as well. Once foreclosed upon, those homes hit the market needing some serious sprucing up.

In 2005 HUD came up with a new FHA insured mortgage program they called the "Streamline (K)" Limited Repair Program. The Streamline 203k loan permits homebuyers and those refinancing to borrow up to an additional $35,000 into their mortgage to improve or upgrade their home.

Most loan officers go looking for a special set of guidelines for Streamline 203k loans. There are some specialized guidelines and loan to value rules, but the key thing to remember is that all standard FHA underwriting guides apply just the same way they for any regular FHA loans when it comes to credit, income and asset documentation. This includes decisions reached by both automated underwriting systems and manual underwrites.

Here are the general criteria for a deal to qualify for Streamline 203k:

* May be used for purchase or refinance of one-to-four (single family) residences, including HUD REO properties

* May be either fixed or adjustable rate mortgages

* Combines the funds to purchase or refinance (pay off existing liens) along with the funds needed to repair/rehabilitate the property.
Repairs are completed after closing. (NOTE: A 203K cannot be a Cash-Out Refinance. All money must go to repairs.)

* One closing, with rehabilitation funds escrowed and disbursed as the work is satisfactorily completed

* Can be used to update homes, correct health and safety issues, pay for higher cost items such as a roof, etc.

* Property value must be sufficient to purchase/refinance and complete the rehabilitation

* Property must be 100% complete or equivalent document and must be at least one (1) year old.
(EXCEPTION: Presidentially declared disaster areas for one (1) year after the disaster)

* Borrower and credit eligibility same as for other programs (No Investors, including REO sales)

Here are a few additional aspects of the Streamline 203k:

* No minimum borrowing threshold, but there is a maximum of $35,000, which most lender require to include at least a 10% contingency fund

* Appraisal is completed as "Subject To Repairs"

* A minimum 10% Contingency Fund is required

* Unlike regular 203k’s no consultant and plan is required

* No general contractor is required

* The lender is responsible for ensuring that the repair cost is reasonable and customary for the area in which the property is located

* No preparation of architectural exhibits (as required in HUD Handbook 4240.4 REV-2, Paragraph 3 – 2) is necessary

* Streamline 203k helps address the repair issues that are often delaying or preventing sales and refinancing

Obviously there will be some differences between regular FHA and streamline 203k when the time comes to calculate the maximum mortgage amount.

Here is how the maximum Streamline 203k mortgage amount is calculated:

The mortgage amount can be the lesser of:

A. The maximum (statutory) mortgage limit for area

B. The "As is" value (usually the purchase price or outstanding debt in case of a refinance transaction) plus cost of rehabilitation

C. 110% of "After Improved" value; Condominiums are limited to 100% of "After Improved" value.

D. If the borrower has owned the property for less than one year, the acquisition cost is the maximum.

Only a handful of lenders are accepting loans under the full FHA 203k guidelines, but many FHA lenders are offering the streamline version.

By: Carl Pruitt

Article Directory: http://www.articledashboard.com

For FHA training for loan officers go to fhaloanadvice.com

Carl Pruitt has 23 years experience in the mortgage and real estate industries as an FHA mortgage specialist.

Comments:  The author said there is no minimum borrowing threshold for the FHA 203K Streamline Mortgage, there is a $5,000 minimum treshold with the maximum $35,000.

The FHA 203K Mortgage is an excellent loan program if you are considering purchasing a house that needs repairs but don’t have the cash to make necessary repairs.  The FHA 203K Mortgage Streamline Program is easier than trying to get a conventional rehab loan.

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Comment:  The author gives you FHA Loan Info that compares FHA Loan Financing against conventional loan financing.  He lists five things you should know before you decide which one you should use.  This article will give you a lot of FHA Loan Info.

Conventional Vs. FHA Financing: 5 Things You Should Know

Is FHA Financing a good choice? Yes or else it would not have been used by 30 million people. Is Conventional Financing bad? No. It is just a matter of which service suits your requirements the best.

Good, Better, Best

FHA loans are offered by thousands of lenders and are readily available nationwide and because they all offer identical terms and services, it is worth your while to shop around to get the best possible rates when you either finance for the first time or refinance.

Simple and Basic

FHA Financing is a basic mortgage program implemented by the Federal Government in the1930s with the objective of offering affordable mortgage loan to people who either have had credit problems in the past, are first time home buyers, or have low or moderate incomes.

It has expanded in popularity and is today a choice worth considering by any borrower. FHA Financing has no hidden fees or high increases that may result in foreclosure down the road. The borrower gets both financial security and peace of mind.

Rates, Deposits and Payments

FHA rates are lower than Conventional rates and you are not subjected to pre-payment fees. You can get fixed-rates with FHA which has a big impact on your monthly re-payments and because your monthly repayments are set, you can budget long term. You do not need exorbitant deposits, 3% of the loan amount will do it.

Other financial institutions insist borrowers prove cash reserves when they close the deal and this means that beside the deposit you get heaps of money in savings, something not attainable by the majority. FHA does not ask for reserves.

On top of this, FHA allows owners to provide anything up to a 6% cap of the sale price. This can be in the form of what is called ’seller contributions.’ In the event of a market being slow, or where sellers use their rights to move homes, seller contribution credits secured by the owners, can be put toward paying the buyers closing costs.

Except for the deposit, this may even cover all of the buyer’s closing costs. A word of caution though, contributions by the seller must be attained in writing and must be part of the purchase agreement which is inspected by the provider of the loan. Borrowers must provide sufficient proof of income to demonstrate the ability to pay the mortgage.

Requirements of a conventional loan applicant include excellent credit, job stability with sufficient income, a sizable down payment, and low debt to income ratios. Borrowers who meet Fannie Mae guidelines are rewarded with an interest rate only slightly lower than an FHA interest rate.

Credit Issues

Credit issues affect many people and if you have ever been faced with bankruptcy or foreclosure then the FHA option is your best bet when looking for a mortgage. FHA is more relaxed and lenient toward your application.

The criterion is that if you have been subject to bankruptcy, it must have been a year previously to the load application under Chapter 13 Bankruptcy or two years under Chapter 7 Bankruptcy. Conventional Finance institutions may not even look at you under these circumstances.

Leniency and Understanding

FHA qualifying criteria are that you have permanent employment and can prove you are able to cover your monthly repayments. They also require you produce some sort of credit history, and if you do not have what is called traditional credit, you can use items like utility payments, past rental records, insurance policies or any other report from approved credit providers.

FHA has unusually liberal standards for qualifying and may allow you to borrow a lot more than conventional loan companies. With FHA programs, as much as 43% of your monthly income can be allocated to recurring monthly costs like mortgage payments and vehicles payments.

If you quality, FHA can provide you with 100% of the loan. As the borrower, you are liable for the initial insurance premiums which comes to about 1.5% of the loan amount, but this amount can be absorbed into the loan if need be. Your repayments will be 0.5% of the total loan amount divided into 12 months, and a 3% deposit is required, however no reservations are needed and it can take the form of a gift, but cannot be absorbed in the loan amount. Closing costs are your liability, but can also be funded in the loan amount.

Conventional institutions stipulate the borrower have 5% for the deposit as well as 2 months reserves in the bank and will not fund closing costs in the loan amount.

Citizenship

You do not have to be a citizen to quality for an FHA loan. You can be either a permanent or a non-permanent resident. If you are a permanent resident, you need to prove this via documentation supplied by the Bureau of Citizenship and Immigration Services (BCIS) who are part of Homeland Security.

In the case of non-residency, you need to prove that you can legally work in the country and to do this you will need to produce your Employment Authorization Document issued by the BCIS.

By: mikecole1Article Directory: http://www.articledashboard.com

Mike Cole is a freelance writer who writes about economic issues and financial products pertaining to the mortgage industry such a fixed rate mortgage as well as thelowest mortgage rates.

Comment:  Here is some updated FHA Loan Info.  The author said the down payment for FHA Loan Financing is 3% of the loan amount, it has been changed as of January 1, 2009 to 3.5%.  Also, seller down payment assistance has been eliminated. 

As you can tell, you need to get more FHA Loan Info from your lender because FHA Loan Financing may be the way for you to finance you new home.

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Comments:  The author talks about some of the misinformation about a FHA Housing Loan including the belief a home purchase with a FHA Housing Loan is shabby. 

The truth is a lot of homes purchased with FHA Housing Loans are in good neighborhoods and are of high quality.  According what area of the country you live in, purchase price can be up to $700,000 and with only 3.5% down payment.

The low down payment of a FHA Housing Loan sure beats the 20% down payment required by some banks for conventional loans.

Buying A Home With An FHA Home Loan

When many people think of an FHA home loan they assume that these are loans that are for people who can’t afford a nice home, but that isn’t true.

Did you know that there have been more than 30 million homes purchased with these loans? Did you also know that some of the homes that have been purchased with these loans are valued at more than $700,000?

There is a lot of misinformation out there about these loans, and because of this misinformation, many people do not take advantage of them and they end up paying more for their loan than they need to.

FHA Doesn’t Mean Shabby

Many people think that if they acquire an FHA home loan that they have to buy some shabby home in the middle of a bad neighborhood, but this isn’t the case whatsoever. Chances are some of your neighbors in your current neighborhood have one of these loans; in fact, some of the nicer houses in your area may have been purchased with these loans! Would you have ever guessed?

To buy a home with an FHA home loan the home actually has to meet certain standards.

The house cannot have problems with the roof, with the foundation, with the heating and cooling systems, and things of that nature that take away from the value of the home.

In fact, the house has to be in good condition to be considered for this type of financing. So, a home purchased with one of these loans is more likely to be beautiful rather than shabby!

Just about any home can be purchased with an FHA insured loan.

This type of loan generally doesn’t limit the type of home that you can buy; instead it limits the costs that you will incur when you buy the home. Instead of having to put down as much as 20 percent on a home as a down payment, you will need to put down three to five percent on the home. Instead of having unlimited closing costs, there are limits as to what you can be charged.

In addition, there will also be programs available to you that will provide you assistance in paying for the down payment and closings costs!

While many people assume that an FHA secured loan means that they cannot buy the house of their dream others are going out and buying them.

Don’t assume that what you have heard or have thought about these loans is true. These loans have helped millions of people buy homes very affordably, and chances are you could be one of the millions more that will benefit from this loan program that is more than 70 years old!

While there are requirements and limitations as far as price goes with these loans, you will generally find that if you qualify, any house that you want could be yours because the limits are so high.

The limits are based on where you live, so chances are the home that you have been eyeing up could be yours, for less than you might thing, when you apply for and are accepted for one of these loans!

This is a very affordable option for a lot of consumers, making it worth the time and effort to look into this often misunderstood type of home loan!

By: IC

Article Directory: http://www.articledashboard.com

Get more information about FHA home loan as well as expert advice regarding bad credit visit our expert source at: www.refinance.com/

Comments:  The author did mention down payment assistance programs.  These programs have pretty much been eliminated because of the foreclosure problems of these programs. 

FHA Housing Loan may be just the way you can buy your dream home, especially if you don’t have a lot amount of cash for a down payment.  So start looking in the good neighborhoods you want to live in and contact a lender and see if you qualify for a FHA Housing Loan.

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Comment:  The author of this article goes into detail the differences between a FHA Streamline Refinance Loan and a Home Loan Modification. 

If you have mortgage loan insured by Fannie Mae or Freddie Mac you will use a home loan modification plan and if you have a mortgage loan insured by FHA you will use a FHA Streamline Refinance Loan.

Home Loan Modification Vs FHA Refinancing Programs

Are you among the millions of U.S. homeowners hit the hardest by the current financial crisis in America? Are you concerned that you can’t make your monthly mortgage payments anymore? If you’re nodding your head, you need to hurry to a financial counselor today and ask about home loan modification vs. FHA refinance.

Loan modification and FHA refinance are helping hundreds of thousands of homeowners prevent foreclosure when they can’t pay their mortgages.

Which one is best for you depends mostly on who backs your loan. To learn about your loan insurer, call your lender and ask.

Most loans are insured by the FHA, Freddie Mac, or Fannie Mae. None of these three organizations are actual lenders, but they insure the loans and guarantee the full amount of the loan. Doing this lessens the risk for lenders and helps borrowers get lower interest rates.

How can you tell apart an FHA loan and a Fannie or Freddie loan? From the outside, you really can’t.

There isn’t much difference between the loans, aside from who happens to insure them. A lot of homeowners don’t even know who insures their loan, and that’s because they rarely need to know that information. When they do need it is when they want to modify their loan to decrease their monthly payments.

If your loan is a Fannie or Freddie loan, then you could be eligible for President Obama’s Making Home Affordable mortgage loan modification plan. If you have got an FHA loan, then you should look into the HOPE for Homeowners plan, which is a special FHA plan to refinance mortgages through equity sharing.

Refinancing with HOPE for Homeowners with FHA loans opens up the possibility of refinancing to thousands of individuals who didn’t used to qualify under old refinancing laws. Decreasing house prices have caused a drop in the home equity that people hold, and that drop has made some unable to refinance traditionally. If they have lost enough equity that they no longer have 20% equity, they used to be unable to finance.

The Making Home Affordable plan, in contrast, is not a refinancing program. Instead, it is a loan modification program, which requires participating lenders to follow a standard procedure to lower homeowner’s monthly payments to affordable levels.

The plan includes $75 billion of incentives paid out to both lenders and borrowers for successfully modified loans. Modifying loans prevents foreclosure and stabilizes the economy as a whole.

Author: Lindsy Emery Discover additional benefits of loan modifications vs refinancing, by visiting the #1 loan modification resource on the net: http://home-loan-modifications.info/

Article Source: http://EzineArticles.com/?expert=Lindsy_Emery

Comment:  Your choice of which plan you use, a FHA Streamline Refinance Loan or Home Loan Modification, to modify your mortgage depend upon who insures your mortgage.  But if you are having trouble making your mortgage payments you need to contact your lender now to get the process started.

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Comment:  The author of this article explains how fast and easy it is to use a FHA Streamline Refinance Loan to refinance your mortgage loan. 

The author compares the ease of doing a FHA Streamline Refinance Loan with that of a stated income loan.  You do not have to supply the lender with W-2 forms, no tax returns, no pay stubs or income statements.  FHA Streamline Refinance Loan is a quick no trouble way of refinancing your mortgage.

 FHA Streamline Refinance is Like a Stated Income Loan

Homeowners with a current FHA mortgage have something that others don’t, that is the opportunity to refinance with no income verification, using an FHA streamline refinance.

A stated income loan seemed to be a thing of the past but, FHA will streamline a mortgage refinance to reduce the documentation and underwriting normally required.

That means no tax returns, W-2 forms, or pay stubs, and no bank statements to verify assets. Also, FHA does not require a credit report, but some lenders may require one for pricing the rate. A verification of mortgage is required to determine if the loan is delinquent, which is not allowed.

Another potential benefit of the FHA streamline refinance program is that a home appraisal may not be needed. So, in addition to being like a stated income loan, without verifying income or assets, this loan can also eliminate value as an obstacle, especially in a declining housing market.

As with all government programs, there are certain rules and limitations that determine if a refinance will fit into the FHA streamline guidelines, including the following:

1.The current mortgage to be refinanced must already be FHA loan.

2.The subject property must be the borrower’s primary residence .

3.The current mortgage to be refinanced should not be delinquent.

4.The streamline refinance only allows a maximum of $500 cash out.

5.The refinance must result in reducing principal and interest payments.

When getting an FHA streamline refinance without using a new appraisal, the maximum loan amount will be determined by using the lesser of the following two calculations:

1.The original principal balance of the existing FHA mortgage, plus the new up front mortgage insurance premium, which is currently 1.5% on a streamline refinance.

2.The existing FHA mortgage, plus closing costs, prepaid taxes, insurance, interest, and the new up front mortgage insurance premium. Subtract refund of old premium.

When using a new appraisal for an FHA streamline refinance, the maximum loan amount will be determined by the lesser of the following two calculations:

1.The appraised value multiplied by the maximum loan to value percentage, which usually ranges from 97% to 97.75% depending on the state and the loan amount.

2.The existing FHA mortgage, plus the closing costs, prepaid property taxes, hazard insurance, up to 30 days interest, and subtract any refund of insurance premium.

If there is a line of credit or second mortgage on the home, the lien holder must agree to re-subordinate their loan regardless of the combined loan to value. The total amounts of the first and second mortgages can exceed the normal loan to value and the maximum mortgage limit.

Author: R A Smith Article written by Rick Smith at http://www.crhome.com, additional FHA mortgage information at http://www.ditech.com

Article Source: http://EzineArticles.com/?expert=R_A_Smith

Comment:  As you can see refinancing your mortgage with a FHA Streamline Refinance Loan is a great and easy way to refinance your mortgage.

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