FHA 203k Streamline loans can be used to repair your existing home or a home that you want to buy that needs repairs.  But if you are having trouble making your mortgage payment you may want to consider loan mitigation.

 This article will discuss some of the terms of Loss Mitigation and will answer some of the question involved in the process.

 Loss Mitigation Leads Q And A

Loss mitigation leads indeed serve as the heart of any loss mitigation business. But before steps are to be taken to familiarize oneself with loss mitigation leads one must first obtain knowledge of the basics.

Given below are questions and answers the Federal Government specifically determined as the most commonly asked questions about loss mitigation and its counterpart loan modification.

Loss Mitigation

Loss Mitigation works to negotiate mortgage terms for the homeowner that will prevent foreclosure. These new terms are typically obtained through loan modification, short sale negotiation, and short refinance negotiation, deed in lieu of foreclosure, cash-for-keys negotiation, or a partial claim loan or other loan work-out. All of the options serve the same purpose, to stabilize the risk of loss the lender is in danger of realizing.

Question 1 – When a mortgagor has been determined ineligible for HUD’s Loss Mitigation Program and the information utilized to make this determination was acquired by telephone, is the mortgagee required to send written notification of the denial to the mortgagor?

Answer – Mortgagee Letter 2000-05, page 11, paragraph H. "Evaluation of the Borrower’s Financial Condition" in part states, mortgagees must advise the mortgagor, in writing, the reason for denial and allow the mortgagor at least seven calendar days to submit additional information which may impact upon the mortgagee’s evaluation.

Question 2 – What types of documentation is considered to be third party verification of a mortgagor’s financial income?

Answer – Mortgagee Letter 00-05, page 10, paragraph H, "Evaluation of the Borrower’s Financial Condition" states in part " .Regardless of how the mortgagor’s financial information was secured, the mortgagee must independently verify the financial information by obtaining a credit report, and any other forms of verification the lender deems appropriate."

Question 3 – What date does HUD acknowledge as the "execution date" for home retention option documents?

Answer – HUD does not have a definition for "execution date." HUD does recommend mortgagees not execute any home retention option document until after the mortgagor has signed it. Thereby, the mortgagee’s timeline for submitting the incentive claim is not affected.

Question 4 – Can an exception be made on the occupancy requirement for loss mitigation retention options?

Answer – A variance request must be submitted on company letterhead to the NSC Oklahoma City Office, providing justification for the exception request for consideration.

Loan Modification
A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.

Question 1: In utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?

Answer: Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.

Question 2: May a mortgagee perform an interior inspection of the property if they have concerns about property condition?

Answer: Yes, the mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the mortgagor’s continued ability to support the modified mortgage payment.

Question 3: Can a mortgagee include late charges in the Loan Modification?

Answer: Mortgagee Letter 2008-21 states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification.

Question 4: When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner’s Association fees?

Answer: HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.

Question 5: Is there a new basis interest rate which mortgagees may assess when completing a Loan Modification?

Answer: Yes, Mortgagee Letter 2008-21 states that the new basis interest rate is 200 points above the monthly average yield on U.S. Treasury Securities, adjusted to a constant maturity of 10 years.

Question 6: Will HUD subordinate a Partial Claim; should a mortgagor subsequently default and qualify for a Loan Modification?

Answer: If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim.

Question 7: Are mortgagees required to perform an escrow analysis when completing a Loan Modification?

Answer: Yes, mortgagees are to perform a retroactive escrow analysis at the time the Loan Modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.

Question 8: Is the mortgagor eligible for the upfront premium refund at payoff of a modified loan?

Answer: It depends upon when the closing date occurred. For assets closed:

After July 1, 1991 but before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect,

On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies, or

On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.

Question 9: Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?

Answer: Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.

For more information regarding the fundamentals of Loss Mitigation and loan modification or for the best loss mitigation leads please contact CallComLeads

By: darewin ocampo

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Concerns About Countrywide Home Loan Modification

Worried about getting a mortgage adjustment from Countrywide? Learn about their eligibility criteria and what you can do to obtain Countrywide home loan modification.

Countrywide Bank, which was bought by Bank of America in July of 2008, is a major mortgage lender. Many homeowners with mortgages from Countrywide heard about its new plan to help more homeowners than ever refinance and modify their loans when they are having trouble paying. But they may have more questions about the Countrywide home loan modification process, what it entails, and who qualifies.

First off, Countrywide has gotten a bit of a bad reputation in the mortgage lending business. It was sued in 2008 by State Attorney Generals for predatory lending practices, and doing a simple Internet search for "Countrywide loans" will probably result in lots of angry messageboards from dissatisfied customers. Among the top complaint is that Countrywide customer service reps never tell customers the same thing twice, or that miscommunications or clerical errors have cost homeowners a lot of time and money.

As a result of the lawsuit, Countrywide announced a statement that they had a new plan in place to help troubled homeowners in a streamlined fashion. For loan modification, Countrywide s goal is to lower the monthly payment to within 34% of the gross monthly income so that people can afford to make their monthly mortgage payments. The modified loans will feature step-rate interest payment adjustments as time goes on. To be eligible for a Countrywide home loan modification, you must be a current Countrywide borrower who occupies the home as a primary residence.

Countrywide plans to modify loans in several ways. For FHA loans, HOPE for Homeowners is a special refinancing program that allows people with low home equity to refinance through a special equity-sharing program. If a homeowner refinances through HOPE and then sells their home later on, they will follow a sliding scale for how much of the home s equity they will give to the FHA at that time. Other options for loan modification include interest rate reductions, plus principal reductions to restore lost equity.

Even though the past reputation of the company is spotty, if you ve already got a mortgage with Countrywide then you need to move forward. Be proactive and seek a loan modification if your monthly payments are too high a percentage of your monthly income. Bank of America is trying hard to change the image and procedures of Countrywide, and since the lawsuit new plans for loan modification have been implemented. Countrywide automatically reviews many mortgages and will send letters to borrowers who are 60 days delinquent or may become delinquent to inform them of their loan modification policies.

For more information about loan modifications.

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FHA 203K Mortgage countywide home loan modification, FHA Streamline Loans, home loan modification

What to Look For In A Home Improvement Loan

Home improvement loans are a particular type of loan where the borrowed funds are used to make additions, improvements or repairs to your home or to the property on which the home is built. Using a home improvement loan in order to make modifications and enhancements to you house will result in an increase in the property value and will allow for a higher selling price in the event that you decide to sell your home. A home improvement loan can be either secured or unsecured, but is generally secured by the equity you already have in your home. In other words, the home itself is used as collateral to secure the loan.

Where to Get One

Home improvement loans are available through various sources including banks, credit unions, finance companies and other financial lending institutions. Usually, the first place to make your loan inquiries will be with your current lender. You will often obtain the best interest rate from a lender where you have already established a relationship. If what they have to offer is not appealing, there are many reputable financial lending companies who can provide a home improvement loan via the Internet. A quick search will provide many loan options.

Government Assistance

There are many state and federal government agencies that will provide a home improvement loan. These agencies usually have very strict criteria that must be met but they are definitely worth investigating. The US Department of Housing and Urban Development (HUD) website provides a wealth of information on the subject.

The Federal Housing Administration (FHA) is part of HUD and administers various single family mortgage insurance programs that are operated through FHA-approved lenders. The FHA approved lender will submit an application to have the property appraised and have the buyer’s credit approved. These lenders will then provide the loans which are insured by HUD. HUD does not make the loan itself.

The Section 203(k) program is the HUD program for the repair and rehabilitation of single family properties. Many lenders will partner with state and local housing authorities to provided Section 203(k) home improvement loans to assist borrowers. The place to start looking at this option is with a FHA approved lender or with the Homeownership Center in your local area. HUD also publish a helpful brochure called "Own a Home and Home Improvements"

What Can You Use the Funds For

While funds from a home improvement loan are frequently used to conduct major repairs such as installing a new roof or replacing outdated plumbing, many people utilize the funds for remodeling a kitchen or bathroom, landscaping a yard, adding a room or a garage or even adding an entire second floor to a single story home.

Getting the Most From Your Loan

Before committing to the loan and signing the documents ensure that you are receiving the best possible terms and interest rate. In addition, if you take out a $10,000 loan and the renovations or repairs you make to your home increases its value by, say, $15,000, then your home improvement loan can be considered an extremely sound investment.

Alison Stevens is an online author and maintains The Home Improvement Website to assist homeowners with home improvement tips and information.

By Alison Stevens Published: 5/30/2007

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FHA 203K Mortgage FHA 203K Mortgage

If you are a first time homebuyer you may not have been able to establish very many credit lines.  The traditional credit lines are such as student loans, credit card bills, car loans, and type of loan that are picked up by the credit agencies.  This makes it very difficult to get a home mortgage loan because you don’t have a traditional "credit history".  A mortgage company can’t tell you if have a history of paying off your loans.

If this sounds like you, there is some good news!  It is called FHA Housing Loans.  The FHA Loan Qualifications will look at other credit lines to determine you credit history.  They will look at bills you pay such as utilities bills, phone bills, cable TV bills, day care center bills, rental bills, and other recurring bills.  Most people have at least some of these types of bills.

The author of this article goes into more detail of FHA Loan Qualifications.

FHA Loan Qualifications – How to Prepare to Meet FHA Loan Qualifications

Only because you do not possess student loan, credit card bills, car disbursement and other conventional trade lines trailed by the credit agencies does not necessarily mean you cannot be eligible for a credit loan.

Most of the times borrowers searching for a mortgage do not have enough conventional credit history to give a lender with a rational credit rating. This is never a big deal!

The great news is that the FHA loan qualifications accept non-conventional credit in situations where you have inadequate trade lines with Equifax, Trans Union and Experian.

How does it work?

Nor-Conventional Credit References

FHA requires that as a borrower, you should have three credit references from two groups of non-conventional credit resources.

Group One- this first group of references is heavily weighted than the last group it is deemed to be a more precise forecaster of your credit value.

The first group comprises utility payments like electric, water and gas. Rental payments, cable TV bills and telephone can also be included in the first group.

Group Two- The qualifications for FHA are feasible by incorporating payment references like payment to day care, insurance payments, internet phones, and a 12-month bank statement that shows the history of deposits thus illustrating an increased balance. The last group also allows individual loan wherein the settlement terms are documented and signed by both concerned parties.

Applying for the FHA financing

In order to become eligible for the FHA financing, you should show that you are employed, have a good job status and that you are reliable. As you apply you have to give the following:

1.You must present your previous addresses within two years. If you are a couple that had varied addresses, you have to incorporate both of your addresses.

2.You must able to show your employment history in two years, that includes the name of your employer and their addresses along with your monthly gross income.

3.Present your income tax form and W2 for the last two years.

 4.If you are a veteran, you will have to incorporate your discharge papers as evidence of you status as a veteran.

The ideal way to qualify for the financing program of the FHA is to illustrate that you have been a dependable credit holder within two years.

In order to do such, you have to settle your old debts, pay on time, avoid any major credit procurement like buying a new car and stay with one employer. Keep in mind that being eligible for FHA financing is a lot simpler that dealing with private lender but it’s not for free. You have to show stable employment, dependability and overall ability to pay on time.

Author: Brian I Park For more information on FHA Loan GuidelinesVisit ‘New FHA Loan Requirements’ at http://www.newfhaloanrequirements.com

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

Comments:  Even if you don’t have the traditional credit history there is hope you can purchase a new home with a FHA Housing Loan.  If you want more tips on how to get a FHA Housing Loans please read this article "FHA Housing Loans – Tips For Getting A FHA Housing Loan!"

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Types Of FHA Housing Loans fha financing, fha housing loan, fha housing loans, FHA loan qualifications

The FHA 203K Streamline Loan is becoming the favorite choice for buying a home that needs some repairs or cosmetic updating.  It is also great if your were planning on selling your home but have decided, because of the poor real estate market, to stay in your home and make improvement.  It can be used for refinancing your repairs in to the new mortgage.

The FHA 203K Streamline Loan is a lot less complicated than the standard FHA 203K Loan.  It has a maximum limit of $35,000 and you can’t do structural repairs.  The author of this article gives you a brief description of the FHA 203K Loan.

If you want to know what repairs are eligible for the FHA 203K Streamline Loan, you can click "FHA 203K Rehab Loan- You Can Buy A Fixer Upper Home With A FHA 203K Rehab Loan!"

Features of the FHA 203K Streamline Refinance Program

The FHA 203k Streamline program has gained popularity recently due to the number of foreclosed homes that are being purchased that are in need of repair. The FHA 203k streamline program can be utilized both as a FHA refinancing option as well as a FHA new home purchase option.

An increasing number of foreclosed homes are using the popular FHA 203k streamline program due these homes needing repair. It is available for either a new home purchase or a refinance.

The FHA 203k Streamline is a different from the standard Section 203k loan due to it only permitting repairs costing a minimum of $5,000 up to a maximum of $35,000. Thus, the total mortgage loan will permit for property acquisition with up to $35,000 of the loan proceeds to be applied toward repairs or property rehab.

Some of the more common repairs completed using the FHA 203k Streamline program include:

Repair rain gutters and downspouts

Repair/upgrade of existing HVAC systems

Minor repairs of plumbing and electrical systems

Minor repairs of existing flooring

Minor remodeling that does not involve structural repairs

Exterior and interior painting

New appliances – items such as free-standing ranges, refrigerators, washers/dryers, dishwashers and microwaves but may not be greater than $2,000

Improvements for people with disabilities/handicaps

In addition to the FHA 203k streamline program, there is a FHA 203k standard program – which will allow more than $35,000 to be used in repairs but requires more "major" work.

The FHA 203k standard includes work such as Structural improvements including room additions, re-wiring, major landscape work, patios, decks, terraces, energy conservation improvements, steel insulated exterior doors, rehab or improvement of a detached garage.

Some highlights of the loan include:

The borrower is allowed to finance six months of payments into the loan

Up to six percent of seller contributions are allowed on purchase loans.

As you can see these are some very attractive loans for homebuyers as well as existing homeowners when a property needs a little rehab.

Author: Mario Olivera Mario is an avid investor in real estate. He and others suggest borrowers look for FHA Jumbo Loans and comparing FHA Mortgage Rates from trusted lenders in your area.

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

Comments: The FHA Streamline Loan is good way to finance HUD Homes for Sale.  You can get more information of how to buy HUD Homes and and use the FHA 203K Streamline Loan for the financing by clicking "Streamlined FHA 203K Loan-Great Way To Finance Home Repairs!"

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FHA 203K Mortgage fha 203K loan, fha 203k streamline, fha 203K streamline loan, fha 203k streamline refinance program, how to buy hud homes for sale, hud homes for sale, streamline fha 203k loan

We all have heard about the negative news lately about the real estate market and the glut of home foreclosures on the market.  You may be thinking now is the time to take advantage of the low interest rates and purchase a foreclosed home.  But the problem may be some of the foreclosed homes you have seen need a lot of repairs and improvements.  You don’t have the cash to make these repairs.  Well, there is good news and it comes in the form of the FHA 203K Rehab Loan.

When I refer to the FHA 203K Rehab Loan I am referring to the FHA Streamlined 203(k) Limited Repair Program.  It is for improvements and repairs that don’t require structural improvements.  It is not for total renovation of a property but for repairs not totaling more than $35,000.  The FHA 203K Rehab Loan did have a minimun of $5,000 costs of repairs, but that has been eliminated.

There are many benefits for using a FHA 203K Rehab Loan for improvements to a house you are planning on buying.  Also, you can use this FHA Loan Program to refinance your existing mortgage and do repairs and improvement to your existing home.

Some of the benefits of a FHA 203K Streamlined Rehab Loan Are:

1.  The borrower can take out just one mortgage to cover both the purchase of the property and the cost of upgrades.  This loan can be amortized over 30 years, unlike a conventional rehab loan that has a shorter amortization period and higher interest rates.

2.  Like I said before that there is no minimum cost for repairs.  You could use it only to put in an energy-efficient furnace.

3.  There are many different repairs and improvements you can use the loan for.  You can read an article on the list of improvements by clicking on the links at the bottom of this article.

4.  This is not a government loan, it is a FHA insured loan.  There are a lot of FHA Approved Lenders across the country.  Because it is insured by FHA, the FHA Approved Lenders are more willing the make the FHA 203K Rehab Loan.

5.  On of the biggest benefit is the low down payment of 3.5%.  Most conventional rehab loans require a 20% down payment.

6.  Lower interest rate.  Because FHA insures the loan, FHA Approved Lenders can make loans to people that don’t have perfect credit.  That doesn’t mean any one can get a loan, you still have to prove you can pay the loan back.

7.  The FHA 203K Streamline Loan eliminates the need for a consultant, engineers, plans, and consultant’s fees.  This speeds the process up and lowers the costs of the improvements.

As you can see if you are considering buying a home that need repairs or want to make improvements to your own home, the FHA 203K Rehab Loan could be just what you are looking for.

P.S.  Want More Information On FHA 203K Rehab Loans Or FHA Loans?  You can find more articles on what improvements or repairs  are eligible for the Streamlined 203K Loans by clicking the links.

 Want to know how to buy HUD Homes for Sale with Streamlined 203K Loans?

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You may be able to take advantage of the FHA 203K Rehab Loan Program by buying a home that needs repairs or making repairs or improvement to your existing home. 

The FHA 203K Streamlined Loan Program is available with only a 3.5% down payment and you don’t have to have perfect credit scores.  This is not a government loan, but a loan that is insured by FHA.

Because it is insured by FHA, FHA Approved Lenders across the country are more willing to give loans to people with lower credit scores and at lower interest rates.

The author of this article gives you a brief description of the FHA 203K Rehab Loan Program.

FHA 203k Rehab Low Down Payment Loan Helps Improve Neighborhoods by Improving Homes

U.S. Housing and Urban Development (HUD), and the Federal Housing Agency (FHA), both divisions of our federal government, offer a low-down payment homeownership solution titled FHA 203k Streamline program. This is a home lending program that can be used to purchase or refinance, and rehab residential 1- 4 unit properties.

Due to the terrible decline in the U.S. economy and the housing market the last couple years, real estate inventory has increased. Many home interiors and exteriors have declined and are in need of improvements. Some houses sit vacant requiring as much as $35,000 in repairs.

Consumers need to be aware of the opportunity that awaits them. They should not pass up buying or selling a home because it needs improving. One of the great benefits of the FHA 203k rehab program is that it is only one loan for purchase or refinance, including improvements; unlike traditional rehab loans. Using a traditional loan a buyer is required to make improvements before a long-term mortgage loan is obtained.

Traditional rehab loans require two loans: One loan for the property and one for improvements. Upon rehab completion, a traditional permanent mortgage is created to pay-off the property (acquisition) and repair (construction) loan.

Often these two traditional loans involve higher interest rates during their brief pay-off period.

The FHA 203k Streamline addresses this problem by offering one loan, at a long-term fixed, or adjustable rate, to finance both the property and the repairs. It allows homebuyers to buy real estate owned (REO) fixer-uppers that lenders offering traditional loan products would not repair.

This special government program has supplied current owner occupant homebuyers with funds to purchase their first home, or rehab the current home they live in. The loan is available to owner occupant home buyers of all income levels and current homeowners.

Repairs and improvements include a minimum of $5,000, and a maximum of $35,000. Some HUD – FHA 203k approved repairs include: Roofing, gutters & downspouts, septic, windows, doors, insulation, furnaces, air conditioning units, plumbing, electrical, appliances, kitchen and bath remodels, flooring, painting and energy efficient improvements. Call an FHA lender for further details or go to: hud.gov.

This is an important opportunity for consumers and communities to help our nations homeownership and give new life to our neighborhoods.

Author: Peter Boyle Peter Boyle Senior Mortgage Consultant Serving the community 17 years. http://www.peterboylehomeloans.com pboyle@summit-mortgage.com 612-701-6816

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

Do You Want To Know What Repairs Are Eligible For The FHA 203K Rehab Loan?

Comments:  The author mentioned $5,000 minimum cost of repairs.  This $5,000 minimum cost of repairs has been eliminated.

If you want to know what repairs and improvements are eligible you can get read this article "Streamline 203K Loans – What Repairs Can I Use Streamline 203K?".

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FHA 203K Mortgage fha 203k rehab, fha 203K rehab loan, fha 203k streamline, fha 203k streamlined loan program, fha aprroved lenders, streamline 203K rehab loan

You may have some home renovations to do  but you are having trouble finding a loan to do the renovations. A Streamline 203K Loan may solve your problems.

Streamline 203K Loan Program is insured by FHA and can be used for repairs or renovations between $5,000 and $35,000.  But what renovations can be used in this 203K Mortgage?

The author of this article will list many types of repairs that will qualify for the Streamline 203K.

How Can I Use a FHA 203k Renovation Loan?

In a recent article I showed you how quick and easy the FHA 203K Loan process was and how it can benefit you and your family in their search for the perfect home. We talked about how you can purchase or refinance and get the money to buy or to pay off your current mortgage alongl with an escrow account for repairs all in one simple loan process at great FHA rates.

Now I want to outline some of the common and not so common uses of FHA 203K Loans; from making a property handicapped-accessible to waterproofing a home to simply upgrading appiances in poor condition, the FHA 203K loan program gets the job done. So, how can you use the program?

1. New Freestanding Appliances

2. Complete Bathroom Remodel

3. Adding a New Master Bathroom

4. Upgrading Heating & Cooling Systems

5. Well & Septic

6. New Hardiplank Siding

7. Fresh Paint Inside or Out

8. Attic Build-Outs

9. Waterproofing the Basement

10. Finishing the Basement

11. Making the House Handicapped Accessible

12. Complete & Total Renovation

13. Adding a 2nd Floor

14. Adding a Bedroom

15. Moving a Historic House to New Location

16. New Deck & Outdoor Kitchen Area

17. Repairing Water Damage

18. New Hardwood Flooring or New Carpet

19. New Lighting Fixtures

20. New Windows & Doors

21. Upgrading Plumbing & Electrical Systems

22. New Fixtures for Tubs, Bathrooms and Kitchens

23. Opening Up a Floorplan

24. New Kitchen Counters

25. Vaulting Your Ceilings

26. Making Your House More Energy Efficient

27. Going Green with Solar Panels

28. Getting a Condo Ready for Your New College Student

29. Much, Much More

There are thousands of reason why people need to renovate and I couldn’t possibly list them all here. FHA allows for nearly anything you can think of so long as the value of your renovation supports the new loan amount. I am getting more and more requests to help provide financing so green conscience homeowners can add new energy efficient features, including solar panels, to their homes and save on rapidly rising energy prices.

Not to mention FHA will allow your debt to income ratios to be higher if you include energy efficient improvements to your renovation. So whether your renovation idea made the list or not, it is always good to check into FHA 203K Renovation loans before you finance your next home improvement or new home purchase.

Author: Jonathan Blackwell Jonathan Blackwell FHA 203K Specialist Hometown Lenders jonathan.blackwell@hometownlendersllc.com http://www.203KLoan.net http://www.atlantahomeloans.net 404-551-3845

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

Comments:  As you can see you can use the Streamline 203K for many different types or uses.  The Streamline 203K is a very useless form of financing your home renovation projects.

You can read another great article on the basics of the FHA 203K Mortgage here.

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 I bet you will have trouble getting a home improvement loan in today’s market without a lot of hassle.  But there is a home improvement loan program that is certainly easier to get than any other.  It is the FHA Home Improvement Loan.  It is called the FHA 203K Streamline Loan and it can be used improve to buy a home that needs repairs with rehab costs of less than $35,000.

You can also refinance your current mortgage and use the loan proceeds to improve the home you are currently living in.  The FHA Home Improvement Loan can be your answer to improving your home in one easy step.

The author of this article will discuss the basics of The FHA Home Improvement Loan.

FHA Refinancing – Need a Home Improvement Loan?

You hear it almost everyday that getting a mortgage is getting harder. One of the hardest loans to get right now is a construction or home improvement loan. Once again FHA is helping borrowers with their home improvement needs.

FHA has a program call 203(k) streamline. This program can be used for refinancing a current mortgage, or to purchase a home and make upgrades or repairs to the property all under one single loan. Unlike conventional mortgages it is not re-qualified, as it is only underwritten one time, upfront. There is no minimum amount for the repair cost; however the maximum is $35,000.

The FHA 203(k) offers both fixed and adjustable rate options, and the interest is the same as a standard FHA loan. On a purchase the appraisal is completed as "subject to" meaning after the repairs and or improvements are completed. On a refinance two appraisals are required. The first appraisal will reflect the current as is value. The second appraisal will reflect the subject to completion value.

Eligible properties include one to four unit residences, including HUD REO properties. Manufactured homes, and spot approval for Condos are also allowed. The property must be 100% complete – no partially built homes.

Contractors and repair criteria

All repairs/work must be completed within three months of the closing date. Repairs must be completed by a licensed contractor unless the borrower can demonstrate the required expertise. The contractor making the repairs does not have to be a licensed general contractor; however, he or she must provide a resume along with two references.
Self Help (borrowers completing work)

The borrower is required to have the necessary expertise and experience to complete the work in a satisfactory manner (ie: borrower is a licensed plumber and will complete that portion of the work). The cost of labor is included in the repair / rehabilitation cost in case the borrower is unable to complete the work and a contractor needs to be hired. The borrower must provide written estimates of the repair / rehabilitation cost as well as written estimates from the suppliers of the materials.

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

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

Comments:  The FHA Home Improvement Loan is for home improvements, not for a complete rehab of the property.  You read another great article on FHA 203K Mortgage here.

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If you don’t have a large down payment of 20% to secure a conventional home loan than a FHA Housing Loan may be just what you are looking for.  A FHA Housing Loan only requires 3.5% down payment.

Another good point of FHA Housing Loans is you don’t need a high FICO credit score.  Because FHA insures the FHA Housing Loan, lenders are more willing to lend to homebuyers with less than stellar credit.

The author of this article will give you a brief overview and tips on securing a FHA Housing Loan.

Tips For Obtaining FHA Financing For a Home Loan

FHA financing is a great option for buyers that do not have at least 10% as a down payment and/or do not have FICO scores of at least 720. And, there are some important things to know about FHA financing so that when a FHA buyer goes through the process, the stress and frustration is at a minimum, since the buyer is already prepared for the FHA process.

First of all, the main qualifying factors for a FHA loan is that the LTV (loan to value) can not be more than 96.5% of the purchase price, meaning that the buyer needs a minimum of 3.5% as a down payment. That down payment can be the buyer’s own money or be gift funds (funds that are given by friends, family members, employers, etc that do not have to be paid back). Under FHA guidelines, the seller can pay up to 6% of the buyers closing costs, but none of this money can go towards the buyer’s down payment.

There is also an Up-Front Mortgage Insurance Premium (UPMIP) of 1.75% of the loan amount. This fee can be added to the loan amount. And, there is also Monthly Mortgage Insurance (MMI) of 0.55% of the loan divided by 12. Once you obtain 20% equity in the home, you can get rid of the MMI.

So, as you will see, FHA loans are not cheap loans to obtain, but when a buyer does not have at least 10% as a down payment and/or FICO scores of less than 720, it is a great option to get a buyer’s foot in the door to home ownership and the benefits definitely outweigh the negatives on a number of levels.

What is REALLY important to know when going through the FHA process and obtaining FHA financing is that this type of loan is absolutely a full document loan, meaning, the lender wants to see anything and everything about the buyer’s financial history, credit, bank information, tax history, income, debt, and anything else they can know about the buyer.

The buyer needs to give the lender A LOT of documentation and information and this gathering of information can sometimes obtained by the lender throughout the entire transaction, depending on how complete the file was in the first place, when the package was delivered to the FHA underwriter for the initial preapproval.

The underwriters pick apart the information with a fine tooth comb and the information has to be extremely accurate and complete, or the underwriter will ask for additional supporting documentation. It can consist of explanation letters, more documented information, etc. For example, if the buyer had a nick name that is on some information, the buyer will have to explain it. If there is a lapse in employment, alimony, child support, etc, the buyer will have to explain it. If there is a ding on the credit, the buyer will have to explain it.

As a buyer for a FHA loan, you can basically be prepared to explain every detail of your life for the last 2 years. If you want the process to go smooth and faster, the best thing you can possibly do is to get with the lender and give as complete of a package as possible upfront. So, if you have a name change, issue with credit, etc, explain it in a letter upfront. Do not try to hide anything or leave anything out of this package, or else it WILL come back to haunt you and the underwriter WILL catch it and then the process will be delayed.

And, when you are in contract to buy a home, and the package is not fully complete, and the underwriter is asking for all kinds of information that you must gather, it can be very stressful, since now that you are in contract, there are deadlines to meet with the contractual obligations to the seller and deadlines to close the deal on time. Being thorough upfront is the key to success. And, choosing a good lender who is thorough and can help you through the process and gather all the information and screen it well BEFORE it goes to the underwriter is really key to a smooth transaction.

Also, FHA is very swamped with loans right now, so it is a good idea to ask for a 45 day closing for any transaction that is dealing with FHA. 30 days escrows are possible, but it is pushing the envelope and can be stressful to close in that amount of time. Also, asking for a long loan contingency period also takes off some pressure. I am working with a lot of buyers that are obtaining FHA financing and these are the types of things I am running into with these transactions. And, to avoid stress and frustration once a buyer actually finds a home, having the initial preapproval package as complete as possible, will really help a lot. And, making sure to choose a thorough lender definitely helps to make the process smoother.

And, of course, to really make the process run efficiently, the buyer would call me as their Santa Clara and Alameda County realtor who will stay on top of the process throughout the whole transaction and make sure everyone is doing what they need to do to get the deal closed, as well as stay in communication with the buyer consistently so that the buyer always knows exactly what is going on throughout the transaction.

Author: Karen List I have been a full time real estate agent for 14 years and selling homes is my passion because I truly feel that owning a home is invaluable. Check out my website at http://www.karenlist.com for a lot more information and my bio/resume.

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

Do You Want More Information On FHA Housing Loans?

Comments:  As you can see a FHA Housing Loan can be a great option for financing a home purchase if you don’t have a large down payment and you have low credit scores.

You can find another good article on FHA Loans Information here.

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