FHA-Loans-Information

FHA Housing Loans – Basic Information About Getting Home Mortgage Loan

If you are considering buying a home one of the first thing you need to do is get pre-approved for a home mortgage loan.  If you are a first time homebuyer you will need basic information on applying for a home morgtage loan.

The article below will give you some of the basic information you will need to know applying for a FHA Housing Loan or any other type of home mortgage loan.

Basic Information You Need to Know about Getting Home Mortgage Loan

Interested in getting a home mortgage loan soon? Here is some basic information you need to now about home mortgages. Arm yourself with these pieces of information before moving further.

Everyone surely believes that courage, hard work and determination are the keys to financial prosperity. One of the most predominant symbols of stability is owning a house. More often than not, owning a house today means getting a home mortgage loan for finance the purchase. A home mortgage basically entails that you pay a certain amount of monthly payment over an extended period of time (also called term, usually lasting 10 to over 30 years).

When you get yourself a home mortgage loan, it usually covers four inclusions, namely the principal amount, the interest you owe on the balance, homeowner’s insurance as well as real estate taxes.

There are two different types of home mortgages, the fixed rate (where your monthly payment remains the same) and the adjustable rate (where monthly dues fluctuate), Your home mortgage loan can also include conventional, non-conventional, interest-only, reverse mortgages and home equity loans, among many others.

How to apply for a home mortgage loan

There are only three steps you need to take to apply for a mortgage. First, you simply fill out an application form and schedule a meeting with your lender. You must present all supporting evidence about your identity, financial status and credit situation. You usually need to pay around $100 to $300 for this.

The next step to do is to wait for your lender to obtain your credit report for you and to verify your application and financial status.

After these two steps, your next move is to determine whether or not you should be approved or not. The decision of your lender would rely mostly on your credit standing, your financial history and the appraisal of your collateral.

You can speed up the entire application process by first checking whether you are qualified for such a loan. If you think you are, complete all your requirements and financial paperwork beforehand, ready for submission anytime your lender wants them. It is also not a bad idea to check on your application every now and then, as it will call their attention for sure.

Who can qualify for a home mortgage loan?

Anyone who has a stable income and has a nice financial standing can well qualify for a mortgage. Those with poor credit ratings may also qualify, usually at the expense of increase interest rates.

Furthermore, there are many ways by which you can achieve financial stability faster with home loans. You can for example, make a large down payment to lower your rate and to make it easier for you to get approved.

The key to success in your home mortgage loan is planning ahead. A home is certainly a major purchase and preparing for it should be the way to go. You should start to aggressively save as much money as you can years before planning on your major home purchase. Get as much help as you can, sell your investments and assets if need be, use your pension plan funds or personal savings – these are all good ways to get yourself the down payment you need.

Want some more tips in fixing your finances effectively? We can be of help! Visit us at Home Mortgage Loan or Home Mortgage and learn more from experts and professionals in this field and achieve the financial success you truly deserve.

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Types Of FHA Housing Loans fha housing loan, fha housing loans, home mortgage loan

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

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

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

 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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Types Of FHA Housing Loans fha home mortage loan, fha home mortgage loans, fha loan info, fha loans

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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Types Of FHA Housing Loans fha housing loan, fha housing loans, fha interest rates, fha loans information

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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Types Of FHA Housing Loans FHA 203K Mortgage, fha streamline mortgage, streamline 203K, streamline 203K loan

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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Types Of FHA Housing Loans fha financing, fha loan financing, fha loan info, fha loans

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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Types Of FHA Housing Loans fha home loan, fha housing loan, fha housing loans, fha insured loan, fha secured loan