Articles Published in: December 2010

December 13, 2010

How Does The FHA Regulate Interest Rates and Closing Costs for FHA Home Loans?

First time home buyers considering an FHA mortgage have many things to learn about the home loan process in general. In the home loan industry it's common, for example, to advise borrower to start getting ready for a home loan at least a year in advance--that comes as a surprise to many new applicants and sends some of the back to the planning stages just when they felt ready to commit to a loan application. For FHA home loans the usual learning curve also applies, but there are a few extra things to understand about FHA loans, especially when compared to conventional loans.

December 10, 2010

How to Get an FHA Energy Efficient Mortgage

By Joe Wallace

FHA Energy Efficient mortgages are available to any borrower taking out an FHA mortgage on a single family home (co-op units aren't eligible for an EEM) who meets FHA income requirements for the FHA Section 203(b). In order to get an FHA EEM loan, energy efficient improvements must be selected and the amount of energy savings calculated on a monthly basis. The calculations must be done by a Home Energy Rating System expert or consultant, and the buyer will pay a fee to have this work done. Fortunately the cost and any associated fees can be included into the FHA EEM. An FHA Energy Efficient Mortgage can be used for existing and new properties,and may be included in FHA Streamline Refinance loans.

December 9, 2010

FHA Streamline Refinance Rules

By Joe Wallace

For those who have FHA home loans, there's a refinancing option known as an FHA Streamline Refinancing loan. Streamline loans have far less documentation and paperwork requirements because the initial underwriting has already been done. Qualified FHA borrowers can get Streamline loans for the purpose of lowering monthly mortgage payments and can't get cash back. Some FHA borrowers mistakenly believe that "Streamline" refers to more than just paperwork and underwriting, which is why the FHA takes care to point out in the documentation of these FHA refinancing loans that there are closing costs associated with them.

December 9, 2010

Making Home Affordable Program Second Mortgage Modification Program

By Joe Wallace

FHA borrowers, VA mortgage and conventional loan holders can all face default and foreclosure. There's no mystery as to what happens when the bank sends a foreclosure notice--it's all there in black and white. The key is to avoid getting to that point in the first place. There are plenty of programs for first-time home buyers and other home owners who are behind on their mortgages, but what's not so well-known is the assistance for those struggling to pay second mortgages. That's where the government home loan bailout program Making Home Affordable comes in with the Second Lien Modification Program or 2MP for short.

December 8, 2010

FHA Graduated Payment Mortgages

By Joe Wallace

There are many types of FHA home loans available to qualified borrowers. One of the best things about FHA programs is the acknowledgment that there's no one-size-fits-all solution when it comes to FHA guaranteed loans; a variety of programs are designed to help borrowers. One FHA mortgage loan is designed for limited-income borrowers who expect to see pay increases over time and want to buy a home in anticipation of those pay raises. The FHA Graduated Payment Mortgage targets first time home buyers with an important incentive--small early house payments that increase over time.

December 7, 2010

Can I Afford to Apply for an FHA Home Loan?

By Joe Wallace

Sometimes the most difficult part of becoming a homeowner with an FHA mortgage is taking the first step. Many people feel intimidated by the prospect of finding a new home, applying for the FHA loan and entering the commitment. But sometimes a little information is all that is needed to show a prospective house hunter that the dream may be within reach--and closer than expected. The FHA provides a simple tool to help potential house hunters figure out how much home they can afford to buy. The FHA Buy a Home page has a link to a Ginnie Mae online calculator that asks for four simple figures to help figure out what your monthly mortgage budget could look like.

December 6, 2010

FHA Borrowers’ Rights

By Joe Wallace

The FHA has an extensive list of borrowers' rights, all designed to inform and protect government home loan applicants. But what do these rights mean? For the first time home buyer, some of these rights need a bit of explanation--an experienced house hunter is probably more aware of their rights the second time around, and newcomers to FHA home loans should know their rights and obligations before they need them.

December 6, 2010

HUD, FHA Warns of Foreclosure Scams

By Joe Wallace

The Department of Housing and Urban Development and the FHA investigate claims of discriminatory lending practices and policies that violate the Fair Housing Act, but these agencies also warn consumers about an equally vexing problem. Foreclosure scams have always plagued the housing market, but since the housing crisis in 2008 there is greater opportunity for scammers to prey on unsuspecting homeowners trying to avoid losing their investment. The first thing the FHA wants consumers to know about foreclosure avoidance, Obama mortgage information, and counseling services is that help is free. HUD and the FHA warn borrowers that fee-based counseling service is one of the first warning signs. The same applies to those who require a fee in exchange for loan modification--the FHA and HUD both say "beware" in such cases.

December 3, 2010

Do I qualify for a Home Affordable Loan Modification?

By Joe Wallace

The Home Affordable loan modification program is a government homeowner bailout program designed to help people who can no longer afford their monthly loan payments. This program has been in effect since 2009 and has been through several changed to help lenders and borrowers alike. The program is not indefinite; at the time of this writing it is set to expire on June 10, 2011, so borrowers considering getting help from the Home Affordable program should act soon. The Home Affordable official site has a set of guidelines for establishing whether a borrower is eligible to apply for this program. They include a requirement that the home being refinanced be the primary residence, the amount owed must be under or equal to $729,750, and there's also a debt-to-income ratio figure | more...

December 2, 2010

Can I Get an FHA Home Loan for a Condo Unit?

By Joe Wallace

There are many types of FHA home loans. Depending on your needs, you may find a traditional FHA mortgage is the best choice, but there are energy efficient mortgages, FHA 203(k) loans, FHA loans for manufactured homes and many others. For those searching for an FHA loan for a condominium unit, the process is a bit more complex than for a suburban home but FHA condo loans are definitely a possibility. The FHA requires condominium projects to be FHA approved before they will be processed for loans on individual condo units.