January 5, 2011
First time home buyers sometimes have a difficult journey ahead of them because of all the new terms, rules, requirements and other issues the must navigate for the first time. Fortunately there are some basic concepts that can be presented simply to help newcomers to the housing market learn what they need to do in order to get an FHA mortgage.
January 3, 2011
FHA home loans have advantages over conventional mortgage loans; for some buyers those advantages include tax breaks in some areas as allowed by current federal tax laws. Like so many other aspects of buying a home, there's no standard tax deduction guidance for all borrowers--much depends on current law, the type of loan, and sometimes even the income of the borrower. What follows is not tax advice, but merely a reminder that FHA mortgage holders should ask their tax preparers (or hire one) about FHA mortgage insurance deductions on their taxes.
December 15, 2010
FHA borrowers who decide to refinance their home using the FHA Streamline program must make another UFMIP payment, but the good news is that any money in the original Up Front Mortgage Insurance account may be transferred to the new account. Some buyers who purchased homes with an FHA home loan after September 1, 1983 may be entitled to a refund or partial refund of FHA mortgage insurance money, See the FHA for more information.
November 16, 2010
On the surface, FHA mortgage insurance seems designed mainly to protect the lender's interest. FHA mortgage insurance is designed to mitigate the bank's losses in case the FHA loan goes into default and foreclosure. But this insurance does more than just protect the FHA lender--it also helps the buyer. The Housing and Economic Recovery Act of 2008 requires FHA mortgage insurance on all new FHA mortgages. The FHA loan applicant must, once approved, pay for this insurance--costs that include an up-front mortgage insurance premium and monthly insurance payments along with the mortgage. The fees and terms of FHA mortgage insurance depends on what kind of FHA loan the borrower wants. Other factors include the length of the loan term, and loan amount to property value ratio.
November 9, 2010
FHA borrowers with loans acquired after September 1, 1983 may be entitled to a partial refund of their up front mortgage insurance premium. According to the FHA official site, borrowers could be eligible if they paid the UFMIP premium when the loan closed and did not default on their mortgage payments. Refund eligibility is determined by the FHA based on a number of factors including how many months the loan was insured.
November 9, 2010
FHA loan applicants go into the process expecting to pay money for a down payment, mortgage insurance, closing costs and the typical fees associated with getting an FHA mortgage. What they don't expect is to get money back from the Department of Housing and Urban Development. But in some cases, that's exactly what they'll get.