Articles Tagged With: Credit Requirements

January 20, 2011

FHA Loans for Unique Properties

House hunting has some unique challenges depending on the type of property a buyer wants. When an FHA loan applicant finds a home that isn't quite standard but still desirable, the buyer and seller alike may be a bit nervous when it's time to have the property looked over by an FHA assigned appraiser. Sometimes establishing fair market value isn't the reason for those nervous feelings; the buyer and/or seller might be worried the property won't get appraised at all because of those features.

January 18, 2011

Title I Loan Facts

By Bruce Reichstein

There are many options available to FHA borrowers to make improvements on the property they bought with an FHA guaranteed loan. One option is the Title I program, which allows property owners to make "non luxury" improvements to a home, which may include construction of new structures in some cases. As with all other FHA loans and HUD programs, the FHA does not lend the money. It insures Title I loans the same way it does with FHA home loans; the borrower and a participating lender work together on the application and terms. Title I loans are for borrowers with single-family homes, multi-family properties, and manufactured homes.

January 14, 2011

FHA Appraisal Facts

By Bruce Reichstein

The appraisal process is one of the most important aspects of the FHA loan process. Once the buyer has applied for an FHA guaranteed loan and has established that he or she is a good credit risk, the next phase of the process--finding a suitable home and making an offer--is directly affected by the appraisal system. The rules say an FHA-approved appraiser must view the property to establish the fair market value of the home. But there are a number of issues that the buyer should know about--things that affect the process that have nothing to do with the appraisal itself.

January 14, 2011

FHA Condo Loans

By Joe Wallace

FHA loans come in many different types. Not all house hunters want the same thing from their FHA mortgages, and FHA planners have anticipated this by creating many different options for those who want to borrow money with an FHA-insured loan. Those options are not limited to the terms and conditions of the FHA loan itself. There are many different types of properties a potential home owner can include on the search for a new home. The typical suburban home is just one option. Some buyers want the house, the yard, and the driveway. But what about those who live in the city? The FHA offers guaranteed loans for condominium units as well as traditional houses. FHA condo loans are a bit more involved than a typical home purchase, but | more...

January 11, 2011

FHA Loans for Fixer-Uppers: The 203(k)

By Joe Wallace

Those shopping for a home with an FHA loan aren't always interested in buying a brand-new property. Some borrowers want to purchase fixer-upper homes at a lower price to save money and invest labor into a home to make it exactly the way they want it. The FHA 203(k) loan program offers qualified FHA borrowers a chance to borrow money to accomplish this. Qualified borrowers must meet a downpayment requirement, which is roughly 3.5% of the purchase price AND repair costs of the property.

January 10, 2011

FHA Warns About Mortgage Insurance Refund Scams

By Joe Wallace

As discussed in our last blog post, some FHA borrowers are eligible for refunds on their mortgage insurance premiums under the right circumstances. A small service industry has sprung up where third-party companies contact FHA mortgage holders, offering to locate these refunds for a fee. The FHA has hired a company called Immediate System Resources to locate FHA loan holders the government owes money to, but there is no fee. In fact, FHA borrowers never have to pay to get information about or payment from the FHA connected to mortgage insurance premium refunds.

January 7, 2011

New FHA Guidance For HECM Loan Borrowers, Lenders

By Joe Wallace

FHA Reverse Mortgage Loans, also known as Home Equity Conversion Mortgages or HECM, provide a way for seniors age 62 and older to borrow against the equity in their homes. Under HECM loan rules, the borrower does not make monthly mortgage payments--the home is paid off when it is sold or when the borrower dies. But that lack of monthly mortgage payments may lead some borrowers to assume there are no payments due on the home whatsoever. This is not true--property taxes are still due, as are hazard insurance premiums or other commitments.

January 6, 2011

What Does The FHA Require For Reverse Mortgages?

By Joe Wallace

FHA reverse mortgages, also known as a Home Equity Conversion Mortgage, are a way for qualified borrowers to take out a home loan against the equity built up in them without having to worry about monthly mortgage payments. The FHA reverse mortgage program requirements are set up for a specific group of eligible borrowers. Do you know if you qualify? Here are the basic facts about FHA-insured Reverse Mortgages or HECM loans:

January 4, 2011

What is the Making Home Affordable Short Sale Program?

By Joe Wallace

When borrowers get into trouble on their FHA mortgages, the FHA encourages them to act quickly in order to save their homes. But some borrowers don't act fast enough and fail to qualify for some government home loan modification or refinancing programs. Other borrowers aren't qualified for certain programs even when they do act. In cases where a borrower has tried loan refinancing, modification or other home owner bailout programs there may be an alternative to foreclosure in the form of something known as the short sale.

January 4, 2011

Are My Tax Returns Required for an FHA Loan?

By Joe Wallace

When applying for an FHA home loan, borrowers will find a list of documents needed so the lender can process the FHA home loan application. These documents are the minimum needed to establish an accurate picture of a borrower's credit and payment history; the lender asks for a range of information--everything from bank account numbers to a list of residences and employers from the last two years. But the lender also has to meet FHA requirements, and in some cases that means getting official copies of tax returns and other information.