Articles Tagged With: Credit Requirements

December 10, 2010

How to Get an FHA Energy Efficient Mortgage

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

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 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.

December 1, 2010

What is an FHA 203(k) Streamline Mortgage?

By Joe Wallace

There are many types of homes available to buy with an FHA home loan. Some borrowers are looking for new or recently built properties, but others seek less expensive properties. Some turn to fixer-upper properties, houses that have been foreclosed upon and in a state of disrepair, or similar purchases that require some additional work to make them ideal living spaces. The FHA understands the needs of the budget-conscious house hunter; but it's also understood that a buyer might not be able to afford all the repairs, upgrades or improvements to a property as an out-of-pocket expense. That's one reason for the FHA Streamline 203(k) Limited Repair Mortgage program.

November 30, 2010

FHA ARM Loan Basics

By Joe Wallace

The FHA offers an adjustable rate mortgage, also known as an FHA ARM loan. These loans offer an introductory interest rate which is subject to change after the initial fixed rate period. That period varies depending on the loan--there are hybrid ARM loans available that feature different periods--but once the introductory rate period has elapsed, the adjustable rate is subject to a cap that applies either year-to-year or over the lifetime of the FHA loan. The initial interest rate is often lower than the fixed rate of conventional home loans, which is why many people consider ARM loans even in spite of the fears generated by the housing crisis of 2008.

November 30, 2010

FHA Adjustable Rate Mortgages

By Joe Wallace

There are two basic types of mortgages new house hunters should know about when shopping for FHA home loans; fixed rate FHA mortgages and Adjustable Rate Mortgages or FHA ARM loans. The FHA Adjustable Rate Mortgage is exactly what its name implies--an FHA home loan with an interest rate that can be adjusted up or down according to FHA requirements, the market and other factors. Thanks to the 2008 housing crisis, many soon-to-be homeowners are skeptical about adjustable rate mortgages whether offered by the FHA or not; FHA adjustable rate terms are definitely more predictable in some ways than their conventional loan counterparts. One of the reasons for that predictability is the ARM interest rate adjustment cap imposed on the loan. The cap protects the buyer from large swings in | more...