Articles Tagged With: Escrow

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.

November 11, 2010

Does the FHA Require an Escrow Account for FHA Mortgages?

By Joe Wallace

In our last post, we discussed escrow accounts, which a lender may require to be set up in connection with an FHA loan in order to pay mortgage insurance, property taxes and other expenses with no fear of missed payments or penalties for late payments. When a lender sets up an escrow account in the buyer's name for these purposes, they often add the costs of the insurance and other payments into the mortgage, making one simple payment for the buyer. The extra money is placed into escrow and held until it is needed to pay the insurance, taxes or other items.

November 11, 2010

What is an Escrow Account and Why Do I Need One for an FHA Loan?

By Joe Wallace

If you're thinking of buying that first home, you've probably read plenty of real estate articles and brochures with a wealth of new vocabulary. One of these is "escrow". Until applying for an FHA home loan, many people have never needed an escrow account so it's no surprise that "What is an escrow account and why do I need one for an FHA mortgage?" is such a common question.

November 4, 2010

The FHA Energy Efficient Mortgage

By Joe Wallace

For FHA borrowers who live in areas with seasonally high utility bills, there is help from the FHA in the form of the FHA Energy-Efficient Mortgage or EEM. This is a program that started as an experiment in 1992 and expanded to a full-time national FHA loan option in 1995.