Articles Tagged With: FHA Energy Efficient Mortgage

October 28, 2011

Factors That Affect Your FHA Loan Amount

FHA loan applicants naturally want to know how much mortgage they are qualified to get–how much can an FHA borrower receive on an FHA insured home loan? The answer isn’t as simple as a fixed dollar amount. There are many things that factor in to the final FHA home loan amount and not all of them are connected to the sale price of the home. Your FHA loan amount is influenced by the current state of the housing market, the interest rate on the loan, the asking price on the property and the fair market value of the home. The first and most obvious factor that can affect an FHA home loan amount is the borrower’s qualifications. How much are you qualified to borrow based on your income and debt | more...

October 26, 2011

How Long Does It Take To Process an FHA Loan Application?

By Joe Wallace

A frequently asked question about FHA home loans concerns the length of time it takes to learn whether the loan application has been approved or not. This is a part of the FHA loan process that can be stressful for some borrowers, especially those who have never applied before and don’t know what to expect. The simple answer is that FHA requirements include a rule that the lender must take action on your application and let you know about that action no later than 30 days after the application has been completed and turned in. FHA rules emphasize the application must be complete for this rule to take effect. But what does that mean? Some borrowers mistakenly think submitting partial information on credit data, employment history or other information might | more...

October 5, 2011

FHA Loans: What is a Residential Mortgage Credit Report?

By Joe Wallace

Borrowers who seek FHA insured home loans are required to submit credit, employment and income information to the lender in order to be approved for the loan. The borrower’s information is reviewed by the lender, but must also be verified to insure the information is current and accurate. In addition to verifying the information submitted, the lender is also required to get credit reports on the borrower. But what happens when the borrower disputes information on a credit report? For example, if a credit report states that a collection action is outstanding, but the borrower claims the bill has been paid, the lender may be required to use something called a Residential Mortgage Credit Report (RMCR) instead of the standard credit report known as a three repository merged credit report | more...

September 9, 2011

The FHA Energy Efficient Mortgage

By Joe Wallace

With summer fading and the winter season only a few months away, many house hunters and home owners begin thinking about heating bills, weatherproofing, and other preparations for the cold weather season. In many areas where extreme weather is a typical part of the winter months, these considerations are even more important. 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. The FHA Energy Efficient Mortgage began as an experiment in 1992, expanding to a full-blown FHA loan feature in 1995. The FHA official site says of these loans, “All persons who meet the income requirements for FHA’s standard Section 203(b) insurance and can make the monthly mortgage payments are | more...

June 29, 2011

FHA Loans And Appraisal Repair Requirements

By Joe Wallace

When a home is appraised by an FHA appraiser, there may be

June 28, 2011

The Different Types of FHA Home Loans

By Joe Wallace

There are many different types of FHA insured home loans to choose from. Buying a home or refinancing one isn’t a one-size-fits-all process, and FHA guaranteed loans come in a variety of types to accommodate the various needs different house hunters or current home owners bring to the lender. The two most basic types of FHA home loans are new purchase loans and refinancing loans. New purchase FHA loans, by name alone, may seem to indicate that these loans are intended only for new construction houses, but new purchase simply refers to the type of transaction (a “new to you” home purchase), not the age or condition of the property itself. FHA refinancing is, as the name implies, a home loan intended to pay off an old home loan and | more...

June 22, 2011

Why Choose an FHA Home Loan?

By Joe Wallace

According to the official site at HUD.gov, the FHA loan program has been running since 1934. Designed to help Americans purchase affordable home loans, the FHA insured mortgage loan program features low down payment requirements, low closing costs and more forgiving credit requirements than conventional loans. Many people turn to the FHA loan program because they may not be able to qualify for loans with good interest rates or terms as favorable as those offered by the FHA. Some go directly to the FHA because they don’t feel their credit is good enough to qualify for a conventional mortgage. In many cases, an FHA loan is the best way to realize the dream of home ownership. But how does the FHA make that happen? The FHA mortgage low down payment | more...

June 20, 2011

FHA Loans and Rehab Grants

By Joe Wallace

One frequently asked question about FHA loans is about FHA grants for home repair. Does the FHA provide grant money for home buyers or FHA borrowers to repair or fix up a home? The short answer is no. While you may read FHA press releases such as a recent item about the FHA awarding $27 million in “sweat equity grants”, (HUD Press Release No. 11-122), it’s important to make the distinction between a grant to

June 17, 2011

The FHA Energy Efficient Mortgage

By Joe Wallace

Making improvements in a new home to include energy efficient upgrades can save a borrower a lot of money in utility bills. Modern windows, solar powered water heaters, improved air conditioning systems and other upgrades are all within a borrower’s reach when purchasing a home with an FHA insured mortgage thanks to a feature called the Energy Efficient Mortgage. FHA Energy Efficient mortgages are for qualified borrowers buying a single family home. Under the terms of an FHA Energy Efficient Mortgage or EEM for short, energy efficient improvements must be selected by the borrower and the amount of energy savings the improvements would give every month. There must be a tangible benefit to the borrower in terms of energy efficiency and/or savings for each improvement. These savings must be calculated | more...

May 18, 2011

FHA Loans: When the Appraiser Recommends Repairs/Corrections

By Joe Wallace

A frequently asked question about the FHA appraisal process is, “What are my options for satisfying repair requirements on the appraisal?” According to FHA guidelines, any repairs required on the FHA appraisal report must be “satisfied” before the loan is submitted. There are four ways to satisfy the repair requirement–showing documentation to attest that the requirements have been met once the actual work has been done, including a Compliance Inspection Report, a Fannie Mae Appraisal Update (or a Completion Report), a Mortgagee Certification, or funds placed in escrow for the purpose of satisfying the repairs at a later date. Each one of these has its own requirements and situational application. For example, a Compliance Inspection Report must, according to the FHA official site, be “prepared by an appraiser or inspector” | more...