Articles Tagged With: FHA Energy Efficient Mortgage

December 28, 2010

FHA Home Loan Fees

Every home loan comes with associated fees, whether it's an FHA mortgage or conventional home loan. Knowing the fees up front can help house hunters budget for the ones they must pay up front and understand which ones can be rolled into the amount of the loan when permitted by FHA regulations. FHA loan fees include the loan origination fee, which includes the administrative cost of doing business with your chosen lender. There are also title search and examination fees and legal fees which must be paid.

December 27, 2010

Making Home Affordable Refinancing and Loan Modification

By Joe Wallace

n 2009, the Obama Administration created a plan to help the American economy recover from a serious financial crisis. Part of that plan included stabilizing the troubled housing market and reduce the amount of foreclosures. The Making Home Affordable program was introduced to help struggling home owners avoid defaulting on their loans, including FHA mortgages and equivalent programs for VA home loans. Under the Making Home Affordable program, several loan modification and refinancing options became available. Those with FHA loans who qualify for help under these programs have many options to save the home, prevent foreclosure and get back on track with their mortgage payments.

December 23, 2010

FHA Mortgages: 30-Year Loans & 15-Year Loans

By Joe Wallace

No two FHA mortgages are the same. House hunters have a variety of terms, interest rates, closing costs and other considerations to think about when applying for an FHA mortgage loan on a particular property; one of the most important decisions is the length of the loan itself. FHA home loans for typical residential neighborhood homes come in 15-year and 30-year terms. There are a variety of compelling reasons to choose both--there is no strong argument for or against either term. It all comes down to what the individual buyer needs and wants from their mortgage. The buyer's perspective determines a great deal when it comes to deciding which to choose. A 30-year loan has buyer paying off more interest than principal in the early days of the FHA mortgage.

December 23, 2010

FHA Mortgages and Non-Occupying Co-Borrowers

By Joe Wallace

First time FHA loan applicants soon learn the world of FHA loans is aimed at helping people who want to become homeowners; a fairly obvious assumption to make when dealing with a government agency with a mission statement that includes helping people achieve their dream of home ownership. But private home owners aren't the only ones interested in buying and selling real estate; that's one of the reasons for the strict FHA requirements that single-family FHA home loan borrowers certify the property is to be used as the primary residence. FHA mortgage loan rules forbid using FHA home loans to buy real estate for investment purposes.

December 21, 2010

What is an FHA Growing Equity Mortgage?

By Joe Wallace

For every new home owner, there is a different set of needs. FHA mortgages are designed to serve a range of preferences. Some people apply for an FHA home loan looking simply for low monthly payments. Others purchase homes looking for lower interest rates so they can save money over the lifetime of the FHA loan. Still others want to purchase homes with shorter commitment times. For those who want shorter mortgage terms, the FHA Growing Equity Mortgage or GEM is an option worth looking into. GEMs are basically Graduated Payment Mortgages; they let the borrower pay off the principal faster while shortening the mortgage term by increasing the payments over time.

December 20, 2010

How Much Do I Have To Make To Qualify For an FHA Home Loan?

By Joe Wallace

How much do I need to make to qualify for an FHA mortgage? That is among the most popular questions about FHA home loans. According to the FHA, there is NO minimum income requirement to apply. That said, the FHA does require a three-year employment record showing steady income during that time. Note that the requirements don't say you must have held the same job for three years, only that the income has been reliable. The fact is, in order to qualify for an FHA home loan, there is no one single determining factor that gets you approved or declined; the FHA examines a combination of factors to determine an applicant's overall credit worthiness and ability to pay the FHA mortgage on time every month.

December 15, 2010

What is an Illegal Referral Fee on an FHA Loan?

By Joe Wallace

The FHA requires those who do business with it to follow guidelines and regulations that protect both buyer and lender from unscrupulous practices. But FHA rules aren't all. Congress passed the Real Estate Settlement Procedures Act to prevent the practice of kickbacks and unethical referrals. According to the FHA official site, "RESPA was enacted because Congress felt that consumers needed protection from '... unnecessarily high settlement charges caused by certain abusive practices that have developed"...in some areas of the country."

December 15, 2010

What Is the FHA Up Front Mortgage Premium?

By Joe Wallace

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.

December 13, 2010

How Does The FHA Regulate Interest Rates and Closing Costs for FHA Home Loans?

By Joe Wallace

First time home buyers considering an FHA mortgage have many things to learn about the home loan process in general. In the home loan industry it's common, for example, to advise borrower to start getting ready for a home loan at least a year in advance--that comes as a surprise to many new applicants and sends some of the back to the planning stages just when they felt ready to commit to a loan application. For FHA home loans the usual learning curve also applies, but there are a few extra things to understand about FHA loans, especially when compared to conventional loans.

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.