Articles Tagged With: Graduated Payment Mortgages

December 14, 2011

FHA Energy Efficient Mortgages

Borrowers new to the FHA insured loan program should know about the FHA loan option called an Energy-Efficient Mortgage or EEM. An FHA EEM is intended to add a set amount to the FHA home loan in order to finance upgrades or improvements to the home that result in a more energy efficient property, which saves money over the long term. According to FHA loan rules, eligible properties for an EEM loan include, “New and existing one to four unit properties, including one unit condominiums and manufactured housing properties”. EEM loans are for new purchase transactions or refinancing, including the FHA 203(k) Rehabilitation Loan, FHA 203(h) loans for victims of natural disasters and standard FHA 203(b) loans. Borrowers who are purchasing multi-unit property should know an FHA EEM is calculated | more...

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...

February 8, 2011

FHA Loans: Factors that Affect House Prices

By Joe Wallace

When it's time to start thinking about buying a home with an FHA mortgage, first-time home buyers often need to learn a few things about the nature of the housing market. One of the most important lessons a new house hunter learns is that not all properties are created equal, and even those that do seem similar have unique issues that may affect the price and availability of the property. The housing market is an ever-changing thing. Whether you apply for a conventional or FHA insured mortgage loan, much depends on the place where you're conducting the search for a suitable home.

January 26, 2011

FHA Loans and Foreclosure: a Timeline

By Bruce Reichstein

With home foreclosures still in the news even several years after the housing crisis of 2008, we've written a fair amount on topics related to foreclosure on FHA home loans. Default and foreclosure are often preventable if the buyer takes action early; in some cases a simple bit of additional information is the only thing a borrower needs to take action that can save the home. Missing one FHA mortgage loan payment isn't good, but it is not the end of the world if the buyer contacts the loan officer and the FHA to discuss next steps. But what happens when the buyer misses the a second payment? The FHA says when the second payment in a row is missed, the bank will definitely reach out to the homeowner, but | more...

January 24, 2011

FHA Loans and Foreclosure: Are You In Danger?

By Bruce Reichstein

The FHA has many programs to help home buyers find and purchase a home. But FHA help doesn't end there--the government has a vested interest in helping people keep their homes even in times of financial difficulty. When borrowers get into trouble with their FHA mortgage loans, the first line of defense is to address money problems as early as possible. That's why the FHA offers their toll-free number (1-800-569-4287) to put home owners in touch with a housing counselor.

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 22, 2010

FHA Appraisals : Are They Fair?

By Joe Wallace

In our last post we discussed the cost and process of FHA appraisals. Since the FHA appraisal is such an important part of the FHA mortgage process--the loan amount can't be established without the appraisal--it's good to know how and why the process works the way it does. One of the key aspects of getting a fair, accurate estimate of the reasonable market value of a home is the independence of the appraiser. How does the first time FHA borrower know the FHA-approved appraiser is assigning value to the home for sale that's actually consistent with market practices rather than helping the lender raise the FHA loan amount by over-valuing the property?

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 10, 2010

How to Get an FHA Energy Efficient Mortgage

By Joe Wallace

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.