Articles Tagged With: FHA Home Loans

October 12, 2011

FHA Loans: For U.S. Citizens Only?

A recent reader question raised an interesting issue; does an FHA loan applicant have to be a U.S. citizen in order to qualify for the loan? According to FHA rules, “Permanent Resident Aliens are eligible for an FHA-insured mortgage under the same terms as US citizens.” The FHA also adds, “ Non-Permanent Resident Aliens are eligible for FHA-insured mortgages provided the property will be the borrower’s principal residence, they have a valid social security number, and the borrower is eligible to work in the US.” How does the lender get evidence showing that a borrower is able to be approved for an FHA mortgage in these cases? The FHA rules say “Evidence of residency and work status should be obtained from the U.S. Citizenship Immigration Services (USCIS). Eligibility to work | more...

September 12, 2011

The Features of FHA Home Loans

By Joe Wallace

The FHA loan program has helped first-time home buyers and other house hunters since it started in 1934. FHA insured loans are designed to help people get affordable home loans featuring low down payment requirements and affordable closing costs. The program is designed with credit requirements far more lenient than many conventional home loan programs on the market today. Some borrowers turn to FHA-insured loans because they discover the down payments, interest rates and other terms on conventional mortgages ask too much or are too restrictive. Some borrowers worry their credit score or history isn’t good enough to get the most competitive rates. In these cases, FHA mortgages are definitely worth a look and can be a means to home ownership for borrowers who might not qualify for a conventional | more...

August 3, 2011

FHA Section 203(k) Loan Facts

By Joe Wallace

The FHA Section 203(k) loan, sometimes called a rehab loan, the Federal Housing Administration’s “primary program for the rehabilitation and repair of single family properties” according to the official site. The FHA 203(k) is sometimes used in partnership with state or local agencies, non-profits and other groups to rehab homes, but the 203(k) can also be used by individuals to purchase and repair individual properties. The 203(k) section at FHA.gov states, “When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and | more...

June 15, 2011

What Is the FHA Streamline 203(k) Program?

By Joe Wallace

A type of loan called the FHA Streamline 203(k) allows a borrower to finance up to an additional $35 thousand of repairs and upgrades to a FHA mortgage. This loan is designed to “to purchase and improve or upgrade the home before move-in” but can also be used to refinance an existing mortgage and add repairs or improvements up to the same $35,000 amount. According to the FHA official site, “Unlike the standard 203(k) program, any FHA approved lender may originate a Streamlined 203k mortgage.” The availability of additional funds to repair or improve a home can be a powerful incentive to close the deal on a home that still needs work to make it truly attractive to the buyer, but it’s important to know exactly what the Streamline 203(k) | more...