Articles Tagged With: FHA Requirements

March 3, 2011

Should I Pay For FHA Loan Counseling?

If you have an FHA loan and are trying to avoid foreclosure, the FHA recommends contacting the agency to be put in touch with a counselor that can help. The same goes for first-time home buyers; the FHA can put newcomers to the FHA insured mortgage loan process in touch with a local counselor who will guide them through credit prep, the loan process itself and what to do once a suitable home is found. There is even counseling help available for seniors, and for people facing homelessness. The FHA advertises these services on its official site, saying “Want advice on buying a home, renting, default, foreclosure avoidance, credit issues or reverse mortgages? HUD sponsors housing counseling agencies…search online for a

March 1, 2011

Changes to FHA Cash Out Refinancing Requirements

By Bruce Reichstein

Many changes to FHA refinancing programs were announced in FHA Mortgagee Letter 2011-11, including alterations to the rules for FHA cash-out refinancing loans. FHA mortgagee letters, which are intended for approved borrowers and FHA lenders alike, routinely update rules and regulations when changes are made–these announcements are an important resource for FHA borrowers and it’s definitely a good idea to keep up with them if you’re interested in getting a new FHA loan or refinancing an existing one. In previous blog posts, we’ve discussed the changes FHA Mortgagee Letter 2011-11 announced as “effective immediately”, including an important clarification on the requirement for borrowers to be current on their FHA mortgages when applying for any kind of FHA refinancing. According to the FHA, “Mortgagors must be current on the mortgage being

February 28, 2011

FHA Appraisals Vs. Home Inspections

By Bruce Reichstein

There are two costs an FHA borrower pay when purchasing a home with an FHA insured mortgage. One is required, the other is optional, but FHA loan applicants should count on paying for both to insure the best possible experience with the new home. An FHA appraisal is the mandatory expense buyers must pay when trying to buy a house with an FHA mortgage. The FHA must determine the property meets FHA standards for safety, longevity, and other factors before it will insure the loan. Appraisals are designed to assign the fair market value of the home. While the appraisal is meant to insure the home is safe and livable, it is not considered an inspection and does not pretend to be a comprehensive look at all features of the | more...

February 28, 2011

Where Do I Go for an FHA Insured Home Loan?

By Joe Wallace

First time home buyers often don't know where to start when it comes time to find that first home. Locating properties for sale isn't challenging--there are plenty of for sale signs in or near practically every neighborhood and even more to browse in the local papers and online real estate listings. But finding the home is only part of the challenge. Where does a buyer find a suitable lender? A buyer who wants an FHA home loan might not know where to start looking to find a lender. Conventional borrowers have it easier--any suitable bank with the right terms will do.

February 25, 2011

Changes to FHA Refinancing Rules

By Joe Wallace

In our last blog post we discussed some changes to FHA refinancing loan rules. Effective immediately, the FHA requires all borrowers seeking streamline refinancing to make at least six mortgage payments on the property. There must also be a minimum of

February 24, 2011

FHA Streamline Refinance Loan Changes

By Bruce Reichstein

There have been many changes recently to FHA Refinancing regulations--too many to cover in a single blog post, but we'll discuss them over the next several days. One important set of changes is to the Streamline Refinance program--a "non credit-qualifying" refinancing loan offered by the FHA. When a borrower applies for an FHA insured mortgage, they may do so fully intending to refinance it later on using an FHA Streamline Refinancing mortgage.

February 23, 2011

FHA Loan Down Payments: Who Can Pay?

By Joe Wallace

In our last blog post, we discussed FHA loan down payment amounts. The FHA has strict rules about not only the amount of the down payment, but also the source of that money. According to the FHA rulebook, down payments must be made by the buyer. The seller is allowed to offer concessions such as paying closing costs or other expenses related to selling the home, but the seller is prohibited from contributing a down payment.

February 23, 2011

How Much Is My FHA Loan Down Payment?

By Joe Wallace

FHA home loans differ from conventional loans in many ways. One of those differences is the amount of down payment required to purchase a home with an FHA insured loan. FHA loans, like their conventional counterparts, do not have a fixed dollar amount required as a down payment. Instead, a percentage of the loan amount is calculated, based on the sale price of the property.

February 22, 2011

What Happens When You Apply for an FHA Loan?

By Bruce Reichstein

There are many steps in the process of getting an FHA home loan. Borrowers who search for a home, make an offer and set a closing date have a variety of milestones along the way that don't surprise second-time borrowers, but newcomers to the process often have many questions. Those who seek pre-approval for home loans should know that a pre-approved loan amount or pre-qualification is not a guarantee that a borrower will get the loan they seek. Much depends on your actual circumstances when it comes time to apply for the loan itself.

February 22, 2011

Can I Use FHA Streamline Refinancing to Avoid Foreclosure?

By Joe Wallace

There are many options FHA borrowers have to avoid default and foreclosure on an FHA mortgage. Borrowers in trouble are encouraged to contact the FHA and their lender as early as possible in the process of dealing with financial difficulty--the earlier you act, the more options you have. There are several homeowner bailout programs available to help homeowners keep their homes, avoid missing additional mortgage payments and stay on financial track. For borrowers who are struggling with rising mortgage payments or who have payments that are currently too high, refinancing is an option that can help easy the monthly money crunch.