March 28, 2011
More on FHA Loans and Rented Properties
In our last blog post, we addressed the question of FHA rules and
Articles Tagged With: HUD
March 25, 2011
Who is Considered a First-Time Homebuyer for FHA Loans?
There are many loan programs designed specifically to help first-time home buyers. Conventional loans may have special rates for first-timers, the VA offers a lower funding fee on its mortgage loans for first time home buyers, and the FHA is specifically dedicated to helping the first time house hunter make the right choices on a new home purchase. New house hunters might not know, for example, about the Affordable Housing Program or Homeownership Set-Aside Program, created to help low income and middle-income buyers with FHA-approved down payment assistance. There are also state and local programs for first time home buyers and low-income house hunters the FHA can help qualified borrowers apply for. But what does the FHA consider to be a “first time home buyer”? According to the rules, a | more...
March 23, 2011
More on Title I Loans and Manufactured Homes
FHA Title I loans for manufactured homes can be used several ways–one is to apply for an FHA loan to purchase the home itself, another is to apply for a mortgage loan to purchase a lot for a home already owned or to be purchased, and the Title I loan can also be used to buy a manufactured home and lot combination. When borrowing money for a manufactured home under Title I, there quality standards the home must live up to, including wall thickness, foundation footing, and approved construction materials. “Manufactured homes must comply with the Model Manufactured Home Installation Standards, and all applicable state and local requirements” to include the construction/installation of the foundation system. In addition to the Model Manufactured Home Installation Standards, there’s another set of standards. | more...
March 21, 2011
FHA Updates Recommendations For Homes With Problem Drywall
The FHA has issued a press release that addresses fixing “problem drywall” in homes including those purchased or intended to be purchased with FHA mortgage loans. In May 2010, the U.S. Consumer Product Safety Commission press release, “CPSC Identifies Manufacturers of Problem Drywall Made in China” identified a group of manufacturers, “whose drywall emitted high levels of hydrogen sulfide in testing conducted for the agency by Lawrence Berkeley National Laboratory (LBNL). There is a strong association between hydrogen sulfide and metal corrosion” according to the press release. That corrosion had the potential to damage the electrical system in homes built with drywall made by the manufacturers named in the release. Could the value of, or the quality of life in, those homes be affected by the problem drywall? The FHA | more...
March 21, 2011
FHA Loan Assumption
The FHA allows its home loans to be assumed, which is when a borrower takes over the responsibility for paying an existing FHA mortgage taken out by another borrower. According to the FHA,
March 18, 2011
FHA Loans and Home Inspections
Once an FHA appraisal has been completed and a borrower is informed
March 17, 2011
FHA 203(k) Mortgages–What’s the Advantage?
In our last blog post we discussed the FHA 203(k) loan, which is for
March 16, 2011
FHA 203(k) Rehab Mortgages
It’s true that those dedicated to purchasing and improving a fixer-upper home face a challenging road when it comes to getting the money to do the job properly. A loan applicant trying to get a conventional loan may face requirements that the improvements be done and paid for before the money for those repairs will be issued–not an ideal situation for those trying to balance budgets, pay the mortgage on time and improve their property. An FHA loan could be the answer. The 203(k) loan program provides qualified borrowers with an FHA insured loan to those using the property to be improved as the primary residence. (It’s not for investment properties or rental units.) As with other FHA mortgage loans, there is a 3.5% minimum down payment. But 203(k) mortgages | more...
March 15, 2011
FHA Loans and Housing Counseling
First time home buyers and experienced house hunters alike can learn a lot from FHA-approved housing counseling agencies. For newcomers, learning the ins and outs of FHA mortgages can help a borrower prepare, budget and save money for the loan process while getting an education on how to avoid predatory lending and real estate scams. For experienced buyers, housing counseling is still a good idea–especially if it’s been many years since the original home purchase. Many things about the FHA loan process have changed over the years and an update on old information can be extremely helpful. The federal government believes in FHA-approved and HUD-approved housing counseling. So much so that in late 2010 the Obama administration approved more than $70 million in housing counseling grants for 500 organizations across | more...
March 15, 2011
Basic Types of FHA Home Loans
If you’ve never examined your FHA home loan options before, there is a