Articles Tagged With: HUD

February 11, 2011

FHA Loan Costs and Interest Rates

When you're shopping around for a lender for an FHA home loan, it's good to remember that buying a home involves costs above and beyond the asking price of the home; some of these costs can be estimated by the lender to give you a rough idea of how much you should budget for when planning your finances for a new FHA mortgage. The basic costs of buying real estate include the interest rate--how much will your loan cost over its lifetime? It's easy to dismiss a percentage point up or down until you do the math--one percentage point lower could save you thousands over the life of a 30-year FHA mortgage. That's one reason why discount points are important--paying more up front can save you money later down the | more...

February 10, 2011

FHA 203(k) Rehab Loan Facts

By Bruce Reichstein

The FHA offers a rehab loan known as the FHA 203(k). This program is the FHA's main loan product for rehab and repair loans for single family homes, and according to the FHA official site, "...it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it."

February 9, 2011

FHA Home Loans: The HUD-1 Settlement Statement

By Joe Wallace

Buying a home with an FHA loan involves a process with a set of milestones along the way. The first of set of milestones includes finding a suitable home, negotiating a price, applying and being approved for a home loan and agreeing to the terms and conditions. When it's finally time to close the deal, sign on the dotted line and get ready to take possession of the property, there's another important part of the process--getting a HUD-1 Settlement Statement.

February 4, 2011

FHA Loans and Compensating Factors

By Joe Wallace

FHA loans are based on a range of qualifying criteria for borrowers. The borrower must have satisfactory credit, show a history of on-time payments, reliable income and a debt-to-income ratio that qualifies. But the FHA also prides itself on flexibility with its loans and sometimes a debt-to-income ratio or other factor that doesn't quite make the grade can be offset by what the FHA calls "compensating factors".

February 3, 2011

FHA Loans: What’s In My Contract?

By Bruce Reichstein

When the buyer wants to buy a property for sale using an FHA home loan, they find the property they want and make an offer to the seller. The buyer will naturally discuss the potential sale with the seller, then make a written offer for the property. The written offer is serious business--if the seller accepts, the written offer becomes a contract.

February 3, 2011

FHA Loans and Missed Payments

By Joe Wallace

We've discussed a great deal of information here about FHA loans and foreclosure avoidance, including time lines of foreclosure proceedings and other details. Some borrowers make the wrong assumptions about foreclosure and their FHA mortgage, and it's very important to have all the facts before a payment is missed. What are the consequences of missed payments and how long does it take before the bank starts foreclosure proceedings?

February 2, 2011

FHA Loans: Using Online Calculators to Choose the Loan For You

By Bruce Reichstein

When you want to get an FHA loan--especially for that first home purchase--there are a lot of options to choose from. How does a buyer know which FHA loan product to choose? There are many ways to answer that question, but it all depends on the buyer, what his or her goals are, and how important certain kinds of savings are to the future home owner.

February 1, 2011

FHA Loans, RESPA and Escrow

By Joe Wallace

The Real Estate Settlement Procedures Act or RESPA was created to protect FHA loan applicants and other borrowers. RESPA requires, among many other things, full disclosure to the buyer with regard to actual costs, obligations and other details of a home loan. RESPA prevents "gotcha" sales tactics in the real estate industry and makes the borrower and home purchasing experience more fair for everyone involved.

January 31, 2011

FHA Loans: Submitting a Written Offer to the Seller

By Joe Wallace

Buying a home with an FHA mortgage is very similar to purchasing a home with a conventional loan in many ways. Once the loan application itself has been approved and it's time to make an offer, buyer and seller interact with one another the same as with any other real estate purchase. First time home buyers with an FHA insured home loan may not know what to expect or what's expected of them at this stage in the process, but the steps are very simple. When the buyer decides that a property is the one for them, they may make an offer to the seller. As long as the offer is not submitted in writing as a binding agreement, there's plenty of room to negotiate but it's important for FHA | more...

January 28, 2011

New FHA Proposal Tightens Anti-Discrimination Regulations

By Joe Wallace

The FHA and HUD have strict rules prohibiting discriminatory practices when it comes to FHA home loans, but new rules proposed by the Department of Housing and Urban Development would provide much more guidance to lenders and sellers. HUD Secretary Shaun Donovan announced a proposal that would codify equal access to housing rights for all FHA applicants regardless of orientation or gender identity. At a time when "Don't Ask, Don't Tell" regulations have been repealed for U.S. military members, the announcement by HUD is part of a larger movement to insure equal access for a segment of the American public long under-represented by previous incarnations of the nation's equal access laws.