Articles Tagged With: HUD

January 11, 2011

FHA Loans for Fixer-Uppers: The 203(k)

Those shopping for a home with an FHA loan aren't always interested in buying a brand-new property. Some borrowers want to purchase fixer-upper homes at a lower price to save money and invest labor into a home to make it exactly the way they want it. The FHA 203(k) loan program offers qualified FHA borrowers a chance to borrow money to accomplish this. Qualified borrowers must meet a downpayment requirement, which is roughly 3.5% of the purchase price AND repair costs of the property.

January 10, 2011

What is an FHA Tracer?

By Joe Wallace

There are two possible definitions of the term, "FHA Tracer". The most common one is a third-party company that contacts home owners with an offer to help track down a possible refund from the FHA for mortgage insurance premiums. These companies charge finder's fees and ask for payment in exchange for their services. The other definition of the phrase FHA tracer is connected to the FHA itself. While the FHA doesn't use the term "tracer" in connection with its activities, there is an ongoing effort to identity homeowners the FHA owes a refund to.

January 7, 2011

New FHA Guidance For HECM Loan Borrowers, Lenders

By Joe Wallace

FHA Reverse Mortgage Loans, also known as Home Equity Conversion Mortgages or HECM, provide a way for seniors age 62 and older to borrow against the equity in their homes. Under HECM loan rules, the borrower does not make monthly mortgage payments--the home is paid off when it is sold or when the borrower dies. But that lack of monthly mortgage payments may lead some borrowers to assume there are no payments due on the home whatsoever. This is not true--property taxes are still due, as are hazard insurance premiums or other commitments.

January 5, 2011

Facts About FHA Home Loans for First Time Home Buyers

By Joe Wallace

First time home buyers sometimes have a difficult journey ahead of them because of all the new terms, rules, requirements and other issues the must navigate for the first time. Fortunately there are some basic concepts that can be presented simply to help newcomers to the housing market learn what they need to do in order to get an FHA mortgage.

January 4, 2011

What is the Making Home Affordable Short Sale Program?

By Joe Wallace

When borrowers get into trouble on their FHA mortgages, the FHA encourages them to act quickly in order to save their homes. But some borrowers don't act fast enough and fail to qualify for some government home loan modification or refinancing programs. Other borrowers aren't qualified for certain programs even when they do act. In cases where a borrower has tried loan refinancing, modification or other home owner bailout programs there may be an alternative to foreclosure in the form of something known as the short sale.

January 3, 2011

Are My FHA Mortgage Insurance Premiums Tax Deductible?

By Joe Wallace

FHA home loans have advantages over conventional mortgage loans; for some buyers those advantages include tax breaks in some areas as allowed by current federal tax laws. Like so many other aspects of buying a home, there's no standard tax deduction guidance for all borrowers--much depends on current law, the type of loan, and sometimes even the income of the borrower. What follows is not tax advice, but merely a reminder that FHA mortgage holders should ask their tax preparers (or hire one) about FHA mortgage insurance deductions on their taxes.

January 3, 2011

What Is Different About an FHA Condo Loan?

By Joe Wallace

Those who buy suburban homes with an FHA mortgage have a set of requirements and responsibilities; some neighborhoods have homeowner's associations with bylaws and clauses that must be agreed upon. Others don't, but find they have their own community standards and informal covenants to live up to. When it comes to FHA condo loans, the buyer shouldn't expect to have the same experience as when purchasing a suburban home. Condo purchases carry unique responsibilities the buyer should consider before agreeing to purchase.

January 3, 2011

FHA Loans for Condominiums

By Joe Wallace

FHA home loans aren't just for traditional suburban homes; there are a wide range of choices for buyers interested in something outside a typical neighborhood. One of those options is an FHA condominium loan. The FHA guarantees home loans for proposed and under construction condo projects as well as existing condo units. The FHA can also approve mortgages for conversion projects where a property is renovated and converted into a condominium. FHA loan applicants seeking a condo loan have a few restrictions those searching for more traditional homes don't have to worry about.

December 29, 2010

FHA Home Loan Down Payment Rules

By Joe Wallace

Most FHA home loan programs require the borrower to make a minimum down payment of 3.5% of either the appraised value of the property or the asking price of the home, whichever is lower. The downpayment is strictly regulated. The buyer is not only required to put down his or her 3.5%, but the FHA also requires documentation on the source of the down payment money in many cases. Documentation is required when the borrower pays more than 2% of the sale price. It's also required in any situation where the lender has certain questions about the down payment. According to FHA requirements, documentation is needed when the down payment "appears excessive based upon the borrower

December 28, 2010

Is There a Minimum Credit Score For FHA Loans?

By Joe Wallace

As with many government programs, the rules and requirements for FHA home loans change often. Some alterations come as part of new legislation designed to close loopholes that could threaten the fairness of the FHA mortgage loan process, others come as a way to update or modernize existing FHA loan programs. Because of such changes, the FHA loan program some potential borrowers explored a year or more ago, but didn't act on at the time, may have changed in the interim.