Articles Tagged With: Loan Term

March 22, 2011

FHA Loan Facts on Title I Loans for Manufactured Homes

FHA home loans aren’t just available for traditional suburban houses; the FHA also insures loans for manufactured housing. Just as with FHA loans for traditional homes, the FHA insures or guarantees the loan rather than providing the loan itself. The FHA guaranty makes qualified borrowers more attractive to lenders willing to issue the loan. FHA Title I loans for manufactured homes can be used in one of three ways–to purchase the home itself, 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 in combination. The FHA has different loan terms depending on the nature of the Title I loan. Maximum loan amounts for the home only are just under $70 | more...

March 8, 2011

FHA Loans, Predatory Lending, and Borrower Protection

By Bruce Reichstein

FHA loans are not immune from the attentions of con artists, scammers and fraudsters. The FHA does actively investigate claims of fraud, discrimination or abuse of the FHA loan system, but the borrower is sometimes the first line of defense when it comes to avoiding scams or predatory business practices. New FHA loan applicants are often the most vulnerable because they’re in the process of learning how FHA loans work. Scammers are aware of this and try to use it to their advantage. That’s one reason why the FHA encourages borrowers to attend home ownership education classes and credit counseling courses offered by HUD approved non-profit agencies. The information a new borrower learns in these classes helps first-time home buyers understand their rights, responsibilities, and the rules of FHA mortgages. | more...

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.

January 21, 2011

FHA Fair Lending Standards

By Joe Wallace

One of the main advantages of an FHA insured loan is the commitment to fairness in lending. The FHA has strict requirements for its lenders when it comes to best practices, and in addition to the laws passed by the federal government to insure fairness in lending, the FHA works with the HUD Office of Fair Housing and Equal Opportunity to investigate complaints about unfair or discriminatory lending practices.

January 18, 2011

Title I Loan Facts

By Bruce Reichstein

There are many options available to FHA borrowers to make improvements on the property they bought with an FHA guaranteed loan. One option is the Title I program, which allows property owners to make "non luxury" improvements to a home, which may include construction of new structures in some cases. As with all other FHA loans and HUD programs, the FHA does not lend the money. It insures Title I loans the same way it does with FHA home loans; the borrower and a participating lender work together on the application and terms. Title I loans are for borrowers with single-family homes, multi-family properties, and manufactured homes.

December 6, 2010

FHA Borrowers’ Rights

By Joe Wallace

The FHA has an extensive list of borrowers' rights, all designed to inform and protect government home loan applicants. But what do these rights mean? For the first time home buyer, some of these rights need a bit of explanation--an experienced house hunter is probably more aware of their rights the second time around, and newcomers to FHA home loans should know their rights and obligations before they need them.

November 24, 2010

How Much is the FHA Debt-to-Income Ratio?

By Joe Wallace

The FHA has a maximum debt to income ratio set for FHA loans. When a borrower applies for an FHA mortgage, they must list all debts and lines of credit in detail as well as all possible approved income sources. With this information, the lender and FHA can calculate what a borrower's debt picture is and issue a percentage of debt to the amount of income listed. For FHA home loans, the rules are clearly spelled out. According to the FHA official site, "The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt."

November 17, 2010

Government Home Loans and Anti-Discrimination Laws

By Joe Wallace

The FHA and Department of Housing and Urban Development have an aggressive anti-discrimination policy. FHA home loans are meant for all qualified applicants regardless of race, color, national origin, religion, sex, familial status or disability. Most people are aware that refusing to issue credit, show a home or approve an application for those reasons is illegal. Even in so-called gray areas such as a loan applicant on maternity leave or suffering from a temporary disability that affects the ability to earn a paycheck have been challenged successfully; a lender or real estate agent can't refuse to do business with a qualified applicant in such cases.

November 16, 2010

What is FHA Mortgage Insurance For?

By Joe Wallace

On the surface, FHA mortgage insurance seems designed mainly to protect the lender's interest. FHA mortgage insurance is designed to mitigate the bank's losses in case the FHA loan goes into default and foreclosure. But this insurance does more than just protect the FHA lender--it also helps the buyer. The Housing and Economic Recovery Act of 2008 requires FHA mortgage insurance on all new FHA mortgages. The FHA loan applicant must, once approved, pay for this insurance--costs that include an up-front mortgage insurance premium and monthly insurance payments along with the mortgage. The fees and terms of FHA mortgage insurance depends on what kind of FHA loan the borrower wants. Other factors include the length of the loan term, and loan amount to property value ratio.