Articles Tagged With: Mortgage Insurance

January 20, 2011

FHA Loans and Non-Residential Use

An FHA insured home loan for a single family property has rules that govern the use of the home when it comes to what the FHA defines as "non-residential" purposes. FHA requirements say appraisers must evaluate a property on a square footage basis for homes that have a portion of that footage dedicated to business use. FHA rules say that any home, condo or multi-unit property must use no more than 25% of the square footage for business or non-residential use.

January 17, 2011

FHA Loans and Predatory Lending–Ask an Agent

By Bruce Reichstein

When a first time home buyer wants to apply for an FHA home loan, they have a lot of learning to do about the whole process. The marketplace is full of reputable lenders, but as with any industry there are some individuals and even whole companies with business practices designed to take advantage of the lack of knowledge a newcomer might have. That's one reason the FHA offers a collection of resources for house hunters which includes plenty of advice on how to avoid predatory lending.

January 10, 2011

FHA Warns About Mortgage Insurance Refund Scams

By Joe Wallace

As discussed in our last blog post, some FHA borrowers are eligible for refunds on their mortgage insurance premiums under the right circumstances. A small service industry has sprung up where third-party companies contact FHA mortgage holders, offering to locate these refunds for a fee. The FHA has hired a company called Immediate System Resources to locate FHA loan holders the government owes money to, but there is no fee. In fact, FHA borrowers never have to pay to get information about or payment from the FHA connected to mortgage insurance premium refunds.

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 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.

December 28, 2010

FHA Home Loan Fees

By Joe Wallace

Every home loan comes with associated fees, whether it's an FHA mortgage or conventional home loan. Knowing the fees up front can help house hunters budget for the ones they must pay up front and understand which ones can be rolled into the amount of the loan when permitted by FHA regulations. FHA loan fees include the loan origination fee, which includes the administrative cost of doing business with your chosen lender. There are also title search and examination fees and legal fees which must be paid.

December 27, 2010

Making Home Affordable Refinancing and Loan Modification

By Joe Wallace

n 2009, the Obama Administration created a plan to help the American economy recover from a serious financial crisis. Part of that plan included stabilizing the troubled housing market and reduce the amount of foreclosures. The Making Home Affordable program was introduced to help struggling home owners avoid defaulting on their loans, including FHA mortgages and equivalent programs for VA home loans. Under the Making Home Affordable program, several loan modification and refinancing options became available. Those with FHA loans who qualify for help under these programs have many options to save the home, prevent foreclosure and get back on track with their mortgage payments.

December 23, 2010

FHA Mortgages: 30-Year Loans & 15-Year Loans

By Joe Wallace

No two FHA mortgages are the same. House hunters have a variety of terms, interest rates, closing costs and other considerations to think about when applying for an FHA mortgage loan on a particular property; one of the most important decisions is the length of the loan itself. FHA home loans for typical residential neighborhood homes come in 15-year and 30-year terms. There are a variety of compelling reasons to choose both--there is no strong argument for or against either term. It all comes down to what the individual buyer needs and wants from their mortgage. The buyer's perspective determines a great deal when it comes to deciding which to choose. A 30-year loan has buyer paying off more interest than principal in the early days of the FHA mortgage.

December 20, 2010

How Much Do I Have To Make To Qualify For an FHA Home Loan?

By Joe Wallace

How much do I need to make to qualify for an FHA mortgage? That is among the most popular questions about FHA home loans. According to the FHA, there is NO minimum income requirement to apply. That said, the FHA does require a three-year employment record showing steady income during that time. Note that the requirements don't say you must have held the same job for three years, only that the income has been reliable. The fact is, in order to qualify for an FHA home loan, there is no one single determining factor that gets you approved or declined; the FHA examines a combination of factors to determine an applicant's overall credit worthiness and ability to pay the FHA mortgage on time every month.

December 17, 2010

Does the FHA Have Rules For Employees of Family Businesses?

By Joe Wallace

When an FHA loan applicant completes paperwork for the first time, they may notice the FHA has different requirements for those who are self-employed than for those who are employees. If you work for an employer, your income reporting requirements are comparatively simple; self employed FHA borrowers must furnish tax returns and other business documentation to prove a regular, dependable flow of income from their business ventures. But what about FHA borrowers who don't own their own business but are employed by a business owned and operated by their family?