Articles Tagged With: Mortgage Insurance

December 17, 2010

What is the HUD-1 Settlement Statement?

he HUD-1 Settlement Statement is a document used to show buyers and sellers the full financial details of the transaction for the purpose to documenting who has paid or agreed to pay what costs, adjustments, etc. It also shows how much money the buyer needs to bring to the transaction up front in order to close the deal. The first page of the Settlement Statement provides the buyer with a list of all costs and related figures for both buyer and and seller. The area called Section J is for the FHA borrower while Section K lists the seller's part of the deal. Buyers are required to get Section J but they may not necessarily be furnished a copy of Section K, the seller's portion.

December 13, 2010

How Does The FHA Regulate Interest Rates and Closing Costs for FHA Home Loans?

By Joe Wallace

First time home buyers considering an FHA mortgage have many things to learn about the home loan process in general. In the home loan industry it's common, for example, to advise borrower to start getting ready for a home loan at least a year in advance--that comes as a surprise to many new applicants and sends some of the back to the planning stages just when they felt ready to commit to a loan application. For FHA home loans the usual learning curve also applies, but there are a few extra things to understand about FHA loans, especially when compared to conventional loans.

December 6, 2010

HUD, FHA Warns of Foreclosure Scams

By Joe Wallace

The Department of Housing and Urban Development and the FHA investigate claims of discriminatory lending practices and policies that violate the Fair Housing Act, but these agencies also warn consumers about an equally vexing problem. Foreclosure scams have always plagued the housing market, but since the housing crisis in 2008 there is greater opportunity for scammers to prey on unsuspecting homeowners trying to avoid losing their investment. The first thing the FHA wants consumers to know about foreclosure avoidance, Obama mortgage information, and counseling services is that help is free. HUD and the FHA warn borrowers that fee-based counseling service is one of the first warning signs. The same applies to those who require a fee in exchange for loan modification--the FHA and HUD both say "beware" in such cases.

December 3, 2010

Do I qualify for a Home Affordable Loan Modification?

By Joe Wallace

The Home Affordable loan modification program is a government homeowner bailout program designed to help people who can no longer afford their monthly loan payments. This program has been in effect since 2009 and has been through several changed to help lenders and borrowers alike. The program is not indefinite; at the time of this writing it is set to expire on June 10, 2011, so borrowers considering getting help from the Home Affordable program should act soon. The Home Affordable official site has a set of guidelines for establishing whether a borrower is eligible to apply for this program. They include a requirement that the home being refinanced be the primary residence, the amount owed must be under or equal to $729,750, and there's also a debt-to-income ratio figure | more...

November 26, 2010

Can I Get an FHA Loan Even Though I

By Joe Wallace

Conventional loans can be unforgiving when it comes to credit scores, credit history, bankruptcy and foreclosure. In the current housing market, credit requirements on conventional loans are tougher than ever. One of the reasons government home loans are so popular is because FHA guaranteed loans are more lenient and flexible where credit is concerned. The FHA even allows applicants to re-establish credit with an FHA loan even if they have previously declared bankruptcy or had a foreclosure. There are strict rules that cover these situations, but for those who qualify, the FHA mortgage is an excellent way to start over, reestablish credit and become a homeowner once more.

November 26, 2010

Can I Get an FHA Loan Even Though I

By Bruce Reichstein

November 26, 2010

Can I Get an FHA Loan Even Though Ive had a Foreclosure or Declared Bankruptcy?

By Joe Wallace

November 26, 2010

Are FHA Loans Assumable?

By Joe Wallace

An FHA loan assumption is a situation where a new FHA borrower takes over or assumes the debt on an existing FHA home loan started by another borrower. According to the FHA official site, the specific definition of an FHA loan assumption reads, "Assumption of an FHA-insured mortgage is a servicing function where the responsibility of the mortgage is acquired by another person through either Simple or Creditworthiness process." Those two options, "simple" and "creditworthiness" can be confusing to new borrowers at first, but these two terms are simple to understand. If an FHA borrower wants to assume an FHA mortgage originated December 1, 1986 or earlier, the "simple" process is used. This means the loan can be assumed without prior approval from the FHA.

November 18, 2010

Home Inspection Advice for FHA Borrowers

By Joe Wallace

FHA appraisals, which are not the same as independent home inspections, are conducted for three reasons. According to the FHA, appraisals are conducted, "To estimate the market value of the property...to make sure that the property meets FHA minimum property requirements...(and) to make sure that the property is marketable." FHA borrowers should pay for an independent inspection of the home for two important reasons--the first being that FHA appraisals will only catch problems that are "readily observable" by the appraiser.

November 18, 2010

FHA Appraisals VS. Home Inspections

By Joe Wallace

here are two specific fees associated with government home loans that a borrower should anticipate paying for. One is to cover the cost of an FHA appraisal, the other is for a home inspection. The home inspection is voluntary, and the FHA appraisal is required as part of the FHA loan process. A home inspection may be voluntary, but smart house hunters don't consider the inspection an option. The home inspection gives the buyer the ability to purchase the home with confidence, knowing they have had a trained set of eyes review the property and report any shortcomings, defects, flaws or potential problems the buyer might encounter once they've purchased the home.