Fha guidelines

  • Question : What is mortgage insurance? Answer : Many buyers find mortgage insurance confusing, particularly because, when you buy a home, you must purchase homeowners insurance (to protect your home.... Read More
  • Question : I'm trying to a buy a house this year. My income is good and I don't have much debt, but my credit score isn't great and I don't have a lot of cash in the bank. I know an FHA loan is probably my best option, but does that mean I can only get a 30-year fixed-rate loan? Answer : FHA loans are a good option for borrowers with a low or average credit score and those who don't have a lot of funds for a down payment because you on.... Read More
  • Question : I want to buy a home soon so I can lock in low interest rates, but I live in an area with expensive homes and my credit is a little below average. My income is good and my parents are willing to give me some money for a down payment, so I could afford the payments on a $500,000 home. Is an FHA loan is a good option for me or do I have to use conventional financing? Answer : A lot of home buyers are surprised to learn that FHA loans, even though they have limits, are often available for expensive properties. FHA loan limit.... Read More
  • Question : Are there some FHA lenders that can refuse to use programs that help buyers with closing costs? Answer : This seems very unusual and highly skeptical. It may be a good idea for you to research other lenders.
  • Question : Can a gift of equity from the seller be used toward the down payment of a purchase of a single family home on a FHA loan? Answer : They can if the lender is made aware of what is going on. If not, you are tricking the lender. Check here for more information.
  • Question : Can one get a HELOC home equity line of credit through the FHA? Answer : The HUD offers a variety of home improvement programs. Check this resource for information on each of them.
  • Question : Can the closing cost be written into the loan? Answer : Yes. Most closing costs can be written into the loan. Check here for more information on closing costs.
  • Question : Can you buy points on a FHA loan? Answer : Yes, sometimes with a FHA loan it may be beneficial to try to pay off 1 point (1% of the loan at closing) to lower your interest rate. However, it is not always a great idea to buy points for a loan. Here is an example. If the loan amount is $300,000 1 point would cost you $3,000. So the point loswers your payment $20 a month because of the lower rate, but you are already out $3,000. So it would take you 12.5 years to break even. You would have to stay in that house longer than that to make it a good investment.
  • Question : Can you do a partial claim if you do not live in the home anymore but are currently renting it out to someone for the mortgage payment amount? Answer : You will not be able to do a FHA partial claim because you must live in the home financed by an FHA mortgage.
  • Question : Do you provide construction loans? Answer : The FHA has a construction loan program. Check here for more specifics on the program.
  • Question : Does FHA still participate in the Ameridream program? Answer : Yes, there are many down payment programs like Ameridream that you may use when applying for an FHA loan.
  • Question : How long does it take the underwriter to make a decision on a mortgage loan? Answer : There is no good answer to this question. This is completely dependent on your current situation, as well as the company that is underwriting your loan. There could be issues with your loan that will take longer. Also, if the company falls behind, then it is just going to take a little bit longer.
  • Question : I applied for a FHA loan and the mortgage told me I qualified after paying for several charges like appraisal, title inspection, termite inspection, earnest money and other expenses. Now they are tell Answer : This is a similar situation. It all comes down to what is in the contract you agreed to when you paid the fees. If it is in writing that you could get the money back if you don't get the loan, then this is an option for you.
  • Question : I found a home I want to purchase. It is an as is with no contingencies, no mortgage, no repairs prior to closing, no home inspection/termite contingency. The bank requires that the commitment letter Answer : Typically, the HUD will always require a contingency. On properties older than 30 years and over, $7,500 in rehabilitation costs, the cost estimate must include a contingency reserve. The reserve must be a minimum of ten percent of the cost of rehabilitationHowever, the contingency reserve may not exceed twenty percent where major remodeling is contemplated.
  • Question : I heard about a program to help prevent foreclosure, where you can get a loan to bring your FHA mortgage current as long as you can make the monthly payments from that point on. Do you have informatio Answer : This is a new program from the HUD. This aims to help the many families who are in trouble of losing their homes. Please visit the press release for more information.
  • Question : I understand that mobile homes must meet specific requirements to qualify for FHA loans. Is this the case for modular homes? Answer : Here is a great modular home resource that has more information.
  • Question : I was pre-qualified for my loan. 30 days before closing, I was not able to provide proof of employment due to relocating. I am now unapproved for my loan. Can I get my earnest money back? Answer : It all comes down to what is in the contracts that allows the buyers to back out and when. Most contracts say that if the buyer doesn't get the loan, they can get their deposit back. If you feel that you are due a buyer's earnest money, or a portion of it according to your contract, then you can take them to arbitration or court.
  • Question : If the purchase price of a home is $135,000, what would be required of me to obtain a no down payment package? Answer : For FHA loans, a 3% down payment will be required. However, if you try a conventional home loan, it is possible to get approved without a down payment.
  • Question : What are the penalties for defaulting on a FHA loan? Answer : Anytime you default on any home loan your lender may start the foreclosure process.
  • Question : What determines the interest rate for a FHA loan? Answer : The interest rate for any loan is determined by several factors. The rate you can get from a lender depends on how risky of an investment the lender thinks the loan is. The higher your income, the less debt you have, and a good credit history will help you get a lower rate.
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