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Question : Are there special incentives for individuals who were in designated Hurricane Katrina Disaster zones? -Shaun
Answer : The largest incentive in these areas is that in designated Katrina and Rita disaster zones, employers can receive tax credits for providing employees housing. For a six-month period, employers are eligible for a 30% tax credit for the cost of employer-provided housing for employees, with a maximum cost of $600 per month per employee located in the Zone. Additionally, up to $600 per month of such costs would be excluded from the employee's income. Read the full Zone Act of 2005.
Question : Can a borrower have more than one FHA mortgage? -Melinda
Answer : Good question, please see the answer to your question here.
Question : Can you provide a list of Visas that are eligible for an FHA loan?
Answer : Only US citizens and resident aliens are eligible for an FHA loan. However, any individual in the United States on an acceptable work visa can be eligible for a conventional home loan.
Question : Could my immigration status affect my application for an FHA loan? I am neither a US Citizen nor a Permanent resident yet, but a missionary in the process of filling for my Permanent Residence status.
Answer : Because FHA loans are funded by the U.S. Federal government, only citizens and lawful permanent residents should apply for these loans. Furthermore, if you do get a FHA or other government backed loan, the government has the right to look at the FHA files and decide to go to the house to see if the owners have legal status or not. This could include if you received a government back loan when you were not a permanent resident, but later became one. In your situation, it seems best that you apply for a conventional home mortgage.
It is important to remember that while a FHA lender (or any lender) may not consider your race, national origin, or sex. However, a creditor may consider your immigration status and whether you have the right to remain in the country long enough to repay the debt.
Question : Could you explain to me the Extra Credit Teacher Home Purchase Program. How does it work? What are the benefits? What are the qualifications?
Answer : This is a program specific for teachers in California. Though it does't necessarily relate to FHA loans, please find the benefits and qualifications from the California Housing Finance Agency.
Question : I am pre-approved for a conventional loan that is 100% financing. I only have to put up earnest money, which I will get back at closing. My friends keep telling me that I should get a FHA loan. Becaus
Answer : Check this out for information about conventional vs. FHA loans
Question : I have a FHA loan that will hit 5 years in October. I want to know, since at the 5 year mark I can drop the PMI, how do I go about doing that?
Answer : Check out this for information about eliminating PMI
Question : I have read that the FHA offers borrowers debt-consolidation programs. Where can I find information on this?
Answer : Check out this for more on Debt Consolidation.
Question : I have real estate investment property that needs some upgrades and is renter occupied. Can a FHA loan help me?
Answer : No. In order to receive a FHA loan for a property, it must be your primary residence. It cannot be an investment property. However, a conventional refinance may be an option.
Question : If a client has a student loan that is in deferment, do I have to count that into their overall debt to income ratio when going FHA? Or is there a particular time limit the loan has to be in deferment
Answer : If the student loan is in deferment, it does not count as debt.
Question : If you are able to get a FHA loan, will you still have to pay a PMI if you have a 10% down payment?
Answer : Yes, even with a 10% down payment, you will still have to pay a PMI.
Question : Is sending one extra payment every year really cutting much time off your 30 year loan? -Evangeline
Answer : Yes. If you send in one extra payment each year, you will reduce the total time of the loan by 1 year every 12 years. So for a 30 year loan, you would reduce the total time by 2.5 years. By paying extra each year, you will also save money in reduced interest as well.
Question : Is there a specific type of loan ARM loan program that has caps of 1/4% versus the traditional annual and lifetime caps? -Hayden
Answer : An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps:
1. Periodic or adjustment caps, which limit the interest rate increase or decrease from one adjustment period to the next.
2. Overall or lifetime caps, which limit the interest rate increase over the life of the loan.
It is up to you which type of ARM works best, there are pros and cons to both. While we cannot say for sure you would be able to qualify for a loan with a periodic cap of 1/4%, it is certainly possible. It is up to negotations with the lender which type of cap and the amount of the cap you will qualify for.
Question : My fiance and I were pre-qualified for a FHA Home Loan. With FHA, we are required to come up with 3% down. Do you know of any down payment assistance programs that we can use in the state of Wyoming?
Answer : We are unaware of any down payment assistance programs specific to Wyoming. However, there are some National Programs that should work for you. Please find more information on them here.
Question : My sister and I purchased a house 4 years ago with a FHA loan. Now we need to take me off the mortgage and put my mother on instead. We know the loan is assumable, but we don't know the criteria. We a
Answer : Loans settled after December 1, 1989 are fully assumable if the buyer qualifies and has a satisfactory credit check. The seller is not held liable for any loan default. So, as long as your mother qualifies, the loan can simply be transferred to her.
Question : Should I pay off an old collection debt before applying for a FHA loan?
Answer : Yes, you should eliminate as much debt as possible before applying for any loan. This improve your credit and increase your chances of qualifying for a loan.
Question : We already got pre-qualified for a FHA loan but we are having trouble coming up with the 3% down. Is there any way to avoid having a down payment? -Nicole
Answer : Currently, there is no way around the down payment requirements of a FHA loan. However, Congress is currently working on improvements to the FHA program that could reduce or eliminate down payment requirements in the future.
Question : We are purchasing a home. Can we take out an FHA loan to purchase the house with additional money for home improvements?
Answer : Generally speaking, you cannot take out more than the value of the home when you purchase it. However, once you have built up some equity in the home, you can take out a FHA refinance to make home improvements. However, the FHA does allow you to finance the cost of energy-efficient home improvements with your mortgage. These are considered home improvements that will make your home more energy-efficient and lower your monthly utility bill.
Question : What are the responsibilities of a cosigner on a FHA loan?
Answer : In short, the cosigner is responsible for the loan repayment if the borrower defaults on the payments. The cosigner's responsibilities for a FHA loan are the same as with any other loan. Check this out for more about a cosigner's responsibilities.
Question : What costs must a bank include in the APR when posting rates? -Allison
Answer : Unfortunately, there are no set specific guidelines for posting an Annual Percentage Rate. Generally speaking, the APR should include all settlement costs that would not have arisen in an all cash transaction. Here is a more comprehensive list of what types of charges are supposed to be included in the APR.
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