Question : How long of a process is it from start to signing of loan? -CharlieAnswer :Honestly, the process time can vary. This depends on many factors, such as the realtor, mortgage broker, bank and any complications that come up. Most often it takes 14-30 days.
Question : I applied for a FHA loan and the documents were submitted to underwriting who requested more documentation from me. The loan was suppose to close but was moved due to needing more info. Are the underwAnswer :The underwriters are aware of the closing date. They probably needed more information for a variety of reasons, and it is fairly common to have the closing pushed back. Once the underwriters approve your loan, you will be ready to close.
Question : Is it legal to foreclose on someone if they are 31 days late? -ThomasAnswer :Anytime you default on the agreements of your loan, it is possible for the lender to start foreclosure proceedings.
Question : It is possible that I can have my taxes excluded from my mortgage from the FHA loan and pay the taxes on my own? -ShellAnswer :No. All FHA loans require the establishing of an escrow impound account to allow your taxes to be included in your monthly payment.
Question : Once I have the loan money how long to I have to make the necessary improvements and repairs?Answer :When you get a FHA 203(k) loan yo sign an agreement that specifies what time frame you have to complete the repairs.You have to begin the rehabilitation within 30 days of signing the agreement and receiving the money. The rehabilitation must be completed within 6 months and any pause in the work can not last for more than 30 days straight. This means that if you have different contractors working on different parts of your rehabilitation plan you need to make sure that there is not more than a 30 day stretch between the end and start of each contractor.
Question : What are the pros and cons of private mortgage insurance?Answer :Check out this mortgage insurance resource for more information on private mortgage insurance.
Question : What if the home I want to purchase need torn down and re-built, can I use the FHA 203(k) loan program for this?Answer :Yes under certain circumstances. If you need to tear down the existing home and re-build a new home then you can use the 203(k) loan money as long as you are able to use some of the existing foundation.
Question : What if the price of the repairs increases once the work begins, can I borrow more money to cover the cost?Answer :No. You need to find a contractor that can give you an accurate price before you take out your loan. Once you have the loan you can not borrow more money. Discuss this with your contractor when you have the estimate done so that they know you can not afford to go over the estimated cost.
Question : What if there is a problem and I don't get the rehabilitation work done as agreed?Answer :If you foresee a problem with the agreement then contact your lender immediately. They may be able to help you with a solution. If you break your contract then you will not be able to access the escrow account with your home rehabilitation money. This money will be held and if unused it may go back into your mortgage loan to lower your owed balance. Because of this you want to make sure and be ready to have the work done before you sign the agreement.
Question : What types of homes can I purchase through the FHA 203(k) program?Answer :You can use the program to purchase single family homes, up to four unit buildings as long as you live in one of them, and condominiums. There are certain restrictions for condominium repairs that you should consult your FHA approved lender about before purchasing.