Federal Housing Administration (FHA)
FHA loan programs:
FHA Cal Gold
FHA Rural Gold
FHA Mutal Mtg. Insurance
FHA 203 (k)
FHA 203 b
FHA Title I program
FHA MIP Refund
The Federal housing administration was created by Congress in 1934 as part of the national housing act. The purpose of the act, and of the FHA, was to generate new jobs through increased construction activity, to exert a stabilizing influence on the mortgage market, and to promote the financing, prepared, and sale of real estate
nationwide. Today, the FHA is part of the Department of Housing and Urban Development (HUD).
The FHA's primary function is to insure loans. FHA approved lenders are insured against losses caused by borrower default.
The FHA insurance program is called mutual mortgage insurance plan (MMI). Under the plan, lenders who had been approved by the FHA to make insured loans either submit applications from prospective borrowers to the local FHA office for approval, or, if authorized by the FH to do so, from the underwriting functions themselves. Lenders who are authorized by the FHA to fully underwrite their own FHA loan applications are called direct endorsement lenders (DE Lenders). A direct endorsement lender is responsible for the entire mortgage process, from application for closing. When a direct endorsement lender has approved and closed a loan, the application for mortgage insurance is submitted to the FHA.
As the insurer, the FHA incurs full liability for losses resulting from default and property foreclosure. In turn, the FHA regulates many of the terms and conditions of the loan. FHA regulations have the force and effect of law.
FHA loan features.
Any loan intended for submission for FHA insurance has a number of features that distinguish it from a conventional loan. The most significant of these features are:
1. Less stringent quality standards. FHA will allow re-establishment of a credit within two years after a discharge of bankruptcy, when any judgments have been fully paid, any tax liens have been repaid, or a repayment plan has been established by the IRS, and within three years after a foreclosure has been resolved.
2. Low down payment. The 3% cash down payment is generally less than for a similar conventional loan.
3. No secondary financing is allowed for the down payment. The FHA minimum down payment for a loan must be paid by the borrower in cash. The borrower is not allowed to resort to secondary financing from the seller or from any lender to make up any part of the down payment. The FHA permits the use of either a nom- repayable gift of money, credit from a portion of rents from pay rent/purchase contract between a buyer and seller, or some home repairs made by the purchaser (sweat equity) to be used to satisfy the 3% down payment costs.
4. Some closing costs may cover the down payment. While a borrower may not finance any of the closing costs along with the sales price, FHA permits the use of some closing cost to satisfy the 3% down payment requirement.
5. FHA mortgage insurance is required for the loan regardless of the amount of the down payment.
6. No prevent penalties are allowed. FHA loan may be paid off in full at any time with no additional charges. A lender is allowed to require that any such payment be made on a regular installment due date.
7. The property must be owner occupied. The FHA used to insure investor properties but they have virtually eliminated all such programs. Two-to-four unit properties qualify if they are owner occupied.
Other characteristics of FHA loans.
The typical FHA loan has a 30 year term. However, FHA offers long terms as short as 15 years. They also offer adjustable loans and home repair loans. The rate is fully negotiable between the borrower and lender. They still tend to be lower than college loan rates because the lenders risk is lessened by the FHA mortgage insurance.
A lender may only charge 1% ordination of the own FHA loan, but is allowed to charge discount points. Typically, discount points allow a lender to recover and the interest loss upfront. Although discount points may be paid by the buyer in an FHA transaction, they are almost always paid by the seller.
The lender is required to obtain an appraisal of the property from an FHA approved appraiser. The a praise it will note any health and safety deficiencies and necessary repairs needed on a validation conditions form. The lender is required to provide the buyer with a home-buyer summary of all the deficiencies noted by the appraiser. All problems with health and safety conditions, as well as necessary repairs, must be completed before the FHA will issue insurance on the property.
Income qualifications and a maximum amounts .
There is no minimum income requirement for an FHA loan. Borrowers of the show two years of steady employment and demonstrate that they have consistently paid their bills on time. The FHA has a ratio of 29% and 41%. This means that a payment for a home loan may not exceed 29% of the borrower's gross monthly income and all installment debt, including the home loan payment, may not exceed 41%.
The FHA sets maximum mortgage loan amounts. These amounts, which vary by state as well as location within a state, are adjusted yearly. FHA loan limits are found on HUD website.
Martin Lukac, represents, #1 Loans USA(http://www.1LoansUSA.com), a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more: info@1LoansUSA.com
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Student Loans and Financial Literacy in the Golden Age of Information: How Can Ameritech Financial Help - PR Newswire (press release)
Judges May Be Finding a New Way to Deal With Student Loans in Court, Observes American Financial Benefits Center - PR Newswire (press release)
5 Things Pensioners Applying for a Loan Should Remember
Are you a pensioner applying for a loan? Here are 5 things you should rememberAs a pensioner, applying for loans and finance can be problematic. Some of the best deals in the market may be unavailable to you because you do not meet the ideal criteria that lenders look for.
Why Choose a Bridging Loan?
Listed below are some of the reasons for choosing a bridging loan. A bridging loan is a short term mortgage which is secured by your property.
Industry Regulation and Recent Legislation
A number of states from coast to coast are attempting to impose further regulations on the payday loan industry, but without much success in many cases. Consumers of payday loans have generally argued against more stringent measures and limitations, that would limit their access to payday loans.
A Guide to Finding Fast Homeowner Loans
Sometimes finding fast homeowner loans can seem impossible? no matter what you do, it seems like traditional lenders such as banks and finance companies take way too long to process loan applications.Fast homeowner loans can be had, however? the hardest part is finding out where to look.
The term unsecured loan relates to a loan which is not secured on any physical asset or other legal entity.To understand the term unsecured loan we will first look at the opposite, the secured loan:Many loans can be secured on physical items or other assets such as intellectual property rights.
Taking the Edge Off of Military Motorcycle Loans
So you have decided you want a motorcycle and you know you need a loan. Being in the military you're probably moving a lot and one of your main obstacles will be the accuracy of your personal information on your credit report.
Loans for Doctors - Financial Funding for Healthcare Professionals
The revolution that has affected everyone's financing technique is online loan borrowing. A very remarkable outcome of this loan borrowing is loans for doctors.
Finance Your Home Business: Six Ways Under Your Nose
There are lots of ways to get additional capital to expand a home-based business. But before you look outside for financing, leaving the decision about your company's progress and merits to someone else, consider these six ways under your nose to finance your home-based business:Personal SavingsSavings are easy to tap and involve no paperwork.
A Guide to Common Loan Terms
Many people may wonder about common loan terms? words and phrases that are often tossed about when describing different types of loans that are assumed to be common knowledge.These common loan terms represent very important parts of the lending process, but to the person who isn't entirely sure what the terms mean they can be quite intimidating and cause the person to feel very uneasy about getting a loan.
Zero Zero Financing on Automobiles in Retrospect
Some say that the automobile industry saved the economy during the last recession. This is because auto sales are bundled into retail sales, which allowed higher numbers than actual to be reported.
Military Payday Loans - When's The Best Time To Avail Of These?
What are the opportune times to avail of military payday loans? The best time to take out military payday loans are when you find yourself temporarily short of funds and see the loan as a temporary measure to tide you over until your next pay check.Other such situations where you find yourself financially strapped are the following:1.
Bridge Loans: Everything You Wanted To Know
As the name implies, bridge loans fulfill a vital need for active developers by giving life to a new project in the months before lenders feel confident enough to make available a construction loan, or a repositioning loan in the case of an existing project. But real estate bridge loans have other uses, both tactical and strategic, that make them indispensable in today's New York marketplace.
What is a Home Improvement Loan?
A UK Home Improvement Loan Can Give You The Home You Want.Looking to increase the value of your property? A Home improvement Loan could be the easiest and cheapest way to make improvements to your home.
All About Student Loans
A student loan is an unsecured loan made by lenders that receive government underwriting assistance. Without this government assistance, student loans would not be very practical.
How To Apply For a Business Loan
Worried about how to apply for a business loan? Although it may seem like a daunting task at first, it can be made less so by careful preparation. When applying for a business loan, you must prepare a written loan proposal.
Cash Loans: The Good, the Bad, and the Debt-Free
Happiness is what they're selling. Relief from the crushing weight of that gigantic rock we're all forced to carry called 'financial burden.
Relax, Unwind, and Enjoy With American One Secured Personal Loans
Secured Personal Loans are those loans against which you don't have to put your home or other property as security. The path of Secured Personal Loans is very easy and dependable.
Bad Credit Loans
Obtaining bad credit loans can be a real challenge. If you have a bad credit history and you're seeking a loan to buy a home, a car, or a personal unsecured loan, you will usually have to work a bit harder convincing a lender to underwrite your loan.
What is an Auto Loan?
An Auto loan is basically another name for a car loan. An auto loan is an agreement between a lender and a borrower in which the lender gives the borrower money and the borrower promised to pay back the amount of the loan and the interest.
Benefits of a Personal Secured Loan
A Personal secured loan can offer many benefits, some of which are listed below:Personal secured loans are loans that are offered to individuals rather than businesses.Rates for a personal secured loan will be way lower than for other loan products so it makes good financial sense for many of us over the term of our borrowings.
|home | site map|
|TIGER MEDIA© 2006|