first time home buyer – owner loan

June 27, 2010

FHA First Time Home Buyer Guidelines

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 6:13 pm
Ricky Lim asked:




FHA simply stands for Federal Housing Administration. This is basically a federal government organization in the United States of America which is responsible for the improvement of housing conditions and standards. It is a part of the National Housing Act and it is used for provision of a proper home financing system by means of insuring mortgage loans as well as stabilizing the mortgage market.

What any FHA first time home buyer should know is that this organization does not make or guarantee loans. Instead, the organization primary activity is to insure loans. This is helpful as the insurance will reduce the risk of lenders when they are faced by buyers who pay a deposit that is less than 20%. FHA is also involved in the mortgage institution as it falls under housing. This is a factor that one should be aware of anytime they wish to be an FHA first time home buyer.

Due to the fact that the organization is not out to do business without the concerns of the consumer, you will find that the mortgage limits of FHA insured loans are very friendly. The mortgage limit has been known to be quite a concern for any person who wishes to be an FHA first time home buyer. FHA has got many more advantages which will include the consideration for the persons who have a bad credit history.

Since it is a government based organization, you can be able to qualify for an FHA loan even in the event that you may be experiencing bad credit or you have had a bad credit history. This means that anyone who is interested to be an FHA first time home buyer and has had a blemished credit history will be more eligible than if they just went to any other institution for the home loan. Finally, the best thing about the FHA loans is the rates and terms that they give.

The rates of such a loan will be seen to be varying in the range of about 0.125 percent of the conventional loan and this does not change according to the markets. These rates are the most competitive in the housing market making them very popular among the people. Their terms are also very considerate and they are not a strict as other loaning institutions would be. This combination has led to an increase in the demand of such loans.

Tim

June 18, 2010

GA First Time Home Buyers – 5 Myths About FHA Loans

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 3:03 pm
Carl Pruitt asked:




FHA loans are a great tool that allows many potential first time homebuyers with past credit problems to break into the housing market. Prices are low and seller concessions are high in the today’s real estate buyer’s market. However, many of the subprime mortgage 100% financing deals are gone. FHA is the only way for many prospective buyers to get a mortgage. Also hundreds of thousands of homeowners who bought homes over the past few years using those subprime mortgages are now facing interest rate increases of 3 to 5 percent or more! Five minutes of watching business news lately will easily explain why these people don’t believe they still have any mortgage options left.

Here are 5 myths about FHA loans that prevent many from trying.

1. FHA loans take longer to get approved.

The truth is that in today’s world of automated underwriting and paperless processing, FHA loans take no longer than conventional loans to close if you are being helped by a loan officer who understands FHA loans.

2. FHA loans require a lot of extra paperwork.

The documentation required for an FHA loan is almost exactly the same as that required for a conventional loan. FHA requires only a few extra documents more than a conventional loan, and the extra documents that FHA requires take little extra time and are there to protect you during the process.

3. FHA loans cost more than conventional loans.

FHA loan interest rates are based upon the same market factors that conventional rates are based on. As a matter of fact, even when considering the FHA mortgage insurance premiums added to your payment, FHA loans are often less expensive than conventional mortgages for first time borrowers and borrowers with past or even present credit problems.

4. FHA required mortgage insurance is too expensive.

All mortgages above 80% of the value of the property being financed require mortgage insurance which pays off a portion of the loan if the borrower defaults. Prior to the invention of mortgage insurance programs, lenders all required 20 percent down payments to obtain a mortgage. FHA’s mortgage insurance program does require a 1.5% upfront mortgage insurance payment which is automatically added to your loan, and .50% per year which is divided up and added to your monthly payments. This is actually very inexpensive compared to conventional mortgage insurance rates which take effect October 1, 2007 which can require almost 3% per year in mortgage insurance to be added to the the typical borrower with lower credit scores!

5. FHA loans have very restrictive guidelines.

In fact, the exact opposite is true in many respects. Although FHA loans have lower maximum loan amounts than conventional mortgages, they don’t have the income restrictions placed on Fannie Mae and Freddie Mac community lending products. Getting an FHA loan with limited or no credit history, or credit problems is much easier than obtaining a conventional mortgage. FHA allows for manual underwriting. This means that if the automated underwriting system does not approve your loan, an underwriter can actually look at your file and determine if common sense dictates that you would be able to afford the mortgage. The underwriter can approve your loan even if the automated system turned it down. Manual underwriting is common for FHA loans and very rare for conventional loans. In addition, if interest rates go lower, FHA loans allow for a streamlined, no requalifying refinance process.

Stacey

April 25, 2010

Tax Credit for First Time Home Buyer Loans, FHA and Government Mortgage Incentive Program

Filed under: News — Tags: , , , , , , , , , , , , , , — admin @ 4:04 am
REMarketingThisWeek asked:


First Time Home Buyer Mortgage Program with $8000 Tax Credit, Low Down Payment and Fixed Interest Rates on Government FHA Loans. Financing Assistance at Cheap Rates. Go To RealEstateMarketingThisWeek.com Part 3 (Excerpt) $8000 tax credit the government is paying you to buy a home with a very low down payment We have back in the studio today Mr. Dan Havey. Dan and I have worked together in the mortgage industry for about 14 years and we are happy to have him back. He has seen a lot of changes in the market and thanks again for being here. Michael, here is a question I wanted to ask you, there is so much misconception in the marketplace today as far as what is still available for financing. I think a lot of people have this idea that it is impossible to finance a loan or get a mortgage or that you have to be able to put 20% down or have a 720 FICO score. Can you let people know whats really going on out there? Well you know a lot of things have gone away. There are a lot of those old loan programs that were fancy ways to sell money and finance real property and a lot of thats gone. The reality of it is, if a person has a minimal amount of money down, there is absolutely financing through the Federal Housing Administration with 3.5% down. You can buy up to about $358000 with only 3.5% down. Now with Fannie Mae and Freddie Mac, we actually do have a few investors that will allow us to only put 5% down with those and that loan amount maximum is $417000. So there is still …

Gerald

January 1, 2010

Florida First Time Home Buyer FHA Loans, 97% down to 530 FICO

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 10:05 pm
FHA home loan Lender asked:


irst Time Home Buyer Loans

Every Florida home buyers should know the many advantages that come with an FHA mortgage loan. FHA loans were created during the great depression to help increase home ownership. For the Florida mortgage applicant the FHA program can simplify the purchase of a Florida home, making financing easier and less expensive than a conventional or subprime mortgage loan. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:  

No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or visit http://www.fhamortgageprograms.com/florida/ to find out more about the FHA mortgage program in Florida

FHA mortgage Loans insured by the Federal Housing Authority  and are designed to help Florida homebuyers realize the dream of owning a Florida home. And they’re ideal for Florida first-time home buyers! Because the FHA insures these Florida home loan mortgages, Florida FHA mortgage lenders can offer Florida mortgage applicants a better deal and work with Florida applicants to qualify regardless of past credit problems, collections, past bankruptcy filings, or higher than average debt-to-income ratios

Applying for an Florida FHA loan

Applying for a Florida  FHA home loan through www.FHAmortgagePrograms.com is easy. As a Florida mortgage lender we have combined the speed and ease of the Internet with a hands on approach help Florida mortgage applicants qualify for FHA financing.. Once you apply online, we enter your information into our FHA mortgage database and quickly approve your Florida home loan request. And, Within  hours we will contact you for your Florida FHA home loan approval.

Apply now at http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml

The FHA Interview

During the FHA loan consolation and phone interview, your Florida FHA mortgage consultant  will go through your application to determine your eligibility. If you don’t pre today for an FHA home loan we will make recommendations, and provide you with a road map to FHA loan approval. So as some point you will be approved for a home loan. The FHA loan interview is also a great chance to get acquainted with your Florida FHA  loan officer, who plays an important role guiding your towards approval. . Good communication with your Florida FHA  loan officer will increase your chances of get pre-approved for an FHA home loan in Florida.

FHA Loan Processing

We provide in-house processing for Florida FHA loan applicants so we know where you loan is throughout the entire approval process. with one phone call all Florida applicants will know how close they are towards obtaining the home of their dream. Processing an FHA home loan involves gathering documents to verify the information in your application. Documents may include (but are not limited to) W-2 forms, pay stubs, credit reports, and bank statements. After your phone interview, you’ll receive an FHA pre-qualification letter that includes a checklist of FHA documentation needed to submit your home loan request. This checklist will itemize all of the necessary items the Florida FHA mortgage lender will need to finalize and close your FHA loan request.

Closing your FHA mortgage loan

The closing is the “end of the line” in obtaining an FHA mortgage. At the FHA mortgage closing, you will sign all of the required FHA mortgage documents. If it’s a new FHA mortgage loan, you’ll then take possession of your new home. If it’s an FHA refinance, you’ll start to enjoy the benefits of a low FHA mortgage rate, cash out, or both..

FHA frequently asked questions  http://www.fhamortgageprograms.com/faq/fha.shtml

 

 



Corey

July 25, 2009

FHA First Time Home Buyer Home Loans

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 8:22 pm
Lorna Mclaren asked:


FHA first time home buyer home loans are exactly what the Federal Housing Association was initially created for. If you are a first time home buyer looking for a home buyer loan then the FHA may offer the ideal solution to your requirements.

Any first time home buyers find that the deposit is the hardest part of any home loan. These down payments can be as low as 3% of the purchase price and it is also possible to have the majority of your closing costs and fees included in your loan. The FHA first time buyer home loans are specifically designed to help first time buyers get their feet on the property ladder, especially when house prices are increasing at a far greater rate than wages.

Of course, there are certain requirements that borrowers need to meet before they are eligible for an FHA first time home buyer home loan. The majority of these loans are not available to first time buyers with a poor credit rating. The FHA also has various other credit qualifications that an applicant needs to satisfy to qualify for a first time buyer home loan.

An FHA first time home buyer home loan is usually available on properties that have up to four units but most first time buyers are not looking to go into property ownership for profit but rather for somewhere to live. The amount of money that a borrower can obtain is up to 97% of the total finance require to purchase the property but it is important to remember that the initial mortgage insurance premium must be paid separately in advance of the financing agreement.



Paula
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