http://fhamortgagesdoneright.com

What is an FHA Mortgage Loan?

0

What is an FHA Mortgage Loan?


FHA Mortgage Loans are quickly becoming one of the most popular loan programs nationwide.  FHA mortgages are often called government home loans because they are insured by HUD against default so they are a stable option with low rates and typically a fixed interest rate that includes principal reduction as part of the payment each month.


FHA has been around for decades, and there are many innovative programs to help different segments of the population to realize the dream of home ownership.  For example, the teacher-next-door program allows teachers to buy a home in particular neighborhoods at 50% of the sales price with an FHA mortgage loan, and FHA will pay the other 50%.  The FHA Kiddie Condo program allows a parent or other blood-relative to co-sign for their child on the purchase of a home or condo. We also offer the FHA rehab loan. Contact us for more information on this great FHA mortgage loan. These are just a few examples of the many programs that FHA offers.


If you currently have an FHA loan, the FHA Streamline Refinance program is a fast and easy way to lower your payment or refinance out of your adjustable FHA mortgage loan.  No appraisal, no credit check, and no income or asset documentation make this program hassle-free.


What is FHA Pre-Qualification?


If you would like to buy a home, an essential step before you start looking is to get pre-qualified.  This means applying with a lender and going through a credit check as well as some documentation to verify income and down payment source.


Once this has been done, we will issue you a pre-approval letter which you will submit with your offers on a home to let the seller know you have the financing lined up.  Our FHA mortgage loan experts are standing by to help you get pre-approved or to answer your questions now!

Posted by | Posted in Uncategorized | Posted on 03-11-2009

FHA Rates for February 12,2010

0

Today’s FHA Mortgage Rates.

February 12,2010

*Please note that FHA Rates are subject to change, sometimes several times per day.*

*We now have credit score tier specific FHA mortgage Rates!*

*All FHA Rates posted are based on 30 day locks. *

*Please note that the FHA Rates posted are subject to adjustments for the following criteria*

1) Loans amounts under $100,000.00.

2) State specific adjustments.


FHA 30 year fixed – Credit Scores 620 to 639

With .75 points – 4.75%!          With .125 points – 4.875%!

FHA 30 year fixed – Credit Scores 640 to 659

With .875 points – 4.75%!          With 0 points – 5.0%!

FHA 30 year fixed – Credit Scores 660 to 699

With .50 points – 4.75%!          With 0 points – 4.875%!

FHA 30 year fixed – Credit Scores 740+

With 1.250 points – 4.625%!          With .125 points – 4.75%!


FHA 15 year fixed – Credit Scores 620 to 639

With 0 points – 4.25%!          With a credit of .750 points – 4.375%!

FHA 15 year fixed – Credit Scores 640 to 659

With a credit of .250 points – 4.25%!          With a credit of .875 points – 4.375%!

FHA 15 year fixed – Credit Scores 660 to 699

With a credit of .50 points – 4.25%!         With a credit of 1.125 points – 4.375%!

FHA 15 year fixed – Credit Scores 740+

With a credit of .875 points – 4.25%!          With a credit of 1.5 points – 4.375%!


FHA 3/1 ARM- Credit Scores 620 to 639

With .5 points – 3.75%!          With .125 points – 3.875%!

FHA 3/1 ARM – Credit Scores 640 to 659

With .375 points – 3.75%!          With 0 points – 3.875%!

FHA 3/1 ARM – Credit Scores 660 to 699

With .125 points – 3.75%!          With a credit of .25 points – 3.875%!

FHA 3/1 ARM (1/1/5 Caps)- Credit Scores 740+

With a credit of .250 points – 3.75%!          With a credit of .625 points – 3.875%!


FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 620 to 639

With 1.50 points – 3.750%!          With .125 points – 4.125%!

FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 640 to 659

With 1.375 points – 3.750%!          With 0 points – 4.375%!

FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 660 to 699

With 1.125 points – 3.75%!          With 0 points – 4.125%!

FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 740+

With 1 points – 3.75%!          With 0 points – 4.00%!


FHA 203K Streamline

30 Year Fixed

With 0 point – 5.250%!          With 1 points – 5.00%!

Click here for your free customized quote!


Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates



Posted by | Posted in Today's FHA Rates | Posted on 12-02-2010

FHA Rates for January 21,2010

0

Today’s FHA Mortgage Rates.

January 21,2010

*Please note that FHA Rates are subject to change, sometimes several times per day.*

*We now have credit score tier specific FHA mortgage Rates!*

*All FHA Rates posted are based on 30 day locks. *

*Please note that the FHA Rates posted are subject to adjustments for the following criteria*

1) Loans amounts under $100,000.00.

2) State specific adjustments.


FHA 30 year fixed – Credit Scores 620 to 639

With 1.25 points – 4.75%!          With 0 points – 5.00%!

FHA 30 year fixed – Credit Scores 640 to 659

With .875 points – 4.75%!          With 0 points – 5.0%!

FHA 30 year fixed – Credit Scores 660 to 699

With .875 points – 4.75%!          With .250 points – 4.875%!

FHA 30 year fixed – Credit Scores 740+

With .5 points – 4.75%!          With 0 points – 4.875%!


FHA 15 year fixed – Credit Scores 620 to 639

With 1.0 points – 4.25%!          With .250 points – 4.375%!

FHA 15 year fixed – Credit Scores 640 to 659

With .750 points – 4.25%!          With .125 points – 4.375%!

FHA 15 year fixed – Credit Scores 660 to 699

With .50 points – 4.25%!         With 0 points – 4.375%!

FHA 15 year fixed – Credit Scores 740+

With .125 points – 4.25%!          With 0 points – 4.375%!


FHA 3/1 ARM- Credit Scores 620 to 639

With 1 points – 3.75%!          With .125 points – 4.125%!

FHA 3/1 ARM – Credit Scores 640 to 659

With .75 points – 3.75%!          With 0 points – 4.0%!

FHA 3/1 ARM – Credit Scores 660 to 699

With .5 points – 3.75%!          With .125 points – 3.875%!

FHA 3/1 ARM (1/1/5 Caps)- Credit Scores 740+

With .125 points – 3.75%!          With 0 points – 3.875%!


FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 620 to 639

With 1.250 points – 4.0%!          With .125 points – 4.375%!

FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 640 to 659

With .875 points – 4.0%!          With 0 points – 4.375%!

FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 660 to 699

With .875 points – 4.0%!          With .250 points – 4.25%!

FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 740+

With 1.0 points – 3.875%!          With 0 points – 4.125%!


FHA 203K Streamline

30 Year Fixed

With 0 point – 5.250%!          With 1 points – 5.00%!

Click here for your free customized quote!


Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates



Posted by | Posted in Today's FHA Rates | Posted on 21-01-2010

January 15, 2010 – HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

0

HUD No. 10-011
 FOR RELEASE
Friday
January 15, 2010

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

Measure to help bring stability to home values and accelerate sale of vacant properties.

WASHINGTON – In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.”As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.”

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

“This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,” Donovan said.

In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

  • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
  • In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
  • The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website.

###HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development ad enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.


Posted by | Posted in FHA Loan Updates | Posted on 20-01-2010

January 20, 2010 – *FHA Announces Policy Changes to Address Risk and Strengthen Finances*

0

HUD No.10-001
Melanie Roussell
(202) 708-0980
 FOR RELEASE
Wednesday
January 20, 2010

FHA Announces Policy Changes to Address Risk and Strengthen Finances
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.
“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”
Announced FHA Policy Changes:

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending

    • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
    • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
    • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
    • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Update the combination of FICO scores and down payments for new borrowers.

    • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
    • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
    • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Reduce allowable seller concessions from 6% to 3%

  • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
  • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

Increase enforcement on FHA lenders

  • Publicly report lender performance rankings to complement currently available Neighborhood Watch data – Will be available on the HUD website on February 1.
    • This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
  • Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
    • Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
    • This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
  • Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
    • Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
  • HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
    • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders.This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
    • Legislative authority permitting HUD maximum flexibility to establish separate “areas” for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.


###
HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

You can find this press release by clicking here: HUD

Posted by | Posted in FHA Loan Updates | Posted on 20-01-2010

FHA Rates for January 5,2010

0

Today’s FHA Mortgage Rates.

January 5,2009

*Please note that FHA Rates are subject to change, sometimes several times per day.*

*All FHA Rates assume a credit score of at least 620.*

*All FHA Rates posted are based on 30 day locks. *

*Please note that the FHA Rates posted are subject to adjustments for the following criteria*

1) Loans amounts under $100,000.00.

2) State specific adjustments.


FHA 30 year fixed

With 1 points – 4.875%!

With 0 points – 5.125%!


FHA 15 year fixed.

With 1 points – 4.250%!

With 0 points – 4.50%!


FHA 3/1 year ARM  (1/1/5/ Caps)

With 1 points – 3.75%!

With 0 points – 4.250%!


FHA 5/1 year ARM (1/1/5 Caps)

With 1 points – 4.25%!

With 0 points – 4.5%!


FHA 203K Streamline

30 Year Fixed

With 0 point – 5.250%!

With 1 points – 5.00%!




Click here for your free customized quote!


Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates



Posted by | Posted in Today's FHA Rates | Posted on 05-01-2010

FHA Rates for December 18,2009

0

Today’s FHA Mortgage Rates.

December 18,2009

*Please note that FHA Rates are subject to change, sometimes several times per day.*

*All FHA Rates assume a credit score of at least 620.*

*All FHA Rates posted are based on 30 day locks. *

*Please note that the FHA Rates posted are subject to adjustments for the following criteria*

1) Loans amounts under $100,000.00.

2) State specific adjustments.


FHA 30 year fixed

With .375 points – 4.750%!

With 0 points – 4.875%!


FHA 15 year fixed.

With 0 points – 4.250%!


FHA 3/1 year ARM  (1/1/5/ Caps)

With .375 points – 3.75%!

With 0 points – 3.875%!


FHA 5/1 year ARM (1/1/5 Caps)

With 1 points – 4.0%!

With 0 points – 4.375%!


FHA 203K Streamline

30 Year Fixed

With 0 point – 5.250%!

With 1 points – 5.00%!




Click here for your free customized quote!


Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates

Posted by | Posted in Today's FHA Rates | Posted on 18-12-2009

FHA Rates for December 10,2009

0

Today’s FHA Mortgage Rates.

December 10,2009

*Please note that FHA Rates are subject to change, sometimes several times per day.*

*All FHA Rates assume a credit score of at least 620.*

*All FHA Rates posted are based on 30 day locks. *

*Please note that the FHA Rates posted are subject to adjustments for the following criteria*

1) Loans amounts under $100,000.00.

2) State specific adjustments.


FHA 30 year fixed

With 1 point – 4.750%!

With 0 point – 5.0%


FHA 15 year fixed.

With .625 point – 4.250%!

With 0 points – 4.50%!


FHA 3/1 year ARM  (1/1/5/ Caps)

With 0 point – 4.125%!

With 1 points – 3.75%!


FHA 5/1 year ARM (1/1/5 Caps)

With 1 point – 4.250%!

With 0 points – 4.50%!


FHA 203K Streamline

30 Year Fixed

With 0 point – 5.250%!

With 1 points – 5.00%!




Click here for your free customized quote!


Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates

Posted by | Posted in Today's FHA Rates | Posted on 10-12-2009

New Help for Homeowners

0

Airtime: Mon. Nov. 30 2009 | 12:48 PM ET

The U.S. Treasury plans to push lenders to modify their mortgages in hopes of keeping more Americans in their homes. Michael Barr, assistant Treasury Secretary, provides insight into the program and participants to CNBC’s Diana Olick.

Posted by | Posted in Uncategorized | Posted on 01-12-2009

FHA “Kiddie Condo” loan program

0

The FHA Kiddie Condo Loan Program

The FHA “Kiddie Condo” program is really just a regular FHA loan! Here’s what a Department of Housing and Urban Development spokesman in Washington had to say about it:

“HUD does not have an FHA “Kiddie Condo” program per se. Nevertheless, as the text from our mortgage credit handbook will attest, parents may indeed buy a house near campus with their college-aged children hence the nick name FHA Kiddie Condo. The child doesn’t have to have a job but must sign the mortgage and the note and, of course, occupy the property at least during the school year.”

HUD’s rules say that two or more people can get an agency-backed loan even if one or more of them will not be living in it as long as all the borrowers are “related by blood, marriage or law (spouses, parent-child, siblings, stepchildren, aunts-uncles/nieces-nephews, etc.).” Even if the borrowers are not related by blood, they can still qualify for it as long as they “can document evidence of a family-type, longstanding, and substantial relationship not arising out of the loan transaction.“

A great way for young adults to get started buying their first home is by using the FHA “Kiddie Condo” loan program. This type of mortgage allows a person to co-borrow with a blood relative (see above) who helps qualify for the loan using their income or assets. Both borrowers take title to the property and sign for the loan.

There are three big advantages to using this type of loan.
1. A low down payment (as little as 3.5% of the purchase price).
2. A lower, owner-occupied FHA interest rate on the mortgage Vs the higher investment property or second home interest rate.
3. Helps the new borrower establish a solid credit rating.

With an FHA Kiddie Condo loan program, at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments. This is a perfect way for a college student, recent graduate, or anyone unable to obtain a loan on his/her own to buy a condo or townhome or single family home with the help of a family member.

Apply for your FHA Kiddie Condo loan today!

Finally, be aware that this kind of loan may create all sorts of tax issues. You are entitled to deduct the mortgage interest from two homes. If you do own more than two, however, you can choose which two to deduct the interest on.

Will anyone other than your son be living there? If they are, will they be paying rent? To whom? Do you have to report that rent as income? Who reports it? You or your son? Could problems develop if it is not reported? Can you rent it out when school is out for the summer? If you do, does it become “rental property” at that point? Who collects and reports that money?

These are all questions you need to discuss with your tax preparer.

Posted by | Posted in FHA Loan Programs And Information | Posted on 01-12-2009

FHA Rates for November 30,2009

0

Today’s FHA Mortgage Rates.

November 30,2009

*Please note that FHA Rates are subject to change, sometimes several times per day.*

*All FHA Rates assume a credit score of at least 620.*

*All FHA Rates posted are based on 30 day locks. *

*Please note that the FHA Rates posted are subject to adjustments for the following criteria*

1) Loans under $100,000.00.

2) State specific adjustments.


FHA 30 year fixed

With 1 point – 4.50%!

With 0 point – 4.750%


FHA 15 year fixed.

With .625 point – 4.250%!

With 0 points – 4.375%!


FHA 3/1 year ARM

With 0 point – 4.375%!

With 1 points – 3.875%!


FHA 5/1 year ARM

With 1 point – 4.250%!

With 0 points – 4.50%!


Click here for your free customized quote!

Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates

Posted by | Posted in Today's FHA Rates | Posted on 01-12-2009

Previous