Comprehensive FHA Loan Guide
Below is a list of our ongoing FHA guide, designed to help you better understand the caveats of financing your home using and FHA Loan. With the recent problems suffered by subprime mortgage lenders, FHA loans are making a strong comeback as a useful alternative for first-time home buyers and home buyers with less than perfect credit. Please browse our professional articles below to learn more before applying for an FHA loan.
FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance. Some FHA programs were subsidized by government, but the goal was to make it self-supporting, based on insurance premiums paid by borrowers.
Over time, private mortgage insurance (PMI) companies came into play, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI insurance.
- [2006/7/4] FHA Home Loan - Looking for FHA HUD homes FHA HUD homes are those dwellings that have been acquired by the United States Department of Housing and Urban Development (HUD). The HUD oversees the Federal Housing Administration (FHA), which offers federal insurance on home mortgages. When a home owner fails to meet the payments of a HUD insured mortgage, it results in the home being foreclosed by the mortgage lender. Ownership of the house is then transferred to HUD and the mortgage lender collects the money owed. FHA HUD homes are then put for sale at the current market rate with the aim of selling it off quickly and recovering the money. It, in fact, offers an inexpensive option for those looking to buy FHA HUD homes. If you’re thinking about buying a home, you might hear the terms manufactured homes, modular home and site built homes. Also, if you are a first time homebuyer you have to be much more careful to pick the right home at the right price. FHA HUD homes, available at about 50% of the original market value, make it a be...
- [2006/8/7] FHA Home Loan - Fha home loan Private Mortgage Insurance FHA requires a mortgage insurance premium (MIP) for its home buying programs. An up-front premium of 1.50% of the loan amount is paid at closing and can be financed into the mortgage amount. In addition, there is a monthly MIP amount included in the PITI of .50%. Condos do not require up front MIP - only monthly MIP. The mortgage insurance premium paid on an FHA loan is always significantly higher than on a conventional program. On an FHA loan the borrower will be charged a mortgage insurance premium equal to 1.50% of the purchase price of the property and a renewal premium of .500% in subsequent years. By contrast the mortgage insurance premium charged at closing on a conventional program is as low as .500% (with 10% down payment) with renewal rate in subsequent years as low as .300% in subsequent years.
- [2006/7/4] FHA Home Loan - Truth Behind Processing FHA Insurance Refunds Unlike the flood of Work from Home opportunities such as envelope stuffing, filing medical forms, processing emails or MLM schemes that promise “get rich over night”, processing FHA mortgage insurance refunds is a real job as a work from home business. The power of the Internet in locating the refund recipients has made this opportunity even more appealing. Processing FHA insurance refunds is a real job that was originated by the Federal Government to assist them in finding and returning unclaimed mortgage insurance refunds to individuals who once had an FHA mortgage insurance policy when they purchased their home. This FHA insurance premium could have cost the homeowner up to 2.5% of their loan amount at time of purchase. However, this insurance terminates if homeowner paid off their mortgage early, sold their home or refinanced their home with a non-FHA loan.
- [2006/7/4] FHA Home Loan - When You’re a Mortgage Payment Behind – an FHA Loan Can be One Solution If you have an FHA loan, your mortgage insurance may be an option for bringing payments current. Contact your lender to learn if you are eligible for a payment from this fund. You will need to learn about the prevailing requirements in your state. It is also very important that you are able to resume regular, timely payments once your mortgage payment has been brought current. It can be very worrisome when you’re a mortgage payment behind. If you don’t have an FHA loan you still have options available to help you navigate this financial crisis. Speak to the Mortgage Provider Make a meeting to speak to someone in control of your mortgage account. Don’t discuss it over the telephone. They are more likely to be sympathetic to your situation if you are dealing with them face to face. Explain the circumstances of how you became one payment behind with your mortgage. Go prepared, taking with you written details of your income and regular outgoing payments. Tell them how much extra you can af...
- [2006/7/4] FHA Home Loan - FHA Loans Lower Fees and Raise Acceptance FHA mortgage insurance programs assist low and moderate income families become homeowners by lowering some of the costs of their mortgage loans. FHA loans encourage mortgage companies to make loans to otherwise creditworthy borrowers and projects that might not be able to meet conventional underwriting requirements by protecting the mortgage company against loan default on mortgages for properties that meet certain minimum requirements. Today’s FHA program is the adaptation of the very same program which has helped save homeowners from default since the 1930s. Today, One to Four Family Mortgage Insurance is still an important tool allowed by the federal government to expand home ownership opportunities for first time homebuyers and other borrowers who would not otherwise qualify for conventional loans on affordable terms.