3 posts tagged “hud”
HUD Home Fact #1
About the FHA
The Federal Housing Administration (FHA), an agency of the federal government, insures private loans that are issued for new and existing housing, and loans that are approved for home repairs. Created by congress in 1934, the FHA became part of the Department of Housing and Urban Development's Office of Housing (HUD) in 1965. Today the mission of the FHA includes helping borrowers get amounts they qualify for, and assisting lenders by reducing their risk in issuing loans. To find out if you might be eligible for an FHA-insured loan, contact us.
HUD Home Fact #2
Credit Problems and a HUD Housing Loan
It is advisable to approach any FHA loan with your best possible credit rating. If you have had credit problems in the past, the FHA recommends a Consumer Credit Counseling program to avoid being denied an FHA loan. A good credit counselor can talk to you about income-to-debt ratio, maintaining satisfactory payments and challenging errors on your credit report. The FHA recommends creating a satisfactory payment history for at least one year before applying for any FHA loan program.
HUD Home Fact #3
The FHA TOTAL Scorecard
If you submit FHA paperwork electronically, the FHA TOTAL Scorecard is used to measure the credit risk of all FHA loans submitted through the automatic underwriting system. Your FHA loan is processed through a qualified and approved FHA lender. Applications submitted through FHA TOTAL are evaluated by a standardized scoring procedure creating a quick, fair and seamless evaluation. The FHA's TOTAL system is internet based and works in real time.
HUD Home Fact #4
Applying for an FHA Loan
The FHA asks for a lot of information on your FHA loan application. You will need to provide the FHA with a wide range of details including:
- All addresses where you have lived in the previous two years.
- Your employer's name and addresses for the last two years, plus the amount of your Gross Monthly Salary.
- W2s for the past two years.
- Income tax forms submitted for the last two years.
Gather all of this before you begin your FHA application so you will have everything handy to complete your FHA loan forms at one time.
HUD Home Fact #5
Additional Paperwork for Veterans
The FHA asks that veterans submit the DD Form 214 along with their FHA loan application paperwork. The DD Form 214 is the official record of discharge from the Armed Forces. If you have recently separated, retired or otherwise left active duty and don't have your DD Form 214, request a copy from either your final outprocessing base (call the orderly room, records office or outbound assignments/outprocessing office), or request the form electronically from the Department of Defense
HUD Home Fact #6
FHA/HUD Insured Mortgages and Refunds
If you have an FHA loan or HUD insured mortgage, you may have paid an "up-front" mortgage insurance premium at the closing of your house. Assuming you did not default on your mortgage payments, you may be eligible for a refund on part of your insurance premium. Loans granted after September 1, 1983 may be entitled to this refund. Check your FHA loan settlement paperwork or phone your lender to learn more. If you need further assistance, contact your FHA loan officer for help.
HUD Home Fact #7
Popular FHA Loans
The 203(b) FHA Fixed Rate Mortgage Loan Program is the widely used FHA home loan, especially among first time home buyers. The 203(b) FHA loan keeps your down payment to a minimum. Your closing costs may also be reduced. The 203(b) FHA loan will finance up to ninety-seven percent of your loan. You must qualify with some debt-to-income ratios, but the 203(b) does not have a minimum income requirement. Check with a financial planner about your debt to income ratio, or discuss your financial status with a lender. Find out how to maximize your credit rating before you apply for your FHA loan.
HUD Home Fact #8
Where FHA Mortgages Come From
FHA loans do not come directly from the FHA. The FHA guarantees home loans, reducing the risk to lenders and offering increased borrowing power to qualified applicants. You may bet better interest rates thanks to FHA home loan insurance. FHA loans are particularly helpful for who want a home, but have little or no money saved for a down payment; including those just graduating college, newly married couples, and also those who have had credit problems in the past because of foreclosure or bankruptcy. Check out your credit rating and get a list of lending limits for FHA loans in your area which vary from state to state, and may even vary by county.
HUD Home Fact #9
Pre-qualify for an FHA Home Loan
To pre-qualify for an FHA loan, you should be able to demonstrate employability, job stability and reliability. To the FHA, reliability includes holding a steady job for at least two years with the same company or employer and increasing or at least maintaining consistent income. The FHA would like to see that any foreclosures or bankruptcies on your record are at least three years old. The FHA loan bottom line: demonstrate that you have been a good credit risk for two years or more and you will have a much better chance at pre-qualifying for an FHA loan.
HUD Home Fact #10
The Increased FHA Loan Amount
In early 2006, a HUD press release announced an increase of nearly thirty thousand dollars in FHA-insured home loan money being made available to borrowers for single-family home mortgages. This increase signals more borrowing power with your FHA home loan, and it allows more people than ever the opportunity to own a home. With only a three-percent down payment and a single-family home mortgage limits coming closer to two hundred thousand dollars, now may be the best time to apply for an FHA home loan. First, evaluate your finances; your monthly housing costs should not exceed more than 29% of your gross monthly income. Use gross income, not net income, when evaluating your finances to apply for your FHA loan.
March 7, 2008 – $100 HUD Repo Program Now Available in Kansas and Missouri
The FHA HUD Repo Program which allows the borrower to make only a $100 downpayment when purchasing a HUD repossessed home has now expanded to include Kansas and Missouri. Borrowers are only required to make a $100 downpayment instead of the normally required 3% investment. In certain cases the borrower and perhaps even the selling real estate agent may be eligible for additional incentives. The $100 HUD Repo program allows for a maximum LTV up to 110% in order to finance closing costs and prepaid expenses above 100%.
FHA continues to provide highly competitive interest rates and mortgage insurance premiums for borrowers who have had credit challenges in the past as well as for those that have not.
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WASHINGTON, February 13, 2008 -
The National Association of Realtors® has called on both the U.S. Department of Housing and Urban Development and the Office of Federal Housing Enterprise Oversight to promptly implement the higher conforming loan limits for Fannie Mae and Freddie Mac and the increased Federal Housing Administration loan limits that Congress mandated and that President George W. Bush today signed into law. In a letter to HUD Secretary Alphonso Jackson and OFHEO Director James Lockhart, NAR notes that failing to move quickly to allow Fannie Mae, Freddie Mac and the FHA to increase their loan limits will prolong the nation’s mortgage crisis and make a recovery in the housing market more difficult. “The importance of immediately implementing the new limits cannot be overstated. Mortgage markets throughout the country need liquidity,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “Our research indicates that the increased FHA loan limits will help an additional 138,000 Americans achieve the dream of homeownership and will allow nearly 200,000 homeowners to refinance and potentially keep their homes.” In addition, NAR believes that increasing the loan limits for Fannie Mae and Freddie Mac will bolster the housing finance market, which continues to be severely stressed, by providing an immediate infusion of much needed liquidity to the nation’s mortgage market. “While such an increase will not solve the full range of housing challenges, it will play an important role in improving the nation’s economy,” said Gaylord. “We do not have time to waste. Families need mortgage options whether they are purchasing or refinancing to keep their homes.” An economic impact study conducted by NAR in January estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated. “These are real results and can have an immediate and sustainable impact for families across our country,” said Gaylord. “NAR members stand ready to communicate and educate families in all parts of the country. We stand ready to move immediately upon your implementation. We are ready to do our part in helping families achieve the dream of homeownership as well as keep their homes,” Gaylord said. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of residential and commercial real estate industries. |
