Baton Rouge FHA Loans

FHA LOANS

The punch of inflating prices in grocery and gas has also affected the potential home buyer’s power of purchase and even sale of there current homes in the fear of mortgage under the cloud of stricter rules and requirements.

This situation aroused due to the superficial nature of the government as it allowed selling and insurance of foreclosed properties at deflated prices so that these properties can be later marked up and sold at an inflated price tag. It came out to be a fiasco because these homes were purchased with the sub-prime loans and this created a mess.

The anti-flipping rule was brought into limelight in order to combat this situation by the government. It states that properties owned by the current seller wouldn’t be insured for less than 90days by the FHA .This helped in fighting voracious aspects of the situation.

FHA has already gained some momentum and is considered by many future Home owners. Here are some details related to FHA Loans:

  • It can help Owners with a flawed Credit History and further new programs will be introduced for borrowers with high credit score in buying homes.
  • A client can avail an FHA Loan within two years from bankruptcy discharge date, but he need to maintain a good credit since the debts were discharged.
  • A client can avail an FHA Loan within two years from the final date of his foreclosure if his credits are in excellent shape.

 The government is trying to lure the buyers to use the FHA Loans by making its rate highly competitive and acceptable:

 

The FHA Loan rate varies in the range of .125 percent of a conventional loan.

  •  Mortgage insurance funding is included in the loan giving it a premium of 1.5%

On the loan balance instead of giving it out of the pocket and a small portion of it is added to the monthly salary.

  • Borrowers who qualify to apply for this loan get purchase’s price 97% and put down 3%. Combination with other type of loans can create a zero down payment.

Debt ratios are higher here compared to that of conventional loans.

Closing costs can be covered by borrowers through 6% return from the seller.

The objective of FHA is to allow families without strong credit histories to qualify for financing, who were attempting to make mortgage payment but are now in default or are approaching. Investors can purchase homes, rehab them knowingly that FHA financing will be made available. Hopefully this rule will allow responsible investors to reduce the home inventories and improve neighborhood which were hit by foreclosure. 

Author Biography
Bill Cobb, CREA, with Accurate Valuations FHA Home Appraisal Group, has operated as a home appraiser for 16 years primarily in the Greater Baton Rouge, Louisiana market.  For more information on Bill Cobb, CREA and FHA Appraisers in Baton Rouge, visit: http://fhaappraisersbatonrouge.com/ .   Also visit Bill Cobb’s Video Blog @ http://batonrougefhaappraisers.com/ .  

Baton Rouge FHA Loans

Baton Rouge FHA Loans

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About Bill Cobb, Appraiser

The Baton Rouge Residential Appraisal Blog is an information source provided by local Home Appraiser, Bill Cobb, and Accurate Valuations Group. Bill has 24 years experience as a Baton Rouge Residential Home Appraiser and updates his local network of sites weekly with reports, videos and audio reviews of local housing market conditions! 225-293-1500