Recent FHA Research Project

The FHA information below is the result of recent FHA Study performed by myself and John Halasz.

*****FHA loans are government insured loans establishment to help buyers with limited cash or first time buyers to purchase a home.  FHA is an acronym for Federal Housing Administration. The loan program requires the buyer to invest at least 3 percent of the purchase price.  These federal loans are more lenient of a past bankruptcy and allow borrowers with little money to afford the traditionally high down payment.

An FHA loan is an excellent way to buy a home because there are flexible financing guidelines for first time buyers.  The flexible financing guidelines include the following:

Minimal down payments,

Access to fixed rate programs.

Only 3 percent down

If you are like most people and not eligible for a loan without a down payment, an FHA loan is a great alternative.

An FHA loan is a normal mortgage loan and the Federal Housing Administration insures it on behalf of the borrower in case of a load default. All FHA loans are supported by the security and power of a government insurance program. Lenders who permit mortgages through the FHA program have an added degree of protection and consequently are more often issue a mortgage loan. An FHA loan is the simplest and most frequently awarded type of real estate mortgage loan for fist time home buyers, people with limited economic means, and those who had filled for bankruptcy.

 

***** The FHA guidelines for loan qualification are the most flexible of all mortgage loans.

Federal law requires any builders attempting to sell more than five homes using financing through the FHA to submit a fair housing marketing plan.[2] An FHA loan is the ideal choice with someone who is a first time home buyer or has less-than-perfect credit because an FHA loan has no minimum credit score. This is able to be done because FHA loans are insured by the government, which gives lenders a sense of security not offered with other loans.[3]

[1] http://star-agent.com/index.cfm/mortgage_info

[2] http://www.reuters.com/article/pressrelease/idus190204+21-apr-2008+bw20080421

[3] http://www.propelhomeloans.com/state/fl

[4] http://iblogit.com/fhatoday

[5] http://articles.directorym.net/6_ways_to_buy_a_home_without_a_down_payment_baltimore_md-r861146-baltimore_md.html

[6] http://www.gethomemortgageloan.com/fha-mortgage-loan.html

An FHA loan is normal mortgage loan that can be obtained through any approved FHA loan center. [7] An FHA loan is one type government loan along with the VA loan, and others. An FHA loan has a mortgage principal limit set by the FHA that depends upon property location.[8]

[7] http://www.online-specials.org/lp/fha/fha.php

[8] http://www.investorglossary.com/fha-loan.htm

 

*****FHA loans are often ideal mortgage products suitable for a wide range of individual customer demands and eligibility concerns. Credit, income and employment information must be verified to satisfy eligibility requirements, and FHA loans are only applicable to primary-residence properties.[1] FHA loans are low cost, low rate government backed loans. They help qualify little equity loans or little money down or sub-prime credit.[2] FHA loans are not subject to this �LTV reduction�. Rather, it is only the non-government loan programs (ie Fannie Mae and Freddie Mac) subject to this constraint.[3]

[1] http://www.primarycapital.com/newsroom/articles/fha-mortgage.html

[2] http://newyork.craigslist.org/brk/fns/766574667.html

[3] http://www.thephantomwriters.com/free_content/db/m/fha-loans.shtml

FHA loans are eligible for streamlined refinance, a program HUD offers that allows the borrower to easily refinance the loan to reduce their interest rate and lower their monthly payment. [4] FHA loans are an outstanding choice for first time homebuyers because FHA loans require only 3% cash (which may be a gift) and are more forgiving of past credit issues. FHA loans look at the last two years of your credit history.[5] FHA loans are popular for first time homebuyers because the income and credit requirements tend to be more lenient than those of conventional loans. Though commonly referred to as “FHA loans,” the loans are not made by the FHA, but rather the FHA insures the lender against loss.[6]

[4] http://www.englending.com/loan-resources/loan-types/fha-loans.html

[5] http://www.nva-mortgage.com/fha_loans.htm

[6] http://www.signaturemort.com/loanprograms.htm

FHA loans are typically given to individuals with low or moderate incomes. Such individuals often have difficulty securing such loans and the FHA provides the insurance needed to secure the loan.[7] FHA loans are currently available only to homes that fit under the specified mortgage limits. In high-cost areas such as New York and Los Angeles, there is a loan limit for single family homes of $362,790, while low-cost areas such as Iowa and Kentucky have a loan limit of $200,160, according to FHA.com.[8] FHA loans are not credit score driven but look at your payment history. However, listen closely because people pay lots of money to learn the following secrets: there is a loophole in the FHA underwriting guidelines that allows gift money to be given to you to cover the 3% down payment, your loan closing costs, and your prepaid items (first six month’s property taxes and first year homeowner’s insurance.) This gift money can be from a relative or from a non-profit company.[9]

[7] http://www.isnare.com/?aid=185833&ca=finances

[8] http://www.nuwireinvestor.com/articles/the-fha-loans-comeback-tour-51265.aspx

[9] http://seattlerealestatetalk.com/tag/fha-loans/

FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans.[10] FHA loans are recommended for those borrowers who are first-time buyers, have little money to put down, have a short credit history, or are having trouble qualifying for a Conforming loan. The two main advantages of financing using VA loans are that the VA allows borrowers to finance 103% of the loan amount , and that, the VA only requires proof of veteran status to qualify for the loan.[11] FHA loans are available for every type of home loan need with the with various loan programs they offer. FHA loans may be used for buying a home or you may be used for FHA mortgage refinance .[12]

[10] http://www.hleloans.com/index.php/fha-va-loans-information

[11] http://www.peakhomeloan.com/fha_refinance.asp

[12] http://www.homes-for-sale-center.com/fha-loans/index.htm

FHA loans are not for them. Incase people need a large amount of money then FHA loans are not for them.[13] FHA loans are made through private lenders, but are backed by the Federal Housing Administration. This allows for greater loan stability while requiring lower credit requirements than conventional mortgages.[14] FHA loans are sometimes referred to as HUD loans as well. These types of mortgages are federally insured programs designed to provide affordable housing options to first-time homebuyers and low-to-moderate-income borrowers who may not be able to qualify for a conventional mortgage.[15]

[13] http://www.bostonapartments.com/loans/fha-loans.html

[14] http://www.prleap.com/pr/92806/

[15] http://www.ratemarketplace.com/mortgage/articles/fha_hud_home_loans_explained.html

FHA loans are synonymous with safety and integrity and offering these loans to your borrowers will bring you instant credibility! [16] FHA loans are great options for first-time buyers, but can be used for second- and third-time buyers and existing homeowners, too. [17] FHA loans are a powerful tool that has recently regained importance with borrowers across the nation. [18]

[16] http://www.fhaloankit.com/

[17] http://www.mortgageloan.com/fha-loans-for-purchase-or-refinance-2104

[18] http://www.malcap.com/alabama-fha-loans.html

FHA loans are offered through HUD at very competitive interest rates and with little or no down payment requirements which makes them particularly helpful for first-time home buyers . Additionally, HMDA only tracks income data for loan applicants and none of the other factors that lenders consider when extending credit to a potential borrower, e.g.[19] FHA loans are extremely attractive because they allow prepayments without penalty and feature low down payments (about 3 percent or less compared with 20 percent down for a conventional loan). FHA interest rates are established in the marketplace and not by federal regulation.[20]

[19] http://www.choicefinance.net/montgomery-county-lender.htm

[20] http://library.hsh.com/?row_id=137

 

*****FHA loans will provide up to 97 percent financing at competitive interest rates. The FHA approval process considers your credit history , but not your credit score.[1] FHA loans will allow family gifts of money but there cannot be a requirement for the money to be paid back. Non-liquid assets are things that require one or more transactions in order to have access to funds.[2] FHA loans will lend up to 97% of the sales price and the seller can pay up to 6% of the closing costs. VA will lend up to 100% of the sales price and has no set limit on seller concessions.[3]

[1] http://www.mortgageloan.com/finding-mortgages-for-bad-credit-borrowers-2069

[2] http://www.nathanjohnsonloans.com/nathanjohnsonloans/blog_index.html

[3] http://www.gnlending.com/pages/home_content.html

FHA loans will allow the borrower to have less than perfect credit to receive the same interest rate as a borrower with better credit. [4] FHA loans will allow you to refinance up to a 95% loan to value!! [5] FHA loans will now allow you to refinance and take cash out to pay debt up to 95% of the appraised value of your home. [6]

[4] http://wichitamls.us/

[5] http://www.whoisshawnburke.com/

[6] http://windermortgageinfo.com/credit_card_debt_consolidation.htm

FHA loans will be the best way to go for most mortgage products. And many will have to accept less of a home, especially a new home, which is not a bad thing since so many buyers purchased McMansions expecting appreciation of the property to bail them out of a poor financial decision.[7] Fha loans will be used much more now as a way for people with lower incomes and credit scores to purchase a home. The bummer of it is the PMI insurance that you will continue to have to pay which is money that doesn’t go towards buying down the amount financed on your home .it’s just a payment for mortgage insurance.[8] FHA loans will be income verified. Rehab loans can be addressed with commercial mortgage finance as well as reo or real estate owned loans.[9]

[7] http://www.istockanalyst.com/article/viewarticle+articleid_1703172.html

[8] http://www.trulia.com/voices/home_buying/what_is_the_benefit_of_fha_loans_do_they_require-31760–

[9] http://www.estatefundinggroup.com/large.htm

FHA loans will generally charge the going market interest rate and have no prepayment penalty. [10] FHA loans will probably be in and out of vogue many more times in the years to come. However, after 73 years the FHA is still going strong.[11] FHA loans will not go above 29 percent of your monthly income. [12]

[10] http://www.tomroy.com/financing_101.htm

[11] http://www.complianceheadquarters.com/compliancearticles/mortgage_121407.aspx

[12] http://www.therealestatetips.info/2007/11/15/ohio-mortgage-services-paying-ohio-property-taxes/

 

*****FHA loans can be used for many different types of loans. Whether you are buying your first home, fixing up an investment property, or remodeling your current home, the FHA can help you.[1] FHA loans can be an excellent alternative to sub-prime mortgages because rates are more in-line with traditional conventional financing and borrowers may qualify with as little as 3% down. Unlike sub-prime mortgages that are often subjected to a rate increase after an initial two or three year term, FHA mortgages offer fixed rate financing terms that are not subject to future rate fluctuations.[2] FHA loans can be a great way for first-time homebuyers to get into the marketplace. If Congress wants to really help fix the so-called “mortgage crisis”, then FHA will have to be a part of the fix.[3]

[1] http://www.keyrefi.com/government-loans.aspx

[2] http://www.mortgagevid.com/article.cfm/id/223079

[3] http://utahhomesforsale.wordpress.com/2008/03/06/utah-fha-loan-limits-increased/

FHA loans can still be assumed with us. Customers may have an opportunity to buy a property and assume the mortgage of the current owner.[4] FHA loans can be used to purchase a single family home, a condo, a townhome or a PUD. There isn’t a maximum sales price restriction, but there is the maximum loan limit based on the county the property is in.[5] FHA loans can be given to any qualified person who wants it. They need a little extensive paper work and are most often opted by those who seek to purchase multi family properties since they have a seemingly low down payment.[6]

[4] http://activerain.com/blogsview/44243/fha-loans-still-assumable

[5] http://www.themortgagehouse.com/loanprograms/governmentmortgages.php

[6] http://www.zeromillion.com/financial-services/government-loans-for-beginners-by-suresh-gupta.html

FHA loans can be used for construction financing, refinancing, modernization, remodeling, equipment, expansion, etc. The loan to value ratio must not exceed 90%.[7] FHA Loans can also be refinanced using the government Streamline program for lower rates. One final thing to make clear, however, is that the FHA does NOT give people money for homes, it only insures the lender against the loan defaulting.[8] FHA loans can be used to purchase multifamily homes with up to 4 units. You will have to live in one of the units.[9]

[7] http://www.mortgages-expo.com/fha_loan_information.html

[8] http://www.flagshipfinancialmortgage.com/gov.html

[9] http://getprequalified.com/article/104761/first_time_home_buyer/the_scoop_on_fha_loans_are_they_right_for_you.html

 

*****FHA loans cannot exceed the statutory limit. First Mortgage A mortgage that has priority as a lien over all other mortgages.[1] FHA loans cannot exceed the statutory limit. [2] FHA loans cannot be used for just any type of home purchase, though. They are specifically for new or existing single family homes, one- to four-family homes, a condominium unit, or a manufactured home on a permanent foundation.[3]

[1] http://www.mlinvest.net/6301/d-f.doc

[2] http://shophomerates.com/glossary.php

[3] http://www.lendingtree.com/beta/mortgage-loans/advice/mortgage-types/fha-mortgage-loans/

FHA loans cannot exceed the statutory limit. [4] FHA loans cannot exceed the statutory loan amount limit, which is currently $160,176 for Maricopa County. Northlawn’s Arizona office currently does not offer FHA loans, but anticipate availability some time in 2005.[5] FHA loans cannot exceed the statutory limit. [6]

[4] http://www.donne4loans.com/loan_programs.html

[5] http://northlawnaz.com/government.html

[6] http://www.moneybrokering.net/programs.i

FHA loans cannot exceed the statutory limit for your area. Because the statutory limit varies from location to location, please contact us to determine what the maximum FHA loan amount is for the greater Northern Virginia, D.C.[7]

[7] http://www.soldbysisler.com/money-mortgage-types.php

 

*****FHA is a government-backed program which is geared toward first time home buyers. However, you don’t have to be a first time home buyer to take advantage of this program.[4] FHA is bombarded right now with loan applications and it is taking longer. I find it perfectly acceptable to call or email your lender “DAILY” – go ahead and bug him or her .it’s okay.[5] FHA is a mortgage insurer of loans funded by FHA approved lenders. FHA mitigates the risk to lenders by providing security for the loan made.[6]

[4] http://www.rjbaxter.com/fha.html

[5] http://www.activerain.com/action/question/view_question_consumer?question_id=8487

[6] http://www.sierrastar.com/104/story/45642.html

FHA is also liberal in allowing gifts to be used for paying settlement costs. [7] FHA is the only national mortgage insurance program that provides financing to all markets at all times,” said Poole. [8] FHA is proposing carrying out single-family housing activities with a staff of 764, down from a current force of 1,054. Multifamily staff reductions have not yet been calculated, but the current staff now stands at 1,842.[9]

[7] http://loan.yahoo.com/m/cm_fha.html

[8] http://www.realtor.org/press_room/news_releases/2007/fha_reform_provide_safer_mortgage_alternative.html

[9] http://www.govexec.com/gpp/0299fha.htm

 

*****FHA loans are ideal for first time home buyers, buyers with bad credit, or anyone who doesn’t have enough money to make a large down payment. [2] FHA mortgages only require a 3% down payment ? [3] FHA allows gift money to be given by a family member to the borrower to meet the 3% requirement. Government loans (VA, FHA and RD) are somewhat more flexible approving borrowers with lower credit scores.[4]

[2] http://www.problemcreditmortgage.com/fha_2.asp/0/0/

[3] http://www.arizonamortgageloan.us/fha-loans-for-arizona-mortgages.html

[4] http://www.professionalmortgageservices.com/news.htm

FHA loan limits vary in Florida, depending on the county and are available at fixed or adjustable rates. [5] FHA guideline allow home buyers to receive financing help from relatives. For example, the entire down payment and/or loan fees (such as closing costs) can come from gifted funds in order to help home buyers who are short on cash assets.[6]

[5] http://www.flmortgagedepo.com/florida-fha-loan.html

[6] http://www.mrmike.com/relocate/mortgage.htm

Author’s Bio:

Bill Cobb, CREA, is Greater Baton Rouge’s favorite and most reputable home appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values.  A home appraiser with 16 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.

Bill’s company, Accurate Valuations Home Appraisal Group, serves Greater Baton Rouge (East Baotn Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).

Contact Bill Cobb and Accurate Valuations Home Appraisal Group for your next home appraisal:

Office: 225-293-1500

Fax: 1-866-663-6065

fastvalue2@cox.net

http://www.getfastvalue.com 

Recent FHA Research Project

Recent FHA Research Project

Related terms: Is This Condo FHA Approved, Condo Projects, FHA Condominium Approval Guidelines, HUD Review and Approval Process, HUD Condo Approval Requirements, FHA Condo Project, FHA Project Approval Requirements, FHA Project Eligibility Requirements

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