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Florida $8000 Tax credit to purchase a FLorida Home using FHA financing

admin — Mon, 08 Feb 2010 11:24:19 +0000

$8000 Tax Credit To Be Allowed For Down Payment in conjunction with FHA mortgage programs for Florida buyers.

HUD has approved the use of the $8,000 tax credit to be used as a bridge loan for down payment on FHA insured loans.

In what could be a huge boost to the housing market, HUD Secretary Shaun Donovan’s has decided to allow Florida home buyers to use the $8,000 first-time home buyer tax credit in conjunction with FHA financing to help cover their down payment and closing costs on Florida FHA mortgage loans.

One of the biggest challenges for Florida first time home buyer is saving up enough money for a down payment on their home purchase. The FHA mortgage program in particular requires the borrower to come to closing with 3.5% of the purchase price as their down payment. Often borrowers have to borrow these funds from family or close friends in an effort to take advantage of the historically low housing prices that are now available to Florida home buyers.

The measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply Florida home buyers with short-term or “bridge loans” of up to 10% of the purchase price to use for the down payment of a Florida home. These funds equate up to $8,000 first-time home buyer tax credit.

Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.

More information about these programs can be found on the National Council of State Housing Agencies Web site at http://www.ncsha.org/section.cfm/3/34/2920

Previously, the Florida home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.

The next step is to see how Florida FHA-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions o f the loans. NAHB encourages lenders to act promptly to put these provisions into place.

To qualify for the tax credit, Florida first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Florida Buyers can take the credit on their 2008 or 2009 income tax return.

Thomas Martin
1st Continental Mortgage

http://www.fhamortgageprograms.com/florida/

954-391-8387

http://www.realtor.org/press_room/news_releases/2009/05/re_summit

Article Source

Tags:Bridge Loan,Bridge Loans,Enough Money,Fha Approved Lenders,Fha Insured Loans,Fha Loans,Fha Mortgage Loans,Fha Mortgage Programs,Finance Agencies,First Time Home Buyer,First Time Home Buyer Tax Credit,Florida Home Buyers,Hud Fha,Hud Secretary,Mortgage Program,National Council Of State Housing Agencies,State And Local Government,State Housing Agencies,Term Loans,Time Home Buyer

More Changes Coming for FHA Mortgages?

admin — Wed, 09 Dec 2009 20:55:57 +0000

FHA mortgages may soon cost borrowers more money and become harder to qualify.

Ever since the market for mortgage-backed securities dried up, FHA mortgage loans have become a popular financing source for borrowers because of lower costs and easier qualifying. FHA mortgage volume has increased from a market share of 3% to 30% of all residential purchase loans and more than 20% of refinance mortgages.

However, a slow job market is causing more loan defaults and depleting FHA’s capital cash reserves, which fell far below the mandated level to cover potential losses. Now, the agency is looking for ways to reduce risk and increase reserves, which may include raising the minimum down payment, credit scores, insurance premiums, and reducing closing cost contributions from home sellers.

Larger Down Payments - Their may be a requirement that borrowers have more equity in a loan transaction to discourage missing payments or risking foreclosure. An FHA loan currently has a minimum down payment of 3.5%, which may increase to at least 5%.

Better Credit Scores - An FHA mortgage offers the most lenient and flexible credit guidelines compared to Fannie Mae and Freddie Mac. Critics say this generous underwriting policy has contributed to increased loan defaults and foreclosures, which could lead FHA to impose credit score minimums.

Higher Insurance Costs - FHA mortgages have an up-front insurance premium, which is usually added onto the financed loan amount, plus an annual premium, paid in monthly installments. In order to rebuild capital reserves, FHA could decide to raise these fees to the maximum allowed by congressional limits.

Less Seller Contributions - One of the benefits of an FHA mortgage is the allowance of home seller contributions to the borrower’s closing costs. The current policy limit allows a maximum of 6% of the purchase price, which critics believe to be excessive. They believe less contributions would reduce defaults by requiring more money from borrowers.

Written by Rick Smith: Home Loans, FHA Rates, information on New Homes Carlsbad

Article Source:http://www.articlesbase.com/mortgage-articles/more-changes-coming-for-fha-mortgages-1561758.html

Tags:Capital Reserves,Cash Reserves,Fannie Mae,Fannie Mae And Freddie Mac,Fha Loan,Fha Loans,Fha Mortgage Loans,Fha Mortgages,Flexible Credit,Insurance Costs,Insurance Premium,Insurance Premiums,Loan Defaults,Loan Transaction,Mortgage Backed Securities,Mortgage Volume,Purchase Loans,Residential Purchase,Seller Contributions,Slow Job

Reason to buy a Florida home now-FHA loan changes will cost Florida buyers more money they before!!

admin — Mon, 07 Dec 2009 00:46:30 +0000

FHA Home loan information

Reason to buy a Florida home now FHA home loan changes will cost Florida buyers more money they before!!

If you needed another reason to get off the fence and buy a Florida home, here it is. This is bad news for Florida home buyers and in my opinion could dramatically slow the Florida real estate recovery.

Proposed changes in the guidelines for FHA mortgage loans will almost double the down payment required for these government backed FHA home loans. In addition, the amount sellers can contribute towards a Florida home buyers closing costs will be cut in half.

Currently, the FHA down payment requirement is 3.5% of the purchase price and the seller can pay up to 6% of the purchase price towards a buyers closing costs and prepaid.

Example: If you were going to buy a Florida home priced at $250,000. At 3.5% your current down payment would be $8,750. Under the new FHA mortgage guidelines the down payment will be $15,000. Right now, the seller can pay $15,000 of the buyers closing costs.. That will be cut in half under the new FHA mortgage guidelines.. You may also need a higher credit-score and have to pay higher mortgage insurance premiums.

The changes are supposed to help rebuild the FHA insurance agency’s cash reserves as it struggles with rising defaults. The theory is that if you force mortgage applicants invest more money in their Florida home it would make it less appealing for them to default and walk away from their Florida homes. If you make it too difficult for people to Florida homebuyers to get financing you won’t need to worry about them defaulting on their mortgage..

The rules will not be finalized until the FHA figures out how to put the new program into effect without derailing the housing market’s recovery.

Article Source:http://www.articlesbase.com/mortgage-articles/reason-to-buy-a-florida-home-nowfha-loan-changes-will-cost-florida-buyers-more-money-they-before-1547907.html

Tags:Cash Reserves,Cou,Credit Score,Fha Guidelines,Fha Home Loan,Fha Home Loans,Fha Insurance,Fha Loan,Fha Loans,Fha Mortgage Guidelines,Fha Mortgage Loans,Florida Home Buyers,Florida Real Estate,Florida Winter,Housing Market,Insurance Agency,Loan Changes,Mortgage Applicants,Mortgage Insurance Premiums,Winter Park

Should FHA home loans be more expensive?

admin — Thu, 03 Dec 2009 07:40:59 +0000

Should FHA home loans be more expensive?

The federal FHA mortgage insurer’s reserve fund has slipped below its mandated minimum. Now the FHA and some lawmakers want to raise the minimum requirements-

FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price
Gift for down payment and closing costs allowed.
No reserves or required.
FHA regulated closing costs.
Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540.
FHA will allow a home purchase 2 years after a Bankruptcy.
FHA will allow a home purchase 3 years after a Foreclosure.

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs.
Less than two years on the job is allowed.
Self-Employed individuals o.k.

www.FHAmortgageFHAloan.com

Should it be more expensive to get a FHA mortgage insured by the Federal Housing Administration?

That is the question the House Financial Services Committee examined on Wednesday afternoon.

Currently, FHA home loans comprise more than 30% of the entire mortgage loan market. But as some of those FHA insured loans have defaulted, the FHA mortgage loan-guarantee fund has slipped below the Congressionally mandated 2% level. As a result, some lawmakers are suggesting that FHA mortgages need to be more expensive to obtain.

In fact, a House bill, the FHA Taxpayer Protection Act of 2009, would increase the FHA loan minimum down payment required to obtain an FHA loan to 5% from 3.5%. That, sponsor Rep. Scott Garrett, R, N.J., believes, would make FHA mortgage applicants more committed to maintaining their FHA home loans.

Almost 90% of FHA mortgage loans issued between January and August 2009 had FHA Home loan-to-value (LTV) ratios of 96 or higher, according to written testimony from Robert Story, chairman of the FHA Mortgage Bankers Association. That amounts to a very small commitment on the parts of FHA mortgage applicants.

Housing and Urban Development secretary Shaun Donovan’s testimony said he is committed to raising the expense of utilizing FHA mortgage loans, though the agency and is still exploring the best options and doesn’t necessarily support raising the FHA down payment requirement.

“We have made the decision to exercise our authority to increase FHA’s up-front cash requirement that a borrower has to bring to the table in an FHA insured home loan — to make sure that FHA mortgage applicants have more ‘skin in the game’ and a stronger equity position in their FHA home loan,” he said.

Still, he added, “FHA is not ‘the next subprime’ as some have suggested.”

He disputed Garrett’s statistics that tried to make the case for increasing down payments. Garrett said that FHA home loans with loan-to-value ratios of 100 were twice as likely to fail as those with LTVs of 95.

Donovan responded that many of those failed 100 LTV loans involved seller-supported down payment programs, which contributed disproportionately to delinquencies. Last year Congress prohibited those FHA mortgage programs.

Donovan outlined three options for raising FHA borrowers’ skin in the game:

Increase the down payment requirement, currently at a minimum of 3.5%;
Raise the up front premium insurance premium from 1.75% to as much as 3%, which the FHA already has the authority to do; and
Decrease the allowable seller concessions for closing costs, which are now 6%, to 3%.

Critics of increasing the up front borrowing costs claim it’s both unnecessary and could imperil the weak housing market recovery.

“While the FHA mortgage program is experiencing shortfalls in its excess reserves due to our economic crisis, The FHA mortgage remains financially strong and a critical part of our nation’s economic recovery,” said Vicki Cox Colder, president of the National Association of Realtors, in her written testimony before the committee.

Besides, she added, “It is important to recognize that this is not FHA’s only reserve fund. FHA also has a Financing Account separate from the Capital Reserve. FHA’s actual total reserves are higher than they have ever been with combined assets of $30.4 billion. This is an increase of 13% over the previous year.”

Donovan acknowledged problems at FHA, including antiquated systems and equipment and inadequate personnel numbers.

“Little of this may have been obvious when FHA’s mortgage market share was 3% as recently as 2006,” he said in his statement. “But when our mortgage markets collapsed last fall, and homebuyers increasingly turned to the FHA home loans for help, the potential consequences of these lapses in risk management became very clear.”

The agency has acted to lower risk over the past several months. It hired a chief risk officer to improve risk assessment; increased enforcement efforts that resulted in suspending some FHA mortgage lenders and withdrawing FHA-approval for many others; and strengthened underwriting, including instituting FHA loan procedures that should improve appraisal accuracy.

“Charging more [for those with lower FICO scores] is not necessarily the answer,” said the HUD secretary. “It could even work against it by making it harder for FHA mortgage applicants to pay off their FHA home loans.”

Besides that, Donovan expressed a real reluctance for the idea of FHA mortgage loans becoming an even bigger player in the FHA mortgage market than it is now. Raising prices for borrowers with low FICO scores and lowering them for those with high scores could put the FHA in direct competition with private FHA mortgage lenders for the lower risk borrowers.

FHA -loan risk has also declined, some industry analysts believe, thanks to the drastic improvement in the quality of borrowers it services. According to Keith Gumbinger of HSH Associates, a publisher of mortgage industry information, their average credit score has jumped to 693 from the low 600s two years ago.

Janis Bowdler, a director for the National Council of La Raza, a Hispanic civil rights organization, said, “According to the FHA, had loans not been made using seller down payment assistance programs, known for being a haven for fraud and abuse, its capital reserve ratio would still be at the recommended 2%.”

She emphasized how important affordable FHA loans are to the minority community, which accounts for a much larger share of these mortgages than the greater mortgage market.

Ann Schnare, a partner with Empiris, an economic consulting firm and a veteran mortgage industry figure, said she thinks the agency could take a few small steps, like increasing the down payment requirement, to ensure the account’s viability.

“While FHA mortgage are required to put 3.5% down, they are also allowed to finance the up-front premium and a portion of their closing costs,” she said. “The net result is that many FHA borrowers are in a zero or even negative equity position the moment they move into their homes. This dramatically increases the risk of foreclosure, particularly in a bad economic environment and a weak or declining housing market.”

She also recommends an slight increase in monthly insurance premiums to build up the reserve fund.

Donovan said stepped up enforcement itself could help restore the Capital Reserve Account. Most of the projected losses over the next five years, 71%, will come from loans already on the books. Many of those loans were of poor quality due to negligence on the part of lenders.

He wants to go after those lenders to make them responsible for the losses the FHA suffered.

Article Source:http://www.articlesbase.com/mortgage-articles/should-fha-home-loans-be-more-expensive-1534037.html

Tags:Easier Debt,Federal Housing Administration,Fha Home Loan,Fha Home Loans,Fha Insured Loans,Fha Loan,Fha Loans,Fha Mortgage Loan,Fha Mortgage Loans,Fha Mortgages,Fico Credit Score,Financial Services Committee,Guarantee Fund,Home Loan Programs,House Financial Services Committee,Mortgage Applicants,Mortgage Bankers Association,Mortgage Insurer,Scott Garrett,Taxpayer Protection Act

Many reasons why Florida homebuyers Choose FHA mortgage loans

admin — Mon, 09 Nov 2009 13:03:42 +0000

Many reasons why Florida homebuyers Choose FHA mortgage loans.

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed
Seller can credit up to 6% of sales price towards closing and prepaid costs.
100% Financing available
No reserves required.
FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 1 year after a Bankruptcy.
- FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or Visit http://www.fhamortgagefhaloan.com/

Without a doubt, there’s a mortgage meltdown across Florida. Florida mortgage Lenders are going out of business, mortgage standards are getting tighter and mortgage applicants trying to buy to refinance a Florida home are finding that getting a loan is far more difficult today than it was a months ago.

The odd part of the situation is that mortgage rates remain low by historic standards. And there’s plenty of mortgage money is available for qualified applicants — it’s just not available in some of the loan formats which have become so popular during the past few years.

One of the best choices available today for Florida homebuyers is nothing other than the FHA mortgage program. FHA home loans have been round since the 1930s, the FHA mortgage has traditionally been a great home loan choice for Florida first-time borrowers and for those with low and moderate incomes. Over time the FHA mortgage program has been expanded to the point where it should be considered by all Florida home the majority of all borrowers.

What makes the FHA mortgage so good over other home loan options? The FHA Home loan has helped over 30 million borrowers purchase a home? Here are 10 key reasons to consider FHA loans if you’re in the market for real estate financing.

1. Unlike the toxic supreme home loan mortgage loans that have become so popular in the past few years — the Florida home loans which have led to so many foreclosures — the FHA mortgage loan is straightforward. There are no tricks, hidden fees, unexpected costs or dangerous payment increases. For the Florida homebuyer the FHA loan program for borrowers who want both financing and financial sanity.

2. FHA mortgage loans can often be used instead of subprime or Hard money financing. Why? FHA mortgage rates are typically way lower, And there are no prepayment fees and you can get fixed-rate FHA mortgage loans and lock-in today’s interest levels.

3. FHA loans allow you to buy a Florida home with little down. The FHA mortgage program requires just 3.5% down to purchase a Florida home. Under certain conditions FHA home loan down payment money can be supplied in the form of the gift. Be aware that besides cash for a down payment and the seller can pay up to 6% of your closing cost.

4. Many conventional mortgage loans require Florida mortgage applicants to prove that they have cash reserves on hand at the time of closing. This means you may need thousands of dollars in savings in addition to the money required for down payment and closing costs and money saved for future mortgage payments. The FHA has no reserve requirement.

5. Under the FHA mortgage program Florida sellers are allowed to credit up to 6% of the sale price in the form of “seller contributions” to cover the Florida homebuyers closing cost and prepaid taxes and insurance. In a slow market — a market where Florida home sellers make concessions to move Florida homes — the seller contribution credit provided by owners can be used to pay buyer closing costs, maybe ALL buyer closing costs except for the down payment. Be aware that any seller paid closing cost must be in writing and part of the purchase agreement reviewed by lenders.

6. If you have been in a Bankrupt or in a past foreclosure, then you need to take a look at the FHA home loan. Under FHA rules, it’s possible to qualify for an FAH home loan in as little as a year — one year for a chapter 13 bankruptcy, two years for a chapter 7 bankruptcy and 3 years for a foreclosure.

7. The FHA mortgage may allow you to borrow much more than competing loans programs because it has unusually-liberal qualification standards. With the FHA mortgage you can spend as must as 50% of your gross monthly income towards all monthly obligations on your credit report..

8. You don’t have to be a US citizen to get an FHA mortgage loan. The FHA guidelines says that the FHA home loan program is open to permanent resident aliens who can provide evidence of lawful permanent residency issued by the Bureau of Citizenship and Immigration Services (BCIS), a part of the Department of Homeland Security. Non-permanent resident aliens must show that they are eligible to work in the U.S. by producing an Employment Authorization Document (EAD) issued by BCIS.

9. You qualify for an FHA mortgage on the basis of your credit history, capacity to repay, cash to close and collateral. If you don’t have traditional credit, you can show such items as utility payment records, rental payments, automobile insurance payments and other direct reports from credit providers.

10. FHA mortgage loans are offered nationwide by thousands and thousands of FHA mortgage lenders. Because FHA home loan are available from so many sources.

Article Source:http://www.articlesbase.com/mortgage-articles/many-reasons-why-florida-homebuyers-choose-fha-mortgage-loans-1434503.html

Tags:Business Mortgage,Closing Costs,Conventional Mortgage Loan,Credit Score,Fha Loan,Fha Loans,Fha Mortgage Loan,Fha Mortgage Loans,Fha Program,Florida Florida,Florida Home Buyers,Florida Mortgage Lenders,Home Ownership,Loan Program,Mortgage Applicants,Mortgage Fha,Mortgage Loan Product,Mortgage Loan Programs,Mortgage Meltdown,Score Requirements

FHA mortgage loans provide the Best Interest Rates, ((97%w 580 Fico))

admin — Sun, 08 Nov 2009 21:37:22 +0000

FHA mortgage loans provide the Best Interest Rates

Florida FHA Mortgage Loan

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed
Seller can credit up to 6% of sales price towards closing and prepaid costs.
100% Financing available
No reserves required.
FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 2 year after a Bankruptcy.
- FHA will allow a home purchase 3 years after a Foreclosure.

APPLY NOW AT http://www.fhamortgagefhaloan.com/

The Federal Housing Administration (FHA) is a United States government agency created as part of the National Housing Act of 1934. The goals of this organization are: to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgage loans; and to stabilize the mortgage market.

History of FHA home loans

Back in the the Great Depression, the banking system failed, causing a drastic decrease in home loans and ownership. At this time, most home mortgages were short-term (three to five years), no amortization, balloon instruments at loan-to-value (LTV) ratios below fifty to sixty percent.The banking crisis of the 1930’s forced all lenders to retrieve due mortgages. Refinancing was not available, and many borrowers, now unemployed, were unable to make mortgage payments. Consequently, many homes were foreclosed, causing the housing market to plummet. Banks collected the loan collateral (foreclosed homes) but the low property values resulted in a relative lack of assets. Because there was little faith in the backing of the U.S. government, few loans were issued and few new homes were purchased.

In 1934 the federal banking system was restructured. The National Housing Act of 1934 was passed and the Federal Housing Administration was created. Its intent was to regulate the rate of interest and the terms of mortgages that it insured. These new lending practices increased the number of people who could afford a down payment on a house and monthly debt service payments on a mortgage, thereby also increasing the size of the market for single-family homes.

The FHA calculated appraisal value based on eight criteria and directed its agents to lend more for higher appraised projects, up to a maximum cap. The two most important were “Relative Economic Stability,” which constituted 40% of appraisal value, and “Protection from adverse influences,” which made up another 20%.

The FHA Mortgage loans Today

Back in 1965, the Federal Housing Administration became part of the Department of Housing and Urban Development (HUD). Since 1934, the FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages. Currently, the FHA mortgage loan has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio. The Federal Housing Administration is the only government agency that is completely self-funded. However, although it claims to operate solely from its own income at no cost to taxpayers, there is an implicit guarantee that the taxpayer will help them in times of need.

During budget planning for 2008 HUD had been projecting $143,000,000 budget shortfall stemming from the FHA program. This is the first time in three decades HUD had made a request to Congress for a taxpayer subsidy. Even though FHA is statutorily required to be budget neutral, the GAO is projecting taxpayer funded subsidies of half a billion dollars over the next three years, if no changes are made to the FHA program.

FHA Required Down Payment

A mortgage applicant downpayment may come from a number of sources. The 3.5% requirement can be satisfied with the borrower using their own cash or receiving a gift from a family member, their employer, labor union, non-profit or government entity. Since 1998, non-profits have been providing downpayment gifts to borrowers who purchase homes where the seller has agreed to reimburse the non-profit and pay an additional processing fee. In May 2006, the IRS determined that this is not “charitable activity” and has moved to revoke the non-profit status of groups providing downpayment assistance in this manner. FHA has since stopped down payment assistance program through 3rd non profits. There is a bill currently in congress that hopes to bring back down payment assistance programs through these so called non profits.

FHA Mortgage Insurance for Homebuyers

The FHA insures only a limited range of mortgages provided by FHA-approved lenders. PMI insurers service mortgages of the conventional market. PMI is required if a homebuyer borrows more than 80% of the property’s purchase price in one loan; the FHA insurance is required for any FHA mortgage, irrespective of the size of the down payment provided. The premiums for both insurances get cancelled at a certain point (was not true of FHA premiums before Jan. 1, 2001), but the conditions for this to happen are different (see below).

Mortgage insurance is available for housing loan lenders, protecting against homeowner mortgage default. For a small fee, lenders can obtain insurance for a value of ninety seven percent of the appraised value of the home or building. FHA loans are insured through a combination of a small upfront mortgage insurance premium (UFMIP), as well as a small monthly mortgage insurance (MMI) premium.

The (UF)MIP or (Up-Front) Mortgage Insurance Premium is the upfront fee you pay either in cash at close or financed into the loan. The MMI or Mutual (sometimes called Monthly) Mortgage Insurance is your monthly premium which is included in your payment. This MMI is an annual premium which is to be remitted monthly, it must be paid for 5 years regardless of your LTV (loan to value) if after 5 years your LTV is 78% or less it may be canceled on loans originated after 1/1/01. If your loan term is 15 years or less the 5 year rule does not apply.

In many instances where the home owner has a poor to moderate credit history, the monthly mortgage insurance premium will be substantially less expensive with an FHA loan than with a conventional loan regardless of LTV – sometimes as little as one-ninth as much per month depending on the borrower’s exact credit score, LTV, loan size, and approval status. A borrower with an FHA loan always pays the same mortgage insurance rate regardless of their credit score. This is especially of benefit to borrowers who have less than 22% equity in their homes and credit scores under 620. Conventional mortgage insurance premium rates factor in credit scores, whereas FHA mortgage insurance premiums do not. When a borrower has a credit score under 620, conventional mortgage premiums spike dramatically. If a borrower has a credit score under 575, they may find it impossible to purchase a home for less than 20% down with a conventional loan, as the majority of mortgage insurance companies no longer write mortgage insurance policies on borrowers with credit scores under 575 due to a sharply increased risk. When they do write mortgage insurance policies for borrowers with lower credit scores, the annual premiums are sometimes as high as 4% to 5% of the loan amount. Based on this, if a consumer is considering purchasing a new home or refinancing an existing home, they would often be well-advised to look into the FHA loan program.

Article Source:http://www.articlesbase.com/mortgage-articles/fha-mortgage-loans-provide-the-best-interest-rates-97w-580-fico-1434615.html

Tags:Best Interest,Closing Costs,Conventional Mortgage Loan,Federal Housing Administration,Fha Loan,Fha Loans,Fha Mortgage Loan,Fha Mortgage Loans,Fha Program,Fico Score,Florida Home Buyers,Government Agency,Home Ownership,Loan Program,Mortgage Fha,Mortgage Loan Product,Mortgage Loan Programs,National Housing Act,Score Requirements,United States Government

Florida FHA Guidelines Loans Under 620 Credit Score, ALL DAY LONG

admin — Thu, 05 Nov 2009 20:11:53 +0000

Florida FHA Guidelines Loans Under 620 Credit Score www.FHAmortgageFHALoan.com

It is still very possible as a Florida homeowner or Florida homebuyer to purchase a Florida home with less than a 620 fico score under the following conditions:

lorida FHA Guidelines Loans Under 620 Credit Score

Purchases (Min 530 score)

12 months cancelled checks or Management VOR
Must have 3 open and active tradelines for last 12 mths
Payment shock limited to 1.5 times
35/45 Max DTI
No late’s or collection in last 12 months
NO late’s after BK

Refinance’s ( Min 530 score)

o 0×30 on Mortgage

o 35/45 MAX DTI

o No cash in hand

o Tangible net benefit

o NO late’s after BK

o NO consumer lates in last 6 mths

No Score Borrowers

3 Alt tradelines 0×30 with 12 month history

Management VOR or 12 months cancelled checks

Max ratio 31/43

NO collection other than medical

For first time home buyers and other borrowers, the FHA home loans can have key advantages:

Easy Qualification – The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Downpayment Requirements – FHA mortgages can work with as little as 3% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Downpayment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured home.

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!

FHA home loan Advantage:

FHA Home loan insurance guarantees the private FHA approved mortgage lenders against loss making it easier for Florida homebuyers to qualify for a home loan with less then perfect credit, Other FHA advantages include:

· Down payment requirement only 3.5% gift funds OK.

· Better Interest rates.

· Seller paid closing cost up to 6%.

· No Minimum Fico or Score requirement

Apply for an FHA home loan at www.FHAMortgageFHALaon.com

Article Source:http://www.articlesbase.com/mortgage-articles/florida-fha-guidelines-loans-under-620-credit-score-all-day-long-1424654.html

Tags:12 Months,Bk,Credit Score,Downpayment,Dti,Fha Guidelines,Fha Home Loan,Fha Home Loans,Fha Loan,Fha Loans,Fha Mortgage Loans,Fico Score,Florida Loans,History Management,Home Buyers,Homebuyer,Lenders,Loan Borrowers,Shock,Tradelines

FHA is a very popular route with Florida first time homebuyer to take

admin — Mon, 02 Nov 2009 16:31:15 +0000

FHA is a very popular route with Florida first time homebuyer to take. But it’s not reserved only for first time home buyers. Florida homebuyers can buy your third or fourth home with an FHA mortgage as well as long as you only have one FHA Home loan at time. FHA advantages include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed

Seller can credit up to 6% of sales price towards closing and prepaid costs.

100% Financing available

No reserves required.

FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

NO MINIMUM FICO score or credit score requirements.

FHA will allow a home purchase 1 year after a Bankruptcy.

FHA will allow a home purchase 2 years after a Foreclosure.

Apply for an FHA Home Loan at www.FHAmortgageFHAloan.com

Today, the FHA mortgage loans play a critical role in financing for Florida homebuyers, first-time homebuyers, Florida mortgage applicants who have troubled credit history, and Florida mortgage applicants who have little money to put down on a Florida home.

FHA Mortgage Loans allow you to purchase a Florida home with only 3.5% down, have the lowest interest rates due to being insured by the Federal Housing Administration, FHA home loans allows for less than perfect credit and makes it much easier to qualify due to FHA insuring the home loan.

FHA Mortgage insurance is a policy that protects private FHA approved mortgage lenders against losses that result from defaults on FHA home mortgages. FHA mortgages require mortgage insurance primarily for homebuyers making a down payment of less than 20 percent.

FHA Mortgage insurance is charged to the homeowner each month at the rate of .55 percent per year of the total loan amount. FHA also charges an upfront mortgage insurance premium of 1.75 percent included in the FHA loan amount.

FHA’s monthly mortgage insurance payments will be automatically terminated when one of the following occur:

For mortgage loans with terms 15 years and less and with Loan to Value ratios 90 percent and greater, annual premiums will be canceled faster but when the Loan to Value ratio reaches 78 percent to the FHA loan amount regardless of the amount of time the mortgagor has paid the premiums.

For FHA mortgage loans with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the FHA Loan to Value ratio reaches 78 percent, provided the FHA mortgage recipient has paid the annual premium for at least 5 years.

Mortgages with terms 15 years and less and with loan to value ratios of 89.99 percent and less will not be charged annual mortgage insurance premiums.

www.FHAmortgagePrograms.com

Article Source:http://www.articlesbase.com/mortgage-articles/fha-is-a-very-popular-route-with-florida-first-time-homebuyer-to-take-1410254.html

Tags:100 Mortgage,Bankruptcy,Closing Costs,Credit Score,Critical Role,Fha Home Loan,Fha Loan,Fha Loans,Fha Mortgage Loans,Florida Mortgage,Foreclosure,Home Buyers,Money,Mortgage Applicants,Score Requirements,Time Homebuyers,Troubled Credit History

Florida FHA mortgage Lenders offer 97% down to 560+ FICO

admin — Wed, 28 Oct 2009 03:19:51 +0000

Florida FHA mortgage Loans

The FHA mortgage loan program was created to help increase homeownership in FLorida. The FHA mortgage loan makes buying an Florida home easier and less expensive than other types of Florida real estate mortgage. Here are just some Examples of how FHA can help you buy a Florida home,

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price
100% Financing options available
No reserves or required.
FHA regulated closing costs.
Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

No minimum FICO score or credit score requirements.
FHA will allow a home purchase 2 years after a Bankruptcy.
FHA will allow a home purchase 3 years after a Foreclosure.

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs.
Less than two years on the job is allowed.
Self-Employed individuals o.k.

Apply today at www.FHAmortgagePrograms.com

FHA guarantees Florida FHA mortgage applicants the ability to obtain Florida mortgages with only 3.5% down payment. FHA loans can be very easy to qualify for. Florida Loan limits vary depending upon where the Florida home is located.

FHA loans feature flexible guidelines and low 3.5% down payment payments to make it easier to buy a Florida home! FHA loans are popular with Florida first time home buyers and move up buyers.. With an FHA mortgage loan you can borrow up to 96.5% of the purchase price of the Florida home. Florida mortgage applicants need to keep in mind that the new FHA loan will be based on the purchase price or the appraised value, the lesser amount.

FHA is short for the Federal Housing Administration. FHA/HUD was created during the great depression of 1934 to help stimulate the economy and help Floridians achieve the dream of Homeownership. .

The advantages of the FHA mortgage loan insured to a Florida weight out way the advantages of any other Florida mortgage.. A Florida FHA mortgage applicant may apply for a FHA insured mortgage and purchase a Florida home with only 3.5% down payment or no out of pocket expense! FHA mortgage insurance permits FHA mortgage lenders to make FHA mortgages for first time Florida homebuyers without risk.

The advantage FHA Home loans offer Florida homebuyers is that FHA home loans are not as strict as Fannie mae or Freddie Mac home loan approval guidelines.. Florida mortgage applicants who may have had past credit issues should not have a problem obtaining FHA an FHA mortgage loan in Florida.. Also, FHA home loans are fully assumable, allowing a person to take over the FHA home loan without obtaining new financing. In addition, FHA mortgages allow the seller to pay up to 6% of the Florida homebuyers closing cost. And, 100% of the down payment and closing costs can be grant, friend or family

Article Source:http://www.articlesbase.com/mortgage-articles/florida-fha-mortgage-lenders-offer-97-down-to-560-fico-1389468.html

Tags:Closing Costs,Credit Score,Debt Ratio,Easier Debt,Fha Loan,Fha Loans,Fha Mortgage Loan,Fha Mortgage Loans,Fico Score,Financing Options,Florida Mortgages,Florida Real Estate,Home Loan Programs,Loan Limits,Mortgage Applicants,Mortgage Fha,Mortgage Lenders,Mortgage Loan Program,Real Estate Mortgage,Score Requirements

FHA mortgage Lender Florida offers ((FHA financing down to a 530 FICO))

admin — Sun, 25 Oct 2009 23:14:24 +0000

FHA Mortgage Loans for Florida homebuyers

Why Should Florida homebuyers Consider an FHA mortgage Home to purchase a Florida home?

Good question, there are many reasons why Florida homebuyers to investigate an FHA home loan for their next Florida home purchase. Florida First time homebuyers should examine the FHA loan options because it’s easier and less expensive to qualify for an FHA home mortgage. Florida homebuyers can rest in confidence in knowing that an FHA home loan is guaranteed by the federal government, making your FHA mortgage application more attractive to more Florida home lenders. FHA mortgage first-time home loan applicants are usually young and at the beginning of their careers, chances are they still have student loans and other monthly debt obligations to deal with; an FHA home loan is often less expensive requiring only 3.5% down payment and is more forgiving of past credit issues. A summary of FHA Home loan guidelines:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price
Gift for down payment and closing costs allowed.
No reserves or required.
FHA regulated closing costs.
Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540.
FHA will allow a home purchase 2 years after a Bankruptcy.
FHA will allow a home purchase 3 years after a Foreclosure.

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs.
Less than two years on the job is allowed.
Self-Employed individuals o.k.

www.FHAmortgagePrograms.com

FHA mortgage loans don’t require a big down payment to qualify. For Florida FHA mortgage applicants this can be a real plus; that typical borrower in the early stages of a new career often do not have a lot of money set aside specifically for purchasing a home. The FHA mortgage requires only 3.5% down payment, and that money can come from a friend, Family or Florida Grant..

For Florida first time buyers, closing costs are another issue that can be a burden, the typical closing costs for FHA mortgage loans are around 6% of the total Florida FHA mortgage. This is one advantage when taking out an FHA mortgage loan compared to other Florida mortgage programs.

FHA mortgage loans are not just for Florida first time home buyers. Florida homeowners can FHA refinance to get out of debt situations caused high interest credit cards or high interest mortgages. FHA home loan mortgage refinancing is a relief for those with adjustable rate mortgage who want to keep their homes and prevent a massive rate adjustment. There are several ways to get into an FHA mortgage for refinancing. FHA home loan advantages include a low fixed rate mortgages that are guaranteed by the Federal Housing Administration.

FHA mortgage loans also provide cash out refinancing for those who need financing for things such as home upgrades or emergency cash reserves. FHA cash out refinancing offers Florida mortgage applicants lower interest rates than traditional home equity mortgage loans; you may qualify for one of two FHA mortgage plans which offer cash-out plans. One offers FHA home loan amounts for up to 97.75% of the FHA appraised value of the home, another FHA cash out refinancing loan offers amounts up to 85% of the FHA appraised value. Each FHA mortgage program has its own specific FHA requirements and rules.

FHA mortgages should take up no more than 31% of your gross monthly income( before tax income), and your FHA loan officer will ask for verification of your income to make the calculation. While some FHA mortgage applicants are able to get conventional mortgage loans using exotic home loan requirements for the FHA mortgage applicant FHA refinancing loans require copies of your income tax returns to verify the actual amount of money you report to the government. If your job situation has changed since your last tax filing, you may be able to furnish proof of income through your new employer.

FHA mortgage loans require for income, debt-to-income ratios, maximum loan amounts and other details; each type of FHA loan is unique and must be applied for individually. Ask your FHA mortgage lender for assistance in learning which Florida FHA mortgage is right for you. If you aren’t satisfied with your current Florida mortgage lender, consider getting applying for an FHA mortgage with us.

www.FHAmortgageFHAloan.com

Article Source:http://www.articlesbase.com/mortgage-articles/fha-mortgage-lender-florida-offers-fha-financing-down-to-a-530-fico-1379316.html

Tags:Debt Obligations,Fha Financing,Fha Guidelines,Fha Home Loan,Fha Home Loan Guidelines,Fha Home Mortgage,Fha Loan,Fha Loans,Fha Mortgage Lender,Fha Mortgage Loans,Florida First,Good Question,Home Lenders,Home Loan Applicants,Homebuyers,Loan Options,Mortgage Application,Mortgage Fha,Mortgage Florida,Student Loans

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