The Home Buyer's Korner

Information presented should be used for educational purposes only.

June 11th, 2015

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GREATER WAIPAHU HAWAII

The Home Buyer’s Korner

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Buying A Home With FHA Financing

Buying a homeFHA has insured over 34 Million Homes since 1934, when the program was created. Compared to conventional mortgages that have tighter underwriting guidelines, FHA-insured loans appeal to a wider range of home buyers by offering easier credit standards, lower down payment requirements and more flexible income calculations.

FHA purchase guidelines allow a Loan-to-Value (LTV) percentage of up to 96.5 percent on all qualified property types, including FHA Home Renovation Loan program called the FHA 203K up to $721,050 on Oahu. Qualifying property types include single family homes, town homes, condominiums, multi-unit properties (up to four units), and manufactured or modular homes. Most conventional mortgages will only allow a Loan-to-Value (LTV) percentage of up to 90% for condominiums and only 95% LTV ratio for single family homes, although FNMA has recently created the 97 percent “My Community Mortgage”, but being that it’s a conventional loan you’ll have to meet strict credit and income requirement, as well as be a first time home buyer.

The purpose of FHA loans is to provide an affordable alternative to conventional loans for all home buyers who qualify, an no there are no income limits and you don’t have to be a first time home buyer. The Federal Housing Authority (FHA) does not actually make the loans, instead it insure the mortgages that a traditional lender or bank would make to home buyers. FHA offers some attractive features like:

  1. No prepayment penalties on your loan;
  2. Can streamline refinance for a lower rate without re-verification of income or a new appraisal; but you will need a FICO score of at least 620 for most lenders and have no more than one late payment (30 days or greater) in the past 12 months at time of closing your new home loan;
  3. Flexible Credit Requirements
  4. Competitive rates and lower fees
  5. Higher approval rates
  6. Low Down Payment

Basically, the FHA helps more home buyer afford to buy homes with low down payment and credit qualifying by insuring the lender against loss should you become unable to continue making mortgage payments.

FHA Back to Work

Recently FHA has released new guidelines on their “FHA Back to Work” program, which is intended to help would be home buyers to qualify for a new mortgage after a short sale, bankruptcy and even foreclosure in as little as 12 months, provided the extenuating circumstance can be tied to a proven decline in employment. This is a great program to help the many homeowners who were impacted by the economy and fell on difficult times through no fault of their own. If this happens to be you, be sure to find out more about the “FHA Back to Work” program by speaking with one of our community members.

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FIND HOMES THROUGHOUT WAIPAHU HAWAII

HUD FORECLOSED HOMES IN & AROUND THE GREATER WAIPAHU HI AREA

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FNMA HOMEPATH FORECLOSED HOMES IN & AROUND WAIPAHU HI

FIND MORE FORECLOSURES IN & AROUND WAIPAHU HI

HAWAII HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

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