The Home Buyer's Korner

Information presented should be used for educational purposes only.

July 27th, 2014

Guy looking up in color

FHA Buying a Home

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.

HOME OWNERSHIP TOOLS

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

You Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMEPATH RENOVATIONS

Rebuilding the Dream of Home Ownership

Fannie Mae HomePath has No Mortgage Insurance up to 95% LTV

Up to $35K for Home Improvements, Renovations or a Simple Remodel

Your Mortgage Loan Officer, 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

Your Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

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”.

JOIN OUR REAL ESTATE SOCIAL MEDIA NETWORK

The Home Buyer's Korner

Real Estate Marketing Blogs and Coaching

Short Sale Real Estate Agent Marketing Blogs & Coaching

Distressed-Real-Estate-Marketing-Blogs-Coaching Updated

Mortgage Lenders Social Media Marketing Blogs

Loan Officer Marketing Blogs and Coaching

General Contractors Renovation Network

LINKEDIN

Twitter

PINTEREST

Facebook Group 2

Join us at Real Estate Social

Comments are closed.