Tuesday, September 30, 2014

Personal Finance Tips : How to Apply for an FHA Loan



Apply for an FHA loan, or Federal Housing Authority loan, by meeting the loan criteria, filling out the paperwork, and considering the income requirements.

Saturday, September 27, 2014

Why Should I Choose an FHA 203k Loan?

Lots of good reasons to choose from:
  1. your credit may not be stellar
    • Not a problem FHA has the easiest loans for a borrower to qualify
    • Even not to distant bankruptcy can be overcome
  2. your new home needs allot of work and you can't otherwise get a lender to make a loan
    • Most lenders won't make a loan on a home that has health and safety issues
  3. you would like to be sure your home gets repairs it needs as your spouse hasn't been good at fixing things as they might like to think they were as known from past experience
    • a contractor completes the work in a professional and workmanlike manner
    • the contractor has a timeline they should adhere to
    • you are the boss, the contractor works at your discretion and under YOUR supervision
  4. the home has been sitting vacant for two years or more with a known septic tank issue

What I didn't say:
  1. the loan amount doesn't go high enough...  
  2. the repairs exceed $35,000
    • Common myth based on the great marketing some lenders do that aren't qualified to do the Standard 203k and only do the "Streamlined k" 
    • the limit is based on the county limits for the county your home is located. We have several projects right now that are over $500,000 in construction cost. If you have any problem in figuring out this for your client please call us and we'll provide the answers to your delima
  3. there is foundation work or it needs a new foundation
    • some lenders have an "overlay" where they have decided they don't want to do foundation work - don't use that lender, if you need to know what lender is the best at these loans contact us, as consultants we can share our knowledge and there are some you need to stay clear of.
    • repair or replacement of foundations are commonplace
    • septic tank has been dry for over a year and needs work - not a problem for the "Standard 203k"

Wednesday, September 24, 2014

FHA Homeowner Loans Can Be a Lifesaver

Long-term mortgages, such as 30 years loans, are commonplace today but that hasn't always been the case. Decades ago, a person financed their family home using five-year term loans with a required 50 percent down payment. After that 5 year term was up, Joe Public acquired another loan, and at the end of a particular length of time, you had to then produce the total to be paid.

In addition to the large down payment, those loans had other issues. It was difficult for people to be approved for such loans, particularly when folks suffered a loss of jobs or when real estate prices turned down. So in order to assist future homeowners, in 1934, the newly formed Federal Housing Administration (FHA) began offering up long-term mortgage home loans guaranteed by the federal government. This helped lots of people get long-term home loans with minimal down payments, which made it easier to endure tough times.

FHA Home Loan Advantages

FHA mortgage loans possess some benefits over common home loans. Given that the federal government protects FHA mortgage loans, they generally come with more lenient qualification and requirements, decreased down-payment requisites, and additionally they may well be assumable. They also offer home loans to individuals whose credit ratings would, in any other case, disqualify them for a regular mortgage. And additionally, the interest with a FHA mortgage loan is usually much lower for those with less than desirable credit, than it may be via a customary loan package.

Thereby, FHA mortgages have become well-liked by novice home buyers. In case you get declined from various other mortgage loan companies as a result of substantial debt to earnings percentage or because your credit score is unattractive, you ought to think of applying for a FHA mortgage loan, in which those prerequisites may be missing or even a great deal more accommodating.

Information on FHA Home Loans

FHA home loans have their problems and they are definitely not for all people. As an example, the FHA establishes mortgage loan limitations to guarantee the package will serve low to moderate-income homeowners. You may find that because of these home loan limits that you really must have to obtain a Conventional loan to buy your own house.

It's interesting to note that the Federal Housing Administration itself cannot supply you the finances for your home and also it doesn't set the interest percentage rates on the lending products. The FHA is generally insuring the homeowner loan you are receiving from your loan provider. Surprisingly, your FHA loan is not actually backed with your tax dollars, rather it's funded by your mortgage insurance premium payments.

Here's How to Get One

The FHA can provide a variety of lending products like standard fixed rate home mortgage loans or adjustable rate financial loans. A particular benefit of a FHA variable rate mortgage is they ensure that the monthly interest rate on your mortgage will only adjust by no more than 1 or 2 % points - absolutely no unanticipated shocks or tremendous jumps to surprise you financially.

The whole process of obtaining a FHA home loan is really very similar to obtaining a standard home mortgage. You'll need to produce proven evidence of your income over the past 2 years - however what qualifies as income is relaxed a touch. Items like alimony, child support, retirement, or social security and such qualify as income for FHA. And additionally, short-term debt (less than 10 months and under $100 per month) is not going to count against an individual.

All in all, a FHA loan is a great option for potential home buyers!

Visit my site www.mortgagesofmichigan.com to learn more about Michigan FHA loans and other loans at competitive prices.
Article Source: http://EzineArticles.com/?expert=Kelly_Dais

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Sunday, September 21, 2014

203k Loan – The Hottest Rehab Loan Product on the Market

A Guide for the most popular all-in-one purchase or refinance and real estate rehab loan product in the USA

“In 1961 the FHA (Federal Housing Administration) came out with a purchase or refinance loan guarantee product that included money to make repairs in order to assist home buyers and owner’s get their properties fixed up. The program was deemed a great way to accomplish this. While many were done, the use of the program was hindered by typical large amounts of paperwork and in realty few were actually completed. In 1994 the program was revised addressing the paperwork issue by creating “203k Consultants” who would learn the paperwork end of the program and help the borrowers through the pitfalls of the program. Mike Young was one of those early “203k Consultants” who decided early on to become an expert in the 203k loan program. Mike has been hearing so much misinformation surrounding the 203k during the past few months that he felt the need to clear the air with his new book ’203k Loan – The hottest rehab loan product on the market’ as the first ‘consumer guide’ for the purchase or refinance and rehab of real estate. While the FHA 203k loan program is one of the easiest loans for borrower qualification it is likely the most misunderstood. Since he housing meltdown the FHA loan limits have increased dramatically making this loan available to more consumers than ever before. This ‘consumer guide’ takes you through six simple steps get your next home loan with money for fixing it up all-in-one loan, a must for anyone buying real property this year. Borrowers can save from $400-1000 by using the tips in this book.”

About the author:
Michael A. Young has been a national leader in providing FHA 203k information and training to consultants and consumers and one of the largest FHA 203k consultants since 1994. Guest speaker at numerous home inspector conventions and providing continuing education for appraisers and home inspectors as well as thousands of FREE public awareness seminars.

Thursday, September 18, 2014

Should You Tackle A Fixer Upper?

Homes that need care and repair are in plentiful supply since the last recession. These troubled homes can be a great bargain. However, most real estate professionals steer clear of these damaged homes because the unknowns carry high risk. Should you consider buying one of these fixer-uppers? Here's how to decide.

  • Can you deal with the unknown? If you are comfortable knowing that there can be hidden damage in your fixer-upper and that it is impossible to calculate how much things will cost going in, then you might not regret the decision.

  • Are you construction savvy and handy with repairs? If so, it will make things easier and you'll be able to determine what contractors to hire.

  • Can you handle stress well? If you have a balanced attitude knowing that your fixer-upper will produce some surprises and take longer (and cost more) to complete than you think, you may survive the experience.

  • If you decide to buy a damaged home, follow these tips to reduce the problems you'll have to deal with.

  • Spend time finding out what is wrong before you buy. Just getting a home inspection will not do in this case; you will need to take the home inspection report and follow each "clue" or issue using thorough investigation and experts to determine the extent of the problems. For example, if the inspector flags an area of moisture or mold on a wall, you should have a contractor perform thermal imaging using an infrared moisture detector. This will improve your chances of finding everything that is wrong and being able to budget accordingly.

  • After listing the issues, determine what you can do and what you will need a pro to do. Code will dictate finding a licensed contractor for systems installation and repair such as HVAC, electrical, and plumbing. You can work on almost everything else. Consider getting professionals for the items you're not comfortable with - they will save you money because they will spend less time on the job versus you stopping and starting every time you realize you are missing something.

  • Become a great negotiator. Repair costs on a fixer upper take on a life of their own if you don't push for price breaks. Contractors know you are trying to save money and most will give you the best deal they can, but you should still ask without being obnoxious.

  • Over budget for repairs. This way you might be pleasantly surprised.

When I was an inspector I helped dozens of people consider problem homes. I was amazed at what folks were willing to purchase knowing how many problems existed. One of the worst ones was a home with a "creek" running through the crawlspace and missing supporting structure at the foundation causing the floors to slope, the windows to crack, and the roof to leak. When I returned to the area 2 years later, the home's foundation and structure had been completely re-built and the owner said it is her dream home now.

Lisa is an aerospace engineer and building contractor residing in Hayesville, North Carolina. Prior to her engineering position, Lisa inspected homes for home buyers, sellers, owners, and mortgage companies. Lisa loves flying and building aircraft. Lisa is the first woman to build and fly a Pulsar XP 2-person experimental aircraft. She built 2 aircraft and the major portion of a helicopter between 1995 and 2008. Lisa enjoys writing about flying, home improvement, and goal setting. She loves to inspire others to reach for their dreams.
Article Source: http://EzineArticles.com/?expert=Lisa_P._Turner

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Monday, September 15, 2014

Financing For Mixed Use Properties - 203k Online.com



Mike Young talks about how a 203k mortgage is a great way to find financing for a mixed use property. See more at http://www.203konline.com

Friday, September 12, 2014

203k Consultant Approval in Under Four Days

Wow, HUD is getting very good at the approval process. There has been a distinct change of late in the approval process likely due to the larger number of FHA 203k renovation loans being processed but we are seeing several new consultants being approved in four days and less. I remember when Carlton Segars from Columbia SC applied it took him about ninety days to get approved. While his was unusually long these latest ones are just as unusually FAST. I love it.

Another item that we see happening from all of the HOC's right now is they are asking the new consultants if they are able to create architectural drawings... that is NOT a responsibility of a 203k consultant. They need to read their own guideline. It actually says a consultant is required to create the "Architectural Exhibits" which may or may not contain blueprints. Architectural exhibits are what we call all of the paperwork the consultant puts together for the lender to help get a loan closed. If we need architectural drawings we have the client hire a draftsman or architect to get them done.

We do, however, quite often draw simple line drawings using a CAD program to show  room addiiton or deletion of an interior wall.

The FHA 203k loan guarantee program is finally being recognized for what it is... the fastest and most economical way to take a home from shambles to a revitalized home in a short period of time. The fact that you can use it to add on to any existing house or just make repairs to an existing 1-4 unit building is wonderful. Last week we had four closings that were all under 4% interest. Amazing to get construction money under 5% fixed for thirty years, don't you think?

Live/work from warehouses - no problem

6-8 units turned into 1-4 units if the zoning will allow - no problem

Old gas station turned into a living unit - no problem

A barn turned into a home - no problem

Tuesday, September 9, 2014

FHA Makes Owning Homes Possible for People With Bad Credit

Owning your own home is now possible despite the fact that you have bad credit.

If you are among those individuals wanting to own a home but have bad credit, you will be delighted to know that is now possible to achieve this. FHA home mortgages are now being given to people with blemished credit. The Federal Housing Administration is a government agency that insures the loan you are applying for from private lenders. Anytime you are unable to pay, they will partly do so on your behalf. With the government securing the loan, it definitely gives lending company the assurance they need. For this reason, even with a bruised credit score, you can apply for this loan and use it to buy or construct your own home.

After the economic recession and the downfall of the real estate business a few years back, construction business today is showing positive signs of getting back on its feet. Businesses are recovering. People are now finding financial stability bit by bit. If you desire to have your own home but you have a bad credit, then apply for the FHA housing loan today.

Some people without a financial background find it difficult to apply for a mortgage. Other people with blemished credit, who want to improve their credit score, use this loan product to repair their credit standing. An FHA mortgage loan requires only a small down payment-about 3% of the total loan amount which you can easily save up for when planning to buy a house. Depending on your purchase price, you can still maintain a fairly low monthly payment. Moreover, with interest rates for mortgages at an all-time low, you can get a huge break on the interest portion of your payment. This loan comes with a requirement for Private Mortgage Insurance, which will increase your monthly payment, but it will be removed once you pay down the loan amount to less than 80% of the purchase price. So, if you want to increase your credit score and you qualify for an FHA loan, now is the time to take advantage of low house prices and low interest rates.

Qualifying for a loan like being quite simple. Aside from being of legal age and a US citizen, you should also have a valid social security number. There is no minimum financial requirement but you need to prove that you have a steady job and you pay your bills regularly. Your income to debt ratio should show that 29% of your income goes to your home costs while 41% goes to your bills and other long term loans. The good news is a lot of people, when applying for an FHA mortgage, are getting approved and are now on their way into owning a house of their own.

When buying a home, don't overlook the importance of due diligence. Home inspection services are vital to ensure you are buying a home that is worth your investment dollars. But, not all home inspectors are created equally. Many states do not require home inspectors to be certified in anything and you can easily obtain a home inspection that isn't worth much in value. However, many qualified home inspectors are certified by the American Society of Home Inspectors (ASHI) and carry a coverted certification with this long-standing, professional organization. Moreover, home inspectors who are worth their salt further their certifications and increase their education in the home building industry. Many quality home inspectors have additional certifications in International Code Council (ICC) and/or specialize in specific testing like radon testing, home energy audits or pest infestations. Do you homework before selecting a mortgage lender for your home finances. But, most importantly, do your research before requesting the services for due diligence vendors. Select a home inspector who will give you a fair, honest and unbiased review of your potential home before you make the purchase. A certified home inspector is worth every dollar they request for their services. They will analyze the integrity of the home's structures and provide you with the knowledge to make a wise home investment decision.

Champia Real Estate Inspections provides commercial and residential home inspections in the Atlanta, GA, Tampa,FL and Orlando, FL areas with ASHI certified home inspectors. Our certified inspectors will deliver complete residential reports within 24 hours, with commercial inspection reports returned within 4 days.
Article Source: http://EzineArticles.com/?expert=Brian_Jardine

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Saturday, September 6, 2014

203k Consultant Approval in Under Four Days

Wow, HUD is getting very good at the approval process. There has been a distinct change of late in the approval process likely due to the larger number of FHA 203k renovation loans being processed but we are seeing several new consultants being approved in four days and less. I remember when Carlton Segars from Columbia SC applied it took him about ninety days to get approved. While his was unusually long these latest ones are just as unusually FAST. I love it.

Another item that we see happening from all of the HOC's right now is they are asking the new consultants if they are able to create architectural drawings... that is NOT a responsibility of a 203k consultant. They need to read their own guideline. It actually says a consultant is required to create the "Architectural Exhibits" which may or may not contain blueprints. Architectural exhibits are what we call all of the paperwork the consultant puts together for the lender to help get a loan closed. If we need architectural drawings we have the client hire a draftsman or architect to get them done.

We do, however, quite often draw simple line drawings using a CAD program to show  room addiiton or deletion of an interior wall.

The FHA 203k loan guarantee program is finally being recognized for what it is... the fastest and most economical way to take a home from shambles to a revitalized home in a short period of time. The fact that you can use it to add on to any existing house or just make repairs to an existing 1-4 unit building is wonderful. Last week we had four closings that were all under 4% interest. Amazing to get construction money under 5% fixed for thirty years, don't you think?

Live/work from warehouses - no problem

6-8 units turned into 1-4 units if the zoning will allow - no problem

Old gas station turned into a living unit - no problem

A barn turned into a home - no problem

FHA's 80th Anniversary



HUD Regional Administrator Jane C.W. Vincent pays tribute to the Federal Housing Administration (FHA) for its work in insuring 34 million home mortgages since its establishment in 1934.