Best Mortgage and Home Loans » Federal Housing Administration

Not Even HUD was Ready for Their Own Changes

admin — Fri, 22 Jan 2010 02:00:40 +0000

Since the first of the year there has been a scramble to make sure the new regulations and paperwork is rolled out and accurate at every mortgage company and bank. The fines that will be in place and enforced are stiff so these companies are doing everything they can to make sure they comply with the new rules. However, what no one anticipated was the glitches and hiccups from HUD itself.

Though it is true that you cannot anticipate errors and issues in new software, you would think that someone would have thought about a backup plan to issue case numbers and make sure that approved properties were honored until the kinks in the system were worked out. Unfortunately, that didn’t happen and many loans are stalled waiting on HUD to get their act together. They are telling everyone it has been worked out but many are still waiting…

Expect Some Big Changes for FHA in 2010

admin — Thu, 10 Dec 2009 03:29:11 +0000

You will be wise to expect changes for FHA loans in early 2010 as congress meets and votes on some of the recommendations before it in regard to lending practices, guidelines and requirements. These will most likely affect the lenders themselves as well as buyers and sellers, which affect Realtors. So basically, everyone will be impacted by the changes.

If you were around twenty years ago you will notice that we are simply going back to a time when you had to have good credit, money to put down on a house and a good solid job in order to purchase a home. In other words, you will have to have your finances in order to own a home in the future. Though we don’t know all the specifics, we do know things continue to change. Stay tuned and I will keep you updated as they come in. In the mean time, if you are ready to buy, it is definitely a good time to do it with rates low and inventory high.

What is a “no cost” FHA Loan?

admin — Mon, 19 Oct 2009 23:17:29 +0000

The closest thing to a no cost FHA loan is a streamline refinance though this is changing very soon just like so many other things in the loan and mortgage world. A streamline has been done in the past without an appraisal and credit is pulled to verify that the mortgage has been paid over the last 12 months on time. I have read through several of the changes on this loan and will post more once I have the total picture but even the way it was has a cost.

What most people are referring to as a “no cost” loan is a loan where you don;t have to come out of your pocket with money in order to get it closed at a better rate. The problem with this is that is does actually cost you money at some point. The money is coming out of your equity and most people don’t count that as actual dollars but they should! When you sell your house, those dollars are lost in fees and costs for the loan and you won’t get them back. Unless you have a really large reduction on your rate or stay in your house and don’t refinance again and pay it off in full you run the risk of never recovering your money. Make sure your loan officer goes over the true cost of the loan before you ever close it; purchase or refi.

The Importance of FHA Loans

admin — Thu, 24 Sep 2009 19:31:19 +0000

After this last downturn in the housing market it’s been a very crazy time in relation to mortgages. If you doubt the need for government involvement in the loan process you may be surprised to know that nearly 90% of all the home loans in the US this year were either funded or guaranteed by the US Government. If we did not have these government loans there would not have been a housing recovery because many people would not have been able to afford the mortgage insurance (MI) they would have needed to get a conventional loan.

When mortgages imploded and people could not pay their note, it is the mortgage insurers that got caught; big time. This is why it is now so difficult to get a second mortgage and why mortgage insurance has gotten so high. The bottom line is the FHA loans have put people in homes for the first time, have saved people from loosing their homes and have secured the housing market so it can slowly recover. FHA has its place and it’s a good place for the American people.

Go to the Source if You Have Questions

admin — Thu, 23 Oct 2008 03:46:32 +0000

One of the best places for anyone to go for the real answers is the official FHA (Federal Housing Administration) website; HUD.com. The only challenge is to figure out which section proteins to your question or concern. It is easier if you look to the left hand side of the page and choose the topic closest to yours.

There are sections to buy a home, sell a home, owning a home and renting a home. There are also sections on specialized FHA programs for section 8 and homeless as well as renovation loans and how to avoid foreclosures. This resource gives you a lot of information on what is available from the government to current home owners and potential home buyers as well as how to protect yourself if you are selling your home.

You are ultimately responsible to know what is out here and available to you and the HUD website is a great way to start educating yourself. Nothing will take the place of having this knowledge and you will know what to look for and what to avoid when dealing with the purchase and sale of your next home.