fha loan
FHA loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders.
FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance. Some FHA programs were subsidized by government, but the goal was to make it self-supporting, based on insurance premiums paid by borrowers.
Over time, private mortgage insurance (PMI) companies came into play, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI.
August 31, 2007, FHA added a new refinancing program called FHA-Secure to help borrowers hurt by the 2007 subprime mortgage financial crisis.
akaitabarali
asked:
"Can I get an FHA loan for investment income property and get 100% financing and live in property as far as i know for FHA loan you need co signer and need to be living in property.....how about an apartment? would i be able to get FHA loan for multicomplex????????Thanks"
Question posted courtesy of:
Web G replied:
"FHA loans are for owner occupied properties, not investment properties. Anything otherwise, in my opinion, is fraud..."
Mary B replied:
"The answers to both your questions are no, and no."
Marianne replied:
"To add to what the group said FHA loans are not 100% financing."
Little Man
asked:
"I have a friend that's looking to buy a house and she asked me if I knew the difference. I have a conventional but I have no idea what makes it different from a FHA loan...Any help?"
Question posted courtesy of:
Luis S replied:
"Conventional means that the loan is underwritten to Fannie Mae and Freddie Mac (AKA Agencies) guidelines, and must meet their criteria for them to buy the loan from the lender. Example:You go to Chase, Wachovia, etc to get a mortgage, and they offer you a conventional loan. A conventional loan can come as an interest-only or full amortization loan, fixed or adjustable rate, with amortixation terms up to 30 years, though some convetional programs can go as far as 40 years. These banks then sell the loan to the Agency that it was underwritten to and service the loan for the Agency (ie take payments, enforce the terms of the loan, etc).They may also have a "portfolio" product, which is non-convetional, but may also be fixed, adjustable, etc, and is not sold to the Agencies, and retained in the bank's portfolio.FHA (federal Housing Authority) is a government mortgage program, and it is as simple as that. It has less stringent credit requirements, and aside from a few technicalities, may be more beneficial than a conventional mortgage for someone based on the new tax laws. It is also serviced the same way a conventional mortgage is - Chase/Wachovia/etc writes the loan, sells it to FHA for insuring purposes (FHA insures the lender against default), and Chase/Wachovia/etc services it. Just as an FYI, someone can get a conventional mortgage with 3% down, just like they can with FHA. However, the PMI (private mortgage insurance) on a conventional loan will be significantly higher with a conventional mortgage than an FHA loan, because with an FHA loan they may finance a portion of the PMI (known as MIP for FHA) into the loan, and thus it becomes tax deductible as you apy interest on it. Also, if they may less than 100K household income, PMI is fully tax deductible thru 2010.Also, FHA has lower loan limits than conventional does, is set by county. For instance in Cali, the loan limits are higher than say in Oklahoma, and then you have to check each county. The conventional loan limit used to be 417K, but doe to GW's stimulus package, these were increased recently, but may only be temporary (FHA's were as well).Just so everyone understands, a fixed-rate mortgage is a fixed-rate mortgage, plain and simple. An adjustable is exactly that, and an interest-only loan is exactly what it's called. These are the 3 basic porducts offered in the mortgage industary, and when used wisely, they work just fine, as was the case prior to the refi boom.I hope this helps."
angela replied:
"An FHA loan requires a lower down payment and is stricter on the condition of the house. You might get an FHA for around 3% down whereas a conventional might require 20% down. FHA requires things like hand rails at the steps, no chipped paint, exhaust fans in the bathrooms, and things like that."
Beverly S replied:
"Luis S. is right except that FHA has just increased SUBSTANCIALLY their loan limits as of March 2008 through the end of this year. If you have any credit issues FHA is better 3% down- seller can pay up to 6% in closing costs for you. Most conventional are now 10% minimum down payment- the 100% loans are gone."
horsecrzgirl
asked:
"My husband and I are closing on a fha loan on Wednesday. How long after closing should I wait to buy a slightly used car? I know not to do anything in til we have closed but after that can I apply for a car loan?"
Question posted courtesy of:
Kris H replied:
"In today's credit world this is a good thing to be cautious of. It is common today for lenders to update their credit report at the last minute to make certain nothing new is on the report, and if something new shows up they have and could pull the loan. Based on this I will give a few answers.1) Getting used to the water: You may want to wait until you get over the many little tings that come with getting into a new home, like the new payment, utilities and shelf liner etc that come up. Although if your mortgage payment is equal to or under what you were paying and/or you have been saving a fair amount in the past it may not even matter. You could ask your lender how tight the debt to income ratio is for you and your loan. If you are not positive you will be at ease with the new payment amount, it is wise to wait until you have some time with the new obligations that come along with a home. Perhaps even two to three months. This would allow you to get a better feel for what you will be able to afford.2) On the other side, once the all of the following have occurred:Lender has fundedDeed has recordedand you have the keysthe lender is not likely (or able) to pull the loan back. 3) If the mortgage is being brokered (resold to another investor/bank,) within a few weeks that should be completed as well, so 2-4 weeks is likely long enough to have this process done, it could even be done within a few days. You could ask the lender-they might know how the funding process works."
oahurealestate replied:
"Once the loan has funded it's hard for anything to wrong, but possible.I would wait for a week after closing to be safe."
alterfemego replied:
"Once you have signed all the paperwork for the house, you could go and buy a car"
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Mx
asked:
"If you purchase a home with an FHA loan (and you still owe on that loan) can you use it as an investment property? Furthermore, can you purchase other properties when you have an FHA loan? Can you live in another property other than the home you purchased with the FHA loan? What are the restrictions?"
Question posted courtesy of:
ScorpionSDGuy replied:
"Yes, yes, yes.You can only have one FHA loan at a time. When you buy the property with an FHA loan it must be owner occupied. If for some unforseen reason you have to move, rent it out, and buy another place then that's OK. If however, you buy the place stating to FHA that it will be owner occupied, but you have no intention of ever living there then that's fraud. Fraud is a major No NO...."
HIGH SHAMAN replied:
"YES; to everything ; BUT you will need to change your insurance plan as you currently probably have Regular Homeowners Insurance ; NOT a Landlordlord type insurance ....That MAY cause the lending institution holding your mortgage to raise your interest rate as I'm sure when you applied for the loan, you put dow that YOU were going to live there ....just a couple of things you need to check out ..."
stillhoping152
asked:
"I just got asked for my hr information for my loan through FHA. I have submitted my W2's and pay stubs. I know that this will be faxed to my employer, which is fine. However will the underwriter still call once they have the VOE faxed back to them. Reason I ask is because my HR rep will be on vacation. Just curious if this will delay my closing. Thank you for your answers!"
Question posted courtesy of:
Tampa Bound replied:
"see if a supervisor can do it. They need them to sign a form verifying you work there. It doesn't have to be HR. FHA can't close without it."
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The FHA loan limits for 2009 have been released. So what are the new maximum limits for 2009 FHA for Connecticut? They range from as low as $271,400 for a single family home, to $984,150 for a 4 unit home.
The FHA loan limits for 2009 have been released. Depending on the county and the size of the house they range from $356,500 for a single family to $1,202,925 for a 4 unit property.
The same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more.
Should you specialize in multifamily housing or commercial real estate, or apartment buildings for sale? Beyond the benefits of FHA financing for multifamily investment, are the other economic benefits which the smart multifamily investor enjoys. There’s another thing the really successful real estate investors do: They buy in the right markets at
Most Columbus HUD Homes can be purchased with FHA loans for as little as $100 out of your pocket. These are almost new homes and super deals.
