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The Bush Administration recently unveiled additional mortgage assistance for homeowners at risk of foreclosure. The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA).
Call 1 (800) 225 5342 for more information. |
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On Novemeber 7th The new FHA limits for 2009 were announced!
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Homesales.gov has homes for sale from HUD and other federal agencies in one place. You can find more homes by visiting our homes for sale page. |
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Why more and more people are turning to FHA!
Most applicants are inundated with the variety of terms describing mortgages that are available on the market. The most popular include, Fannie Mae, Freddie Mac, and FHA.
FHA was created by the Federal Government to provide affordable housing financing for qualified borrowers. FHA insures the loan, limiting the lender's risk. The borrower pays an upfront insurance premium which is approximately 1.5% of the loan amount. This money can be financed directly in the loan amount. The borrower also pays a monthly premium of .5% of the loan amount divided by 12 months. FHA requires down payment of 3%. This money can be a gift. No reserves are required.
FHA guidelines are more relaxed, such as; a bankruptcy that was discharged at least 2 years ago, the use of alternative credit (utilities, cable TV, auto or medical insurance premiums, child care, school tuition, furniture or appliance store accounts) in lieu of traditional credit, and higher debt to income ratios. FHA interest rates are extremely competitive with conventional rates. Borrowers must provide proof of sufficient income to show ability to pay the mortgage.
Fannie Mae loans are conventional loans made at the risk of the lender without the benefit of government insurance or any government guarantee. A conventional loan with an LTV (loan to value ratio) of greater than 80% requires primary mortgage insurance, which can be paid monthly. The borrower must have 5% of his/her own funds for the down payment and 2 months reserves on deposit. Closing costs must be paid by the borrower.
Borrowers who meet Fannie Mae guidelines are rewarded with an interest rate only slightly lower than an FHA interest rate. Requirements of a conventional loan applicant include excellent credit, job stability with sufficient income, a sizable down payment, and low debt to income ratios. |
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| Check comparables in your neighborhood to get a value on your home. read more |
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Already having an FHA loan qualifies you for one of the easiest money saving refinances available
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FHA is a very popular route for most first time homebuyers to take. It is not a program reserved only for first time home buyers, you can also buy your third or fourth home with an FHA loan
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