The FHA bankruptcy and credit guidelines set forth waiting periods that state how long a person or family would need to wait to do an FHA loan. Bankruptcy waiting periods are two years with reestablished credit, and a good explanation of why it happened. This is a blessing that they are allowing you to borrow money, and you have to understand why they do it. They are insuring your loan and they back if when the borrower defaults, so they make the rules and we just have to abide by them.
FHA credit guidelines state that on a foreclosure, the waiting period is five years, and that is usually from the date of the sale of the property. With a good explanation this may be shortened, but there are no guarantees.
Guidelines were put in place to aid you in making decisions, and to help you know what you need to do to move forward. Unless you educate yourself on what the FHA credit guidelines are, you can’t effectively plan for the future. If you fail to plan, you plan to fail.
For more information how to manage your credit, and qualify through FHA, you can go to www.fhaloansnow.net.
-Mayer Dallal
Tuesday, June 29, 2010
Monday, June 28, 2010
Conventional vs. FHA
Conventional loans are extremely stringent, so unless you have perfect pay in every single account you have, and have a wallet full of cash then an FHA mortgage may be the best option for you. With the economy the way it is, it does offer some good buys for homeowners, but it’s best to keep in mind that we need to be lending and borrowing responsibly. Regardless of the proposal for the home you are looking at, if you are not comfortable with anything regarding the process you need to say so.
Remember, FHA itself is not guaranteeing that every consumer will get a loan, and they aren’t granting the loan themselves. FHA simply insures the loan, meaning they promise to pay the loan when the borrower defaults on the loan. This insurance to the lender doesn’t guarantee that everyone will be approved for an FHA mortgage; those who apply will still need to qualify based on their income, credit and abide any FHA guidelines regarding the property.
For more information on FHA loans, and how to qualify, you can go to www.fhaloansnow.net.
-Mayer Dallal
Remember, FHA itself is not guaranteeing that every consumer will get a loan, and they aren’t granting the loan themselves. FHA simply insures the loan, meaning they promise to pay the loan when the borrower defaults on the loan. This insurance to the lender doesn’t guarantee that everyone will be approved for an FHA mortgage; those who apply will still need to qualify based on their income, credit and abide any FHA guidelines regarding the property.
For more information on FHA loans, and how to qualify, you can go to www.fhaloansnow.net.
-Mayer Dallal
What Causes a Low Credit Score?
If you are paying your bills on time that is great, but you may have too many of them. Continuing to open new accounts will drive your score down, making it nearly impossible for you to balance out your debt to income ratio. You also need to keep in mind that the more of your credit you use, the more your payments will go up with your revolving accounts. With a mortgage and a car loan things work a little differently, as they are a fixed interest loan. A fixed interest loan means that you will have the same rate and same payments for the life of your loan. Revolving debt pertains to credit cards, or lines of credit on the home. The rates adjust with the prime rate and any additional add-ons the bank has, thus driving up your payment. Once you exceed 40% of your available credit on any account, this will give you a low credit score. It shows the lender or bank that you are not able to manage your credit or that you are planning to use more credit, so beware.
Paying your bills on time is great, but remember cash is king! Don't borrow anymore than you need to no matter what the case may be. Always try to go the way of paying cash, for the exception of your home mortgage. Pay cash for cars if you can't, but if you can't this is a new trade line or account that you can use to help build your credit up. Building your credit up and sticking to your guns on cash will keep you away from a low credit score. For more information on credit, and how you can improve your situation, please go to www.fhaloansnow.net.
-Mayer Dallal
Paying your bills on time is great, but remember cash is king! Don't borrow anymore than you need to no matter what the case may be. Always try to go the way of paying cash, for the exception of your home mortgage. Pay cash for cars if you can't, but if you can't this is a new trade line or account that you can use to help build your credit up. Building your credit up and sticking to your guns on cash will keep you away from a low credit score. For more information on credit, and how you can improve your situation, please go to www.fhaloansnow.net.
-Mayer Dallal
Poor Credit, Poor Richard
To get rid of poor credit, you need to make one small investment that brings great rewards. Get copies of your credit report from all three major credit reporting bureaus. This will help you to look at the bigger picture so that you can see what you have open, what needs to be paid, cancelled or even completely removed. You can assess the oldest ones first, making any collection companies are contacted and your options have been reviewed. It's best to contact them and make arrangements, than it is to completely ignore them. Explain your situation, and don't back down. When they demand money, tell them the truth and see if you can come up with a viable settlement offer. It's best to pay something than not to pay it at all. It is also wiser to get it settled than to have it go on your credit for ten years unpaid or ending up as a judgment against you.
If there is a judgment, attempt to pay that first. These are typically only going to be accepted as a paid in full arrangement, but you can certainly try. It usually depends on what they are. Try to make payment arrangements on the smallest debts first, because you can really backfire on your plan when you promise too much too soon. Again be honest; you already have poor credit, so don't stress yourself out when things aren't going to change before tomorrow. Pace yourself, focusing on one account at a time.
For more information on how to repair credit, you can go to www.fhaloansnow.net.
-Mayer Dallal
If there is a judgment, attempt to pay that first. These are typically only going to be accepted as a paid in full arrangement, but you can certainly try. It usually depends on what they are. Try to make payment arrangements on the smallest debts first, because you can really backfire on your plan when you promise too much too soon. Again be honest; you already have poor credit, so don't stress yourself out when things aren't going to change before tomorrow. Pace yourself, focusing on one account at a time.
For more information on how to repair credit, you can go to www.fhaloansnow.net.
-Mayer Dallal
Saturday, June 26, 2010
Scrubbing Your Credit Report
Reviewing your credit for potential problems is so important. You won’t know what needs to change until you look your credit in the eye and deal with it. Do you have bad credit? Are you aware of what you have in your name? If you don’t know, then why not?
The key to dealing with bad credit is to get your credit report from all three major credit bureaus. Not all creditors report to each and every one, so it is best to see what is out there with each of them. Not all of them get the information at the same time, and there are companies that may only report to two of three bureaus. Every once in awhile you will find a company or lender that just reports to Transunion, so be sure to find this out in the beginning.
Finding out what accounts you have in your name and what accounts show slow pay is the best way to fix your bad credit. If you have bad credit this can prevent you from getting the best rates and programs available to you in all areas including getting an FHA loan. If you have never owned a home and you would like to, then partaking of an FHA program is a good idea, but with bad credit that will stop you dead in your tracks. Have a credit score of 620 or higher will enable you to take advantage of their low down payment option of 3.5%, but with a lower credit score you will need to come up with more money.
For more information on credit guidelines for FHA and options to get your credit repaired, you can go to www.fhaloansnow.net.
-Mayer Dallal
The key to dealing with bad credit is to get your credit report from all three major credit bureaus. Not all creditors report to each and every one, so it is best to see what is out there with each of them. Not all of them get the information at the same time, and there are companies that may only report to two of three bureaus. Every once in awhile you will find a company or lender that just reports to Transunion, so be sure to find this out in the beginning.
Finding out what accounts you have in your name and what accounts show slow pay is the best way to fix your bad credit. If you have bad credit this can prevent you from getting the best rates and programs available to you in all areas including getting an FHA loan. If you have never owned a home and you would like to, then partaking of an FHA program is a good idea, but with bad credit that will stop you dead in your tracks. Have a credit score of 620 or higher will enable you to take advantage of their low down payment option of 3.5%, but with a lower credit score you will need to come up with more money.
For more information on credit guidelines for FHA and options to get your credit repaired, you can go to www.fhaloansnow.net.
-Mayer Dallal
You Can't Live on Bad Credit
Your credit can make you or break you, and having bad credit will definitely break you. Bad credit will stop you from qualifying for credit cards, home loans, car loans, and may now even effect you getting a job.
If you really aren’t sure what your credit is like, then you probably need to pull a copy of your credit report and review it for mistakes along with your pay history. This is the first step in making sure your credit is clear of any problems that may prevent you from moving forward. You’ll need to take into account any open accounts along with double checking to see what you are listed on as the primary that you aren’t aware of. There are plenty of people lurking around out there that can access your personal information, and if you see an account that you don’t remember opening, then call that creditor immediately and tell them what’s going on.
Too many open accounts can drive down your credit score, because it looks like you are living on credit. Having too many accounts open that you aren’t using can give you bad credit, because when spending patterns aren’t consistent with the new behavior it throws up a red flag to the lender. In other words, if you use your card and pay it off every month, or you have an open account that you haven’t used and you start using it all the time that alert the lender that issued you the credit.
Running high balances can give you bad credit too. Remember, that keeping your balances at around 40% or less of your available credit is wise. Going above that percentage will start bringing your credit score down, so use your credit wisely. For more information on how to maintain your credit, and qualify for a loan please visit www.fhaloansnow.net.
-Mayer Dallal
If you really aren’t sure what your credit is like, then you probably need to pull a copy of your credit report and review it for mistakes along with your pay history. This is the first step in making sure your credit is clear of any problems that may prevent you from moving forward. You’ll need to take into account any open accounts along with double checking to see what you are listed on as the primary that you aren’t aware of. There are plenty of people lurking around out there that can access your personal information, and if you see an account that you don’t remember opening, then call that creditor immediately and tell them what’s going on.
Too many open accounts can drive down your credit score, because it looks like you are living on credit. Having too many accounts open that you aren’t using can give you bad credit, because when spending patterns aren’t consistent with the new behavior it throws up a red flag to the lender. In other words, if you use your card and pay it off every month, or you have an open account that you haven’t used and you start using it all the time that alert the lender that issued you the credit.
Running high balances can give you bad credit too. Remember, that keeping your balances at around 40% or less of your available credit is wise. Going above that percentage will start bringing your credit score down, so use your credit wisely. For more information on how to maintain your credit, and qualify for a loan please visit www.fhaloansnow.net.
-Mayer Dallal
Thursday, June 24, 2010
The Best FHA Mortgages
People always ask me what the best FHA mortgages are. Truthfully, FHA in my mind is the best way to go no matter what. FHA is the Federal Housing Administration, and they insure the loan for the lender if you default on your mortgage. FHA offers the best programs and rates around, along with alternatives for the buyer or the current homeowner.
The best FHA mortgages are the 30 year fixed option, that way you know your monthly payment is always the same. In addition, you will be escrowing your taxes and insurance so that you don’t have to come up with that money all at once, which is smart. I don’t know of too many folks that can come up with that kind of money in one lump sum. It just isn’t that simple, and if you think you can save up the money, you will usually end up using it for something else. I have seen it happen so many times.
FHA also offers one of the best loans yet, which is the Energy Efficient Mortgage, or the EEM. This is no doubt one of the best FHA mortgages, because it gives homeowners the opportunity to finance the amount of home improvements into the home, and it can be worked into the loan for a home buyer as well, with no additional qualifications needed. FHA uses the amount of savings that you would get from your energy saving improvements to alleviate the burden of a higher payment. This is a commonsense approach to underwriting that you won’t find with a conventional loan.
For more information on the best FHA mortgages, you can visit my website at www.fhaloansnow.net, or call me at 310-498-2700.
-Mayer Dallal
The best FHA mortgages are the 30 year fixed option, that way you know your monthly payment is always the same. In addition, you will be escrowing your taxes and insurance so that you don’t have to come up with that money all at once, which is smart. I don’t know of too many folks that can come up with that kind of money in one lump sum. It just isn’t that simple, and if you think you can save up the money, you will usually end up using it for something else. I have seen it happen so many times.
FHA also offers one of the best loans yet, which is the Energy Efficient Mortgage, or the EEM. This is no doubt one of the best FHA mortgages, because it gives homeowners the opportunity to finance the amount of home improvements into the home, and it can be worked into the loan for a home buyer as well, with no additional qualifications needed. FHA uses the amount of savings that you would get from your energy saving improvements to alleviate the burden of a higher payment. This is a commonsense approach to underwriting that you won’t find with a conventional loan.
For more information on the best FHA mortgages, you can visit my website at www.fhaloansnow.net, or call me at 310-498-2700.
-Mayer Dallal
Monday, June 21, 2010
Home Equity Loans are Available
In a sense, any loan you do using your home’s equity is an “equity loan”, but not all equity loans are created equal. There is a primary mortgage that can be fixed or variable, and you can also get a line of credit against your home. This acts as a second mortgage and is usually referred to as a “home equity line of credit”.
Lines of credit work just like a credit card, so I really don’t recommend them. The words from a banker used to be , “If you are an investor it’s okay”, but this is no longer the case. With home values being driven down, banks are reluctant to make the credit available, fearing that even those who may have had a good history won’t be able to pay it back in the future, so all lending is risky in a sense. Equity loans are right now almost a thing of the past, but you can still get them.
If you have a project in mind, then only borrow what you need, and be sure to get estimates for these things. Using the equity in your home is great because you can make your home work for you, but it’s all about balance and stability. Lender’s want to lend you the money on the equity you have, but they also want to know that you have the ability to pay it back.
Remember, equity loans are still available, but choose wisely and choose FHA. For more information on why you should go FHA, visit my website at www.fhaloansnow.net.
-Mayer Dallal
Lines of credit work just like a credit card, so I really don’t recommend them. The words from a banker used to be , “If you are an investor it’s okay”, but this is no longer the case. With home values being driven down, banks are reluctant to make the credit available, fearing that even those who may have had a good history won’t be able to pay it back in the future, so all lending is risky in a sense. Equity loans are right now almost a thing of the past, but you can still get them.
If you have a project in mind, then only borrow what you need, and be sure to get estimates for these things. Using the equity in your home is great because you can make your home work for you, but it’s all about balance and stability. Lender’s want to lend you the money on the equity you have, but they also want to know that you have the ability to pay it back.
Remember, equity loans are still available, but choose wisely and choose FHA. For more information on why you should go FHA, visit my website at www.fhaloansnow.net.
-Mayer Dallal
My Thoughts on FHA's EEM Program
FHA’s EEM is a great program, and I don’t have a lot of folks that do it, but it’s great if you want to save on your utilities. The FHA EEM program is basically allowing you to finance energy efficient home improvements into your home loan.
Essentially, you can finance the cost of those energy efficient improvements without having to further qualify. FHA justifies the higher payment because you are saving money on your utilities. You can still get your loan into a 15 or 30 year fixed without a hitch. Just keep in mind that the same rules for getting approved will still apply to you. So, you will still need decent credit and good job history along with the proper documentation. You will still need the 3.5 % down as well if you are buying a new home.
The total amount of your loan is the home value in addition to the projected cost of the energy efficient improvements. According to FHA’s EEM program guidelines, your mortgage can exceed the maximum limit FHA allows, just by the amount of the energy efficient improvements. This is not so bad, but let’s you know that FHA still plans to keep an eye on what they are lending on because they are insuring this loan.
For more information on how FHA’s EEM program works, you can visit, www.fhaloansnow.net.
-Mayer Dallal
Essentially, you can finance the cost of those energy efficient improvements without having to further qualify. FHA justifies the higher payment because you are saving money on your utilities. You can still get your loan into a 15 or 30 year fixed without a hitch. Just keep in mind that the same rules for getting approved will still apply to you. So, you will still need decent credit and good job history along with the proper documentation. You will still need the 3.5 % down as well if you are buying a new home.
The total amount of your loan is the home value in addition to the projected cost of the energy efficient improvements. According to FHA’s EEM program guidelines, your mortgage can exceed the maximum limit FHA allows, just by the amount of the energy efficient improvements. This is not so bad, but let’s you know that FHA still plans to keep an eye on what they are lending on because they are insuring this loan.
For more information on how FHA’s EEM program works, you can visit, www.fhaloansnow.net.
-Mayer Dallal
Sunday, June 20, 2010
FHA Keys to Success
FHA keys to success include some things that I believe are important, so I just wanted to share my thoughts on this. These things just make good sense, but these things will not just bring you success with FHA, but they will provide you success in your everyday life.
Saving money is a big one. If you don’t start today, you never will. We find all kinds of reasons why we don’t believe we need to hurry up and save. We blame the banks and we blame others for our problems, but you should pay yourself first so this is for sure a part of the FHA keys to success in my book. This will not just provide you with an emergency fund, but it will help you work toward your down payment needed for an FHA loan.
Getting copies of your credit reports from all three bureaus is also one of the FHA keys to success. Knowing what is on your credit, and whether or not it’s accurate is critical otherwise you can’t change it. Get to the heart of the matter, and make sure that anything that is outstanding is paid off, and don’t waste time. Your credit is everything, so take care of it.
Taking the time to correct errors on the credit report is also a major step to FHA keys to success. If you see an error, don’t let it go and try to keep documentation of when payments were made because this is extremely helpful when proving that a late payment didn’t exist. Checking your FICO score can be helpful too, so be sure to tap into all the resources you can.
For more information and my tips on having success with FHA and other areas of your finances, go to www.fhaloansnow.net. I am just an email or a phone call away!
-Mayer Dallal
Saving money is a big one. If you don’t start today, you never will. We find all kinds of reasons why we don’t believe we need to hurry up and save. We blame the banks and we blame others for our problems, but you should pay yourself first so this is for sure a part of the FHA keys to success in my book. This will not just provide you with an emergency fund, but it will help you work toward your down payment needed for an FHA loan.
Getting copies of your credit reports from all three bureaus is also one of the FHA keys to success. Knowing what is on your credit, and whether or not it’s accurate is critical otherwise you can’t change it. Get to the heart of the matter, and make sure that anything that is outstanding is paid off, and don’t waste time. Your credit is everything, so take care of it.
Taking the time to correct errors on the credit report is also a major step to FHA keys to success. If you see an error, don’t let it go and try to keep documentation of when payments were made because this is extremely helpful when proving that a late payment didn’t exist. Checking your FICO score can be helpful too, so be sure to tap into all the resources you can.
For more information and my tips on having success with FHA and other areas of your finances, go to www.fhaloansnow.net. I am just an email or a phone call away!
-Mayer Dallal
Wednesday, June 16, 2010
Looking for a Deal?
Those who are looking for a deal on a home, can find one by buying a short sale, but buying a short sale doesn’t happen fast. Short sales don’t mean that they are short on time, but it simply means that the home is being sold for less than what is owed, coming up “short” on the balance.
Buying a short sale can take anywhere from 4 to 6 months to close, so be prepared. If this home is on the MLS, you can ask your agent to find out if this home is a short sale. The reason you’ll want to tune into this is because you may find a home that appears to be much less than the neighborhood calls for. Your agent can get this information for you, and that way you will have an idea of what offer you should really be making if you like this home.
Buying a short sale has its benefits, but just be prepared to wait awhile. If you aren’t in a hurry, then buying a short sale may be for you. You can get more information, by going to http://www.inlandempireshortsaleresource.com/.
-Mayer Dallal
Buying a short sale can take anywhere from 4 to 6 months to close, so be prepared. If this home is on the MLS, you can ask your agent to find out if this home is a short sale. The reason you’ll want to tune into this is because you may find a home that appears to be much less than the neighborhood calls for. Your agent can get this information for you, and that way you will have an idea of what offer you should really be making if you like this home.
Buying a short sale has its benefits, but just be prepared to wait awhile. If you aren’t in a hurry, then buying a short sale may be for you. You can get more information, by going to http://www.inlandempireshortsaleresource.com/.
-Mayer Dallal
Monday, June 14, 2010
Does a Short Sale Show up On Credit?
Because I am a Certified Distressed Property Expert, I have families ask me all the time as to whether a short sale will show on credit. The answer is no, but let me go into a little more detail.
Short sales are not something that are reported, and that is because they are arranged differently by the bank. The short sale is actually “debt forgiveness”, in the lender’s eyes, therefore the short sale will not show on credit. So, the term “short sale”, will not be on your credit report. However, keep in mind that you’re not completely out of the woods. Your mortgage will certainly show any late pays that you have, and it should appear that your mortgage is paid as agreed, or is settled. So, again, “short sale”, will not appear on the credit report.
The short sale not appearing on credit, will also not affect your credit score as deeply as doing a foreclosure. Having slow pay, and a mortgage showing as “settled”, will only drop your scores about 50 points, whereas a foreclosure will drop your score from 250 to 300 points. In addition, when filling out a mortgage application, or 1003, there isn’t a place to mark that you have had a short sale. However, the application does have a spot for you to indicate that you have had a foreclosure.
Although we face tough economic times, a short sale is not the end of the world, but a short sale won’t be on credit either. When you think about the end result of doing one, think of your family first to help steer you in the best direction.
-Mayer Dallal
Short sales are not something that are reported, and that is because they are arranged differently by the bank. The short sale is actually “debt forgiveness”, in the lender’s eyes, therefore the short sale will not show on credit. So, the term “short sale”, will not be on your credit report. However, keep in mind that you’re not completely out of the woods. Your mortgage will certainly show any late pays that you have, and it should appear that your mortgage is paid as agreed, or is settled. So, again, “short sale”, will not appear on the credit report.
The short sale not appearing on credit, will also not affect your credit score as deeply as doing a foreclosure. Having slow pay, and a mortgage showing as “settled”, will only drop your scores about 50 points, whereas a foreclosure will drop your score from 250 to 300 points. In addition, when filling out a mortgage application, or 1003, there isn’t a place to mark that you have had a short sale. However, the application does have a spot for you to indicate that you have had a foreclosure.
Although we face tough economic times, a short sale is not the end of the world, but a short sale won’t be on credit either. When you think about the end result of doing one, think of your family first to help steer you in the best direction.
-Mayer Dallal
Saturday, June 12, 2010
FHA and the Electricity Guidelines for your Home!
If you have ever done an FHA loan, you know that FHA has very specific things they are looking for when checking out the electricity. FHA and electricity do work together….well maybe they do and maybe they don’t. What does your inspector say?
The last thing you want to worry about when you buy your home, is whether or not your electricity is working properly. In order to make sure that you aren’t in a complete lemon, FHA electricity guidelines state that a single main shut-off breaker should exist. If more than one breaker has to be tripped to disconnected power, then the service panel must be replaced.
FHA electricity guidelines were put into place to help you get the most from your new home. The inspector is there to see if there are any problems, not to work against you. However, if you feel like there is a challenge, you need to bring it up right then and there. There is nothing wrong with asking questions, and it’s essential to making sure that you get what you need from your new home.
For more information on this and other FHA guidelines, please visit my website at www.fhaloansnow.net.
-Mayer Dallal
The last thing you want to worry about when you buy your home, is whether or not your electricity is working properly. In order to make sure that you aren’t in a complete lemon, FHA electricity guidelines state that a single main shut-off breaker should exist. If more than one breaker has to be tripped to disconnected power, then the service panel must be replaced.
FHA electricity guidelines were put into place to help you get the most from your new home. The inspector is there to see if there are any problems, not to work against you. However, if you feel like there is a challenge, you need to bring it up right then and there. There is nothing wrong with asking questions, and it’s essential to making sure that you get what you need from your new home.
For more information on this and other FHA guidelines, please visit my website at www.fhaloansnow.net.
-Mayer Dallal
Is Escrow Mandatory with FHA?
If your property were to be destroyed, the lender would lose its collateral, but keep in mind that this is why you need homeowner’s insurance. Insurance is a way of having protection “just in case”, you run into a problem. Taxes are mandatory, and escrow is helpful to set this up so that you don’t have to think about it. FHA escrow is required, but keep in mind that there are benefits for all involved.
When your taxes go unpaid, the state can foreclose on your home in order to obtain payment. This is not a pleasant thought right? Insurance is absolutely necessary, but keep in mind that no lender will let you close on a home without homeowner’s insurance, so you really can’t get around it. You can see why FHA’s mandatory escrow makes sense. The FHA escrow wants to be absolutely that it sets aside enough to cover your taxes and insurance for at least one year, and a little more in case your taxes and insurance go up. We all know that two things are certain and that’s taxes and death.
The FHA escrow will also reward you in the end when you pay the home off. Whatever you have in your FHA escrow will be refunded to you, do don’t sweat it. This is normal, and again it’s to make sure that in case your premiums go up that they have enough to cover everything.
For more information on FHA escrow regulations and requirements, you can visit my website at www.fhaloansnow.net.
-Mayer Dallal
When your taxes go unpaid, the state can foreclose on your home in order to obtain payment. This is not a pleasant thought right? Insurance is absolutely necessary, but keep in mind that no lender will let you close on a home without homeowner’s insurance, so you really can’t get around it. You can see why FHA’s mandatory escrow makes sense. The FHA escrow wants to be absolutely that it sets aside enough to cover your taxes and insurance for at least one year, and a little more in case your taxes and insurance go up. We all know that two things are certain and that’s taxes and death.
The FHA escrow will also reward you in the end when you pay the home off. Whatever you have in your FHA escrow will be refunded to you, do don’t sweat it. This is normal, and again it’s to make sure that in case your premiums go up that they have enough to cover everything.
For more information on FHA escrow regulations and requirements, you can visit my website at www.fhaloansnow.net.
-Mayer Dallal
FHA Energy Efficient Home Loans
Not many people are aware of the financing available for FHA energy efficient financing. While it is not common in many areas, there are families that will opt for it. Part of the battle is just having a professional that will make you aware of all of your options.
FHA’s energy efficient financing can be worked into the loan whether it’s a purchase or a refinance. The key here is determine to what extent you need the work done. The FHA energy efficient financing can be used in conjunction with the 203b program. This program is what allows you to get repairs done on the home when you purchase, or get them done during a refinance. Even with a purchase, it is worked into the loan, and if it isn’t and your improvements are minimal, then at some point you can do a Title I HUD loan.
Title I HUD loans can only be done by a bank that is approved to do them, and they are usually smaller loan amounts of $5-$8,000. These can be done at anytime, and are a good idea for those who might end up with some expenditures they weren’t expecting.
I know families that have used FHA Energy Efficient financing in the past for solar panels, energy efficient appliances and more. You might want to check it out if you are looking at buying a home that needs a little work.
For more information on FHA guidelines and products, you can visit my website at: www.fhaloansnow.net.
-Mayer Dallal
FHA’s energy efficient financing can be worked into the loan whether it’s a purchase or a refinance. The key here is determine to what extent you need the work done. The FHA energy efficient financing can be used in conjunction with the 203b program. This program is what allows you to get repairs done on the home when you purchase, or get them done during a refinance. Even with a purchase, it is worked into the loan, and if it isn’t and your improvements are minimal, then at some point you can do a Title I HUD loan.
Title I HUD loans can only be done by a bank that is approved to do them, and they are usually smaller loan amounts of $5-$8,000. These can be done at anytime, and are a good idea for those who might end up with some expenditures they weren’t expecting.
I know families that have used FHA Energy Efficient financing in the past for solar panels, energy efficient appliances and more. You might want to check it out if you are looking at buying a home that needs a little work.
For more information on FHA guidelines and products, you can visit my website at: www.fhaloansnow.net.
-Mayer Dallal
FHA Eligibility Requirements are Important
FHA eligibility requirements are important for you to know. I hear clients talk about wanting to go FHA because they have had credit problems, but don’t be so quick to jump on the FHA bandwagon if your credit is bad.
It’s a misnomer that FHA loans are for those with bad credit, but they aren’t. FHA is an option that engages in what we call commonsense underwriting. FHA eligibility requirements don’t allow for credit that is in the trash heap, but they won’t really hold the past against you either.
FHA eligibility requirements are going to hold your credit score as somewhat important. FHA is looking for a score of at least 620 for you to do a purchase with just 3.5% down, but keep in mind that although they say yes, the lender may still say no.
FHA eligibility requirements are not the end of the road, for many lenders they are just the beginning. While many lenders encourage you to go FHA, they play by their rules, and with all of the defaults they aren’t so quick to have you sign the papers just because you can.
For more information on FHA eligibility requirements, go to http://www.fhaloansnow.net/ .
-Mayer Dallal
It’s a misnomer that FHA loans are for those with bad credit, but they aren’t. FHA is an option that engages in what we call commonsense underwriting. FHA eligibility requirements don’t allow for credit that is in the trash heap, but they won’t really hold the past against you either.
FHA eligibility requirements are going to hold your credit score as somewhat important. FHA is looking for a score of at least 620 for you to do a purchase with just 3.5% down, but keep in mind that although they say yes, the lender may still say no.
FHA eligibility requirements are not the end of the road, for many lenders they are just the beginning. While many lenders encourage you to go FHA, they play by their rules, and with all of the defaults they aren’t so quick to have you sign the papers just because you can.
For more information on FHA eligibility requirements, go to http://www.fhaloansnow.net/ .
-Mayer Dallal
Thursday, June 10, 2010
FHA and Gifted Funds
Believe it or not, with all of the fraud in FHA, it is no wonder that they have asked that gifted funds be documented every step of the way. FHA and gifted funds do get along, but it does have some strings attached.
With FHA priding themselves on commonsense lending, they also consider it commonsense that the person gifting you funds is logic; meaning a parent, sibling or other close relatives. FHA will allow other sources to fund you, but it has to make sense. In some circumstances it would be an employer or a close friend or current roommate, but FHA’s guidelines on gifted funds simply state it needs to be verified.
The reasoning behind verifying the gifted funds makes perfect sense. The lender knows that statistically speaking those who enter into a transaction with no invested funds are more likely to default on a loan, so it is in the best interest of all involved for FHA to verify gifted funds.
Many times the buyer may take it personal, but it really isn’t meant to invade your privacy, but understand that FHA has already allowed for low down payment funds up front. They only now ask for as little as 3.5% down so there isn’t a huge out of pocket needed depending on how much you are spending.
The fact that FHA allows gifted funds is a gift in itself. This is something you would be hard pressed to do on a conventional loan, so beware.
For more information on FHA and gifted funds, please visit my website at www.fhaloansnow.net.
-Mayer Dallal
With FHA priding themselves on commonsense lending, they also consider it commonsense that the person gifting you funds is logic; meaning a parent, sibling or other close relatives. FHA will allow other sources to fund you, but it has to make sense. In some circumstances it would be an employer or a close friend or current roommate, but FHA’s guidelines on gifted funds simply state it needs to be verified.
The reasoning behind verifying the gifted funds makes perfect sense. The lender knows that statistically speaking those who enter into a transaction with no invested funds are more likely to default on a loan, so it is in the best interest of all involved for FHA to verify gifted funds.
Many times the buyer may take it personal, but it really isn’t meant to invade your privacy, but understand that FHA has already allowed for low down payment funds up front. They only now ask for as little as 3.5% down so there isn’t a huge out of pocket needed depending on how much you are spending.
The fact that FHA allows gifted funds is a gift in itself. This is something you would be hard pressed to do on a conventional loan, so beware.
For more information on FHA and gifted funds, please visit my website at www.fhaloansnow.net.
-Mayer Dallal
Loving the FHA Calculator
I love the FHA calculator because it’s such a useful tool to help people know where they stand. People are going out trying to find ways to spend money they don’t have, and they shouldn’t. The use of the FHA calculator keeps it simple, and puts everything in perspective before you get carried away.
It is never too early to figure out how much you can afford, and the best part is it’s so easy to do with the FHA calculator. This is why I have them on my website, and encourage everyone to use them. You can plug in the loan amount, so if you have a particular house in mind then go with that. This way, you will know if what you are looking at is in your range. In addition, you can just plug in the interest rate and term, and it will give you the monthly payment with principal and interest, and with taxes and insurance.
The FHA calculator gives you real expectations on what you can afford, and that way when you search for a house, you will know what is in your budget and what isn’t. It’s all a matter of knowing what you can pay for, and if you don’t have any idea than you are in for a rude awakening. Go to your loan officer with confidence and knowledge that you have an understanding of what you can spend. For more information, or to view my FHA calculator on my website, you can go to www.fhaloansnow.net.
-Mayer Dallal
It is never too early to figure out how much you can afford, and the best part is it’s so easy to do with the FHA calculator. This is why I have them on my website, and encourage everyone to use them. You can plug in the loan amount, so if you have a particular house in mind then go with that. This way, you will know if what you are looking at is in your range. In addition, you can just plug in the interest rate and term, and it will give you the monthly payment with principal and interest, and with taxes and insurance.
The FHA calculator gives you real expectations on what you can afford, and that way when you search for a house, you will know what is in your budget and what isn’t. It’s all a matter of knowing what you can pay for, and if you don’t have any idea than you are in for a rude awakening. Go to your loan officer with confidence and knowledge that you have an understanding of what you can spend. For more information, or to view my FHA calculator on my website, you can go to www.fhaloansnow.net.
-Mayer Dallal
FHA and Your Debt to Income Ratio
FHA looks very closely at your debt to income ratio. Debt to income ratio is a term used to describe your level of outgoing monthly obligations to your income. It’s important before you decide to buy a home that you already know what your debt to income ratio is, and that you have it under control.
FHA would like to see your debt to income ratio at no more than 31%, and that is with your new monthly mortgage payment with principal and interest, and taxes and insurance. There are some cases in which FHA will allow you to go up to 43%, including other obligations, but FHA will look closely at new accounts you have opened. FHA simply wants to ensure that you have not opened up any new accounts in order to help you fund your down payment or pay off other debts prior to your application.
Your debt to income ratio is important, and you need to be responsible to keep your credit and your debts in order. For more information on the FHA guidelines, and to use the FHA calculator, visit www.fhaloansnow.net.
-Mayer Dallal
FHA would like to see your debt to income ratio at no more than 31%, and that is with your new monthly mortgage payment with principal and interest, and taxes and insurance. There are some cases in which FHA will allow you to go up to 43%, including other obligations, but FHA will look closely at new accounts you have opened. FHA simply wants to ensure that you have not opened up any new accounts in order to help you fund your down payment or pay off other debts prior to your application.
Your debt to income ratio is important, and you need to be responsible to keep your credit and your debts in order. For more information on the FHA guidelines, and to use the FHA calculator, visit www.fhaloansnow.net.
-Mayer Dallal
Wednesday, June 9, 2010
Tough Words on FHA Down Payment Assistance
FHA down payment assistance programs were eliminated back in 2008. This was a shock to many who were really hoping to take advantage of these programs and to me as well. I had hopes of seeing some families get to take advantage of this, but there were some reasons why it happened.
FHA is seeking to bring it back, but there is no word for sure on whether or not that is going to happen. These programs being terminated brought losses in excess of $14 billion for FHA. U.S. Representative, Al Green, a Texas Democrat, wanted to see the FHA down payment assistance programs reignited through donations from non-profit organizations. These FHA down payment assistance programs would be funded by 3% for those who are considered low income buyers.
Whether or not this will work, there is no way to know for sure, but lawmakers wanted to halt the FHA down payment assistance programs because they felt it would encourage default. It seems that the government can’t strike a balance and that no matter what the arguments will go back and forth until someone gives up.
I would like to see FHA down payment assistance programs return, but unfortunately I don’t get a say in how this happens. All we can do is wait and see what tomorrow holds for us. Until next time, much success to you and your family. For more information on the current FHA guidelines, please visit my website, www.fhaloansnow.net.
-Mayer Dallal
FHA is seeking to bring it back, but there is no word for sure on whether or not that is going to happen. These programs being terminated brought losses in excess of $14 billion for FHA. U.S. Representative, Al Green, a Texas Democrat, wanted to see the FHA down payment assistance programs reignited through donations from non-profit organizations. These FHA down payment assistance programs would be funded by 3% for those who are considered low income buyers.
Whether or not this will work, there is no way to know for sure, but lawmakers wanted to halt the FHA down payment assistance programs because they felt it would encourage default. It seems that the government can’t strike a balance and that no matter what the arguments will go back and forth until someone gives up.
I would like to see FHA down payment assistance programs return, but unfortunately I don’t get a say in how this happens. All we can do is wait and see what tomorrow holds for us. Until next time, much success to you and your family. For more information on the current FHA guidelines, please visit my website, www.fhaloansnow.net.
-Mayer Dallal
Hardship Letters
Hardship letters are probably pouring in by the thousands, but you may never hear about them unless you are trying to get a short sale negotiated for your home. As hard as it is to rehash all the financial garbage you are going through, it could be extremely beneficial.
Hardship letters are a part of the approval process and the bank wants to know why you are struggling. Regardless of the blame game we play back and forth, it will still be worth your while to engage in the hardship letter if you can. Pour your heart out and allow yourself to feel the pain while you write, so that your thoughts will come out clearly when you put pen to paper.
Tell the bank everything, and if you pour out your tears as you write, chances are that they will feel what you are feeling when they read it. The hardship letters could make or break what the bank has to say to you regarding listing your home as a short sale, so don’t leave anything out.
As a Certified Distressed Property Expert, I can help. I can help you get organized, and I can help you plan organize your thoughts too. For more information on short sales and the process, please visit my website, www.inlandempireshortsaleresource.com.
-Mayer Dallal
Hardship letters are a part of the approval process and the bank wants to know why you are struggling. Regardless of the blame game we play back and forth, it will still be worth your while to engage in the hardship letter if you can. Pour your heart out and allow yourself to feel the pain while you write, so that your thoughts will come out clearly when you put pen to paper.
Tell the bank everything, and if you pour out your tears as you write, chances are that they will feel what you are feeling when they read it. The hardship letters could make or break what the bank has to say to you regarding listing your home as a short sale, so don’t leave anything out.
As a Certified Distressed Property Expert, I can help. I can help you get organized, and I can help you plan organize your thoughts too. For more information on short sales and the process, please visit my website, www.inlandempireshortsaleresource.com.
-Mayer Dallal
Monday, June 7, 2010
Is An FHA Short Term Loan Beneficial?
The FHA bridge loan is not something that you hear a lot about, but that is because when it first came out it wasn’t being talked about by FHA. FHA wanted to keep this one under their hat until the bridge loan was perfected, and the plan they came up with is fine, but is it really a good idea?
I think it depends on the person or family. As with anything in life, it’s all about being responsible, and for those who are irresponsible and don’t save, it may be a bad idea. The short term bridge loan with FHA was designed for those who didn’t have the down payment money for their new purchase. Then, once filing with the IRS, you would know what you are getting back, but it won’t go against your tax credit. So, making sure that you will have the money later is a key factor. Generally speaking, if someone is pretty responsible then changes are they will have the funds to use for a down payment on the home, but if not then the short term bridge loan can be effective.
As with anything, educate yourself and don’t do it just because someone else did or suggested it. When you hear about the FHA short term bridge loan, do some research and look it up for yourself, but what you really need is an expert. For more information, go to www.fhaloansnow.net, and talk to your FHA expert today.
-Mayer Dallal
I think it depends on the person or family. As with anything in life, it’s all about being responsible, and for those who are irresponsible and don’t save, it may be a bad idea. The short term bridge loan with FHA was designed for those who didn’t have the down payment money for their new purchase. Then, once filing with the IRS, you would know what you are getting back, but it won’t go against your tax credit. So, making sure that you will have the money later is a key factor. Generally speaking, if someone is pretty responsible then changes are they will have the funds to use for a down payment on the home, but if not then the short term bridge loan can be effective.
As with anything, educate yourself and don’t do it just because someone else did or suggested it. When you hear about the FHA short term bridge loan, do some research and look it up for yourself, but what you really need is an expert. For more information, go to www.fhaloansnow.net, and talk to your FHA expert today.
-Mayer Dallal
Saturday, June 5, 2010
The FHA Front-End Ratio
The term FHA front-end ratio is a term you will hear when going to apply for your FHA loan. Unfortunately, many times you are bombarded by a ton of financial jargon that doesn’t make a lot of sense to you. I don’t like that loan officers do that, but I can only be accountable for what I do, and how I treat people. I might use those terms too, but I will explain them; that’s just part of being a professional.
The front-end ratio is what the lender will use to qualify you for a loan, so that you know how much you can afford. The lender will take your monthly income, and what your proposed payment would be with principal, interest, taxes and insurance. This total payment can be no more than 31%. This is simply a guide, so that you aren’t getting overextended, although you may want a lower payment. It’s all about watching your cash flow, and doing what is best for you and your family.
The back-end ratio is what the lender looks at when including your new monthly mortgage payment, and all of your recurring debt every month. So, they look at your new monthly payment, plus your car payment and credit card payments, you can be at no more than 43%. This is important, and gets us back to the basics. With these guidelines in place, we shouldn’t be headed down the same path that we were headed down before. For more information on how you can qualify and to use my FHA calculator, please visit my website at www.fhaloansnow.net.
-Mayer Dallal
The front-end ratio is what the lender will use to qualify you for a loan, so that you know how much you can afford. The lender will take your monthly income, and what your proposed payment would be with principal, interest, taxes and insurance. This total payment can be no more than 31%. This is simply a guide, so that you aren’t getting overextended, although you may want a lower payment. It’s all about watching your cash flow, and doing what is best for you and your family.
The back-end ratio is what the lender looks at when including your new monthly mortgage payment, and all of your recurring debt every month. So, they look at your new monthly payment, plus your car payment and credit card payments, you can be at no more than 43%. This is important, and gets us back to the basics. With these guidelines in place, we shouldn’t be headed down the same path that we were headed down before. For more information on how you can qualify and to use my FHA calculator, please visit my website at www.fhaloansnow.net.
-Mayer Dallal
Friday, June 4, 2010
My Desire to See You Succeed
My desire to see you succeed in life is nothing short of genuine. I have been in the mortgage and banking industry over 19 years, and every day I see different scenarios, wondering what is next, what is going to change, and could this market get any worse?
The mortgage and banking industry has been failing over the past several years, and it has failed in different ways. The industry began to fail us when we were allowing banks to do loans for those who were low income, but yet they had five homes; one to live in and four to rent. The shame in this is startling because lenders were giving out money to anyone and everyone who wanted a property, and it became like a hobby and was very frightening.
Having real professionals in place will make a world of difference, and it only takes one right professional. In order for me to make headway in our current mortgage and banking industry, I had to figure out what innovative ways were available to assist my clients in more than one area. I wanted to see those who needed to list a short sale have those resources available. I want to help first time homebuyers get into their home and start a family, and I want to see people be able to repair the damage done to their credit and make better choices.
For more information, and to see what I have to offer, please visit my website:
www.fhaloansnow.net
-Mayer Dallal
The mortgage and banking industry has been failing over the past several years, and it has failed in different ways. The industry began to fail us when we were allowing banks to do loans for those who were low income, but yet they had five homes; one to live in and four to rent. The shame in this is startling because lenders were giving out money to anyone and everyone who wanted a property, and it became like a hobby and was very frightening.
Having real professionals in place will make a world of difference, and it only takes one right professional. In order for me to make headway in our current mortgage and banking industry, I had to figure out what innovative ways were available to assist my clients in more than one area. I wanted to see those who needed to list a short sale have those resources available. I want to help first time homebuyers get into their home and start a family, and I want to see people be able to repair the damage done to their credit and make better choices.
For more information, and to see what I have to offer, please visit my website:
www.fhaloansnow.net
-Mayer Dallal
FHA Waiting Period on Short Sales
With short sales having become so prevalent over the past five years, is it any wonder that so many are having to wait before they can do another mortgage loan? Perhaps the numbers are staggering, but FHA waiting periods on short sales are simply put in place to prevent the problems we are having today.
While FHA has no waiting period on short sales of their own accord, Fannie Mae does now require a two year waiting period before they will allow you to do a loan FHA. Keep in mind that standard credit guidelines will apply to anyone who chooses to apply for an FHA loan. So, with that in mind, the payment history on your current mortgage must not show any late payments over the past 12 months. It is critical that you understand these guidelines before getting into the application process, because it involves everyone’s time and can be very frustrating.
For more information on this, you can visit one of my two websites:
www.fhaloansnow.net
www.inlandempireshortsaleresource.com
-Mayer Dallal
While FHA has no waiting period on short sales of their own accord, Fannie Mae does now require a two year waiting period before they will allow you to do a loan FHA. Keep in mind that standard credit guidelines will apply to anyone who chooses to apply for an FHA loan. So, with that in mind, the payment history on your current mortgage must not show any late payments over the past 12 months. It is critical that you understand these guidelines before getting into the application process, because it involves everyone’s time and can be very frustrating.
For more information on this, you can visit one of my two websites:
www.fhaloansnow.net
www.inlandempireshortsaleresource.com
-Mayer Dallal
My Thoughts on FHA Credit and Bankruptcy Guidelines
Over the years, I have been people refinance and buy homes with me, and every family has a different story, but I have seen families refinance to pay off their debt, and then they end up in the same situation they were in before. This is why I have a personal opinion about the FHA bankruptcy and credit guidelines.
FHA bankruptcy and credit guidelines were put into place to help people understand that for poor decisions there would be consequences. Every borrower needs to understand the ramifications of the decisions they made, and how they will affect their future. This isn’t to say that there are people out there that have fallen on hard times, but no matter what the situation is, you can learn from it.
The FHA bankruptcy and credit guidelines set forth waiting periods that state how long a person or family would need to wait to do an FHA loan. Bankruptcy waiting periods are two years with reestablished credit, and a good explanation of why it happened. This is a blessing that they are allowing you to borrow money, and you have to understand why they do it. They are insuring your loan and they back if when the borrower defaults, so they make the rules and we just have to abide by them.
FHA credit guidelines state that on a foreclosure, the waiting period is five years, and that is usually from the date of the sale of the property. With a good explanation this may be shortened, but there are no guarantees.
Guidelines were put in place to aid you in making decisions, and to help you know what you need to do to move forward. Unless you educate yourself on what the guidelines are, you can’t effectively plan for the future. If you fail to plan, you plan to fail.
-Mayer Dallal
FHA bankruptcy and credit guidelines were put into place to help people understand that for poor decisions there would be consequences. Every borrower needs to understand the ramifications of the decisions they made, and how they will affect their future. This isn’t to say that there are people out there that have fallen on hard times, but no matter what the situation is, you can learn from it.
The FHA bankruptcy and credit guidelines set forth waiting periods that state how long a person or family would need to wait to do an FHA loan. Bankruptcy waiting periods are two years with reestablished credit, and a good explanation of why it happened. This is a blessing that they are allowing you to borrow money, and you have to understand why they do it. They are insuring your loan and they back if when the borrower defaults, so they make the rules and we just have to abide by them.
FHA credit guidelines state that on a foreclosure, the waiting period is five years, and that is usually from the date of the sale of the property. With a good explanation this may be shortened, but there are no guarantees.
Guidelines were put in place to aid you in making decisions, and to help you know what you need to do to move forward. Unless you educate yourself on what the guidelines are, you can’t effectively plan for the future. If you fail to plan, you plan to fail.
-Mayer Dallal
Thursday, June 3, 2010
FHA and Bankruptcy
Having a good credit rating can affect your ability to borrow money, even when it comes to FHA. FHA has a stigma attached to it that sounds as though anyone can qualify. This isn’t true, and in fact they are looking at your credit closely, but their method is a little different.
FHA uses what is called “commonsense underwriting”, so they won’t hold your past against you completely. FHA bankruptcy rules are stringent, meaning you can’t have a bankruptcy on credit within the past two years. FHA bankruptcy guidelines state that if you have been in a chapter 13 for one year and have made on time payments then they will consider giving you a loan.
When deciding that you want to buy a home or refinance, you need an FHA expert to guide you through the process. I am an expert, and I can help. You can learn more by going to my website, www.fhaloansnow.net.
-Mayer Dallal
FHA uses what is called “commonsense underwriting”, so they won’t hold your past against you completely. FHA bankruptcy rules are stringent, meaning you can’t have a bankruptcy on credit within the past two years. FHA bankruptcy guidelines state that if you have been in a chapter 13 for one year and have made on time payments then they will consider giving you a loan.
When deciding that you want to buy a home or refinance, you need an FHA expert to guide you through the process. I am an expert, and I can help. You can learn more by going to my website, www.fhaloansnow.net.
-Mayer Dallal
Getting Short Sale Information
Real Estate investors want to know where they can get information on short sales when they are new to the game. Gather short sale information doesn’t have to be hard, but it is about knowing where to find it.
Short sale information can come from a few different sources. If you can get close to the listing broker, you have a really good shot at getting the information you need. The other thing you can do when talking to your realtor, is to ask them point blank if the seller needs to do a short sale. Sometimes a seller may start out listing their home with enough room to make a profit. They end up struggling to meet payments because they lost their job which is why they listed the home in the first place. The seller ends up doing a short sale because they know that there is no point in trying to swim upstream and they are upside down in the home. This is fast track to getting short sale information.
I can point you in the right direction as well. I have a strategic alliance of people I work with in order to provide information to those involved in every area of the short sale process. For more short sale information, you can go to www.inlandempireshortsaleresource.com.
-Mayer Dallal
Short sale information can come from a few different sources. If you can get close to the listing broker, you have a really good shot at getting the information you need. The other thing you can do when talking to your realtor, is to ask them point blank if the seller needs to do a short sale. Sometimes a seller may start out listing their home with enough room to make a profit. They end up struggling to meet payments because they lost their job which is why they listed the home in the first place. The seller ends up doing a short sale because they know that there is no point in trying to swim upstream and they are upside down in the home. This is fast track to getting short sale information.
I can point you in the right direction as well. I have a strategic alliance of people I work with in order to provide information to those involved in every area of the short sale process. For more short sale information, you can go to www.inlandempireshortsaleresource.com.
-Mayer Dallal
Wednesday, June 2, 2010
FHA Appraisers and the Facts
One your FHA offer has been accepted, then you need to get an appraisal done. FHA appraisers are the only appraisers that can do this part of the process. FHA has certain guidelines that they want followed to ensure that the home meets their requirements for the loan.
The FHA appraisal is for the benefit of the lender. Keep in mind that they are looking to lend on a home only for what it’s valued at. We want to always believe that the home is worth more when we buy it because we are proud at how much we spent. Then, we are proud once we own it so we can be sure to get the most of out the loan if we wish to refinance it to pay off debt.
The FHA appraisers must show that they have the proper credentials, and in turn the new requirements prohibit that the mortgage broker request the appraisal on their own. This is to keep everything fair and balanced so that we don’t end up with a mess such as what we have now. They don’t want to lend money on a property that is damaged and not really of that value and they don’t want to have the home over valued to end up with a home that will eventually be upside down. These situations bring about financial hardship for everyone, so trust the expert that handles your FHA loan.
For more information you can go to my website; www.fhaloansnow.net.
-Mayer Dallal
The FHA appraisal is for the benefit of the lender. Keep in mind that they are looking to lend on a home only for what it’s valued at. We want to always believe that the home is worth more when we buy it because we are proud at how much we spent. Then, we are proud once we own it so we can be sure to get the most of out the loan if we wish to refinance it to pay off debt.
The FHA appraisers must show that they have the proper credentials, and in turn the new requirements prohibit that the mortgage broker request the appraisal on their own. This is to keep everything fair and balanced so that we don’t end up with a mess such as what we have now. They don’t want to lend money on a property that is damaged and not really of that value and they don’t want to have the home over valued to end up with a home that will eventually be upside down. These situations bring about financial hardship for everyone, so trust the expert that handles your FHA loan.
For more information you can go to my website; www.fhaloansnow.net.
-Mayer Dallal
Is Your FHA Lender Qualified?
A client was asking me the other day what it means for a lender to do FHA loans. They won’t just do one loan, but becoming an FHA lender means that you have to be committed to the cause. FHA lenders are being held accountable which is great, and they have to prove that they believe that these loans are in your best interest.
To become an FHA lender, FHA requires that the lender submit the proper paperwork on their financial status. As of May 2010, they are now requiring that your company can show 1,000,000,000 in net worth before they would even consider you as a lender to provide the FHA benefits. This is good, because they want to know that the bank doing the loan has been profitable, but has an interest in helping everyone. When a bank shows stability, they usually want to continue on that path. Now, with the tough economy, those who want to buy a home are need to put less down with FHA.
Becoming an FHA lender also requires that none of the officers have been suspended. The owner of the company you work for is the director of all that takes place, so wouldn’t you feel better if you knew that they were an expert? Or, just to know that they care enough that they are looking out for your home loan?
Your FHA lender is required to update all paperwork, and provide any statements that were a result of a financial audit. This holds everyone accountable, and lets you know that your lender is truly a professional. For more information, go to www.fhaloansnow.net.
-Mayer Dallal
To become an FHA lender, FHA requires that the lender submit the proper paperwork on their financial status. As of May 2010, they are now requiring that your company can show 1,000,000,000 in net worth before they would even consider you as a lender to provide the FHA benefits. This is good, because they want to know that the bank doing the loan has been profitable, but has an interest in helping everyone. When a bank shows stability, they usually want to continue on that path. Now, with the tough economy, those who want to buy a home are need to put less down with FHA.
Becoming an FHA lender also requires that none of the officers have been suspended. The owner of the company you work for is the director of all that takes place, so wouldn’t you feel better if you knew that they were an expert? Or, just to know that they care enough that they are looking out for your home loan?
Your FHA lender is required to update all paperwork, and provide any statements that were a result of a financial audit. This holds everyone accountable, and lets you know that your lender is truly a professional. For more information, go to www.fhaloansnow.net.
-Mayer Dallal
Tuesday, June 1, 2010
FHA Appraisal Guidelines
I can remember when appraisals were first becoming an issue. Mortgage brokers and loan officers were sitting in their offices faxing over a pre-comparison to get an estimated value on homes that they were trying to lend money on. The idea behind getting this pre-comparison is that the loan officer and the borrower would know if the estimated value of the home was worth enough to do the loan that they wanted. Many borrowers were trying to estimate how much they would need to borrow in order to bail themselves out of debt. This was never good for a few reasons:
1) You would have loan officers and brokers cherry picking neighborhoods according to where the more valuable properties were located. Then, they would know exactly what they could do to up sell their proposals to the client. It was hard for a family in deep credit card debt to believe that they could get out of their situation unless their home was worth a certain amount of money.
2) Lenders that were contracted with certain appraisers were able to pass loans through very quickly. They had very tight relationships that were based upon the premise of “You scratch my back, and I will scratch yours”. This was a favor type system to keep business moving on both sides, and it seemed to be very effective, yet it wasn’t for the borrower. In many cases, the appraisal values were inflated in order to get more money on the deal.
This is very sad, but new FHA appraisal guidelines implemented don’t allow room for that to happen. FHA appraisal guidelines now state that when doing an FHA loan, the mortgage broker is not allowed to request the appraisal.
FHA appraisal guidelines are now geared to benefit everyone, and they no longer allow the lender to use their own appraisers.
-Mayer Dallal
1) You would have loan officers and brokers cherry picking neighborhoods according to where the more valuable properties were located. Then, they would know exactly what they could do to up sell their proposals to the client. It was hard for a family in deep credit card debt to believe that they could get out of their situation unless their home was worth a certain amount of money.
2) Lenders that were contracted with certain appraisers were able to pass loans through very quickly. They had very tight relationships that were based upon the premise of “You scratch my back, and I will scratch yours”. This was a favor type system to keep business moving on both sides, and it seemed to be very effective, yet it wasn’t for the borrower. In many cases, the appraisal values were inflated in order to get more money on the deal.
This is very sad, but new FHA appraisal guidelines implemented don’t allow room for that to happen. FHA appraisal guidelines now state that when doing an FHA loan, the mortgage broker is not allowed to request the appraisal.
FHA appraisal guidelines are now geared to benefit everyone, and they no longer allow the lender to use their own appraisers.
-Mayer Dallal
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