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
Showing posts with label fha condo. Show all posts
Showing posts with label fha condo. Show all posts
Saturday, June 5, 2010
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
Thursday, May 20, 2010
Get an FHA Approved Condo
If you are looking to buy a condo FHA you can, but there are some specific requirements that FHA has regarding condos. Typically in the past, it was not recommended to buy a condo because they were hard to resell. Families would opt for a house before a condo.
There are a few guidelines with FHA when it comes to buying a condominium:
1) The condominium project must be complete. FHA will not lend on a development. At the time of the loan, there cannot be any ongoing additions to the condo.
2) The control of the common areas, such as walkways and spaces in between condos are considered common areas. Another area considered common area is any yard space or parking.
3) The condo association must have the proper coverage for flood and hazard insurance.
4) Individual units must be held in fee simple. This means that the units are free to be opened up for home ownership.
5) There can be no legal restrictions on conveyance of any titles.
6) At least 90% of the units must be sold.
7) At least 51% of the units must be owner occupied.
8) No individual can own more than 10% of the units in the development.
There are many more small things to look for when buying a condo through an FHA loan. For more information please visit my website, www.fhaloansnow.net, or call me at (310) 498-2700.
There are a few guidelines with FHA when it comes to buying a condominium:
1) The condominium project must be complete. FHA will not lend on a development. At the time of the loan, there cannot be any ongoing additions to the condo.
2) The control of the common areas, such as walkways and spaces in between condos are considered common areas. Another area considered common area is any yard space or parking.
3) The condo association must have the proper coverage for flood and hazard insurance.
4) Individual units must be held in fee simple. This means that the units are free to be opened up for home ownership.
5) There can be no legal restrictions on conveyance of any titles.
6) At least 90% of the units must be sold.
7) At least 51% of the units must be owner occupied.
8) No individual can own more than 10% of the units in the development.
There are many more small things to look for when buying a condo through an FHA loan. For more information please visit my website, www.fhaloansnow.net, or call me at (310) 498-2700.
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