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
Showing posts with label fha guidelines. Show all posts
Showing posts with label fha guidelines. Show all posts
Monday, June 28, 2010
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
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
Friday, June 4, 2010
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
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
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
Thursday, May 27, 2010
FHA Approved Condos
Buying an FHA approved condo means one important thing; it has to be on the list. Before you get too far into the process, make sure that the condos you are looking at are FHA approved condos. They have to be on the list, and if they are not, they would have to be reviewed and approved by the lender. What this means for you is a lengthy process so depending on how quickly you need or want to move this could be a pain.
Last year, if a condo wasn’t FHA approved, then it could have a spot check, but that is no longer the case. Your realtor should know what you’re looking for, so just make sure that you give them this information up front. That way, they can pull the correct listings on what you are looking for.
Buying an FHA approved condo doesn’t have to be hard, but they do have requirements. In addition to making sure it’s on the list, there have to be at least two or more units. You won’t find a standalone condo that is FHA approved.
Be sure that the condo isn’t in a develop that is partially commercial, as FHA requires that there be no more than 25% units being used for commercial purposes. Also, no more than 10% of the condos can be owned by the same investor. As you can imagine having that much ownership in most condo developments would make for a large portfolio.
There are many more requirements you’ll need to know about before shopping for an FHA approved condo. For more information, you can visit www.fhaloansnow.net. This is a great resource for all of your FHA needs.
-Mayer Dallal
Last year, if a condo wasn’t FHA approved, then it could have a spot check, but that is no longer the case. Your realtor should know what you’re looking for, so just make sure that you give them this information up front. That way, they can pull the correct listings on what you are looking for.
Buying an FHA approved condo doesn’t have to be hard, but they do have requirements. In addition to making sure it’s on the list, there have to be at least two or more units. You won’t find a standalone condo that is FHA approved.
Be sure that the condo isn’t in a develop that is partially commercial, as FHA requires that there be no more than 25% units being used for commercial purposes. Also, no more than 10% of the condos can be owned by the same investor. As you can imagine having that much ownership in most condo developments would make for a large portfolio.
There are many more requirements you’ll need to know about before shopping for an FHA approved condo. For more information, you can visit www.fhaloansnow.net. This is a great resource for all of your FHA needs.
-Mayer Dallal
Wednesday, May 26, 2010
FHA is All the Rage!
FHA is talked about so much that people aren’t sure what to believe. We hear about great low rates, easy processes and it’s all hard to believe because of where we are today. So, what does this all mean? Do consumers even care?
Being comfortable with the process has a lot to do with what choices we make. If you aren’t comfortable with the process, then don’t make a move. However, it is your responsibility to become informed before choosing FHA, or any loan for that matter. Without information, what do we have? Knowledge is power, and without that, we are lost.
Becoming educated is half the battle. Once you have the information on FHA, you can make a decision. Once you make a decision you need to act on it. Knowing what FHA does is helpful, because you don’t want to be misled. FHA is the Federal Housing Administration, and they insure loans for private lenders. This may include some banks, and some credit unions, but make sure before you get into the process.
FHA does not loan money, but they insure the loan; so, they guarantee the lender that if you default on the loan that they will pick it up. This all sounds so great, but so many people didn’t get this loan because they didn’t know anything about it. Everyone runs around screaming conventional, and they don’t know what it means.
Check out my website, www.fhaloansnow.net for more information, or email me directly at mdallal@fhaloansnow.net.
-Mayer Dallal
Being comfortable with the process has a lot to do with what choices we make. If you aren’t comfortable with the process, then don’t make a move. However, it is your responsibility to become informed before choosing FHA, or any loan for that matter. Without information, what do we have? Knowledge is power, and without that, we are lost.
Becoming educated is half the battle. Once you have the information on FHA, you can make a decision. Once you make a decision you need to act on it. Knowing what FHA does is helpful, because you don’t want to be misled. FHA is the Federal Housing Administration, and they insure loans for private lenders. This may include some banks, and some credit unions, but make sure before you get into the process.
FHA does not loan money, but they insure the loan; so, they guarantee the lender that if you default on the loan that they will pick it up. This all sounds so great, but so many people didn’t get this loan because they didn’t know anything about it. Everyone runs around screaming conventional, and they don’t know what it means.
Check out my website, www.fhaloansnow.net for more information, or email me directly at mdallal@fhaloansnow.net.
-Mayer Dallal
Tuesday, May 25, 2010
The Beginning of an FHA Home Purchase
When shopping for a home, make sure that you get your FHA prequalification before hiring a real estate agent. The real estate agent needs to know that you are equipped to buy the home, before they spend time doing the shopping on your behalf. They too spend a lot of time to help you find your new home. Using a real estate agent that is familiar with the FHA guidelines and qualifications will save you a lot of time and money in the process of buying your new home.
Once you find a home that you like, you will submit an offer through your real estate agent. If the seller counters your offer, you will want to try and negotiate until you can all come to an agreement. Once the seller accepts the offer it will become a legally binding contract. You will need to make sure that everyone is aware of any contingencies in the contract, and that any seller concessions have been accounted for.
Make sure that any offer is contigent upon getting a home inspection. Your home inspection will give you more information on the details of this property. For example, if the heating system is 25 years old, that is something you will want to know. That way if any changes need to be made to the contract they can be, as well as any repairs that you would like to have done.
-Mayer Dallal
Once you find a home that you like, you will submit an offer through your real estate agent. If the seller counters your offer, you will want to try and negotiate until you can all come to an agreement. Once the seller accepts the offer it will become a legally binding contract. You will need to make sure that everyone is aware of any contingencies in the contract, and that any seller concessions have been accounted for.
Make sure that any offer is contigent upon getting a home inspection. Your home inspection will give you more information on the details of this property. For example, if the heating system is 25 years old, that is something you will want to know. That way if any changes need to be made to the contract they can be, as well as any repairs that you would like to have done.
-Mayer Dallal
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