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
Showing posts with label fha requirements. Show all posts
Showing posts with label fha requirements. Show all posts
Saturday, June 12, 2010
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
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
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
Wednesday, June 2, 2010
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
FHA Requirements
FHA is a great loan for anyone, whether they are buying or refinancing. FHA does have requirements though, and I actually wrote about those today in my article.
It’s just simple stuff, and it’s easy to understand. The great thing about buying with an FHA loan is they only require 3.5% down! A conventional loan is going to require a down payment of anywhere from 5% to 30%, and not a lot of families have that kind of money just lying around.
The other great thing about the FHA requirements is they don’t expect you to be perfect. While they don’t want to see a current bankruptcy or large amounts of delinquent debt, they are more lenient on old derogatory credit. So, don’t let another slow pay sneak up on you if you have had them in the past. Just be sure that you have made notes on why you had them, and we can move on.
FHA requirements aren’t hard, but it’s just commonsense. This is what makes doing an FHA loan so great. I do them every day, and I get to help families do things that otherwise they couldn’t do because they weren’t working with the right professional.
Knowing FHA requirements means that you need someone who knows the industry thoroughly, and pays attention to the details. You don’t want to commit to thousands of dollars and have everything mishandled. This is your money, your life and your family.
FHA requirements take a professional like me to help you. This is important. For more information, visit my website at www.fhaloansnow.net, or email me at mdallal@fhaloansnow.net.
-Mayer Dallal
It’s just simple stuff, and it’s easy to understand. The great thing about buying with an FHA loan is they only require 3.5% down! A conventional loan is going to require a down payment of anywhere from 5% to 30%, and not a lot of families have that kind of money just lying around.
The other great thing about the FHA requirements is they don’t expect you to be perfect. While they don’t want to see a current bankruptcy or large amounts of delinquent debt, they are more lenient on old derogatory credit. So, don’t let another slow pay sneak up on you if you have had them in the past. Just be sure that you have made notes on why you had them, and we can move on.
FHA requirements aren’t hard, but it’s just commonsense. This is what makes doing an FHA loan so great. I do them every day, and I get to help families do things that otherwise they couldn’t do because they weren’t working with the right professional.
Knowing FHA requirements means that you need someone who knows the industry thoroughly, and pays attention to the details. You don’t want to commit to thousands of dollars and have everything mishandled. This is your money, your life and your family.
FHA requirements take a professional like me to help you. This is important. For more information, visit my website at www.fhaloansnow.net, or email me at mdallal@fhaloansnow.net.
-Mayer Dallal
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