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Articles Published in: February 2011

FHA Loans: Important Details Of Adjustable Rate and Interest-Only Mortgages

When a first-time home buyer is searching for a home to buy with an FHA guaranteed loan, the buyer isn't just shopping for a home--they're also shopping for a home loan. There are many options to choose from, one of which is the adjustable rate mortgage or ARM loan for short. Another is the interest-only mortgage loan, also known as an I-O mortgage. We

 

The FHA Borrower’s Rights Under RESPA Part 2

In our last post we discussed FHA loans and the list of RESPA Borrower's Rights--a collection of rights FHA loan applicants need to know before applying for an FHA mortgage loan. The ten areas covered under RESPA Borrower's Rights include informed borrower requirements such as full disclosure of all non-refundable loan fees and other charges, disclosure as to the final cost of the loan and other important details.

 

FHA Borrower’s Rights Under RESPA

The FHA official site has a section called RESPA Borrower's Rights which informs borrowers of a list of things they should be aware of when shopping for an FHA mortgage loan. There are ten areas addressed by the Borrower's Rights section--some are common knowledge, while others imply obligations the lender has to the borrower to fulfill parts of RESPA law that pertain to full disclosure requirements.

 

The FHA and Fair Lending Laws

The FHA official site has much to say about fair lending laws. Over the years the FHA loan program has seen its share of regulatory changes designed to give fair and equal access to all qualified borrowers regardless of race, color, national origin, religion, sex, family status or disability.

 

FHA Reverse Mortgages: Should I Use An Estate Planner To Find a Lender?

In our last blog post we discussed FHA Reverse Mortgages and the scammers who try to prey on people who want to apply for such mortgages. The FHA issues regular warnings against paying for services and information that's available for free from the FHA. Some third-party companies are fairly brazen in their attempts to sell services or information that's available free of charge, others are a bit more subtle in the approach, blurring the lines between scam and legitimate customer service.

 

Borrower Beware: FHA Warns of Reverse Mortgage Scams

We've warned readers in previous blog posts about mortgage scams and third-party companies that try to charge consumers for services they can get for free. The FHA official site has plenty of warnings in its pages about being an informed borrower, advising FHA loan applicants to contact the FHA directly if they have questions about fees they should or shouldn't be paying.

 

FHA HECM Loans: When Do They Come Due?

An FHA Home Equity Conversion Mortgage loan (or HECM for short) is available for qualified borrowers age 62 and older who have equity built up in their home and want to borrow against it. HECM loans are described by the FHA as being a great deal different than the traditional second mortgage for several reasons; "With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments...."

 

FHA Home Loans: The “Hidden” Expenses of Some Mortgages

In our last blog post we covered some of the fees and costs associated with getting an FHA mortgage. New home buyers should be aware that the asking price of a home isn't the final amount that will be paid as part of closing the deal. The closing costs, interest rate, lender's fees and other expenses also factor in.

 

FHA Loan Costs and Interest Rates

When you're shopping around for a lender for an FHA home loan, it's good to remember that buying a home involves costs above and beyond the asking price of the home; some of these costs can be estimated by the lender to give you a rough idea of how much you should budget for when planning your finances for a new FHA mortgage. The basic costs of buying real estate include the interest rate--how much will your loan cost over its lifetime? It's easy to dismiss a percentage point up or down until you do the math--one percentage point lower could save you thousands over the life of a 30-year FHA mortgage. That's one reason why discount points are important--paying more up front can save you money later down the | more...

 

FHA 203(k) Rehab Loan Facts

The FHA offers a rehab loan known as the FHA 203(k). This program is the FHA's main loan product for rehab and repair loans for single family homes, and according to the FHA official site, "...it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it."