Wanting the best deal is usually on most peoples minds when heading into a purchase of any type. We all love deals, sales, getting the best. And sometimes to brag about such deals. Back in 1993, I still can remember a Veteran that wanted a VA loan, yet we had to try to put him into a FHA loan because of his credit. Then that became a problem because he wanted the same deal that his neighbor was getting, who was also getting a FHA loan, but I told him that he had too wait 6 months or … (20 comments)
I love what I do and I love crunching numbers, sometimes being creative and finding a way to maximize my clients cash assets, putting them in a good financial position for years to come. Meaning that I like to act like a financial planner, making sure that the borrower doesn't always use all of their assets, especially in today's market. Before you continue with this post, you will need to read part 1, Planting Seeds in the Borrower's Head. If you want the cliff notes version, read the … (12 comments)
FHA Home Loans have been a big part of the home buying process when it comes to your financing options. This might not mean much to many, but when you apply for a conventional loan, if you don't get an automated approval, you are declined. With FHA loans, even if you received a refer in the system, your loan can still be manually underwritten. But there are many guidelines that need to be followed, even for a make sense deal. Especially if your qualifying ratios are above the normal FHA requirements of 31/43. This means that your total mortgage … (7 comments)
I wrote this article the other day, HUD seeks public comment on three main issues for FHA loans. - The main issue and focal point is that FHA wants to reduce the seller concession from 6% to 3%. I can understand why. Two reasons I can think of : 1. The real estate market has crashed and home values have dropped significanly in some areas, that homes are upside down. Some feel that with a FHA mortgage, that you basically … (43 comments)
fha: Large downpayments when buying a home - Does it really help? - Cash is king
- 06/14/10 02:18 PM
Buying a home can sometimes be stressful when you have so many different people giving you advice. It shouldn't matter if you use FHA loans, VA loans, USDA loans, or conventional loans for your financing. Keep in mind, you hold the power in your own hands, with the help of professionals. Just be wise in your decisions. Just recently, there has been news of FHA Loans raising the monthly mortgage insurance (MMI), known in the conventional world as PMI, private mortgage insurance. The concept is the same, but the monthly percentages vary for each type of mortgage depending on the … (10 comments)
FHA loans have become very popular in the last 2 years and there are several reasons for this. What I hate hearing is that FHA mortgages have taken the spot of the subprime loans. This is not true at all. This statement is from those that are inexperienced in both the mortgage and the real estate industries. To many subprime loans should have gone FHA and that is just a fact. But why are FHA loans getting bad press now, stating that they are the most defaulted loans recently? Read this : We should ABOLISH FHA loans...
When shopping for a mortgage, it can be confusing at times, depending on where you get your information. You should not always base your information on such terms as Expert, Mortgage Expert, FHA Expert, etc, etc. Just because someone says they are an Expert doesn't always mean that they are an expert. There are so many variables to what mortgages are good for a borrower. How does a borrower determine what is good for them? What things should be important? Make sure .... -- you understand your finances first, … (21 comments)
FHA Mortgages have become increasingly more popular for 2 reasons. You just need 3.5% as a down payment and that many lenders will go down to a 620 credit score. What I am seeing now is the confusion about whether you can have 2 FHA loans because loan officers and lenders are giving the wrong information on the basic guidelines. And yes, you can have two, and even more, FHA mortgages. Example : Just yesterday, I had a client that was told that they need 30% down on their new property … (42 comments)
I have been talking about comparing FHA loans to Conventional loans and how to use your money wisely in my last 2 mortgage posts. The links are below and I suggest you reading them to find out what the fuss is all about. But in this post, I wanted to bring up 2 important points. some people argue that you should put more money down if you have it, so you don't become up-side-down in your property (I disagree with this statement) another point is that you could actually make a lesser down payment and take some of … (12 comments)
FHA loans have been used more in recent years. Many have talked negatively about FHA loans because of their high default rates as of lately. Don't be fooled by chatter that is not backed up by fact and why this is happening. Please read : Should we ABOLISH FHA loans? One of the main myths that I wanted to dispell in this blog post is that you don't need 20% to buy a home in today's real estate market or that you need a 720 credit score. These are bad … (38 comments)
FHA loans seem to be one of the main choice of mortgages in the last 24 months or so. There are many reasons for this. What I hate hearing is that FHA mortgages have taken the spot of the subprime loans. This is not true by any part of the imagination. This statement is from those that are inexperienced in both the mortgage and the real estate industries. The realization has been that 30% of the subprime mortgages from 2002 to 2006, should have been FHA mortgages, not subprime. But why are FHA loans getting bad press now, stating … (15 comments)
FHA loans need to go.... so many defaults... GROWING by the thousands. If we don't kill FHA mortgages now, the economy will crumble. Sound confusing?
Okay Jeff, have you flipped your lid? NOPE - I had written this blog last week, FHA loan rumors have become a reality. Because of this post, I have seen a few comments stating that we need to abolish FHA loans. Here are some comments in regards to these FHA changes in general... "The FHA is basically bankrupt since they haven't figured out that making loans … (74 comments)
So much has transpired in the last week with FHA loans and there are things that you need to know and understand why some of these changes took place. Last week HUD put out their policy changes and what could take place in the near future. FHA loan changes go from fact to fiction. The next day, they put out the official HUD mortgagee letter, ML 2010-02. Overall, I have noticed several comments that either the commentor seemed … (36 comments)
FHA streamline loans are very beneficial in many ways. A few things to keep in mind. FHA streamlines don't take that long, up to 10 days, and the FHA streamline rates are the same as regular FHA loans. When comparing FHA streamlines to conventional refinances, depending on your credit score, the FHA rate in many cases will be much better. Keeping this in mind, use a loan officer that is very familiar on how these types of refinances work. Just because it's easy to the naked eye, one still needs knowledge of how to make this work for … (13 comments)
FHA loans seem to be one of the main choice of mortgages in the last 12 months or so. There are many reasons for this. And FHA loans will definitely be the main choice for anyone buying a condo now. More on that later.. What I hate hearing is that FHA mortgages have taken the spot of the subprime loans. This is not true by any part of the imagination. This statement is from those that are inexperienced in both the mortgage and the real estate industries. The realization has been that 30% of the subprime mortgages from … (9 comments)
As many of us know in the real estate market, FHA loans are being used more than ever before. With the disappearance of the subprime market of 2 years ago and in several cases, that conventional loans can be more expensive, more FHA loans are being utilized. I just wanted to point out some basics, because I am still hearing some misleading information that makes me cringe from time to time.
FHA loans are more expensive than conventional loans. - FALSE This one is always a favorite of mine. Right now, forget about the pricing hits on the … (10 comments)
FHA loans seem to be one of the main choice of mortgages in the last 6 months or so. There are several reasons for this, which should be spelled out below in my comparison. What I hate hearing is that FHA mortgages have taken the spot of the subprime loans. This is not true by any part of the imagination. This statement is from those that are inexperienced in both the mortgage and the real estate industries. The realization has been that 30% of the subprime mortgages in the last 5 years previous to the last 2 years should … (47 comments)
The first time homebuyers tax credit of $8,000 has been approved by HUD for all FHA loans. But don't get too excited too quickly. If you get a chance to read the mortgagee letter, ML 2009-15, it states that you can't use this tax credit for the required down payment of 3.5%. HUD originally put out mortgagee letter 2009-15 on May 12th, but was rescinded the next day. Please read about that here : $8,000 tax credit rescinded by HUD. For some reason, it was prematurely placed on HUD's web site, … (109 comments)
fha: FHA Loans vs Conventional Loans - 5% down - Things you need to know !!!!
- 05/02/09 07:54 AM
For several of you that read my blogs, I try and do a FHA vs Conventional purchase comparison once every few months. FHA loans have been more wisely used in recent months as the choice of mortgages. What I hate hearing is that they have taken the spot of the subprime loans. This is not true by any part of the imagination. This statement is from those that are inexperienced in both the mortgage and the real estate industries. The realization has been that 30% of the subprime mortgages in the last 5 years previous to the last 2 years should … (49 comments)
As many of us search more and more online, through the internet, there becomes a greater chance for misinformation also. Now, this is just my opinion, but it's based on seeing at least 2 blogs a week now that has wrong information within the topic of discussion. I am seeing this even more so when it comes to FHA loans. What disturbs me most is that if we don't question the author of that blog, those reading it will believe it and spread that information as the bible per se. I even went as far as to send an author of … (14 comments)
I just want to educate people about mortgages and the process.
In regards to lending, I am very creative, intuitive, honest, and one who communicates information, may it be good or bad. I am a loan officer that looks out for your best interest.
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