fha home loans: Did you hear about a possible Government shutdown - Which could affect FHA loans & USDA loans - 04/07/11 06:09 AM

Be prepared for the worse !!!!  Not sure if many of you know, but there is a possible government shutdown looming. This would affect FHA loans and possibly other mortgages. There are still talks on Capital Hill between the Democrats and the Republicans, if not solved, could shut down many parts of the government come Friday April 7th. The government funding bill expires on Friday at midnight.
Be aware this could affect the ability to get transcripts for IRS loans as well as more importantly, FHA case numbers. Not only could this delay the lender in obtaining a FHA … (12 comments)

fha home loans: FHA Rumors – Seller concessions on FHA Loans @ 3 percent – - 02/08/11 03:32 PM

FHA Loans still allow a 6 percent seller concession. Yes, there has been talk of FHA lowering the seller concessions down to 3 percent across the board. This was first talked about in February of 2010 and was placed for public comment in July of 2010. The end result is that it still hasn’t been changed as of today, February 8th, 2011. Yes, some lenders have what are called lender-overlays, which brings me to this update.
What one needs to be careful is where they get their mortgage information from, no matter if it’s from a loan officer or … (12 comments)

fha home loans: My mortgage rep told me that I must pay FHA mortgage insurance for 5 years - 01/29/11 08:38 AM

When it comes to mortgages, there are so many frequently asked questions. One mortgage topic that gets many misleading answers is mortgage insurance, specifically FHA mortgage insurance.
Why do I need FHA monthly mortgage insurance if I put 20 percent down?
Aren't FHA loans more expensive? (many refer to this because of the upfront mortgage insurance)
FHA monthly mortgage insurance will be there regardless if you put 20 percent down. If you put less than 20 percent down, you will have the FHA monthly mortgage insurance until you reach the 78 percent LTV level. (LTV = Loan-to-Value)  … (5 comments)

fha home loans: FHA Loans vs Conventional Loans – Comparing 10 percent down – Part 1 of 2 - 01/17/11 12:15 PM

Can I get a mortgage with less than 5% down and credit scores of 640? Yes, with a FHA loan you can and it would be cheaper than with a conventional mortgage.
There are still rumors that FHA loans are more expensive. This is a very bad assumption and in many cases, this is not true. It all comes down to credit scores and your down payment. You need a true mortgage professional to properly break it down for you.
FHA loans make up about a 33 percent market share of all mortgages in the last 12 months. One reason … (7 comments)

fha home loans: Lions, Tigers, & Bears..oh My - FHA raised mortgage insurance & now Fannie Mae raising fees?? - 01/15/11 11:20 AM

Many of us know that FHA raised their monthly mortgage insurance rates in October 2010. For the most part, this made FHA loans more expensive on a monthly basis once it went into effect. You can see the changes and see how it affected the monthly mortgage payments. 3 quick examples regarding the change in FHA mortgage insurance
Now, Fannie Mae will be increasing their fees on specific credit scores and depending on your down payment. It's all shown in this post, Pricing hikes for Conventional loans - April 1st, 2011
So.. are waiting for the new … (21 comments)

fha home loans: FHA loans aren’t just for First Time Home Buyers in New Jersey - 12/08/10 02:53 PM

This will be specifically about FHA loans, but when it comes to mortgages in general, you really need to speak to a qualified loan officer. This is not to throw realtors or anyone else under the bus, but you should be very careful in where you get your answers. Even if that realtor or someone other than a loan officer says, “well, this is what I heard from my loan officer.” Still, speak to that loan officer directly. Things can still get twisted or confused when passing along information. And yes, there can be an argument that some … (3 comments)

fha home loans: FHA Loans vs Conventional Loans - Comparing 20 percent down - Eye opening - 10-11-10 - 10/11/10 03:31 AM

FHA loans have been the major talk in the news as of lately. One loan officer e-mailed me the other day, asking if FHA is going away. I asked, how did you come up with this?  Because three realtors had mentioned it to them. I have not heard a thing, but let's use common sense.  If FHA loans would go away, then the housing market would crash for good. Just my opinion.
Just the other day, a realtor made a comment stating that the buyer was better off putting their 20 percent down with a conventional mortgage and not with a FHA … (56 comments)

fha home loans: FHA Streamline Refinances & FHA loans in general in New Jersey - You need to know the facts - - 09/16/10 03:28 PM
More the reason why you need to speak to a knowledgeable professional loan officer


With mortgage interest rates being so low, you would think many people are refinancing. And one would think that more would be doing FHA streamline refinances, because it should be so easy, hence the name streamline. Sorry to sound negative, but no and no, for many reasons.
There is also a mortgage myth, aka mortgage rumor, that FHA streamlines are cheaper than regular FHA loans. A complete lie. I just had a potential borrower that was told this. Yes, there are … (7 comments)

fha home loans: FHA Loans with FHA credit scores - Understanding what is allowed & what can be done - Part 1 of 3 - 09/14/10 12:15 AM

There has been a lot of talk regarding Credit Scores in the last week after FHA came out with Mortgagee Letter 2010-29 on FHA Loans. Here was my post showing such changes with an explanation. Jeff Belonger's cheat sheet for ML 2010-29.
In my opinion, some of the confussion and or arguement with the new FHA loan changes is that FHA says that you can go down to a 500 credit score with 10% down. FHA even says that you can put the minimum down of 3.5% with credit scores of 580 and above.
Here is the problem … (23 comments)

fha home loans: New updates for FHA Mortgages - Changes in LTV & credit scores - seller concessions? - 09/05/10 05:29 AM

In the last 10 months or so, FHA has announced some proposals and these proposals are now becoming reality for FHA Mortgages.  Just last week, FHA increased the monthly mortgage insurance and reduced the upfront mortgage insurance. If you missed this one, you must familiarize yourself with these changes, because it could increase the borrower's monthly mortgage payments from $20 to $120 a month, depending on the purchase price.
Changes in FHA mortgages for the monthly mortgage insurance & UFMIP
The newest change, as of September 3rd, 2010, has officially set credit scores for all FHA loans now. Previously, FHA never had … (8 comments)

fha home loans: FHA Loans vs Conventional Loans - Proof that FHA home loans with 5% down after major change are still cheaper 09-01-10 - 09/01/10 05:39 AM

FHA loans have been one of the main focal points in today's real estate transactions. Two main reasons for this is that it comes to the down payment and the credit scores. In the past, some loan officers were using other types of financing that were easier for them, but not suited best for the borrower. What I do hate hearing is that FHA mortgages have taken the spot of the subprime loans. This is not true at all. This statement is very misleading. Many subprime loans should have gone FHA and that is just a fact. 
But why … (5 comments)

fha home loans: The Mortgage Hype that seller concessions on Conventional loans could be the better play than on FHA loans - Facts & Numbers vs Assumptions - Part2 - 08/05/10 09:00 AM
Facts & Numbers vs Assumptions - Part 2


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: The Mortgage Hype that seller concessions on Conventional loans could be the better play than on FHA loans - Part 1 - 08/03/10 01:16 AM
Planting Seeds in the Borrower's Head - Part 1


In regards to the world of mortgages, can one be more confused now then ever before? You betcha...  As many of us know, FHA is now trying to reduce the seller concession from 6% to 3%. I wrote about it here : HUD seeks public comment on 3 issues for FHA loans & Solutions for these FHA loan changes.
Let's take this up a notch now. Just the other day, I wrote a post about some listing agents not accepting offers for FHA loans and or VA loans … (31 comments)

fha home loans: No, it's not a T-Rex, aka Tyrannosaurus Rex killing your mortgage loan. It's your 4506-T. - 07/31/10 05:32 AM

In the ever changing world of mortgages, you really need to stay on top of what is going on. So many think it's simple when pre-qualifying a borrower. But if you don't ask the right questions upfront and get very detailed, even the cleanest of deals could crash and burn.
So what is a 4506-t and what is its importance in the mortgage process?  Basically it's a form used by lenders that allows them to request a transcript copy of your tax returns from the IRS.  In the past, this form most times was used for those that … (15 comments)

fha home loans: Compensating Factors for FHA Home Loans in New Jersey - 07/29/10 05:52 PM

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)

fha home loans: FHA Loans Myth - FHA Home Loans are more expensive in New Jersey with 5% down because of mortgage insurance - 07/27/10 12:20 PM

Making a statement that FHA loans are more expensive than conventional loans because of the monthly mortgage insurance is a blind statement.  This is like saying that your house is better than your neighbors house. Just to many unknown variables to make this kind of determination.
Here is what a realtor on Trulia stated the other day....
"While an FHA loan has many benefits, the downside(aside from some hefty mortgage insurance) is meeting the guidelines.  If you can put 5% down, there is a conventional lender that can do the loan(and the Mortgage insurance is actually lower)."
Two … (7 comments)

fha home loans: My credit is not good - but my co-signers credit is excellent - Yippie, I can buy & use FHA loans - 07/22/10 05:23 PM

There will always be some sort of mortgage myth in our industry or a piece of information given by a loan officer that is misleading. What I am about to talk about is regarding FHA loans and a borrower using a co-signer to help them purchase their new home. We call this a non-occupant co-borrower type of loan.

Let's first talk about co-signers for mortgages, because this term is used loosely throughout the real estate industry. When doing a mortgage, a co-signer is much different than when buying a car. When buying a car, you … (25 comments)

fha home loans: Our Declaration of FHA Financing !!! - Issues regarding the 3% seller concession proposal - Can we fight FHA Loans with solutions?? - YES !!! - 07/17/10 06:03 AM
IMPORTANT CALL TO ACTION - Hot topic - Reduction of seller concessions on FHA loans to 3% max
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 home loans: Get out your permanent markers, HUD seeks public comment on three main issues for FHA loans - 07/15/10 03:22 PM
You can make a difference - you have 30 days to comment against FHA's proposals

With a difficult economy and possibly some new FHA mortgage changes coming in the new future, this could be time to make your voice heard. HUD made this announce back in January 20th, 2010 - FHA announces policy changes to address risk and strengthen finances - I parlayed this announcement into layman's terms. - FHA loans and some possible mortgage changes.
So now, FHA just announced that there will be a 30 day period for comments on these issues described above.  … (91 comments)

fha home loans: Mortgage Financing made to look easy - FHA loans Have NO Min Credit Score for Florida Homebuyers - Really??? - 07/13/10 04:47 PM
This makes FHA loans sound to EASY. This is extremely misleading...

I must digress... this post was just sent to me. FHA loans have no minimum credit score for Florida Homeowners -
From reading this post, the author makes it sound very easy to obtain FHA loans with less than perfect credit. The author states this -  "At the same time FHA loans to (do) not penalize Florida buyers with a higher interest rate because of having less then perfect credit."
Much of the information above and in the post is extremely misleading. I would consider this … (33 comments)

Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages  - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) Ambassador large

Jeff Belonger

The FHA Expert - FHA Loans - FHA mortgages - USDA...

Cherry Hill, NJ

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