What is the best fit when comparing FHA loans and conventional loans? Based on my opinion over the years, the loan officer should focus on your credit scores and down payment that you can afford, when comparing mortgage programs. But keep in mind, the main focus should be what you can afford regarding your monthly mortgage payment. Overall, one needs to understand how mortgage insurance works and the guidelines for mortgage insurance in order to put you into the best mortgage program for your situation. FHA loans in many areas make up about 35 percent to 50 percent of … (7 comments)
Do you feel that today's mortgage gudelines are hurting realtors from selling more homes? Do you think it could be the buyer not being in a good position?
People, I get the fact that lending guidelines have become more strict over the last 12 months. I think I have seen it all in the 18 + years that I have been in the mortgage business. But in my honest opinion, I think the biggest hurdle has been the credit score requirements. But is it a challenge that can be over come in a short time period? Read more … (38 comments)
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 loans: USDA loans vs FHA loans – A true comparison – Part 2 of 2
- 03/11/11 01:55 AM
The mortgage industry keeps changing and just recently there have been new changes regarding both FHA loans and USDA loans. USDA loans were great because they had no monthly mortgage insurance, but that will be changing soon. The comparisons that I will be showing will be using the new changes for both FHA loans and USDA loans, even though these changes haven’t taken place as of yet. Here are those new changes and when they take place. FHA loans will be increasing their monthly mortgage insurance as of April 18th, 2011 USDA loans adds monthly mortgage insurance starting October 1st, … (2 comments)
Shopping for mortgages can be frustrating. Especially when comparing mortgages that don’t fall into the same box. Example : Comparing FHA loans to USDA loans are not in the same box per se. Adjustable rate mortgages would be considered in the same box. And with so many questions unanswered, especially if not asked, how does one know.
Lately I have been reading on how people sell specific mortgages, that try to compare mortgages, yet they leave out important specifics. Or attack in their comments saying that lenders make more money on a FHA loan than a conventional loan. In my opinion, there are two important issues that aren’t mentioned when reading … (6 comments)
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)
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)
I had written a blog post a few weeks ago, Conventional Pricing Adjustments coming in April, in which I talked about how FHA had raised it's monthly mortgage insurance premiums back in October and how Fannie Mae will be adding onto their pricing adjustments in April of 2011. A realtor had stated this - "We saw the writing on the wall a while ago that this was bound to happen. If any time for a buyer to get off the fence and purchase would be now." I have been reading these kinds of statements for the last 12 to 18 months. When … (5 comments)
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)
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
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 loans: Mortgage & Real Estate RED FLAGS that consumers need to be aware of !!!
- 12/06/10 02:42 AM
Purchasing a home can sometimes be confusing and stressful, and some people in the mortgage/real estate industry will take advantage of consumers. Yes, sometimes there are problems and or issues that come up. But sometimes these problems were known ahead of time, yet never brought to anyones attention. Better yet, some of these problems should have been talked about prior to the mortgage application when the loan officer did their pre-screening of that borrower. Overall, it comes down to honesty, integrity, knowledge, very good service, and just being upfront when problems arise. First time homebuyers that have never experienced buying a home can … (28 comments)
fha loans: The FHA Expert is back - Mortgage Knowledge as its Best !!!
- 11/20/10 02:12 PM
For those that remember my main site, The FHA Expert, it was hijacked at one point. Long story and it was a sad day in my life. Not only for the money that was lost in having the blog site built, the potential dollars from new clients, but what I had written on that particular site. Not only that, but how it was slowly moving up in the ranks of being noticed and searched. Well, after trying to get my old site back up and running, I finally decided to have a new one built. I reached out to Jeremy … (8 comments)
Energy Efficient Mortgages aren't talked about much, which some might think they aren’t as good as a regular FHA loan. In my opinion, it’s because many loan officers and or lenders don’t know much about them. Yet there is no huge difference between the two. And one could easily associate an energy efficient mortgage with a FHA 203-k loan. But that would be a very bad assumption, because there isn’t much more to an energy efficient mortgage, known as an EEM loan, as opposed to the paperwork and understanding that goes into a 203-k loan. Do you have high energy bills? Unless you … (14 comments)
When it comes to FHA co-signers for FHA loans, it is the same when talking about non-occupant co-borrowers. The term co-signers sometimes gets confusing when talking about mortgages. When co-signing for a mortgage, that person will still be on the mortgage and it will still count towards their overall credit. The co-signer can only be taken off if the primary borrower refinances the loan, even with a FHA Streamline. In this post, I will be talking about co-signers for FHA loans, because this is different when using a co-signer for a conventional loan. The main reason is because the … (8 comments)
We keep hearing reports that Mortgage interest rates are still be very low, ranging from 4.00% to 4.50% for a 30 year fixed rate. This is all dependent on your credit scores, your down payment (usually just on a conventional mortgage), the size of your loan amount, and the type of mortgage program. And if you want 3.875%, you just have to pay some points. I am sure many of us have been extremely use to the low rates in the last 6 months, to where we have reached record lows since interest rates were … (2 comments)
FHA loans are not dead and shouldn't be going any where soon. The other day a loan officer sent me an e-mail asking me if FHA loans are going away anytime soon. I asked, where did you hear this nonsense. The loan officer replied, “from 3 realtors in my area.” Sounds like water cooler talk to me. My Common sense – If FHA loans disappear, so will our economy, right off the map. Here is why..
Positives with FHA loans - FHA still allows you to put 3.5 percent down as your down payment, even with a credit … (35 comments)
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 loans: Renting vs Buying -- Knowing your loan options & what it would take to buy -- Part 3 of 3
- 10/05/10 02:13 PM
So you have been weighing your options in regards to either renting or buying. It looks like you after thoughtful consideration and planning, that you want to buy a new home. You are now excited, just thinking about this daily. You finally will own your own home and be a proud homeowner. You now need to speak to a loan officer, if you haven't already done so, to help you with the rest of the process and to qualify you. Word of Advice : Don't start to look at any homes until you have been fully qualified and know what … (9 comments)
Figuring out the differences between renting vs buying a home can be stressful. I gave you some pros and cons of buying a home in Part 1. Things seem good, because you are learning how to break this down. That's great...... Tip : Keep your focus and don't be talking to too many people outside of the loan officer that you are speaking with. That's if you have picked one by now. And by this, I mean don't ask in depth questions … (8 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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