Saturday, November 23, 2013

FHA Mortgage Home Loan Programs: Federal Housing Administration (FHA) Visionaire Business Center

The Federal Housing Administration (FHA)
What is the Federal Housing Administration?

The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories.

FHA Home Loans
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What Is an FHA Loan, and Why Would You Want One?

The FHA mortgage program was created to make home ownership accessible to more people, and is administered by the US Department of Housing and Urban Development (HUD)


FHA does not actually lend money; it reimburses FHA lenders when borrowers default on FHA home loans. This reduces the lenders' risk, which makes them more willing to loan money, and keeps borrowers' costs down. 

FHA mortgage lenders offer a variety of home loans designed to meet many needs, including:
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  • Mortgages to purchase single-family homes, condominiums and 1- to 4-unit multifamily homes (203(b) loans)

  • Mortgages for manufactured or mobile homes (with or without land)
  • Mortgages to rehabilitate or improve a home that you already own, or one that you plan to buy (203(k) mortgages)

  • Refinance mortgages, whether or not your current loan is with FHA
  • Reverse mortgages, called Home Equity Conversion Mortgages or HECM

FHA mortgages are especially well-suited to meet the needs of borrowers who need to finance more than 80 percent of their home’s purchase price or appraised value.


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FHA Home Loans

FHA Mortgages Enable a Borrower to Finance a House with only 3.5% Down
FHA mortgages have been insured by the U.S government since their inception in 1934. The agency was originally founded in an effort to ensure that Americans get access to affordable financing.

Their initial focus was to guarantee fair housing, but over the years that agency began expanding their loan programs.

Many borrowers prefer FHA home mortgages because they only require a 3.5% down-payment on purchases and allow 96.5% Loan to Value for refinance loans.

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FHA loans can make your homebuying dream a reality with competitive rates and a low down payment.
Prepare for your FHA home loan with some important steps to make sure you can afford the mortgage.



IMPORTANT STEPS FOR FHA HOME-BUYERS
Purchasing a home is one of life's major landmarks and for some, it is even a dream come true. Securing an FHA loan is the most important piece of the homebuying puzzle. If you follow some simple steps, you can make sure that the process runs smoothly.

FHA Loan for Home-owners

knowing that your mortgage loan and credit report have been approved will allow you to shop for your new home with confidence.

And when you find a home and are ready to make an offer the fact that you have already been pre-approved for your loan amount will give the selle
Take the Steps to Get Your Mortgage
Purchasing a home is one of life's major landmarks and for some, it is even a dream come true. At FHA.com we understand the magnitude of this decision and it is our goal to make your transition into home ownership unforgettable.

Regardless of whether this is your first or your fifth home purchase we will do our best to ensure that getting you into your new home is a pleasant and memorable experience.



FIRST STEP

When you begin to seriously consider purchasing a new home it is important that you follow some simple steps to make sure that the process runs smoothly.
The first thing you should do is an analysis of your debt to income ratio. This important step will let you know what type of home you can afford based on your monthly income and expenses.

The next important step in purchasing a new home is to get pre-approved for a home loan.

The peace of mind that comes with knowing that your mortgage loan and credit report have been approved will allow you to shop for your new home with confidence.

 And when you find a home and are ready to make an offer the fact that you have already been pre-approved for your loan amount will give the seller confidence in you as a buyer..

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How to obtain an FHA loan
FHA does not make loans. Rather, it insures loans made by private lenders. The first step in obtaining an FHA loan is to contact several lenders and/or Mortgage Brokers s and ask them if they are FHA-Approved by the United States Department of Housing and Urban Development to originate FHA loans. As each lender sets its own rates and terms.


The FHA makes provisions for home buyers who have recovered from "economic events".
Via the Back To Work - Extenuating Circumstances program, the FHA reduces its standard, mandatory three-year application waiting period for buyers with a history of foreclosure, short sale or deed-in-lieu; and two-year application waiting period after a Chapter 7 or Chapter 13 bankruptcy.


 For buyers who can show that the economic event was preceded by at least a twenty percent household income reduction which lasted for six months or more; and who can show a satisfactory credit history for the most recent 12 months, the FHA will allow an application, and will agree to insure the home loan.
The Back To Work program lasts through September 30, 2016



FHA's mortgage insurance programs help low- and moderate-income families become homeowners by lowering some of the costs of their mortgage loans.

FHA mortgage insurance also encourages lenders to make loans to otherwise credit-worthy borrowers and projects that might not be able to meet conventional underwriting requirements, protecting the lender against loan default on mortgages for properties that meet certain minimum requirements, including manufactured homes, single and multifamily properties, and some health-related facilities.

The basic FHA mortgage insurance program is Mortgage Insurance for One-to-Four-Family Homes (Section 203(b)).

FHA allows first time homebuyers to put down as little as 3.5% and receive up to 6% towards closing costs.

However, few lenders will allow a seller to contribute more than 3% toward allowable closing costs.

If little or no credit exists for the applicants, the FHA will allow a qualified non-occupant co-borrower to co-sign for the loan without requiring that person to reside in the home with the first time homebuyer.

The co-signer does not have to be a blood relative. This is called a Non-Owner-Occupied Co-Borrower.


FHA administers a number of programs, based on Section 203



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What is FHA Mortgage Insurance?
FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans.
The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner's default.
Loans must meet certain requirements established by FHA to qualify for insurance. 


Why does FHA Mortgage Insurance exist?
Unlike conventional loans that adhere to strict underwriting guidelines, FHA-insured loans require very little cash investment to close a loan.
There is more flexibility in calculating household income and payment ratios.
The cost of the mortgage insurance is passed along to the homeowner and typically is included in the monthly payment. In most cases, the insurance cost to the homeowner will drop off after five years or when the remaining balance on the loan is 78 percent of the value of the property -whichever is longer.



How is FHA funded?
FHA is the only government agency that operates entirely from its self-generated income and costs the taxpayers nothing.

The proceeds from the mortgage insurance paid by the homeowners are captured in an account that is used to operate the program entirely.

FHA provides a huge economic stimulation to the country in the form of home and community development, which trickles down to local communities in the form of jobs, building suppliers, tax bases, schools, and other forms of revenue.
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 ''REAL ESTATE INVESTMENT: HOW AND WHERE TO FIND MONEY TO BUY A PROPERTY}
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A VERY BRIEF HISTORY OF THE FHA...
Congress created the Federal Housing Administration (FHA) in 1934. The FHA became a part of the Department of Housing and Urban Development's (HUD) Office of Housing in 1965.

When the FHA was created, the housing industry was flat on its back:

  • Two million construction workers had lost their jobs.
  • Terms were difficult to meet for homebuyers seeking mortgages.
  • Mortgage loan terms were limited to 50 percent of the property's market value, with a repayment schedule spread over three to five years and ending with a balloon payment.

  • America was primarily a nation of renters. Only four in 10 households owned homes.

During the 1940s, FHA programs helped finance military housing and homes for returning veterans and their families after the war.

In the 1950s, 1960s and 1970s, the FHA helped to spark the production of millions of units of privately-owned apartments for elderly, handicapped and lower income Americans.

When soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s, FHA's emergency financing kept cash-strapped properties afloat.

The FHA moved in to steady falling home prices and made it possible for potential homebuyers to get the financing they needed when recession prompted private mortgage insurers to pull out of oil producing states in the 1980s.

The FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages since 1934. 
'' We at knowledge financial group – knowledgefinancialgroup.com  // we empower
consumers to take more control over their financial lives.

At Knowledge Financial Group, We promote financial education to help others take
informed and reasonable decision about their retirement.

At knowledge Financial Group - knowledgefinancialgroup.com,
we advocate financial literacy..

At Knowledge Financial Group - knowledgefinancialgroup.com, You Can Learn What You Want, When You Want
It, Anytime You want. = Facebook.com/knowledgefinancial  

Learn Anything You Desire At Knowledge Financial Group -
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The Right Information When You Need It. =
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and use them often. / facebook.com/knowledgefinancialgroup  

Knowledge Financial Group - Your personal financial well-being @
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FHA currently has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio. 
Important subsidy programs such as the  Civil Rights Act of 1968
were established by the United States Department of Housing and Urban Development
In 1974 the Housing and Community Development Act of 1974was passed.
Its provisions significantly altered federal involvement in a wide range of housing and community development activities.


 The new law made a variety of changes in FHA activities, although it did not involve (as had been proposed) a complete rewriting and consolidation of the National Housing Act.


Further changes occurred in the 1977 Housing and Community Development Act, which raised ceilings on single-family loan amounts for savings and loan association lending, federal agency purchases, FHA insurance, and security for Federal Home Loan Bank advances.

In 1980 the Housing and Community Development Act was passed; it permitted negotiated interest rates on certain FHA loans and created a new FHA rental subsidy program for middle-income families.


On March 6, 2008, the "FHA Forward" program was initiated. This is the part of the stimulus package that President George W. Bush had in place to raise the loan limits for FHA.

On April 1, 2012, the FHA enacted a new rule that requires their customers to settle with medical creditors in order to get a mortgage loan.

This controversial change was rescinded and postponed until July 2012 but was later cancelled altogether pending clarification and additional guidance.


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