February 16, 2011

FHA Changes on the Horizon….

Posted in Uncategorized tagged , , , , , , , , at 8:07 pm by winterbaserva

FHA Changes on the Horizon….

FHA Commissioner David H. Stevens today announced a new premium structure for FHA-insured mortgage loans:

  • The annual mortgage insurance premiums will increase (MIP) by a quarter of a percentage point (.25) on all 30- and 15-year loans. 


  •  The upfront MIP will remain unchanged at 1.0 percent. 


  •  Fiscal year 2012 budget will impact new loans insured by FHA on or after April 18, 2011.


  •  FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes  and lower down payments.


  • FHA will continue providing affordable homeownership options to underserved American families and first-time homebuyers while helping to stabilize the housing market during these tough times. 


  • On average, new FHA borrowers will pay approximately $30 more per month. 

October 7, 2010

5 Things You Need to Know About FHA Loans

Posted in Uncategorized tagged , , , , , , , , , , , , at 3:13 am by winterbaserva

The Federal Housing Authority loan is a loan which let’s borrowers purchase a home with as little as 3.5% down. This makes it the ONLY loan that doesn’t require 10% down. Although, Atlanta is starting to see a few 5% conventional loans come back around. However, those are fewer and farer in-between.

 •1)      Borrowers Can Qualify With Any Income:

The FHA loan was known in the past as the low that most low-income borrows could obtain, however, you might be surprised to know that there is actually no cap on what someone who obtains an FHA loan earns. The main factor taken into account on FHA loans is the borrower’s ability to make the payments.

 •2)      Chances are Good You Can GET ONE:

Back in the day of “no money” down and “stated income” it was very unlikely for a borrower to use a government-insured loan. Now with the recent microscope on every loan being given, FHA is a easy loan to obtain and only requires a minimum of a 3.5% down payment on the purchase price, although borrowers can put down any amount above that.

 •3)      Appraisals Will Be TOUGH:

The home will definitely need to have a “clean bill of health” in order to qualify for FHA financing. Expect a TOUGH appraisal and all major items like dishwashers, stove, etc. to be in working and GOOD order. Minor problems like missing handrails, will pass, but if you have a leaky roof, mold damage, broken window or non-function appliances, you’ll need to get the seller to make the repairs prior to your appraisal. On foreclosures, this is going to be tough.

 •4)      These Loans Have More Costs Than Meets The Eye:

Rates on FHA are comparable to those on conventional loans, but there are hefty fees which up the cost. Expect a 2.25% premium to be added to your loan amount or put down at closing. If you’re buying, its good to ask the seller to help pick up some of the insurance and closing costs to offset this expense.

 •5)      FHA Loans Have Become Easier to Obtain:

Once thought of as the worlds longest closing and mounds of paper, with a more difficult closing, FHA has become an easy loan to obtain. Thanks to new underwriting software and loose requirements, FHA mortgages can close as quickly as conventional ones.

 Regardless of whether you obtain a conventional, jumbo or FHA loan, getting your financial package in order is the FIRST step to getting a GOOD DEAL in Atlanta.

 If you would like to find out more information on the best loan for you or a way to get private money lending, feel free to call me at 678-463-3173!