For immediate assistance call my Cell: 954-729-8536
Recent increases in subprime home foreclosures have seen many turning to FHA Secured home loans. The Federal Housing Administration was created in 1934 as an effort to bolster homes sales during the Depression. By financially guaranteeing loans the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.
We strive on helping people and have built our franchise of success on doing what is right for the people. We will guarantee the utmost professionalism and satisfaction to all our clients. As a National Lender we have the upper hand when it comes to low rates and low closing cost due to the volume of loans we close Nationwide. We also work with a National Title Company and have low closing cost on title work as well. Dedicated to help you with your financial situation.
Mortgage Integrity is an Approved Lender with the Federal Housing Administration. We are currenlty licensed in 38 states helping people across America. Either we are helping people get out of their high adjustable mortgage and into a 30 year fixed FHA loan or helping them purchase their dream home.
Advantages to FHA Secure Loans:
· Bankruptcy not an automatic disqualification. In an effort to afford more people the opportunity to use this type of loan bankruptcy is not a disqualifier. The bankruptcy must be two years old and you must have good credit since then.
· Less stringent credit requirements. Instead of looking solely at your credit report the Federal Housing Administration looks at what they call the "total scorecard". The total scorecard allows the FHA to better assess and manage the risk of a given loan.
· Lower interest rates. Normal subprime lenders have employed much higher interest rates in order to compensate for the increased risk of the loan. Because FHA loans are guaranteed, there is substantially less risk for the lender and therefore interest rates are lower.
· Down payment is required. An FHA Secured Loan might be just what you need. Your down payment can be as low as 3% of the purchase price.
Feds cut down-payment assistance programs
· For a decade, credit-challenged homebuyers have used a regulatory loophole that lets them get Federal Housing Administration mortgages without putting their own money down, while at the same time avoiding costly subprime loans. About 7,000 buyers per month were exploiting the loophole, and now the feds are squeezing it shut.
· The new policy means that prospective homebuyers with marginal credit will have to act quickly if they want to buy houses without putting any money down. Otherwise, they will have to save for down payments or wait for the FHA to roll out its own zero-down program.
Common Questions from First-time Homebuyers
1. Why should I buy, instead of rent?
o Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.
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2. What are "HUD homes," and are they a good deal?
o Answer: HUD homes can be a very good deal. When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible.
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3. Can I become a homebuyer even if I have I've had bad credit, and don't have much for a down-payment?
o Answer: You may be a good candidate for one of the federal mortgage programs. Start by contacting use here at Mortgage Integrity we are an Approved Lender with FHA and licensed in 38 states. Even with low credit scores we may still be able to get you qualified for an FHA Loan.
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4. Are there special homeownership grants or programs for single parents?
o Answer: There is help available. Start by becoming familiar with the homebuying process and pick a good real estate broker. Although as a single parent, you won't have the benefit of two incomes on which to qualify for a loan, consider getting pre-qualified, so that when you find a house you like in your price range you won't have the delay of trying to get qualified.
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5. Should I use a real estate broker? How do I find one?
o Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more.
By the way, if you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. To find a broker who sells HUD homes, check your local yellow pages or the classified section of your local newspaper.
6. How much money will I have to come up with to buy a home?
o Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down.
Closing costs - which you will pay at settlement - average 4-6% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.
FHA Loan seller can pay up to 6 % closing cost and in this market most sellers are willing to do that just to get a sale.
7. How do I know if I can get a loan?
Answer: You need to first sit down with a Mortgage Professional that understand the programs well and can give you accurate information about that program. You will need to go over your financial situation including a number of things to get pre-qualified up to loan amount you can qualify for and can afford.
8. In addition to the mortgage payment, what other costs do I need to consider?
o Answer: Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.
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9. So what will my mortgage cover?
o Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal.
Act Now and Call Today before it’s too late!!!!
1-888-660-MORTGAGE(6678)
FHA to Provide Additional Mortgage Assistance to Struggling Homeowners The President has signed into law legislation that will allow HUD's Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The Hope for Homeowners program will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford. The program will be implemented on October 1, 2008. Homeowners May Already Be Eligible For Assistance Families should not wait to seek mortgage relief. Right now, homeowners can determine if they are already eligible for mortgage assistance through FHASecure, FHA's existing refinancing program. They can obtain information through any of the following options: 1. Toll Free: 1-888-660-6678 2. Immediate attention: 954-729-8536 3. Email: mike@igotyourmortgage.com
Hope for Homeowners maintains FHA's long-standing requirement that new loans be based on a family's long-term ability to repay the mortgage. FHA only allows owner-occupants to be eligible for FHA-insured mortgages. Borrowers must also meet the following eligibility criteria: Features of FHA-insured loans under the new program include: HUD, Treasury, FDIC and the Federal Reserve will form the Congressionally-mandated Board of Directors and work together to establish additional program standards. Funding FHA will insure up to $300 billion in new loans. Borrowers will pay an upfront premium of 3 percent of the original mortgage amount and an annual premium of 1.5 percent of the outstanding mortgage amount. Any additional costs incurred by FHA will be reimbursed by Fannie Mae and Freddie Mac. Program Timeline The program will last from October 1, 2008 through September 30, 2011. Since September 2007, FHASecure has helped more than 290,000 families obtain safer, more affordable mortgages. FHASecure is on pace to help 500,000 families by the end of the year.
History of the FHA
The FHA, or the Federal Housing Administration, was established by the government to improve housing conditions for Americans. The government established the FHA mortgage program in 1934 to improve existing housing standards and conditions. Prior to 1934, a down payment was typically 50 percent of the home’s price and payments were stretched out between only 1-5 years. You can learn more about FHA loans from the Department of Housing and Urban Development.
How a FHA Mortgage Works
The FHA does not lend the money; it simply insures that the total mortgage will be paid to the lender if the buyer defaults. It is always the decision of the private lender (a bank, credit union, or savings and loan) to decide whether or not they will lend the money.
The FHA mortgage program tends to be more forgiving than conventional mortgages in terms of past credit history. A bankruptcy discharged as little as two years ago may not hinder a homebuyer from qualifying for the FHA program. Even medical bills and collections do not have to be paid.
Typically, FHA mortgages do not require more than a 3-5 percent down payment. Unlike traditional loans, this money may also be a gift to the homebuyer and does not need to be secured as the homebuyer's own money. Often, there are "points" associated with FHA mortgages that are usually worth about 1 percent of the total mortgage value. These points are paid to lenders to help lower the interest rate of the mortgage.
Borrowers will also have to pay PMI (private mortgage insurance) on the mortgage. PMI is used to ensure that the total amount of the mortgage will be paid to the lender if the buyer defaults. Usually, a PMI will not?? be put into effect until 20 percent of the mortgage has been paid.
FHA mortgages have no mortgage value cap. In other words, you can take out a FHA mortgage for $150,000 - $300,000 without any restrictions, other than credit applicability.
Closing costs on FHA (or conventional loans) are usually between 2-3 percent of the total mortgage amount and are the responsibility of the buyer. However, FHA closing costs can be financed into the total amount of the mortgage and paid off accordingly.
Learn more about the different types of loans.
Qualifying For a FHA Mortgage
To be approved for a FHA mortgage, you must have a satisfactory credit history, which shows your commitment to paying off debts in a timely manner. Also, you must be able to prove that the total monthly mortgage payment will be less than 29 percent of your monthly income. The number arrived at after multiplying your total monthly income by 29 percent is referred to as PITI, or principle, interest, property taxes, and insurance. The PITI amount is the highest amount that your monthly mortgage payments may be. Furthermore, long-term debt, such as car loans and credit card balances, in addition to the monthly PITI amount cannot be more than 41 percent of your total monthly income. More information about loan qualifications is available from the FHA.
While these qualifications may seem a little stringent, they are actually more lenient than traditional mortgage qualifications. The decreased down payment makes this type of mortgage even more desirable for many people.
The House Committee on Financial Services issued a Press Release yesterday, December 14, 2007 on the passage of the new FHA Modernization Bill (S. 2338) in the Senate. |
“I welcome the Senate’s passage of their FHA legislation. We are in agreement that this is an important action in dealing with our subprime challenges, and that we should act quickly so that the FHA can be a resource for people who can refinance their loans. I look forward to working with the Senate to preserve important elements of the House bill, for example, ensuring that lower income people do not pay higher premiums than other borrowers, especially for refinance loans for subprime borrowers; sufficiently increasing FHA loan limits to make more Americans eligible for FHA loans; and preventing HUD from imposing unnecessary fee hikes." Rep. Barney Frank, chairman of the House Committee on Financial Services FHA Secure Refinancing In addition to these specifications; FHASecure refinancing is available for single-family or multi-family homes and manufactured homes. A new FHA premium pricing plan goes into effect on the same date the expanded FHASecure refinancing program begins, July 14 2008. Borrowers should know this "second chance" refinancing does not indicate relaxed requirements for credit. Borrowers applying for FHASecure are subject to the same requirements as any other applicant for an FHA loan. Delinquency issues for mortgage payments aside, loan officers still require proof you are a good credit risk. Borrowers should; 1-888-660-MORTGAGE(6678) Your FHA Loan Checklist Before you start the FHA loan process, be prepared to provide some information to your loan officer. Have it ready now to save time later.
Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals. |
Copyright . Michael Minichiello, Minichiello Mortgages, Inc.. All rights reserved.
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