Terry Edwards asked:




Are you considering an FHA reverse mortgage loan on your home? While there are many advantages to these types of loans, there are also some things you must know before moving forward with this loan.

FHA stands for the Federal Housing Administration, which is a branch within the United States Department of Housing and Urban Development (HUD). In order to qualify for this mortgage program, their are certain requirements the FHA has set. One of those is that the homeowner must be at least 62 years of age, or older. The FHA also provides insurance which makes the loan program less expensive for the borrowers then similar reverse mortgage programs offered by private lenders and smaller institutions.

The only other requirement the FHA ask of you, other than being 62 years of age or older, is that you have equity in your home and little debt or mortgage against it. There is no other restrictions, required credit ratings, level of income or any other assets needed. If you are approved for an FHA reverse mortgage loan you can receive your loan in one of three options. You can take it all in one lump payment, in monthly installments for a fixed term, or indefinite term as a line of credit against the loan.

An FHA loan is paid off either when the homeowner passes away, moves out of the home, or sells the property. Then, HUD collects the proceeds from the sales. If those proceeds exceed the loan, then the difference is either awarded to the homeowner, if he is alive, or to the homeowner’s heirs. If the proceeds do not cover the amount of the loan, then HUD covers the difference.

The main benefit of these loans are that the homeowner is not required to make monthly payments against the loan. That is why they call it a reverse mortgage — because instead of you having to make payments each month, the leading institution is making payments to you — whether monthly, in one lump sum, or when you use it as a line of credit.

The way the amount of the loan is calculated has to do with the value of your home, the interest rates, the location of your home, as well as your age. These are some of major aspects of an FHA reverse mortgage to keep in mind.

Bradley

Milt Wapner asked:




If you are looking to buy a mobile home and you have a limited amount of money to put down towards your purchase, you may want to consider a FHA mobile home loan. FHA stands for Federal Housing Administration and it’s responsible for Housing and Urban Development (also known as HUD). How does this help you? FHA insures your mortgage loan so that lenders will give you a good deal, even though you do not have a sizable down payment.

Under the FHA mobile home loan umbrella there are two types of programs. One is for people who already own land to put the mobile home on and the other is for people that choose to locate their mobile home in an established mobile home park.

When lenders consider applicants for FHA-backed mobile home loans, they must follow certain eligibility requirements. These requirements include considering the applicant’s credit rating, the income and the ability to repay the debt.

A Title 1 loan can be used to buy a mobile home, a lot on which to place a mobile home, or both. The home must be the primary residence of the person or persons obtaining the loan. There are maximum loan amounts as well as loan terms that must be adhered to, as follows. For a mobile home only, the maximum is $48,600. For a piece of land or lot, the maximum is $16,200, while the maximum for a combination of the two is $64,800. Maximum loan terms for FHA mobile home loans are: 20 years for a mobile home or a single section mobile home and lot, 15 years for a lot, and 25 years for a multi-section mobile home and lot.

Most of the time when you buy a mobile home, you will also have the opportunity to finance your purchase at the mobile home dealer in which you make your purchase. Sometimes these dealers will not offer FHA-backed loans. If they do not, ask them for a referral to a lender who will use FHA. Or you could consider finding a lender online.

To qualify for a FHA-backed mobile or manufactured home mortgage loan, you must meet some minimum criteria. You must be able to provider five percent down payment (although there are additional programs to help if you do not have this amount), proof of income and a suitable place to locate your mobile home (this may be on your own land or in a mobile home park).

Francisco

Emanuele Allenti asked:


The US Federal Housing Administration offers loans that enable individuals to acquire a home with a down payment as low as 3% – a percentage comparatively lower than most limits for regular loans. Thus, the loan program under the FHA – a division of the Department of Housing and Urban Development – is ideal for first-timers and those with limited funding. It should be noted that the FHA insures your loan and does not offer home loans. In case of a default, an insurance fund will cover payment for the lending institution. To do a FHA refinance home loan with bad credit, this aspect can be a real challenge for most people.

An FHA loan applicant should be backed up by a positive credit history, a reasonable income level and adequate cash down payment to close the loan. To qualify under the program, a borrower should also settle closing costs worth about 2%-3% of the house price. This could also include fees for attorneys, title search and insurance, FHA insurance funding, and loan origination.

The borrower’s monthly housing cost must not surpass 29% of his gross monthly income to qualify for the loan. Property taxes, mortgage principal and interest and insurance are computed to determine total housing cost. This total housing cost and long-term debt make up total monthly cost, which must not exceed 41% of gross monthly income. Credit card balances, auto loans and other borrowings are included under long-term debt.

These percentages reflect greater leniency on the part of the FHA, as the ceiling for total housing cost under conventional loans is at 26%-28%, while the cap for total monthly cost is at 33%-36%.

Can You Really Get A FHA Refinance Home Loan With Bad Credit?

The agency has been allowing refinancing schemes on insured loans since the start of the 1980s. A “streamlined” FHA refinance covers the lender’s underwriting and documentation requirements, and does not imply the absence of costs. Key conditions of a refinance include FHA insurance of the target mortgage, updated payments, and a reduction in the payments made by the borrower due to the refinance. Borrowers must note that a FHA refinance home loan with bad credit also bars any cash take-out on the home loan.

For lending institutions, one refinancing approach they can follow is the “no cost” plan, which does not entail out-of-pocket costs for the borrower but will involve higher loan interest rates compared to a cash settlement of closing costs. The premium from the higher charge will he used by the lender to cover the transaction’s closing costs. With a FHA home loan bad credit lender, this can be the factor to approve a loan. With a FHA refinance home loan bad credit option, the lender can also choose to integrate the closing costs with the new mortgage amount, assuming appraisal of a target equity level for the asset. The alternative to this scheme is to exclude appraisal, but this means the original mortgage amount will remain higher than the new mortgage. Insured mortgage programs under the FHA for single families include a plan covering disaster victims; the energy-efficient mortgage program; reverse or home equity conversion mortgage; title I home improvements; rehabilitation mortgage; and a program covering Indian reservations and similar restricted property.

Is There FHA Refinance Home Loan Bad Credit Options For Disaster Victims?

The Section 203(h) program for disaster victims enables the FHA to cover loans by applicants whose homes have been destroyed by natural disasters and are either rebuilding their home or chosen to acquire a new house. The reverse mortgage or HECM, which targets the country’s senior citizens, allows the cash conversion of part of the individual’s home equity. The federally-insured program is often sought by older Americans to augment social security, cover home improvements and finance medical emergencies. When you are considering a FHA refinance home loan bad credit lender, be sure to have an experienced accountant and attorney explain the details before you sign your refinance documents.



EMANUEL