FHA Loans and a Government Shutdown

FHA Loans & Government Shut DownWill the Government Shutdown Affect Your FHA Loan?

If you are currently in the process of an FHA loan to purchase or refinance, then probably the last thing on your mind is how a government shutdown will affect it.  Well, if a government shutdown is to happen it could possibly put the brakes on your 203k or Standard FHA home loan. So how concerned should you be and how could this affect your FHA financing?

Your FHA Loan could potentially be delayed in the following areas:

1) FHA Case Number – which is requested and assigned at the start of your FHA loan

2) FHA endorsement – which is required to close your FHA loan

Another government agency that could slow down FHA & Conventional loans would be the IRS.  Because it’s standard practice that lenders verify tax transcripts which are provided by the IRS.  Not to mention if a tax refund is needed to complete the transaction.

Plus borrowers who work for the government and are applying for a home loan may find it a challenge providing a current pay stub or verifying employment during this time.

Now these are all possibilities, but in any case if there are issues with some of these services it will only be temporary. So take it all in stride

By 203K Mortgage Lender, | Comments

FHA Gift / FHA Gift Letter

 

FHA Homebuyers,  If you are considering receiving a gift for the down payment then there are some FHA gift guidelines and requirements you should be aware of which can help make your loan process go easier and more pleasant.  Plus your loan officer and lender will be grateful.

Gift funds are in your account already now what?

You will need to get a copy of the withdrawal document showing that the withdrawal was from the donor’s account along with your deposit slip and bank statement showing the deposit.

 

What if the gift funds are to be provided at closing and are in the form of a certified check from the donor’s account?

Then a bank statement showing the withdrawal from the donor’s account and copy of the certified check would be needed.

 

What if the gift funds are to be provided at closing and are in the form of a cashier’s check, money order, official check, or other type of bank check?

Then have the donor provide a withdrawal document or canceled check for the amount of the gift, showing that the funds came from the donor’s personal account.

… continue reading FHA Gift / FHA Gift Letter

By 203K Mortgage Lender, | Comments (1)

FHA Loan Update!

Attention Homebuyers, Homeowners and Real Estate Agents !!

Effective April 18th 2011, the annual Mortgage Insurance Premium (MIP) for FHA loans which also includes the FHA 203k, will be increased by a quarter percent (.25 %).  This means FHA 203k loans as well as regular FHA loans will cost more per month.

So, what do you need to do.

Well, if you’re planning to purchase or refinance a property using the FHA 203k loan then you must take action before the deadline of April 18th 2011. If not, any FHA purchase or refinance after that date will be subject to the increase.  Find out what steps you need to take by contacting your 203k specialist as soon as possible.  Remember this increase effects all FHA loans not only the 203k, so the FHA specialist for your state can help.

Now if you miss the April 18th deadline there’s no need to panic. FHA loans even with the (MIP) increase are still one of the best deals in town when it comes to financing a 1-4 unit property. The FHA advantage of  low down payment and low equity requirement will just come at a higher cost.

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FHA 203k Loan Guidelines and Requirements

FHA 203k loan requirements and guidelines for qualifying: What buyers and homeowners should know before applying.

FHA 203K Guidelines and Requirements

The FHA 203k loan for renovation has the same qualifying requirements as a standard FHA 203b loan which has the most flexible guidelines with minimal down payment than any other type of loan at this time.  The difference between the two is that the FHA 203K will allow for the repairs, rehab or remodeling of your home to be included into the new loan while the FHA 203B won’t.

So, what are those qualifying guidelines:

Credit and Credit Scores:

Although lower credit scores are acceptable with FHA loans most lenders will require a minimum credit score of 640.  Depending on the lender the minimum credit score can vary and exceptions could be possible.

… continue reading FHA 203k Loan Guidelines and Requirements

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203K Mortgage Lender is Now on Facebook!

Click to see 203K Mortgage Lender on FacebookYou can now find 203K Mortgage Lender on Facebook!

Check out our new custom Facebook page here:

http://www.facebook.com/fha203kloans

We personally think it’s awesome!  But stop by and tell us what you think.

Click the “Like Button like-203k-mortgage-lender if you like what you see and/or if you have found the resources at the 203K Mortgage Lender website helpful and useful in your quest for the FHA 203K Renovation Loan.

If you have any suggestions in regards to our Facebook page or any topics you would like to see discussed on the page or at the 203K Mortgage Lender website feel free to leave your comment.

See you there 8-)

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FHA 203K Closing Costs

FHA 203k Closing Cost for Renovation What Homebuyers and Homeowners Should Know

Like all other real estate loans, the FHA 203K has the same typical closing costs such as Title, Lender, Attorney, Escrow and Recording Fees to name a few, but unlike the others there are also additional calculations involved that you’ll need to consider when financing a 203K Loan.

The first thing you’ll need to do when figuring out 203K closing costs is to list and estimate the cost of all the repairs & rehab that you are planning for the property. This is essential because the 203k closing costs will be calculated based on this amount.

The following is a list and explanation of costs involved when financing a 203K Loan … continue reading FHA 203K Closing Costs

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FHA 203k Loan Limits In Your Area

FHA 203k loan limits vary from county to county throughout the different states for 1 to 4 unit properties and are the same for both FHA 203K  and regular FHA purchase or refinance loans.

To find out what those limits are in your area try this free tool to look up the maximum FHA loan limits by entering your zip code.

You can also search & view FHA mortgage limits by state or county at the HUD website using the link below.

https://entp.hud.gov/idapp/html/hicostlook.cfm

By 203K Mortgage Lender, | Comments (2)

FHA 203K Renovation Financing: An Opportunity For Everyone

We have all seen properties that aren’t in the greatest of shape, but there is a way to sell prospects on potential. With renovation financing, you can show your buyers how to turn a property they’re thinking of buying – or the one they already own – into the home they have always wanted.

All types of homebuyers can enjoy the benefits of renovation financing programs. Any qualified customer who plans to purchase or refinance a primary residence, vacation home or an investment property to make renovations is eligible to apply. Qualified buyers can choose a fixed or adjustable-rate loan that is based on the after-improved value of the property. The loan covers all the costs of minor and major repairs/additions/renovations, as well as the purchase price or any existing liens, minus the required borrower investment. … continue reading FHA 203K Renovation Financing: An Opportunity For Everyone

By rob-weber, | Comments (2)

New! 203K Mortgage Lender Directory

Find a 203K Lender in your area

Have you been looking for a 203K Lender in your area?

203K Mortgage Lender has just launched our National Directory of 203K Lenders!
So if you have been looking for a 203K lender go ahead and check it out.

By 203K Mortgage Lender, | Comments

Rehab Loan Options for Homeowners

Are you a homeowner looking for a rehab loan to improve your home? Are you thinking of adding an extra room, upgrading your kitchen or bathroom? Or maybe you just need to tend to a few upgrades or make some much needed repairs to your older home. Do you have little equity due to the market conditions or because you just recently purchased? If you answered YES to any of the above then you might want to consider financing your rehab project with the FHA 203k loan.
The FHA 203k rehab loan will help you finance your rehab project from minor repair work to turning your current residence into the home you’ve always dreamed about.

FHA 203K Rehab Loan vs. Conventional Cash Out & Home Equity Loans?
Most rehab loans are usually designed for investors. These loans have much higher interest rates and shorter terms. Standard Conventional (cash out) loans and Home Equity Loans are limited to the amount you can borrow and allow homeowners only to borrow up to 75% of the property value. Which these days, with values dropping homeowners may find themselves short in equity.

In comparison, the FHA 203k rehab loan is designed for a higher loan to value and can even exceed the property’s future value which means very little equity is needed. Along with that the 203k rehab loan is determined by the future value after repairs have been made instead of the property’s current value. It takes into consideration what the new value will be with the money you will be using for the rehab. … continue reading Rehab Loan Options for Homeowners

By 203K Mortgage Lender, | Comments (2)
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