New FHA Limits

The new FHA Limits in New Jersey as of March 2008.

REFUNDS FROM FHA/HUD

If you had a FHA Loan, please go the the HUD site below and see if your name is on the list. It may be possible that you are owed funds!

If you received a letter from someone stating "The Government Owes You Money" and this someone wants to charge you a percentage in order to obtain those funds, please know you can contact HUD and receive your refund at NO CHARGE!

YOU DO NOT HAVE TO PAY ANYONE TO OBTAIN YOUR REFUND FOR YOU. YOU DO NOT HAVE TO PAY ANYONE TO FIND OUT IF YOU ARE DUE A REFUND!

You simply go to this website http://www.hud.gov/offices/hsg/comp/refunds/ and search for your name. Be careful to type your Last Name first or just your last name for better results. If your name is on the list it will show up with your Case ID Number. You then can call the Phone Number listed on the website which is (support center at 1-800-697-6967)… and HUD will mail you the Forms you need to fill out for your Government refund.


AGAIN YOU DO NOT NEED TO PAY FOR THIS SERVICE AND IF YOU LOOK ON THE WEBSITE THERE IS A (BEWARE OF TRACERS) alert to inform you that you can do this all for FREE)

Item Needed When Applying for an FHA Loan

Individual Info


(Full Legal Name)

Current Address
Phone Number
Addresses for two full years
Social Security numbers for all parties
Copy of Drivers License
Date of Birth
Marital Status
Copy Of SS Card


(Divorce Decree if Applies)
Proof Of Residency
(Green Card) if Applies

Employment/Income Information

Name and Address of Employer
Length of time at present job.
Gross monthly income (prior to any reductions, i.e. taxes, savings)
W-2s for the last two years
Proof of income from rental properties, investments, and so on.
Proof of child support or alimony paid/received
Paycheck stubs for previous 30-day period. (4 weekly, 2 bi-monthly)
Proof of pensions, retirement, disability, or Social Security


For self-employed buyers:

Two years 1040 Tax Returns
Current year profit and loss statement
Creditors


Creditor’s name, address, phone#
Account numbers for all accounts
Type of accounts
present balances

Monthly Payment

Banking


Names and addresses of checking & saving institutions
Account numbers for all accounts
Type of accounts and present balances
Three months of current statements
Most Recent 401k/Retirement Statement
Mutual Fund and Bond Statements

FHA Financing

Seller Concession — Many home buyers with limited funds seek the seller’s assistance with closing costs. This is especially true for those securing FHA loans. Typically on an FHA loan the borrower must contribute 3% of his/her own funds into the loan, this can be a gift from a family member and does not necessarily need to be applied to the down payment, it may be applied towards closing costs or pre-paid items.

The typical seller’s concession on an FHA loan is 6% , however, on a conventional loan with less than 10% down the seller concession in most cases is no more than 3%. Other factors such as credit scores and loan program guidelines would determine the exact amount allowed.

FHA Secure

By Jeremiah Phillips

How does one get out of a mortgage that is adjusting to a payment you can not afford?

The answer is FHASecure Iniaitive!

This new plan to help nearly 250,000 people save their home from adjustable rate mortgages that reset too high.

Here are the highlights of the FHASecure Initiative:

1. The mortgage being refinanced must be a non-FHA ARM that has reset. Your loan must have adjusted already to be eligible.

2. The mortgagor’s payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments. You can be late on your mortgage but you must prove that you were not late prior to the reset and that the reset is the only reason why you have lates now.

3. If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments. If you are on a plan with missed mortgage payments that need to be paid, they can be rolled into your new loan, so long as you have enough equity.

4. Under certain conditions explained below, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2), the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing.

Let’s say you owe $300,000 on your home but its only worth $270,000 today. You can get a new FHASecure loan for $261,900 and a new loan for $38,100 from your new lender or the current holder of your mortgage if they will go for it. This new note terms and payments have to be factored into your qualifying ratios but if they are deferred for 36 months, they don’t have to be. These combined loans can exceed 100% and can exceed the FHA loan limit in your area.

5. Lenders must determine, as part of the underwriting process, that the reset of the non-FHA ARM monthly payments caused the mortgagor’s inability to make the monthly payments and that the mortgagor has sufficient income and resources to make the monthly payments under the new FHA-insured refinancing mortgage.

The bottom line is this is not a free pass. If you are late only because your ARM adjusted and you can prove it, this program is the best way to save your home and your credit.

However, this is a terrific new program and once again demonstrates why FHA has been with us for decades.

FHA Overview

The government offers two kinds of loans, VA and FHA. This article will give an overview of FHA loans.

The Federal Housing Administration (FHA) runs several programs to promote home ownership. FHA was created by the Federal Government to provide affordable financing for qualified borrowers who wish to buy a home. FHA provides an avenue for many people who would otherwise not be able to afford a home.

FHA loans are attractive to lenders because the FHA insures the loan against default. That way, if the buyer finds himself in a position where he can’t make his house payment, the lender knows that the payment of the loan is guaranteed by the FHA. Since the lender has lower risk, he is able to provide loans to people who fall into categories which would otherwise be excluded from approval. Such categories are:

• Consumers with no established credit or low credit scoring
• Consumers with discharged bankruptcies
• Consumers who do not have a large amount of money saved for a down payment
• Consumers with limited funds for closing costs

Borrowers who can provide proof of sufficient income to pay the mortgage are likely to be granted an FHA loan. In lieu of conventional credit scores, the applicant can use alternative credit. Showing records of utility bills, cable TV, insurance premiums, child care or other accounts are examples of alternative credit. Borrowers with a bankruptcy that was discharged at least two years ago are still eligible for an FHA loan. And down payments can be as little as 3% of the selling price of the home.

In addition to the 3% down payment, the borrower pays an upfront insurance premium which is approximately 1.5% of the loan amount. This money can be incorporated into the amount of the loan. The borrower also pays a monthly premium of .5% of the loan amount divided by 12 months. The down payment of 3% can be a gift. No reserves are required. In most instances the seller may assist with closing costs up to 6% which is also financed into the loan amount.

FHA interest rates are competitive with conventional rates for the most part. The mortgage insurance premiums paid on an FHA loan are typically equal to 2.25% of the purchase price of the property with a renewal premium of .500% in subsequent years.

FHA Loans and Mortgages

Sometimes getting approved for a mortgage can be harder than finding that perfect home. With that in mind, we put together a list of 5 tips to help you get the mortgage you want.

1. Increased Ability To Finance Your Closing Costs

You can now finance up to 100% of your closing costs thanks to recent changes in Federal Housing Administration (FHA) guidelines, compared to the old limit of 97%. This is very good news for the first time home buyer who typically has less cash available at the time of closing.

2. Increased FHA Limits

There FHA loan amount maximums have increased, which is particularly helpful for people living in high cost housing markets. FHA ‘s mortgage limit is now tied to local housing costs. The limit is now 95% of the median home price, or 75% of the Fannie Mae maximum loan amount, which ever is lower. This is another avenue for the first time home buyer to achieve the dream of home ownership.

3. Increased Accessibility To Down Payment Assistance Programs

With the rapid increase in home prices over recent years, more and more people are having the dream of home ownership ripped from their hands. Typically one had to go through a rigorous process to qualify for a down payment assistance program. Today, there are now programs which have very little hassle. Ask your mortgage broker if they have access to such options.

4. Rapid Loan Approval

One of the latest innovations in the mortgage industry is the advent of computerized loan approval. These programs provide both rapid loan approval and more uniform loan approval practices. This type of approval is done by scoring a borrower’s credit worthiness which quantifies the risk they will default on the loan. Does your mortgage broker use such a program?

5. Affordable Mortgages Which Don‘t Verify Income

These loans are perfect for those people who are self employed, real estate investors, retired persons and anyone who doesn’t want to have to prove their income. It is essential to have a good credit score in order to qualify for non income verified loan.

Finding The Right Home Loan Has Never Been Easier!

FHA Loans | Understanding Terms

What is a loan to value?

The loan-to-value (LTV) is the original loan
Amount divided by the lower of the sales price or the appraised value. It is calculated for each loan, and the results determine which rates apply to that loan. Mortgage insurance rates are reduced for each lower LTV category, reflecting a smaller default risk when a borrower has made a larger down payment.