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.