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Recently posted or modified blog posts by tag - FHA Loans
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2018-04-19T07:13:06-07:00
tag:hometoindy.com,2012-09-20:2146
Appraisal Required Repairs for Your Home
<img style='float: left; margin: 5px;' title='Appraiser Required Home Reapirs' alt='Home Repair' height='249' width='250' src='https://assets.site-static.com/userfiles/279/image/Home_Repair.jpg' />You have picked the perfect home, completed the general inspection and the appraisal; you are ready to move in. Then you find out, in order for the home to qualify for an FHA loan, there are appraisal required repairs.
Appraisal called repairs are repairs bnecessary to complete the financing of your home. This list is not comprehensive, but a few of the known defects appraisers may call.
Need A Termite Inspection? Although you will probably want a wood destroying pest inspection, you may be required to have a termite inspection. In some states, where termites are prevalent, this may be required for VA and FHA loans. A pest inspector will go the property and inspect it for any visible signs of termites. If there are no issues he will sign off on a report and send it to your loan offer to add to your file. However, if there are signs of termites he will make some recommendations on how to solve the problem. Depending on how severe the problem is he could recommend a few things. They could range anywhere from spraying the foundation to a full fumigation.
Evidence of Structiral Problems - Structural or foundation issues where there has been excessive settlement may also be called on an appraisal.
Chipped Paint? Yikes! Appraisers are required to flag any chipped and peeling paint on a home built prior to 1978. A home with any kind of chipped and peeling paint on the exterior will not qualify for an FHA loan. This is a pretty simple and inexpensive fix in most cases. All that needs to be done is the paint scraped and repainted. Then the appraiser will need to come back out to the property and pass off the work that has been done.
If the weather is too cold and you cannot paint, you may be able to set up an escrow account with the money for the repairs to be done when the weather is better. When the weather allows the painting can be done, then the appraiser will have to pass off the work at that point.
Is Your Insulation Satisfactory? If there is not enough insulation in the attic the appraiser may recommend that some insulation is added. Depending on the area and the type of loan you are doing will determine the amount of insulation needed to meet the requirements.
Is the Roof Sound? Worn roofs may need to be replaced and roofs with more than 3 layers of shingles will need a complete tear off and new roof.
If the repairs are not made and approved by the appraiser you will not be able to get the loan. Most of the time you can get the seller to help contribute to the cost of these repairs especially if they are advertising that the home qualifies for an FHA loan on the MLS.
It is also a good idea to try and negotiate any anticipated repairs when you make the offer. This way you will know what help to expect from the seller. Having a great real estate agent is the key to understanding the inspection and appraisal process to keep you from missing your deadlines and losing your home.
Article provided by Mitch Ribak who helps buyers <a title='with real estate in Melbourne FL' href='http://www.melbournehomesearch.com/'>with real estate in Melbourne FL</a> pick the perfect home. For more information about the Melbourne area, you can check out Mitch's <a title='Brevard County FL real estate' href='http://www.melbournehomesearch.com/Brevard_County_Real_Estate_Home_Search'>Brevard County FL real estate</a> website where you have access to <a title='Cocoa Beach real estate listings' href='http://www.mitchrealty.com/Cocoa_Beach_Real_Estate_Home_Search'>Cocoa Beach real estate</a>
2011-12-13T20:18:00-07:00
2011-12-30T07:53:59-07:00
Paula Henry
tag:hometoindy.com,2012-09-20:1583
FHA Loans: Are They Right For You?
While the news is rife about how hard it is for even qualified borrowers to secure loans, a number of homebuyers are getting financing and saving money by taking advantage of one of today’s most popular mortgage options: FHA loans. <br /><br />FHA loans are offered by the Federal Housing Administration, which is a department of the <a title="Federal Housing and Urban Development" href="http://portal.hud.gov/portal/page/portal/HUD">Department of Housing and Urban Development</a> (known popularly as HUD). The FHA was developed during the Great Depression to engender homeownership across all socioeconomic levels of American society, and to ensure the integrity of that housing. Today, the FHA is one of the primary funding vehicles for homebuyers, playing a role in over half of all mortgages used in home purchases since the housing debacle began in 2007.<br /><br />Although buyers often talk about “FHA loans,” in reality, the FHA doesn’t loan money out at all. Instead, for borrowers that fall under the requirement guidelines for their lending program, the FHA agrees to underwrite (guarantee) loans issued by other lenders. With the express guarantee of the federal government behind them, borrowers are then able to secure favorable loan terms which they may not otherwise receive. Among the benefits of an FHA loan are:<br /><br />
<a title="LGI Homes No Money Down" href="http://www.lgihomes.com/no-money-down.cfm">Low or no downpayments.</a> Most FHA programs require at least 3.5 percent down—far less than the standard 20 percent required by most lenders today.
Lower closing costs and fees. The FHA caps fees that lenders can charge, making closing costs more affordable.
The possibility to include home repair costs in an initial loan. The FHA offers a little-known 203k program, which allows borrowers to roll the costs of future home repairs and renovations into their initial loans.
No pre-payment penalties, offering flexibility and financial freedom to borrowers.
<br /><a title="FHA Financing for Indianapolis Home Buyers" href="https://www.hometoindy.com/blog/new-fha-guidelines-will-make-loans-more-costly/">Guidelines for FHA</a> qualification are generous, meaning that most households can qualify for an FHA loan, whatever the state of their credit. There are no income limits for FHA loans, however borrowers may find that the loan limits applicable in their area may only enable them to purchase on the lower side of the price spectrum. FHA debt-to-income limits vary according to the program used. <br /><br />In short, FHA loans are a flexible, borrower-friendly financing option that can mean the difference between buying a home and remaining a renter for many households. For borrowers looking in the middle-to-upper ends of the housing market, FHA loan limits may be too low to help them fund a purchase. However, for those with lingering credit issues, difficulty in accumulating a 20-percent downpayment, or for buyers interested in buying a remodel, an FHA-backed loan may make perfect sense.
2011-09-08T15:05:00-07:00
2012-10-03T03:17:38-07:00
Paula Henry
tag:hometoindy.com,2012-09-20:1289
Your Next Home Program from Indiana Housing
<a href="https://www.hometoindy.com/wp-content/uploads/iStock_000002051354Small.jpg"><img alt="Buying a new home" src="https://assets.site-static.com/userfiles/279/image/iStock_000002051354Small-300x199.jpg" title="Family at Home" style="float: left; margin: 5px;" class="size-medium wp-image-8936 alignleft" height="159" width="240" /></a>Indiana Housing has been instrumental in providing <a href="https://www.hometoindy.com/blog/help-buying-your-first-home-in-indianapolis/" title="Indiana First Time Homebuyer Programs">no downpayment loan programs for first time home buyers</a>. They now offer a loan program for home buyers who are moving up or buying their next home, aptly named the 'Next Home' program.
Many home sellers today are faced with breaking even after the sell of their home and do not have the additional funds to put a down payment on their next home. The new program from Indiana Housing offers up to 4% toward down payment and closing costs. So a home buyer can buy their next home with no money down.
Highlights of the program:
4% given to home buyer (borrower) to be used toward down payment, closing costs or pre-paids.
Seller can contribute up to 6% toward buyers closing costs and pre-paids.
Income limits are higher
No acquisition or purchase price limit
No third party inspections
No home buyer counseling classes
Guidelines of the program:
Minimum 650 credit score
FHA loans only
Income limits
0.125% of loan amount upfront fee payable to Indiana Housing
There are quite a few differences between the first time home buyer program and the Next Home program. The most significant are the income and repayment of the down payment portion. Both programs require a second loan at zero interest for the down payment portion. The loan for first time home buyer's has to be repaid when the home is sold. With the Next Home program, the loan is forgiven after two years.
The income guidelines for first time buyers is set by Indiana Housing guidelines and the Next Home uses FHA guidelines. A family of four, buying their next <a title="Homes in Indianapolis" href="https://www.hometoindy.com/indianapolis Homes/">home in Indianapolis</a>, using this program can have a household income up to $85,875.00. Good news is, first time home buyers can also use the Next Home program, allowing a higher income first time buyer to take advantage of lower upfront costs.This is a pilot program and Indiana Housing uses specific lenders for their programs.
If you would like to know more about qualifying, contact us today @ 317-731-2319
2011-06-08T15:40:00-07:00
2013-07-29T16:26:58-07:00
Paula Henry
tag:hometoindy.com,2012-09-20:1251
First Time Home Buyers Down Payment Assistance
INDIANA HOUSING DOWN PAYMENT ASSISTANCE PROGRAM
If you are a <a title="Indianapolis First Time Home Buyers" href="https://www.hometoindy.com/blog/category/first-time-home-buyers/">first time home buyer in Indianapolis</a>, you should know your financing options. The Indiana Housing Program for first time home buyers who are creditworthy, but may not have the initial upfront costs for down payment and closing costs is a great option. I received this information from one of my lenders with the guidelines for the Indiana Housing Down Payment Assistance Program.
The general guidelines are as follows:
1.First time buyers or someone who has not been entitled to real estate in the past 3 yrs.
2.Indiana Housing will provide down payment assistance in the amount of 6% of the sales priced capped at $7500.00
3.This down payment can be used for required down payment, closing costs and prepaids.
4.The buyers are required to take a home buyer counseling course - This is an online course through Indiana Housing University.
5. A 3rd party housing inspection is required by Indiana Housing- Indiana Housing has a list of approved inspectors they allow- if the customer is having a regular home inspection. By using an approved inspector for your home inspection, you may save some money.
6. Income requirements do apply: Indiana Housing uses total household income- regardless if all members in the household are on the loan. For Marion County and surrounding counties the income requirements are as follows:
For 1 person in the household- max income is $38,150
For 2 people in the household-max income is $ 43,600
For 3 people in the household-max income is $ 49,050
For 4 people in the household-max income is $ 54,500
7. The down payment assistance you can receive is carried as a 2nd mortgage against the loan- the borrower makes no payments on these monies. Regardless of when they sell the home, the funds will have to be paid back to Indiana Housing out of the proceeds of the sale.
8. There is a possible recapture tax owed by the borrower if they sale the property within the first 9 years.
9. Interest rate as of today is 4.95%- this is a fixed 30 yr. term (subject to change)
10. If the property is in a flood area may not go Indiana Housing
11. The home must be the borrowers principal residence
12. A rental tenant must not have occupied the subject property within the past 3 months unless the current tenant is the purchaser
13. Borrower's must provide copies of the past 3 years tax returns
14. A reservation fee of .125% to Indiana Housing is required when the file is submitted to them
15. It will take approximately 45 days for the loan from start to finish, which is a bit longer than other loan programs..
16. Non-occupant co-borrowers are not allowed If you have additional questions or want to see if you qualify for the first time home buyer program, give me a call and we'll get started.
Copyright © 2010 by Paula Henry, All Rights Reserved. *First Time Home Buyers Down Payment Assistance*
2010-02-03T03:36:00-07:00
2013-07-29T16:57:48-07:00
Paula Henry
tag:hometoindy.com,2012-09-20:1204
Indiana Housing Rates Down to 5.5%
Indiana Housing & Community Development Authority (IHCDA) lowered their rate today to 5.625%.
When the buyer completes their home buying class (mandatory), they can receive a rate of 5.50%. If you read my post a few weeks ago about the advantage of using the $8000.00 tax credit along with the <a href="https://www.hometoindy.com/blog/first-time-home-buyers-down-payment-assistance/" title="First Time Homebuyer Down Payment Assistance Indianapolis">Indiana Housing first time home buyer program</a>, there has never been a better time to buy a home in Indianapolis.
If you have questions or would like to explore your home buying options, call us at 317.605.4174 or send me an email.
2009-06-17T23:25:00-07:00
2015-05-28T08:11:07-07:00
Paula Henry
tag:hometoindy.com,2012-09-20:1156
No Carpet, No Kitchen, No Loan!
In light of the changes in conventional financing guidelines, FHA loans have once again become a popular choice for home buyers. In the good ol days, (heck, that was just a few years ago) almost anyone could get 100% financing on practically any home. Not so, today!
Today’s savvy buyers understand the market leans in their favor. However, financing may not. While showing homes in the last few weeks, buyers who are looking for a deal and most are – find the deals may have faults which prevent traditional financing.
Little faults, like – no kitchens – seriously, a bank owned home with the kitchen stripped. No cabinets, no countertops, no sink – dishwasher, stove -gone! This was a lovely house and a great price, but the average home buyer has no chance of having their loan approved by FHA or conventional, according to my lender. Of course, this buyer was going to go FHA with 3.5% down or conventional with 5% down. In either case, the bank would not approve a loan for the home without a kitchen.
A few more homes later, another problem, no carpet. Again, FHA will not finance without flooring. It’s a livability issue! I’m sure it also has to do with the bank wanting some security that the home they finance will indeed be livable and once they hand over the funds, they have no idea if the homeowner will have the repairs completed.
These homes can be financed with an FHA 203K loan, which allows for the buyer to include the cost of repairs into the loan and all projects completed by an FHA approved contractor. The process is a bit more difficult and time consuming, and comes with a higher interest rate, but is a good alternative to turning down a home which is priced right for the repairs needed. While finding deals may not be difficult, financing may create a roadblock.
This is just one of many reasons a home buyer should know their financing options upfront!
2009-01-11T10:57:00-07:00
2012-11-02T20:10:44-07:00
Paula Henry
tag:hometoindy.com,2012-09-20:1125
2009 FHA Loan Limits For Indianapolis
In March 2008, HUD temporarily raised FHA loan limits around the country. Effective January 1, 2009, FHA loan limits revert. FHA home loans are mortgages made by private lenders and insured by the federal government.
Historically, FHA home loans have been 'easier' for which to qualify than their conforming mortgage counterparts and, therefore, tend to be associated with borrowers of tarnished credit quality. Today, that's the not the case.
The FHA home loan underwriting process can be as tough -- or tougher -- than a conforming mortgage underwrite. There is extra documentation required and the home appraisal process is often more thorough. Where FHA home loans shine is in their limited downpayment requirements.
To purchase a home with a FHA-insured mortgage requires a 3 percent downpayment as of today; in January, it moves to 3.5 percent. Versus the typical conforming mortgage requirement of 5 percent or more, FHA serves as somewhat of a home affordability product for Americans. In addition, FHA allows larger 'cash out' refinances than Fannie Mae or Freddie Mac.
The <a href="https://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2008_MORTGAGEE_LETTERS/08-36%202009%20FHA%20MORTGAGE%20LIMITS%20ML.PDF" target="_blank">2009 FHA loan limits</a> for Indianapolis are:
1-unit : $271,050
2-unit : $347,000
3-unit : $419,400
4-unit : $521,250
2008-11-24T01:52:00-07:00
2018-04-19T07:13:06-07:00
Paula Henry