I was finding out such great information regarding buying a home using a FHA loan that I thought I should finish it up today. When we finished up last time I was sharing about no minimum FICO Score. That one is so huge to me I just thought I had to mention it again. Hold on to your seat, because this is going to be an eye-opener for many reading this blog.

FHA will allow a home purchase three years after a Foreclosure. How long has it been that we have been hearing news story after news story after news story about foreclosures in numerous states. Watch your local and world news, I am sure you will see that this is still a top story. Why you ask? People who are in a foreclosure situation have to go somewhere whether it is back to apartment living, living with a relative or renting a house. They have to have options as well.

Here is something that I wasn’t aware of and thought you should know as well that you do not have to be a first time home buyer to obtain a FHA loan. Anyone may use a FHA loan as long as you don’t have more than one FHA insured loan at any one time. Well that definitely makes sense.

Maybe you have read this and ask is there financing available? There is financing available. Different programs have 100% financing available. I have always been cautious about doing 100% financing because that can make your monthly payment more than you can afford. For that reason, I recommend you research the down payment assistance and closing costs. Do not put yourself in a bind for a home loan or you will not enjoy what is supposed to be the American Dream.

Here is a fact about using a FHA Loan that I did not know could apply to the FHA Loan and I believe it will benefit many more people as time goes on. Self-Employed individuals can apply for a FHA Loan. I am shocked by this. When my husband and I were in the process of searching for another home and he had become self-employed, they talked to us about a No Doc Loan but there was never any mention of a FHA Loan. We did not go with the No Doc Loan because I continued to work. So we had options. Whether you are getting a FHA Loan or anything else, make sure that you have options that you can live with.

I have shared some of the different advantages of the FHA loan program that should assist you in making an informed decision when it comes to home loans. Is there all there is to the FHA loan program? Of course not; however, I wanted to give some brief insight into the program so you would know what exists.

I know from my own research, I would advocate people look into FHA loans. I believe it would be a good solution in the long term.

The subprime crisis could have been avoided, NY Times writer Paul Krugman asserts in his latest column, and he’s got the facts to back it up.

These days a lot of people are saying things like that about subprime loans — mortgages issued to buyers who don’t meet the normal financial criteria for a home loan. But here’s the thing: Mr. Gramlich said those words in May 2004.

And it wasn’t his first warning. In his last book, Mr. Gramlich, who recently died of cancer, revealed that he tried to get Alan Greenspan to increase oversight of subprime lending as early as 2000, but got nowhere.

Mr. Krugman goes on to compare subprime lending in the last decade to the Wild West, a place where the government that governed best governed least. Hopefully, the return of regulation and standardization to the mortgage market will bring law to what has become a desolate ghost town.

In response to the recent tragedy in California, HUD has taken action to help out not only current FHA borrowers, but others as well. SignOnSanDiego.com reports on the help to FHA borrowers:

Because homeowners with destroyed or uninhabitable houses may find it difficult in the next few months to continue making mortgage payments, the Department of Housing and Urban Development has imposed a 90-day moratorium on some types of foreclosures.

The moratorium applies to the initiation of foreclosures and those already in process, but will affect only FHA-insured mortgages. Housing officials acknowledge that such loans represent only 3 percent of the national mortgage market.

HUD will also be making sure that future borrowers are aware of their FHA options when rebuidling or buying a new home.

There are many home ownership programs created to help increase home ownership. However, do they really help increase home ownership or are they more of a deterrent? Let me share what I mean, is there so much “red tape” and regulations that the potential buyer will not understand that at the end of the day they say forget it. I will continue apartment living.

We all know people that want to obtain the American Dream. So of you probably can even remember when you were the person seeking to obtain the Dream. There are some details you should know about buying a home using a FHA loan that you might not have known about. I believe the information I am preparing to share with you will get you excited about becoming a home owner. I was doing some research about the different FHA loans and I have to share what I found.

First, were you aware in the minimal down payment and closing costs it extends to the down payment being less than 3%. I can see some of you doing a double take right now as you read that on the screen. Why? You had no idea that you could get into a home for that a small amount of money. That makes it so much more attainable right! Don’t run right out now and get a house based on that. Continue reading this blog and see what else you need to know.

Second, you can utilize a gift for down payment and closing costs. There are many programs available for first time home buyers and more. One item I always counsel new home buyers on is not utilizing all their cash for down payment or closing costs. With all the programs existing, do the research and find out which one fits your particular situation.

I have to stop and share this at this very moment because I was not knowledgeable of this CRUCIAL information that can make the difference for many people. Buying a home through FHA Loan has easier credit qualifying guidelines. Let me take it a step further, from my research I found that there is no minimum FICO score. Stop! So many people have not gotten a house because of their low FICO score. I can hear people right now in amazement saying they did not know that.

Furthermore there is no credit score requirement. That does not mean if you have a few marks on your credit report that you should not clean them up. By all means clean them up. However, know in my opinion FHA is saying you do not have to have perfect credit in order to obtain a loan through them.

Maybe you are reading this and have had a bankruptcy in the last few years. Did you know that FHA will allow a home purchase two years after a bankruptcy. I have to tell you I am surprised by that. I tend to encourage people that I counsel to wait until you have gotten more of a handle on your finances. Maybe FHA has a program they have worked out that can instill money management and rebuilding the family unit as you obtain the American Dream and give better guidance.

I have not even finished what I am going to share. I would say come back and read again next time when I will give you some more insight into buying a home with a FHA loan.

With the DPA ban right around the corner, Nehemiah and AmeriDream are still fighting. As the Charlotte Observer noted, Nehemiah has permission to continue doing business until April 2008 and AmeriDream until February. Presumably, they will keep fighting after that.

Likewise, HUD will allow Gaithersburg, Md.-based AmeriDream to offer seller-funded down payments through February. The agreement is part of a way to speed along litigation, HUD and AmeriDream said.

In their lawsuits against HUD, AmeriDream and Nehemiah say the department violated government rules. The organizations also note competing bills in Congress. A House bill would allow seller-financed down-payment assistance; a Senate bill would eliminate the practice.

Side Note: If you read the article please note how the the headline puts quotes around “gifts.” Although the journalist does not come out and say “Ha, this is a horrible misuse of the word gift.” I think the headline says it all.

There has been so much in the media about subprime loans, foreclosure and even FHA. I thought it would be best if we get a clear understanding of what FHA is so readers can make an informed decision regarding solutions to housing options.

First, let’s look at what FHA even stands for. FHA stands for Federal Housing Administration and maybe you are reading this saying, I knew that. But what about the person that didn’t. FHA is a government backed agency that provides insurance for mortgage loans. FHA has been around a long time and has not always had a good reputation. But what business do you know that has not weathered some storms. They have their ups and downs.

I read recently about an annual conference of the Mortgage Bankers Association that was in
Boston on the CNNMoney.com website and they were sharing how the mortgage industry would be returning to a back to basics theme which included the FHA. When the FHA was originally created in 1930s, was intended to provide lenders with sufficient insurance. In the 1980s, the FHA’s refinancing department came into existence. I even remember hearing about FHA loans when I was growing up. I only heard about it but didn’t know who it was really for.

As I prepared to purchase my first house, I heard about FHA loans again. I took the time to research and find out what FHA really means and who did they help. In the beginning FHA’s goal was to provide an adequate home financing system through insurance of mortgages and to stabilize the mortgage fund. Well, they have definitely expanded on what they do today. They play a crucial role in financing minority borrowers, first time home buyers and borrowers who have troubled credit history. We both know there will always be borrowers that have less than perfect. I am glad to see they have viable options to obtain the American Dream.

What is your present housing situation? Are you renting, planning on purchasing a house within six months to a year or are you in a foreclosure situation? Is this an option for you? Could be – this is one reason to research the different types of loans so you can make an informed decision before you sign on the dotted line. One of the benefits of an FHA loan is borrowers with less than perfect credit can receive a favorable interest rate. I know for me it was important that I received a good interest rate that I felt was favorable especially when it came to how that affected my mortgage payment. I encourage you to do your research because FHA loans are not for everyone. Come back and read next time, when we will discuss some of the parameters before you even apply for an FHA loan. Knowing the information can help you avoid foreclosure even in the beginning of the process. Come back and visit us often for more up-to-date information and news regarding FHA.

The Federal Housing Administration has been helping people become homeowners since the 1930s.

The FHA fell out of favor over the past two decades as loose loan providers offered prospective homebuyers of all stripes financing without proof of income or financing restrictions. Now, the housing market and the country’s economic market as a whole are suffering the consequences of widespread failure and foreclosure stemming from the subprime market.

As such, more and more first time homebyers and current homeowners looking to refinance are turning to government-backed programs such as the FHA. With legislation pending in Congress and the announcement of FHASecure earlier this year, FHA home financing is returning to the consciousness of the American housing industry.

Rightly, the agency insures FHA loans, making sure that if you cannot pay the loan and wind up defaulting, the lender is covered financially. That way, knowing they’ve got some protection, lenders can feel free to offer customers better loan terms and conditions.

The FHA helps people who might not otherwise quality for a mortgage loan find equal footing. These loans come with little to no start-up costs and often feature great rates. People with so-so credit, bankruptcy problems and other income issues may be surprised at their ability to qualify for an FHA loan.

You can also use an FHA loan to make repairs on that fixer-upper you’ve had an eye on. With a FHA loan, home buyers can simply factor in the cost of the renovations and repairs into the overall loan.

Please be sure to return to our blog for updates and explanations of the program. We hope to build a popular resource for interested consumers that they can rely on for honest, up-to-date education about home financing.

10. You Can’t Make Too Much Money to Take Out An FHA Loan
FHA Loans are designed for low- to moderate-income families, but there is no upper limit on income for FHA borrowers.

9. Before Sub-Prime Came Along FHA Was a No-Brainer for First-Time Homebuyers
Back in 1995 FHA counted for about 11% of the mortgage market, but when sub-prime came along everything changed. By 2004 FHA’s share had shrunk to a mere 3.3%.

8. FHA is on the Way Up
FHA Loan applications are skyrocketing in comparison with recent years. In the month of August this year FHA applications had risen over 20% from August 2006.

7. An FHA Loan Can Be Used to Make Your Home More Energy Efficient
An Energy Efficient Mortgage (EEM) can be packaged into your FHA loan for up to 5% of your property’s value (not to exceed $8,000) or $4,000.

6. An FHA Refinance Can Save You from Sub-Prime
FHASecure, the new program to help out troubled sub-prime borrowers, will allow qualified borrowers to refinance to an FHA Loan.

5. The FHA Offers Reverse Mortgages
With an FHA Reverse Mortgage seniors who own their home can receive monthly payments based on their home’s value, and they do not have to pay anything back as long as they live in the home.

4. Safer Adjustable-Rate Mortgages Available from the FHA
Although adjustable-rate mortgages are the cause of today’s sub-prime woes, not all adjustable-rate loans are bad. The FHA has an adjustable-rate mortgage (ARM) with annual and life-of-loan caps that lower the risk of taking out an ARM.

3. The FHA Finances More than Single-Family Homes
There are FHA programs for multifamily housing and even a special program for providing loans to hospitals.

2. FHA is Stepping into the 21st Century
After years of complaints about the FHA’s failure to modernize, current legislation will lower FHA down payment requirements and raise FHA loan limits.

1. You Can Take Out an FHA Loan with Less-Than-Perfect Credit or No Credit
The reason that FHA Loans have been a long-time success and are great for first-time homebuyers is that your credit score does not determine your eligibility. Other factors, such as income, employment, and utility payments, are used to qualify applicants for FHA loans.

In his speech today Henry “Hank” Paulson adressed the housing market problems and the Department of the Treasury’s efforts to help out. Paulson wants lenders and borrowers to take responsiblity, but also understands that their need to be more restrictions on lenders and available resources for borrowers. Just last week he announced the HOPE NOW program to help out troubled borrowers. Here are links to his speech today, the one on October 10th, and what others are saying about Paulson’s comments:

A while back I wrote a post about how the mortgage industry needs to turn back time, and now it appears the folks over at CNN Money and the Mortgage Bankers Association agree. Plus, some of them have a pretty dry sense of humor!

“You probably have a lot of loan officers who can’t spell FHA,” said Bibb.

Bibb and David Lowman, CEO of Chase’s Global Mortgage, which is a top 10 originator and servicer, said that during the go-go days of the housing boom, loan officers would steer home buyers with weak credit to subprime loans. And they would advise them to finance part of their down payment with a home equity loan.

Glad to know that professionals are offering continuing FHA support.