More Types of FHA Loans
I am always happy to see information that I was not aware of when it comes to mortgages. The more I find out, the more I will share with you so you can remain an informed consumer make the appropriate decision. Today I am going to discuss several different types of loans. The particular loan I am going to start with today has to do with Energy Efficient Mortgage. Not to say that I was surprised; however, I felt people arranged for energy efficient assistance once their utility bill became unmanageable.
Glad to say that I was wrong. That is not always the case sure it does happen but not always the reason for an energy efficient mortgage. The Energy Efficient Mortgage allows a homebuyer to save future money on utility bills. I am not saying whether I recommend or do not recommend but read all the details below and you decide.
With an Energy Efficient Mortgage you can finance the cost of adding energy-efficient features to a new or existing home as part of an FHA-insured home purchase. I would have to even ask you at this point is this an option you could consider? The Energy Efficient Mortgage can be used with both 203(b) and 203(k) loans. As you know, with all loans there are requirements you must meet before you can be approved for this type of loan
Basic guidelines are:
- Cost of improvements must be determined by a Home Energy Rating System or by an energy consultant. Very sensible this cost must be less than the anticipated savings from the improvements.
- One- and two-unit new or existing homes are eligible; condos are not. For those people that like to purchase condos – look at the advantages and disadvantages to purchasing and living in a condo.
- The improvements finances may be 5% of property value or $4,000 whichever is greater. The total must fall within the FHA loan limit. You do not want to exceed the FHA loan limit.
Before you start with any loan paperwork or visiting the property, be sure that you have sat down and written out all of your questions regarding this property. Even if you think it is a sill question. The only limiting question is the one that doesn’t get answered.
The second type of loan
I must admit, I have not ever heard of this type of loan. If someone has heard of the next type of loan, shoot me an email and share your experience with this type of loan.
Are all the couples or brides ready that are reading this blog? Here is one that you might not have even heard before — the Bridal Registry. I saw the wheels in your mind turning and you are right, you may register at a department store for wedding gifts. The Bridal Registry program allows couples to register with a lender and open up an interest-bearing account family and friends can deposit weddings gifts of cash into the account. I think this is a marvelous idea for those who plan to purchase a house in the future. Seems to me this might give you a head start over others that didn’t do it.
How many bride and grooms do you know that will run right out and sign up? I am not sure but want to make sure they know it is available. Ask your lender for complete details.
Dr. Taffy Wagner
