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Property Types Allowable for FHA Mortgage

FHA will insure the following types of properties:

• Detached 1-4 units
• Semi-detached 1-4 units
• Townhomes
• Row Houses
• Individual units with FHA approved condominium project

The property types that meet the above criteris must still meet all other FHA requirements for condition, marketibility and title and ownership.

FHA will NOT insure the following property types

• Commercial
• Boarding homes
• Hotels or motels
• Condotels
• Bed and breakfast establishments
• Tourist homes

You don’t have to be a first time homeowner to receive the new tax credit.  Great news for everyone looking to purchase a home now! 

• First Time Homeowners can now receive the $8,000 tax credit up until April 30, 2010
• Current Homeowners can qualify now for up to $6,500 tax credit up until April 30, 2010

This is a gift for all wishing to purchase a new or existing home - it doesn’t have to be repaid back.  So for those who are sitting on the fence…no need to wait now!  Prices are low and rates are great!

Reverse Mortgages is a unique loan available to those 62 and older. It allows the homeowner to take part of the their equity in their home and turn it into income with out selling, giving up title, or taking on monthly mortgage payments

• Seniors will never have to leave their home as long as taxes and insurance payments are made and the home is kept in reasonable condition
• No income qualifications
• No credit score requirements
• No monthly mortgage payments required
• No repayment of the loan until the last borrower moves out permanently or passes away
• Proceeds paid in lump sum, monthly payments, line of credit or any combination
• Independent consumer counseling required

To find out about all the options available to you or a family member, contact a reverse mortgage specialist that you trust.

On July 30, 2009 the new Housing and Economic Recovery Act (HERA) regulations will go into effect.

• They require all mortgage lenders and brokers to help prevent deceptive lending practices and protect customers by helping them become more informed.

• These new requirement could impact your closing dates.

The Four key elements you need to know :

1. If the homebuyer is financing the property, these new regulatory and investor guidelines will impact – and could even dictate the closing date
2. Upfront fees cannot be collected by the lender until the initial disclosures are received.  Fees are needed to order the credit report, appraisal and get the process underway.
3. The homebuyer must be provided with a copy of his or her appraisal a minimum of 3 days prior to closing
4. An increase of more than .125% in the APR from the initial disclosures requires the Truth in Lending to be revised and reissued to the homebuyer at least 3 business days before closing.

Now is a great time time to purchase a home!  Here are some great reasons why!

• If you can pay rent, you can own a home
• Lock in housing cost at today’s rate vs. rent increases over time
• Tax advantages of home ownership
• Equity building through appreciation and paying down loan balance
• May be eligible for the $8000 tax credit as a first time homebuyer

Only 138 days left to take advantage of the $8000 first time homebuyer tax credit.

What is a short sale? A short sale when you purchase a home for less than is owed.  Sometimes a seller who is behind in his payments or owes more than they can get by selling the property they will attempt to sell their house before it goes into foreclosure.  To do this, they must negotiate with the bank to accept a “short sale” offer.

REO – REO stands for Real Estate Owned and is another way to refer to a bank owned property.  That is when the property has been taken over by the bank through foreclosure.  When you purchase a REO – the bank is who you are negotiating the contract with.

Either option that you choose require patience because they usually do not close as quickly as with a private owner.  However, if you willing to go that route you can almost always get a great deal on a  home.

The Mortgage Pre-approval is one of the most important steps in purchasing a home.  You start here on Zillow getting loan quotes but a loan quote is only good if you can get approved for that loan.

Getting the loan approval upfront will save everyone alot of headache at the end.  You don’t go shopping for a home first and then find out you don’t qualify for that property.

Step 1

Find a good lender that you trust and get approved.  That means either discussing with them over the phone or in person your situation.  You must have a credit check done, provide income and asset documents and any other required forms for you to be pre-approved.

If you go by credit check alone and do not provide all documents you are only increasing your chances that things will not go as smoothly as you liked.  It really doesn’t take long to get pre-approved for a mortgage.

Step 2

Once you figure out your budget and how much you can be approved for then you can do some shopping!  You will have more leverage once you know exactly how much you can afford.

It is still a great time to purchase a home - especially if you are a first time homebuyer you have until November 30, 2009 to qualify for the 8000 tax credit.

Choosing the right lender for you can sometimes be overwhelming.  How do you find the right one?

It can be overwhelming browsing the yellow pages, online and referrals from others.  Getting a mortgage is probably the largest investment that you will ever make and one that shouldn’t be taken lightly.  Here are some tips to get you started that will hopefully help.

1. Research – research your options ( family, friends, online resources) Check their websites, google them, check their ratings ( Zillow, testimonials, and other real estate referral sites) that can show you their work ethic.
2. Ask questions – Ask how they communicate? (email, text, phone) What are their working hours and availability? What is their experience with your situation? ( FHA, VA, shortsales, purchases, refinances, etc) What are their underwriting turn times?  I have actually listened to a loan officers voicemail that said they do not return voicemails in less than 48 hours.
3. Do you have a good rapport with them? – Do they rush you in taking your loan application?  Do they take the time to get to know your situation or do they just want your social security number and date of birth to pull credit?

There are thousands of mortgage companies and lenders out there promising you the world and trying to offer you the best deal out there to earn your business.  Rate isn’t everything in choosing a lender but it might be the starting point.  Make sure that you know what you are getting into so that 3 weeks later you still haven’t closed your loan and wondering where things went wrong.

Times are tough for alot of lenders and make sure that you as a borrower know who you are using on the other side of the transaction.

Mortgage rates are great and prices on housing is low and affordable!  It is a great time to purchase and refinance and hopefully this will help in finding the right loan officer and lender for you!