September 26th, 2009 — Home Buyer, Home Loans, Mortgage Loans
Government-insured (Federal Housing Administration) FHA loans now make up about 25% of the mortgage market. Here are five reasons you should consider an FHA loan, if you’re looking to purchase a mortgage loan:
- Chances are good that you’ll come across one.
- Borrowers can qualify with any income. Historically FHA loans have gone mostly to low-income borrowers. But, in fact, there’s no cap on what someone can earn.
- Expect a tough appraisal. The home will need a clean bill of health from a government-approved appraiser, and the seller must fix any issues before a buyer can close on the loan.
- These loans are pricier than they seem. Nominal rates on FHA mortgages are comparable to those on conventional loans. But hefty fees on the FHA variety up the cost.
- They’ve gotten easier to obtain. FHAs once had a well-deserved rep for onerous paperwork and a longer, more difficult closing than conventional loans. But thanks to a new automatic underwriting system and the looser repair requirements, FHA mortgages take only a few days longer than conventional loans to close, says Bill Banfield, a vice president at Quicken Loans.
August 12th, 2009 — Mortgage Loans, Mortgage Rates
Since 30 years mortgage rates have increased during this week, FHA loan rates are likely to move up in the next few weeks. Over the last week, the mortgage rates have been observed moving up to 5.5% even from 5.05. This huge jump was to be expected as the 10 year treasury yield has moved up greatly in the last few weeks.
When the 10 year yield moves up, mortgage rates moving up is very normal. Knowing this, if you plan on refinancing or buying your first home, it would be very smart to speed up the process now rather than later.
If you’ve come across the advertisements over the Internet and television for mortgage rates under 5%, this is the best time to inquire, and in fact speed up your mortgage loan application process. If you wait a few months or even a few weeks, you might be staring at mortgage rates in excess of 6%, so make most of it before it’s too late.
July 8th, 2009 — Home Buyer, Home Loans
There may be various other reasons for which first time home buyer should opt for FHA loans, but here are some tops ones:
- FHA loans only require minimum down payment, i.e. 3.5%.
- You may get the allowances for past credit problems with a FHA Loan.
- There is a shorter time from bankruptcy before you are eligible.
- With FHA Loans. the first time home buyer also qualifies for the $8,000 Tax Credit.
- FHA appraisals do not have to be ordered through the HVCC (Home Value Code of Conduct).
If you’re also a first time home buyer, you must not ignore the FHA loan option. To discuss it in detail with us fill out the form here or call us at
July 6th, 2009 — Mortgage Loans
Obtaining a mortgage loan is just like obtaining any other good form the market, where the prices can be negotiable. Shopping around for a home mortgage loan will give you the ability to choose from the best financial deal you’ve been offered. Same will be the criteria for obtaining VA loans and FHA loans.
You can get home loans from several lenders, banks and other mortgage offering institutions. Each lender may be offering you a different price and terms, it’s easy to choose once you have inspected many lenders, but how do you know you have made the right choice? This confusion is easily solved if you hire mortgage brokers to deal with your mortgage and help find you the best lender. Since, these are professionals in the industry and have several mortgage solutions in hand. Moreover, broker’s access to several lenders means a wide range of loan products and terms from which you can choose!
June 14th, 2009 — Home Buyer, Mortgage Loans
Preference towards FHA (Federal Housing Administration) loans is increasing day by day. The reason is that they secure and reliable, both in terms of borrower as well as the lender. These mortgage loans are insured by the US Government, therefore borrowers find it convenient than other conventional loans, and for lenders it reduces borrower’s risk of default payments.
If you are looking to purchase home with the lowest possible down payment, or your credit is not perfect, or you want to refinance your current mortgage – FHA loans will be a sensible option to make. FHA Loans have:
- Low down payments
- Low closing costs
- Low mortgage insurance
- No credit score requirements
- Easy terms and conditions
