FHA Housing Loan – 203k FHA Rehab Loan

Every single individual wants and needs a home. A house serves as a person’s fortress where he or she can retreat from worldly problems and complications. It serves as a haven for comfort, relaxation, and security. That is why is highly crucial for every single person in this Earth needs to have even just a single house that they could settle in every single day and night… One will have no problem doing that through the use of the 203k FHA rehab loan. This type of loan is about giving its buyers the ability to buy and rehabilitate or renovate a house at a much lesser price than those houses which do not offer an FHA loan.

Those qualified to avail of this type of FHA housing loan must possess and have these important criteria:

Criterion 1: The buying and refining of the FHA house must be its future owner.
Criterion 2: The FHA house and its buyer should engage in non-profit funds.
Criterion 3: Qualified FHA home buyers should not be investors as they are not allowed.

If you are interested in purchasing and rehabilitating/reconstructing an FHA house then it is very crucial for you to follow these seven easy steps for you to get started on using the 203k FHA loan and ultimately own an FHA house:

Step 1: A contract of purchase which is non-contingent must be submitted upon you finding the FHA house you want.

Step 2: Once the contract of purchase have been approved and signed, you should now contact the 203k FHA loan agent and schedule a house tour/inspection and discuss the pricings and specifics of the house.

Step 3: Once all have been settled and dealt with, the 203k FHA loan agent will contact the house lender or mortgage broker and shall work on the three bid packages of the contractors for you.

Step 4: Look for general or multiple contractors to bid for your job.

Step 5: The appraiser will work on the house write-up to determine the value of your chosen house.

Step 6: The loan closes approximately 30 to 45 days in average.

Step 7: The transfer of the house and its renovations will soon take place and be yours.

Truly the 203k FHA loan is a benefit for all of us. Everyone will now be able to own and reconstruct a home thanks to the FHA house loans and services. So go ahead and get your FHA house now.

Hope For the Hopeless – FHA Housing Loans

Are you one of those people looking for getting yourself and your family a house and are looking into the possibility of going through the process of getting FHA housing loans? Are you feeling overwhelmed by the massive number in your bills that, because of the triggered interest rates, keeps on growing like a monster on your back? And do these bills make you think that maybe there isn’t any more chance for you to get your home loan? The best thing to remember is not to lose hope. Due to the increasing efficacy of the FHA processes as bolstered by the Obama bailout fund, you can rest assured that you will indeed get the home you dream about.

So many Americans are looking for the best house for their families but still cannot obtain this dream because they are not financially capable to get the mortgage necessary for this. Traditional loans are not accessible to a lot of people who have low to medium salaries.

This is exactly why the Federal Housing Administration (or the FHA for short) has been in the business of giving such families the chance to get a loan for a proper house. This administration was founded long ago during the great depression. And now that another great depression is upon us, the FHA is bolstering its ranks and resources to face the new surge of families in need of FHA housing loans. The loan programs they have are specifically designed to give a good chance for the homeless and the financially challenged people.

Getting a mortgage from the FHA is very manageable. The first thing that you need to know is how to aim these kinds of loans to your particular financial situation. It is therefore vital that you approach your bank or lender first before going to the FHA themselves. This is because that the authority is not actually the one that is giving out the loans. The loan actually comes from private banks and lenders. The role of the FHA in the loan is to approve certain lenders and give them an insured loan that can protect them even if the borrower defaults from the loan. This is why the lenders are able to lower their risk assessment of the loan applicants. The insurance lessens the risk for the banks and lenders. Because of this, the mortgage brokers will still be the ones to determine the rates and other details of these special loans. There are also differences from state to state or area to area so one must be aware of these specific differences as well.

Remember that even if your credit is not that good or if your income leaves a lot to be desired, getting a housing loan is not impossible. The FHA housing loans can be availed by almost anyone who dreams of finally getting that dream house for their family. The important thing is to do the research and legwork as well as to not give up on hope.

Some Things To Note When Making Housing Loan Comparison

There are numerous forms of housing loan packages available in the market. When you make housing loan comparison, it is imperative that a fair comparison is made. Being negligent to this can result in comparing mortgages that does not make sense. Sort of like comparing an apple to an orange.

For example, it cannot be realistic comparing a 15 year mortgage to a 30 year mortgage. It also does not make sense to compare housing loans with fixed interest rate to those with floating interest rates. Make comparison between different mortgage lenders with near similar structure on lock-in period and interest rates. This can also vary especially if the mortgage lender is one that is willing to be flexible on their housing loan packages. You might even get into a situation where you have to choose between favorable prepayment penalties and favorable interest rates and vice-versa.

Adding up the total fees and charges at closing will give you a good picture of which offers are the most attractive on signing up. There can be a varying number of charges and fees carrying different labels. Mortgage lenders may treat these fees differently. One may give subsidies but charge higher processing fees. Another may waive processing fees provided you take up their in-house home insurance package. So it is best that you figure out these details on closing costs before making your choice on an offer. Add up all the fees involved to make a fair and proper housing loan comparison.

Note that lower interest rates will not necessarily mean a better deal for you. Look carefully into the terms of the deal. It can be low rate for only an initial first year of the loan, and much higher rates after that. Remember to question the details of closing costs before giving your commitment to accept a housing loan offer from a lender.

When you are fully aware that you are going to switch mortgage lenders after the lock-in period, you should take greater care in your offer selection. This is because the redemption penalty will be of meticulous concern to you. However, if you are willing to pay higher interest rates and obtain favorable penalty terms, tell your mortgage lender. You wouldn’t know how flexible they can be if you don’t ask.

For example, when you are looking at housing loan offers with a floating rate in Singapore, it is most commonly bench-marked to the publicly available Singapore Interbank Offered Rate (SIBOR) or Swap Offered Rate (SOR). A margin is added on top of the available rates, and that becomes your interest rate.

Generally, SIBOR is more stable while the SOR is more volatile in fluctuation. So an individual with an appetite for calculated risk may choose a housing loan bench-marked to the SOR when it is low. Do ask questions on current outlooks when deciding offers between these 2 benchmark rates. Because rates can change daily, the lenders are in the best position to provide you timely information on interest rates.

The most widespread deciding factor that influences an individual on a housing loan decision is the loan-to-value ( LTV ). The LTV is the amount that a mortgage lender is willing to offer the borrower for the housing loan. The common practice is to finance an amount based on the market valuation or purchase price of the property in question, whichever is lower. It simply means that a house has a current market valuation of $ 400,000 and you bought it for $500,000, the mortgage lender will only be comfortable to finance a portion of the valuation price at the lower value of the 2 – $400,000.

Don’t assume that a lender will finance 80% of a property purchase just because you heard of it from a friend. Be careful on this and check with a lender on how much they are willing to finance. This is because different properties in different categories can be treated differently by a lender. They may be willing to finance 80% of properties in category A while only 60% of properties deemed to be in category B. Whereas, a different lender may have an internal policy that is the other way around.

Different mortgage lenders can have differing lending policies. Factors like proposed redevelopment, location, etc, can be determining factors. So be careful when comparing housing loans. Decisions from one lender does not necessarily serve as a reflection of the whole market.