Different Kinds of FHA Housing Loans

Everyone who is financially unstable in this time of economic crisis could really use the help that the Federal Housing Administration or the FHA is offering. FHA housing loans might be their best course of action. These kinds of loans are made to help those with low or medium income as well as those with not so perfect credit scores. They are a form of government help that gives such American citizens a good chance to get a house by lowering the price of the home in question.

That is, if the FHA has handled the house officially. Thus, the federal loan program is also geared towards suppressing further cases of joblessness by giving out clerical positions in the FHA as well as construction projects and other real estate developments (helping those in architecture and engineering), a field which sorely needs all the help it can get following its downfall as caused by the great real estate blowout that started the whole economic mess in the first place. The FHA program also helps out companies that deal with home insurance.

There are many kinds of FHA housing loans that are available to everyone who needs them. These different kinds of loans are tailor made to suit different financial circumstances. One of the most fundamental differences between the varied kinds of offerings is the interest rates that are attached to them.

One kind is the adjustable rate mortgage. The principal amount of the loan to be paid is already set. However, the rate of interest for this mortgage can actually change quite a bit through the years. The changes all depends on several factors. Usually, it fluctuates from the third as well as from the fifth payment annum.

Another kind of offering is the traditional fixed-rate type of FHA home loan. This kind, as the name suggests, as fixed interest and amount. Therefore, this will not change through the course of the payment months. This is great for those who do not want any unsure changes.

A third kind of FHA offering is a hybrid loan. But do not be fooled by what the name suggests which makes it seem like it has both or a combination of the two loans principle characteristics. It is actually basically having all the characteristics of the adjustable rate mortgage. However, the time the changes happen are different and are much longer.

The fourth kind is the “self employed” income mortgage. As the name suggests, this is specially made for those who are the owners of their own business or small company as well as those with little income documents to show.

A fifth type is the Balloon mortgage. This kind is peculiar because the payments start out small in the beginning, very affordable for a lot of people. Then as time passes, the payments balloons and becomes larger at a particular period.

The final kind of mortgage is the relocation mortgage. This final kind of the FHA housing loans is special because it specifically aims for those borrowers who transfer to a different house even while their current house is in the process of being sold.

VA House Loans – 5 Things You Need to Know About Home Loans For Veterans!

Although there are many different types of mortgage loan programs, all of them may not be for you and some of them you may not qualify for them. It is important for you to do your research on the types of mortgage loans and choose the best one that meets your particular home mortgage loan needs. VA House Loans may be one of the mortgage loan programs you may want to consider if you are a military veteran.

The VA House Loan is a loan program guaranteed by the government for veterans of the U.S. military to purchase a primary residence.

VA Home Mortgages have many benefits.

1. No Down Payment Is Required

A VA Home Mortgage gives the military veteran a chance to purchase a home with no money down. This is one of a very few mortgage programs that allow a person to buy a home with no money down.

So, if you are a military veteran that has qualifying income and a good credit score you can buy your dream home without a down payment.

But a veteran would need money for closing costs, homeowner’s insurance and other costs to buy a home. The good news is you can ask the seller to pay those costs.

2. Seller Can Pay Your Closing Costs

VA House Loans will allow the seller help you to pay closings. The seller can pay up to 4% of the purchase price of your home. For example, if the purchase price of your home is $150,000 the seller can pay up to $6,000 for your closing costs.

With the no down payment and the seller paying your closing costs, you can buy a home without a single dollar from you. It is 100% financing at its best.

3. Low VA Interest Rates

VA Mortgage Loans most times offer the lowest interest rates available for veterans. The VA mortgage interest rates are not based on credit scores like most conventional mortgage loans. If you are a veteran and your credit score is 650, your VA interest rate would be the same as if your credit score of 780. On a conventional loan your rate is lower if your credit score is higher.

The current VA interest rate is 4.5%.

4. There Is No Private Mortgage Insurance (PMI)

VA House Loans does not have monthly private mortgage insurance like all insured conventional loans and FHA home loans. This could save you from $25 to $250 a month on your monthly payment according to the amount of your house loan.

5. The VA Mortgage Loan Size Is Limited

VA does set a limit on the amount of the mortgage you can receive. You really need to contact a VA lender in your area to help you to determine the amount of mortgage you can get.

Because there are so many different types of mortgage loan programs available in the marketplace, you need to do your research and choose the one that is best for you.

But if you are a veteran you really need to check out the VA House Loan Program. You may be able to purchase your dream home with no money out of your pocket. The best place to start your research is the Internet. You will find many websites that will help you to choose the perfect mortgage for you!

FHA Loan Basic Requirements – FHA Housing Loan Qualification Requirements! Do I Qualify?

The Federal Housing & Urban Development Department (HUD) has come up with various financial benefits for the home owners in the 2009 Stimulus Package. Unlike the conventional housing loans, now the requirements have been made very simple. They are all based on affordability of the housing in the long run. The benefits would reach the home owners in the form of tax credits, grants and loans. The department looking after the housing loans under the scheme is termed as Federal Housing Administration (FHA).

In order to qualify for the FHA loan, the following are the requirements laid down by the 2009 Stimulus Package:

The Mortgage Amount

This clause seems to have replaced the equity requirement. Earlier the home owners could apply for housing loan modification only if they had 20% or more equity holdings in the house. Now if their mortgage amount is more 105% of the actual value of the home, they can apply for the modification. The equity holding is not important.

. The Income Ceil

One might also apply for the FHA loan is they want to restrict their monthly mortgage amount to 31% of their gross monthly income. Then another clause mandatory for the borrower would be that the sum of all debt payments (like car payments, credit card, etc.) can not exceed 55% of their pre tax income.

. The basics

In order to get the FHA loan some basics apply, like the person should be above 18 years of age and a US citizen. The house in consideration must be located in US only.

. The credit scores

Now the credit scores of the borrower are not that important. Yet, you must give the right & complete information while applying for the housing loan. Else, your application would get rejected.

You can seek further guidance on the requirements of getting the FHA housing loans from the HUD counselors. They would help you to get or save your house with out any fees. Their fee is being paid by the Federal Government under the Stimulus Package.