Weekly mortgage applications in the United States rose in the week ending Dec. 19, according to data released from the Mortgage Bankers' Association (MBA) on Wednesday, which reported a 48.0% week-over-week increase in applications. In the previous…(read more)

Discussing the different aspects of FHA mortgage loans could take 50 different parts, but I have attempted to condense some of the information into just three parts. This part has to do with manufactured homes and FHA financing, including single wide manufactured homes. This was originally posted on my Active Rain blog.

This is Part Three in my series on FHA Real Estate Loans and some things that home buyers and home owners may not be aware of. Today, I am going to discuss the purchase and refinance of manufactured homes with their own land. Manufactured homes on leased land are not eligible for FHA loans in my lending area of Oregon, Washington and California. FHA loans, except for streamline refinances are limited to owner occupied primary residences only.

First of all, what is a manufactured home? A manufactured home is one that is built in a factory and transported to the home site in sections. This differs from a modular home that is built on site from factory built pieces, i.e., walls, roof, floors, etc or a site built (stick built) home. It can be single wide or multi wide and still be financeable with an FHA loan. It must have been built after June 15, 1976 and have a concrete foundation and tie downs. For a 203b loan, foundation and/or tie downs can be retrofitted prior to closing. For a 203k loan, both must be in place prior to approval.

Purchase transactions for manufactured homes are available with a minimum of 3.5% down, (I will be using 2009 rules) unless you are using a 203k, 203h or an energy efficient mortgage and then 3% is the minimum down payment required. Cash out refinances are available up to 95 percent loan to value (LTV) if the home has been owned for at least 12 months. If the home has been owned for less, then the loan is limited to 85% LTV. Rate and term, either streamline cost or no cost, are not as limited.

Here are some other quirks that can and cannot be done:

•·         Two manufactured homes (M/H) on a single lot are acceptable. (both must meet requirements.)

•·         M/H with “stick built” additions are not acceptable.

•·         M/H located in PUDs (planned unit developments) are acceptable.

•·         M/H located in condominium projects are not acceptable.

•·         M/H located in a flood zone are not acceptable.

•·         M/H may not have been moved from original site location are not acceptable. (Only Federal VA loans will accept any M/H that has been moved.)

OK, that is the basic run down. Important information for this installment, are that single wide manufactured homes can be financed using FHA insured loans, homes must be newer than June 15, 1976 and cash out is available through FHA on manufactured homes. Lastly, if the manufactured home is located in a flood zone, it is probably better to put pontoons on it and try to get a floating house loan.

Check out Part One and Part Two.

New home sales in the U.S. fell less than expected in November on the back of a downward revision to the previous month, the Commerce Department reported Tuesday. Meanwhile, the median sale price rose to $220,400. New home sales fell to an annualized…(read more)

U.S. house prices continued to decline in October, according to data from the Federal Housing Finance Agency ( FHFA ), which recorded a 1.1% drop for the month. The fall was slightly better than economists' expectations for a 1.3% decline, and the…(read more)

The pace of sales for existing homes in the United States weakened much more than market expectations in November, according to an industry survey released Tuesday. U.S. existing home sales fell to an annualized pace of 4.49 million units in November…(read more)

What Is A Florida FHA Home Loan?

FHA stands for Federal Housing Administration. The FHA regulates these loans and offers them at more competitive terms and rates to keep home ownership affordable for a wider variety of people. This makes a Florida FHA Home Loan ideal for first time home buyers or those with less than perfect credit. However, there are some strict requirements, so this is not the right choice for everyone.

Advantages of FHA Loans for First Time or Damaged Credit Home Buyers

The credit requirements for FHA home loans are much lower than other traditional mortgage loans. You must have some credit established, but there is greater flexibility for accepting credit imperfections. You can even use non-traditional ways of proving payment history, such as utilities or rental history, which is great for first-time buyers. If this doesn’t fit your current situation, read more about other Florida Home Loans here.

Other Advantages of Florida FHA Home Loans

The low credit criteria of FHA home loans can be good for home buyers other than those with a bad credit score. For example, some people just haven’t had enough major expenses to build a good credit score. You’d be surprised how many people avoid using credit at all costs and then find themselves out of luck when they need it.

Another advantage is that there are no income limit requirements. This opens the door for more people to take advantage of these low interest loans. Your fees will also be lower than other options because they are regulated closely to avoid over charging. You don’t need any cash reserves and you can take advantage of low down payments.

Something most people don’t realize is that you can receive a gift to use as your down payment, lowering the cost of taxes charged against you. And the interest you pay on the loan may also be tax deductible, which is yet another hidden advantage not widely familiar to everyone.

FHA Home Loan Qualifications to be Aware Of

Of course, there are a few things you need to keep in mind when considering Florida FHA home loans. While the credit requirements are lenient, there are still guidelines. You cannot have declared bankruptcy within the last two years, and you must have a decent credit history since any previous bankruptcy. You will not be eligible for an FHA loan if you’ve had a foreclosure within the last three years. This requirement can be waived, however, if you can prove you were under extenuating conditions.

Any outstanding federal debt, like student loans or SBA loans, should be taken care of.  It’s also a good idea to have all judgments paid off before applying for Florida FHA home loans. If you have a spouse who is not a part of the purchase, they may be required to sign a form.

When Selecting Your Florida Home Loan, Be Sure to Practice Good Judgment

As with all loan option, make sure you ask any questions and read all terms and conditions before you sign for your Florida FHA home loan. Getting a great rate with great terms can turn into a nightmare if the payments are too high, so figure out how much you can afford before agreeing. This way you can be sure your dream house will stay yours.

Overall, a Florida FHA home loan can save home buyers a lot of stress and money as long as they are careful about their decisions. Take the time to explore your other options for Florida Home Loans by clicking here.

Apply for a Florida FHA Mortgage Today

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL, 33884	Mobile: 863-604-3019 Fax: 888-496-0265 kevin.s@sigfunding.com http://www.floridahomeloansspecialist.com
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The Florida Mortgage Blogger |  Central Florida Homes and Mortgage Report

For many in the first time Florida homebuyer category, the biggest obstacle is usually… wait for it… yup!  You guessed it… the down payment!

Shoot.  Even those of you reading this who are no longer home buying virgins most likely remember saying something like:

“Man, I’d like to buy a home but don’t have the money for the down payment or closing costs!”

Up until October 1st of this year, many first time homebuyers looked to Downpayment Assistance Programs (DPAs) like those offered through Nehemiah and Ameridream as a means of sourcing the funds necessary to meet FHA’s 3 percent  (now 3.5 percent) down payment requirement plus cover some if not all of their closing costs.  Though DPAs as many of us have come to know them have been suspended, there are lesser known alternatives out there.

Now, there is a lot of merited talk about the $7,500 First Time Homebuyer Income Tax Credit and the ways it can offset down payment costs, the purpose of this Florida FHA Mortgage post is to provide some insight into 6 of the most feasible down payment assistance options that do still exist:

1. Gift Funds - Family, close friends (with no financial interest), employers, and charitable organizations (with no financial interest) are acceptable donors.
2. Secured Loans - Can be collateralized by investment accounts or real property. Payments on loans against deposited funds (401K, etc.) aren’t considered in ratios.
3. Sale of Personal Property - Requires third party estimate of worth and proof of sale (car, boat, motorcycle, eBay).
4. Bridal Registry Accounts - Account is opened prior to wedding to allow family and friends to deposit cash gifts.
5. Commission from Sale - Family member, who is a licensed real estate agent and entitled to the commission from the sale, can gift commission to borrower.
6. Rent Credit - When purchasing a home currently being rented, the amount of rental payments that exceed the fair market rent can be considered part of the cash investment.

Additional details and documentation requirements apply to each source but all are legitimate and workable.   If you have further questions about any of these Florida FHA mortgage down payment assistance options, contact me for all the information.

Apply for a Florida FHA Mortgage Today

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL, 33884	Mobile: 863-604-3019 Fax: 888-496-0265 kevin.s@sigfunding.com http://www.floridahomeloansspecialist.com
Building effective relationships one step at a time…
Visit MyBlogLog and get a signature like this!

Catch More Florida Mortgage News and Insights here:

The Florida Mortgage Blogger | Central Florida Homes and Mortgage Report

Credit requirements for FHA loans can be significantly different than for conventional loans. I have attempted to explain the requirements in this following blog that I originally posted on Active Rain. However, since this is and will be the pre-emminent location for FHA loan information, I have also posted it here.

This is Part Two in a three part series about FHA mortgage loans. Part One talked about the changes in FHA loans going into effect on Jan. 1 and the things that wouldn’t be changing. In this installment, I will cover some credit issues having to do with FHA loans.

 

FHA mortgage loans do not have a minimum credit score requirement. However, FHA does not make the loans, they insure them. The lenders that make the loans may have different rules. In this case, it is the Golden Rule; he with the gold makes the rule!

 

1. Different lenders, because of the above, will have different cut off points for credit score. The lowest credit score that we can use is 550.
2. There are charges for lower credit score customers, depending on the investor on the loan. If the score is 620 or above, normally, there is no extra charge for credit score. If the score is below 580, the charge goes up.
3. FHA borrowers do not have to have a credit score. If no score is received, the customer can qualify on what is called “non-traditional” credit. For example, credit ratings from landlord, insurance agency, power company, TV cable company or telephone company. At least three sources of “non-traditional” credit are generally required.
4. Chapter 7 Bankruptcy is acceptable after two years from discharge (not filing) if new credit has been established. There are exceptions to this deadline in the case of extenuating circumstances. Trust me; the inability to keep up with your responsibilities is not an extenuating circumstance. Death, preferably your own, will often qualify you for this exception.
5. Chapter 13 Bankruptcy, after a year in the program, with the Trustee approval, will be considered under FHA guidelines. All payments in the program must have been made on time.
6. FHA underwriting pays very close attention to the past 12 months of payment history. Normally, if there are late payments in the past 12 months, an applicant should wait until the last late payment is over 12 months old. Exception to this rule: when an automated approval is received, this requirement may be superseded.

 

This is just a brief overview of what underwriting requirements are for FHA mortgage loans. Every FHA loan application is considered on its own. The automated system used to underwrite FHA loans is called the “Total Scorecard,” but can, in certain circumstances, be overridden by the underwriter. Stay tuned for Part Three of this series.

I will be on semi-hiatus from blogging until January 5, 2009. Mostly, it’s to work on my clients’ refinance and purchase loans, but it’s also to catch a little break with my family. If you miss me, get your fix from my Twitter feed: http://twitter.com/mortgagereports. On Twitter, I give a…

Read the full post at http://www.themortgagereports.com

Remember a week or so ago a story about how credit card issuers and home equity lenders are cutting back on credit lines even to good customers and/or dramatically raising interest rates? Well, there is a new wrinkle. The Atlanta Journal Constitution…(read more)