Question by Neta: FHA Loan, Upfront Mortgage Insurance Premium?
I’m in the process of buying a house through the FHA loan. Anyway, is the mortgage insurance premium required if I am putting down 20% of the cost? And if so, instead of adding the insurance premium into my loan amount, can I just pay it cash??
Best answer:
Answer by Obviousman If you are putting 20% down, mortgage insurance is not required, although it depends on the state.
If you were required to pay for insurance, cash is the WORST way to pay. There have been cases of people paying for insurance, thinking they were covered, when it turned out that an employee kept the cash and no record existed of payment. Paying by check (or electronically) is much better, since it leaves a trail.
You have just seen the house of your dreams but you have had credit problems. The ability to find home loans with bad credit can be difficult but not impossible.
Previous to 1990 if you did not qualify for a FHA or VA home mortgage it was very difficult to get a mortgage. This since has changed and there are companies providing home loans with bad credit on a daily basis. These loans were introduced to help high risk borrowers to secure a mortgage and become homeowners.
When you are looking for home loans with bad credit you will probably want to look into what is called a subprime loan. This is a loan to persons with a damaged credit history and would be considered a high risk borrower. Because of the higher risk, subprime loans normally require a larger down payment and a higher interest rate. The higher the risk the lender feels you are, based on credit scores and other factors the higher the rate to borrow will be. If the risk seems lower you could receive a lower rate and lower down payment even if you are still considered a high risk borrower.
Most subprime loans have .1% up to .6% higher rates than those of a conventional loan. This may not seem like a lot but when thinking in terms of a 0,000.00 dollar home the difference is in thousands of dollars. So even if you are considered a candidate for a subprime loan it is important to shop for the best rate available.
Home loans with bad credit are made because lenders know that often a person with less than perfect credit did want to make their payments but because of illness, loss of employment or some other event out of the borrowers control may contribute to late payments or foreclosures.
If you were searching for home loans with bad credit you will want to keep in mind a couple of important tips. You will want to plan on keeping this loan, for about two to five yearsYou will want to be using this time to help increase your credit worthiness by cleaning up old debts and obligations. You will want to be sure to make your new mortgage payments on time. After this process you can try and qualify for one of the more common and lower rated loan.
If you already own a home, and had some financial difficulties a subprime loan may help you to regain your credit status. By refinancing with home loans for bad credit you can refinance for more than you owe. Take the cash back on the equity you have and use this to pay off high interest credit cards, liens, or collections. You would save money each month and be rebuilding your credit rating at the same time.
As you can see finding home loans with bad credit is a bit costly but it is not impossible and the final outcome is with good money management you increase your credit rating and own the home of your dreams.
Ken Charnly is a personal finance publisher whose website Online Loans is dedicated to quality information on online loans. For quality information and for all your online loan needs visit and Apply for Loans Online
PriceMyLoan (PML) announced today that they have completed their interface with the Federal Housing Administration’s (FHA) TOTAL Scorecard loan approval platform. Lenders using PriceMyLoan’s automated underwriting and pricing engine now have direct access to FHA eligibility and credit scoring, providing a more efficient and cost-effective method for approving FHA loans.
FHA’s Technology Open to Approved Lenders (TOTAL) Mortgage Scorecard is a system developed by the U.S. Department of Housing and Urban Development (HUD) that evaluates borrower creditworthiness for FHA loans. PriceMyLoan’s approval to interface with FHA’s TOTAL Mortgage Scorecard gives lenders a fast and cost-effective way of approving FHA loans.
With the interface to FHA’s TOTAL Mortgage Scorecard, PriceMyLoan becomes an all-in-one platform for lenders to originate, underwrite and price FHA loans. All aspects of the approval process – FHA insurance eligibility, investor guideline eligibility and real-time pricing – are handled through a single, web-based interface.
“PriceMyLoan’s ability to interface with HUD for FHA decisions is important both for lenders and borrowers,” said Gigi Campbell, national sales director for PriceMyLoan. “FHA’s decision to allow more vendors like us to interface with TOTAL Scorecard makes FHA lending more accessible. Lenders can use our technology to improve the speed and accuracy of their FHA loan decisions, and borrowers benefit from lower costs and faster approvals.”
About PriceMyLoan
PriceMyLoan is a proprietary product of Insight Lending Solutions (ILS). Founded in 2002, ILS provides web-based application service for the mortgage lending industry and software as a service (SaaS) to its clients to enhance productivity, reduce IT dependency, and accelerate time-to-value for mortgage companies. Combining advanced technology development using XML and MISMO standards with high-quality service, ILS provides its clients with solutions that result in reduced loan cycle times, improved pull through rates, and a lowered total cost of software ownership. For more information, please visit www.pricemyloan.com.
What are FHA Loans? FHA stands for Federal Housing Authority. The (FHA) Federal Housing Authority home loan provides low-cost insured home mortgage loans that suit a variety of Florida home purchasing options. Whether you’re buying a Florida home or want or refinance your Florida mortgage, FHA loans might be right for you. If you’re unsure about your credit rating, or have concerns about a down payment, a Florida FHA loan can give you piece of mind with super low closing costs and flexible payment options.
What factors determine if I can qualify for an FHA Loan in Florida? To be eligible for an FHA mortgage in Florida , your monthly housing expense including (mortgage principal payment and interest, 1/12th property taxes, and 1/12 insurance) must be no more than 35% of your gross monthly income. Your credit for the last 12 months will be reviewed to determine your willingness to pay debt. You must be able to make a of 3.5%, and be able cover closing costs and have enough income to pay your monthly obligations.
Maximum FHA Loan Amount in Florida: The maximum loan amount allowed for Florida FHA loans vary from county to county in FL. The highest maximum FHA loan right now in Florida is 3,750 in Miami Dade, Broward, and Palm Beach Florida.
Maximum financing: In Florida , the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.
How much money will I need for the down payment and closing costs? Florida FHA loans require the Florida home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is 0,000 for example, the home buyer must invest at least ,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.
Are Closing cost more with a FHA Loan? NO in fact the seller can pay up to 6% of your closing cost including prepaid taxes and insurance.
What property types are allowed for FHA Loans in Florida? While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the Florida home loan applicant intends to occupy one part of the multi-unit residence.
What types of refinance programs does FHA offer in Florida ? There are three main types of FHA Refinance loans available in Florida.
Some advantages of using a FHA mortgage for your mortgage refinance are as follows:
Florida Cash-Out Refinance up to 85% for existing or new Florida FHA mortgages.
Cash-Out up to 85% of your properties value. Consolidate first and second mortgages into single loan. Bill consolidation programs. Easier credit and income qualifications. FHA regulated closing costs.
Refinance your Rate and Term Mortgage Refinancing up to 96.5% of your homes value.
Consolidate first and second Florida mortgages into a single loan. No FICO score OK or min. 530 credit score. Competitive rates for borrowers with a Bankruptcy older than two years. Competitive rates for borrowers with a Foreclosure older than three years. Easier credit and income qualifications. FHA regulated closing costs.
FHA Streamline Refinance for existing FHA loans only.
No Cost Interest Rate Reductions programs. No Income or Credit Qualifications*. Zero cost refinance options available. Easily switch amortization for adjustable to fixed or vice versa. Easily shorten or lengthen term of your existing loan. Easier credit and income qualifications.
FHASecure Refinance with current mortgage lates.
Refinance your Florida mortgage at competitive rates even if you have a mortgage late on your credit that is directly due to adjusting mortgage. Qualify for refinance even if currently in foreclosure.
Seniors Refinance Your Mortgages with a FHA reverse mortgage and Eliminate Your Mortgage Payments
If you are over 62 years old, you maybe able to refinance your existing Florida home loan and get rid of those monthly mortgage payments. View current FHA reverse mortgage refinance guidelines.
Florida Mortgage refinancing with a FHA loan is easy and advantageous for most homeowners. If you currently own a home and would like to discover your refinance your Florida mortgage visit
Question by Julka: When you get FHA Loan when do you pay Mortgage Premium Insurance: up front, as monthy payments or both?
Someone told me if I paid upfront I should not be paying monthy premiums, is that correct?
Hi “Golferwhoworks”. I really appreciate your answer. I can’t find the answer anywhere and I have spent hours researching it online.
Best answer:
Answer by golferwhoworks both as that is the requirement for an FHA insured note. In almost all cases the up front mip is financed into the loan
I am a mortgage banker in TN
August 29th, 2010 by Bank Loan | 6 Comments | Filed in News
Question by gaikhur: What are the monthly expenses that would be added to my monthly mortgage?
1)I am planning to buy a new home for the first time . What expenses(payment) would be added to my home mortgage like home insurance, mortgage insurance etc?
2)How can I lower my monthly mortgage? Some of my friends told that I have to pay at least 20% down payment rather than paying those amount after one year or so to lower monthly mortgage .
Thanking in advance.
Best answer:
Answer by sassy2 The lender adds Property tax and homeowner insurance premiums to your monthly bill. The larger your down payment the less you borrow the smaller your monthly payment. if you do less then 20% the PMI insurance is also added. You pay that till your equity equals 20% Impossible to find a mortgage lender with less than 20% unless it is FHA mortgage.
Know better? Leave your own answer in the comments!
Let FHA loans Help you Buy a Miami Home, ((97% down to 530 FICO))
Let FHA Loans Help You buy a Miami FL HOME
FHA loans have been helping Miami FL homebuyers become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.
Miami Low down payments mortgage options Lower Miami mortgage closing costs Easier Miami mortgage credit qualifying
What does FHA have for you?
Buying your first Miami FL home? FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
Want to buy a Miami FL fixer-upper? FHA has a loan that allows you to buy a Miami FL home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs – all in one loan.
Financial help for seniors Are you 62 or older? Do you live in your home? Do you own your Miami FL home outright or have a low loan balance? If you can answer “yes” to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
Want to make your Miami FL home more energy efficient? You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
How about Miami FL manufactured housing and mobile homes? Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.
Ask an FHA lender to tell you more about FHA loan products.
Did you know, the Miami FHA loan program provides more security for Miami homeowners than ANY other Miami FL mortgage program today? In cases of financial difficulty, you have a higher probability of NOT losing your home if you have an Miami FHA mortgage Vs. those who have a conventional or Sub-Prime home loan. Plus, all Miami FHA mortgage loans are FULLY assumable adding one more layer of protection for you and your family!
The fact is, there are a wide range of FHA home loans available to qualified Miami FL applicants. And the real truth is, these FHA mortgage do not consider your credit score. Many people find this very difficult to believe, but it is in fact dictated by HUD guidelines that credit scores cannot be considered during underwriting, only credit quality instead. This gives consumers who might not otherwise have the ability to secure a low fixed interest rate mortgage ample opportunity to succeed. It is one of the biggest benefits that many FHA home loans offer to people just like you. Want to learn more? Visit http://www.fhamortgageprograms.com/florida/Dade-County/
Did you know the Miami FL FHA Mortgage program typically only requires a 3.5% down payment and allows 6% seller-paid concessions towards your closing costs? Try getting that with a conventional loan program!
Using the FHA home loan to purchase a Miami FL home is really no different than a conventional loan. There are some additional documentation requirements, but these are actually blown out of proportion to discourage the loss of business by those FHA mortgage lenders who can’t actually originate the FHA mortgage program and want to push you into a conventional mortgage loan program.
Refinancing an existing Miami FL FHA home loan is actually called a streamline refinance. However, streamline only applies to properties for which you are refinancing your Miami FL home for rate and term improvement only. If taking cash out, or refinancing with an FHA home loan, you will have to go through the traditional qualifying processes.
Amazingly enough, you can finance Miami FL mobile home and land with the FHA home loan program. In some instances, you can even get up to 96.5% loan-to-value and much, much, much lower rates than you will get through any other loan program available today!
The Miami FL FHA reverse mortgage program is designed for Seniors who are wanting either to cash-out their equity in their home or create a monthly income stream to supplement their income. In both cases, you make NO monthly payments and it’s backed by the Federal Government!
The Miami FL FHA 203K Mortgage program is perfect for that “fixer upper” house you want to buy the one that’s perfect for you, in the perfect location, but just needs some renovation!
For those can’t qualify for the traditional FHA underwriting standards, in some areas, we can help with our Exclusive FHA Credit Flex program. This program was developed to help qualified applicants in qualified communities to buy today. If your credit has been recently beat up, this FHA home loan program could be the perfect alternative to renting.
As you can see, our FHA mortgage product diversity is uniquely ours. We serve a broad range of clients across the country and it goes without saying, whether you have outstanding credit or credit challenges, the Miami FL FHA loan programs offer homeowners and home buyers alike unmatched benefits with exceptionally competitive rates.!
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What Every Borrower Should Know About FHA and VA Mortgage Loans
As the number of homes for sale continues to grow across America, home buyers are constantly looking for more home loan choices before making their purchase offers.
With home loan interest rates at multi-decade lows, it can be a stimulant for qualified home buyers to hunker down and make the buying decision they have been delaying. But everything is not Mom’s apple pie. The underwriting guidelines from lenders has become substantially tighter and prospective buyers will encounter a bit of research and denials before embarking on the right mortgage loan.
As an example, the only zero down home loan financing choices remaining are for military veterans who qualify for V.A. benefits and Rural Development Housing loans from the U.S. Department of Agriculture. Each of these home loan choices have particular borrower conditions so consult with a competent exeprienced mortgage company so you fully understand all limitations.
One of the most popular types of mortgage home loan currently is by the FHA (Federal Housing Administration) currently requires the borrower to have at least a 3 1/2 percent down payment along with funds for closing costs. However, the closing costs can be a gift from a qualifying relative. Again your mortgage company will consult with you all of these conditions with you. Fortunately, for borrowers who already have an FHA mortgage on their primary residence, FHA Streamline Refinances exist them and can save them a bundle.
By refinancing under this government loan, you can take advantage of this refinancing choice to reduce your mortgage interest rate while saving a lot on your closing costs. Many times borrowers pay nothing out of pocket and do not increase their current motgage balance. In essence, a true rate reduction mortgage. So, it is still advantageous even if you reduce your current rate by 1%.
If your current home loan is a V.A. mortgage, you too can have a streamline refinance choice. It is typically known as the Interest Rate Reduction Refinance Loan and it is a optimal way for eligible veterans to experience substantial monthly savings on their mortgage payments. This refinancing choice also features low closing costs linked with it.
As is customary, certain conditions must be met in order to be eligible for a V.A. mortgage refinance. The main concern is there are no late mortgage payments and the home’s value. So, you see that government loans offer some attractive choices for homebuyers and current homeowners.
And with the current low interest rate environment, borrowers who do not qualify for government mortgage programs cans still get a great deal as well due to some prediction so perhaps fixed interest rate around the 3.5 percent range which is unheard of. . Yes, we live in some interesting and perhaps one of the best investment eras in quite a while. Will you take advantage or be caught in the headlights
Frank Collins is a real estate investor and recommends learning about FHA Streamline Refinance loans for borrowers who already have a FHA loan or are searching for VA Home Mortgage programs for active duty armed forces and veterans in your area
Question by Mellow: How do I get a loan for a house with a low credit score and low income?
The house I want is listed for 70,000. My credit score is 599, I make 20,000 a year and I have 10,000 cash saved. How would I go about getting a loan with these stats?
Best answer:
Answer by golferwhoworks you won’t by any conventional loan as the scores must be 620 in the middle of 3 to get even an FHA loan
I am a mortgage banker in TN
