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An Fha Loan Might be your Best Option

Author: Sugar Mortgage Author Ranking Blue | Posted: 11-12-2007 | Comments: 0 | Views: 5 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
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SugarMortgage.com: If you obtained a high risk subprime loan with the intentions of refinancing later, then you might be one of many homeowners suffering from the inability to refinance. Not many people predicted a decline in real estate values, the astonishing amount of foreclosures, the new conservative lending guidelines and/or the disappearance of many major US Lenders. But these factors have made it virtually impossible for many homeowners to refinance out of their subprime loan.

But there still may be hope, thanks to the Federal Housing Administration (FHA). FHA is the largest insurer of mortgages in the world, insuring over 34 million properties since 1934. Below are some attractive features of an FHA loan...

- Very low fixed interest rates

- No prepayment penalty

- No credit score requirements

- Only need to be 2 years out of a Ch.7 bankruptcy (or less in unique situations)

- Can be approved while in a Ch.13 bankruptcy

- More liberal lending guidelines than a traditional conforming loan

- Borrow up-to 97.75% of your homes appraised value (or sales price on a purchase)

- In many cases you can keep a second mortgage, even if you are over 100% of your appraised value

- FHA gives you the option to explain credit problems

- Allows a non-occupying co-borrower

- Allows money (if any) due at closing to come from a gift

And recently FHA rolled out their newest program - FHASecure. FHASecure is a refinancing option that gives credit-worthy homeowners, who were making timely mortgage payments before their loans reset but are now in default, a second chance with a FHA insured loan product.

By refinancing into a FHA insured mortgage, you can expect to pay lower monthly mortgage payments. FHASecure can improve the quality of life for many communities by helping to reduce the number of mortgage defaults and bringing greater stability to local housing markets.

Not all Lenders are approved to offer FHA loans. This means in many situations a loan applicant may not even realize FHA is an option because the lender they are working with does not offer it. In addition, one Lender may decline your FHA loan application and another Lender may approve it, even though Lenders use the same guidelines. This is because when applying for an FHA loan you can explain why you may have had some credit issues either currently or in the past. One lender may feel it is a good reason and another may feel its not.

If you feel an FHA option may be for you, then click here to view FHA approved lenders in your area.

Resources:

http://www.fha.gov

http://www.fha.gov/about/index.cfm

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Frequently Asked Questions

How can i get a hud home for me an kids
By: stacey | 24-08-2008
how can i get a hud home for me an kids

I had a hearing with section 8 and I did not win ...
By: Dorina | 23-08-2008
I had a hearing with section 8 and I did not win can I appeal it again?

Port from one state to another
By: Sally | 22-08-2008
If you are port from another state can they give you a extension to find a house

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By: Pooh | 22-08-2008
Need help! Lender is telling a single parent in the military they have to have approved transfer orders or else they will cancel their home loan that was preapproved. Buyer has parents as legal guardians of children in California and parents have her children and will reside rent free with kids to provide her child care plan required by military. Can they do this??

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I need to know if I can get assistance from HUD, if I am not divorced and have not filed for divorce yet. I have two children, not working but I am recieving child support every week.

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By: jaye | 18-08-2008
What are the income guidelines for a senior who is on SSI living in HUD housing. NYS HUD guidelines state that a senior living in HUD housing can co-sign for a HUD house as a support person, even though they live in HUD housing out of state and their housing is not jeopardized.  Is this upheld in the state of Florida?

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