Buying a house financing is being down with an FHA loan and seller paying closing cost,what happens?
what happens to the earnest money. is it subtract from the down payment?
I just got approved for a FHA loan, are there any Down Payment assistance grants i can look into?
I am a first time home buyer in Columbus Ohio and i heard about Down Payment Assistance Grants program that could exist. Could anyone shed some light on this?
How many people get turned down for a FHA loan?
I have 6,000 in the bank my credit is just below 600 and I have many thinks like letters showing I payed my bills on time
Is 3.5% down on a FHA loan to buy a home a good deal if you have great credit?
with today’s economy is this a good deal on a FHA loan with a 6.5% fixed apr?
i am a 1st time home buyer
No 20 percent down requirement for FHA mortgages
There’s been a lot of talk regarding a new federal standard for home loans and how it will impact the marketplace. In these discussions, Federal Housing Authority (FHA) mortgages are frequently mentioned as if they had some sort of disease which is tearing at the heart of the national economy.
The new rules under Wall Street reform create a standard for loans. If a loan fits, it is then a qualified residential mortgage (QRM). If it doesn’t fit, then the lender can still make the loan and a borrower can still be dumb enough to accept such financing.
Lenders, of course, are screaming about the new QRMs. They’re telling everyone who will listen that loans under the QRM will require 20 percent, so be very afraid of the new standard.
Why 20-percent down doesn’t apply
This is nonsense. The 20-percent standard does not apply to FHA loans. Or VA financing. Or loans bought by Fannie Mae and Freddie Mac. Or loans lenders hold in portfolio. In other words, the 20 percent requirement does not apply to any safe and sane mortgage. The big down payment requirement does not apply to nearly 80 percent of all loans made today.
As a side issue, lenders are distressed with the FHA.
“We support FHA’s role as a source of financing for first-time homebuyers and other underserved groups,” explains the chairman of the Mortgage Bankers Association, Michael D. Berman. “However, because of the wide disparity between FHA’s down payment requirement of 3.5 percent and the QRM’s requirement of 20 percent, MBA is concerned that the FHA programs will be over-utilized.
“While FHA should continue to play a critical role in our housing finance system, MBA firmly believes that it is not in the public interest for a government insurance program like FHA to dominate the market, especially if private capital is available to finance and insure mortgages that exhibit a low risk of borrower default.”
Since when did the “over-utilization” of a loan program become a problem? Imagine if Target started a campaign on Capitol Hill to limit the size of Walmart because the bigger retail chain was “over-utilized.”
Here’s an idea: If the lending industry wants to make fewer FHA loans, then compete. Come up with something better. Come up with something cheaper.
Digging deeper
The real issue, the one hidden behind fake worries regarding 20 percent down, is that when lenders make terrible loans under the new system, they’ll be required to set aside 5 percent of the loan amount in a reserve fund.
And what happens if lenders must keep 5 percent in reserve? They have lower profits.
So, if we get rid of the 5 percent reserve requirement, then lenders can make more toxic loans. More option ARMs. More loans with no doc loan applications. More interest-only mortgages.
These are loans which should never have been allowed by federal regulators in the first place. Such mortgages are at the heart of the mortgage meltdown and failures on Wall Street. We don’t need these loans again. We do need the FHA.
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How do Real Estate Agents continue to make money in this down economy?
I am considering a bachelors in Real Estate Business, and the only thing that scares me about being an agent is the fact that salary is commission based, and how do agents live when nothing is selling? I know houses are still being bought and sold, but still. ?
Can multiple relatives contribute to my 3% down payment FHA loan?
I am about to close escrow and the lender cut off our down payment assistance with Nehemiah due to timing constraints. We now have to scramble to look for relatives to help with down payment. I have two relatives who are willing to help out. My question is if we are allowed to have multiple family members contribute to the 3%. One family member is out of the country, but sent the money via Wester Union. They are both signing FHA Gift letters and providing documentation. Thanks!
Down Payment Assistance For San Bernardino Home Buyers
San Bernardino homebuyers can achieve home ownership through this down payment assistance program…CHF Platinum Program. This program is designed to assist low to moderate income homebuyers with the purchase of a home, by providing closing cost and/or down payment assistance in the form of a grant, which in reality is a true gift.
The CHF Platinum Program is for the purchase of an owner occupied property in the state of California. This unique program is not limited to first time homebuyers, but is open to all eligible applicants using FHA or VA loan programs (USDA with some lenders).
Some of the program highlights include:
- The first mortgage loan features a 30 year fixed rate that is fully amortized.
- The grant is not to exceed 3% of the first mortgage loan amount, including up-front mortgage insurance premium (MIP).
- Owner occupied primary residence in the state of California, existing or new homes qualify.
- The grant may be used for down payment and/or closing costs.
- The borrower(s) must be a U.S. citizen, permanent resident alien or qualified alien.
- Borrower(s) income cannot exceed CRHMFA’s income limits established for the eligible county in which the borrower(s) is purchasing (120% AMI-Area Medium Income).
- Home buyer education is not required at this time.
The CHF Platinum Program has many restrictions and guidelines that may prevent you from qualifying for this program. It is always best to consult with a seasoned mortgage professional to help determine your eligibility of this program.
Please contact me anytime if you have any questions about down payment assistance or any other home financing options.
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Do you have to pay mortgage insurance with the FHA 3.5% down payment loan?
I’m getting an FHA loan which includes a 3.5% down payment.
Do I still have to pay mortgage insurance or will that be covered by FHA?
Getting Over the Down Payment Hurdle
One of the top questions asked by first time homebuyers is how much money they will need to come up with for the down payment on a home.
The answer depends on several factors:
- Credit history
- Purchase price of the home
- Are you eligible for down payment assistance?
- Will you put at least 20% down?
- Do you have VA eligibility?
VA is one of the last remaining Zero Down Loans beside a Rural Development or USDA Loan. A USDA loan as the name implies is for rural properties and is not available within the Colorado Springs city limits. If you’re not eligible for a VA or USDA loan then an FHA loan will more than likely be your lowest cost option.
Currently an FHA loan requires 3.5% of the purchase price as the down payment.
For example:
- Your agreed upon purchase price is $200,000
- Your down payment requirement would be $7000
FHA is also very flexible when it comes to the source of the down payment.
Acceptable FHA Down Payment Sources:
- Gift Funds – Family, close friends, employers, and charitable organizations can be acceptable donors as long as they have no financial interest in the property.
- Loans from Immediate Family – Unsecured or secured loans against the property you are purchasing are acceptable. We will need the term and interest rate along with an estimated payment to calculate with the payment.
- Secured Loans – Can be collateralized by investment accounts or real property. Payments on loans against deposited funds (401K, etc.) are not counted against you in the debt to income caluclations.
- Trade Equity – Borrower can trade real property as part of cash investment. (i.e. boat)
- Sale of Personal Property – Requires a 3rd party estimate of value and documentation proving the sale.
- Bridal Registry Accounts – This little known fact is a nice way to contribute to a loved one’s down payment. The account must be opened prior to the wedding and allows family and friends to deposit cash gifts.
- Sweat Equity – Any work done or materials purchased by the borrower before closing on existing or new construction can be counted towards the down payment.
- Commission from Sale – If you have a licensed real estate agent as a family member, they are able to gift their commission from the sale to you.
- Rent Credit – If you are purchasing the home you are currently renting you can count the amount of rental payments that exceed the fair market as defined by an appraiser.
Many first-time homebuyers turn to an FHA loan due to the minimal down payment requirement, flexible credit guidelines and low interest rates.
To learn more: Check out our FREE Top 20 Homebuyer Secrets that can save you thousands of dollars! Plus browse our Home Buying Resources section and fill-out a free no-obligation secure online application or call us in Colorado Springs, Colorado at 719.387.1368 with any questions.
Bad credit or No credit? Check out our Credit Repair Program and get started on the path to homeownership today!
Overcome loan application stage fright by reading my Simple Steps to a Complete FHA Loan Application
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