Archive for FHA lenders
Comparing the Best Mortgage Lenders Online
Posted by: | CommentsConnecting with the best mortgage lenders online can save you time and money. Lenders like Nationwide that have good experieince usually offer lower interest rates, better terms and the ride through the home loan process is typically a lot smoother. There are a huge number of mortgage lenders out there, each of which has its own particular qualities that will make it more or less suited to your individual needs. Comparing mortgage lenders is an essential part of searching for a home, especially if you have specific requirements or do not meet the minimum qualifications necessary for some types of loans (such as if you have poor credit).
Compare Mortgage Rates from the Best Lenders Online
Here, we’ll go over a few of the things you’ll want to consider when choosing the best mortgage lenders, as well as a few things to take into account when working towards home refinancing or getting approved for an affordable purchase loan. Whether it’s a conventional, jumbo, FHA or VA loan, you need to understand your loan eligibility and the program guidelines, so you can make a good financial decision.
The best mortgage lenders for your needs will have requirements that you can meet, and will also offer terms and rates that you find acceptable. For example, suppose you have a good credit score of about 750. Let us also suppose that you have the ability to place a ten percent down payment on the home you are looking into. The mortgage lender that offers you the best terms will likely be entirely different than the best choice for someone with poor credit and less starting capital. This means that comparison shopping is very important, but knowing your personal information that can affect your mortgage is just as critical.
If you are looking into an FHA mortgage loan for a house, then there are a few things you will need to know. The FHA minimum credit score for 2011 is 500, which is significantly lower than many other types of loan. The minimum down payment available for a home from the FHA is 3.5%, although in order to qualify for this you must have a credit score of at least 580. However, there is an important factor to remember here. Because the FHA does not itself give out the loans, as this is done by private, FHA lenders, the requirements set by the lender you choose may be greater than those set by the FHA. This means that if the approved FHA lender you choose sets the minimum credit score at 600, you will need to meet that, even if you are getting an FHA home loan.
Comparing the best mortgage lenders online is generally a matter of knowing your relevant information, the type and nature of loan you are looking for, and what you can actually afford. Keeping this information in mind will help make your search easier.
FHA Mortgage Refinance Solutions
Posted by: | CommentsMortgage interest rates have dropped to record lows for three weeks in a row. Unfortunately the benefits of low home loan rates are not able to be realized by a high percentage of homeowners because they do not meet the current mortgage refinance requirements. For the most part, today borrowers need higher credit scores and more home equity. For borrowers who have the credit but not enough equity, Mortgage Refinancing Buzz recommends considering a FHA refinance loan. Many borrowers are migrating from a conventional mortgage to an FHA mortgage, because the conventional guidelines restrict rate and term refinancing between 80 and 90%. FHA loans do have a small mortgage insurance payment in addition to the mortgage payment, but FHA mortgage rates are just as low as the conventional rates.
FHA Mortgage Rates Are Prime for Mortgage Refinancing
FHA loan programs remain more flexible than conforming home loans because the conventional guidelines have been tightened significantly more for borrowers seeking low rate mortgage refinancing solutions. FHA approves mortgage refinancing of up to 97.5% loan-to-value for qualified borrowers. With FHA refinancing, borrowers must always document their income, but these days’ conventional loan programs have eliminated stated income and no income refinancing programs any way.
Best Mortgage Refinance Programs
Posted by: | Comments2010 has been a great year for mortgage refinance rates! Sure lenders and banks have tightened their guidelines but home refinancing rates have fallen to record lows. If you qualify you will be rewarded with a lower mortgage rate, a reduced monthly payment and better fixed rate terms. If you need a stated income refinance, chances are you will need to wait for lenders to release new refinance programs.
Below, we listed the best mortgage refinance loans so you can have a better idea on what is out there before you begin shopping lenders online:
FHA Mortgage Refinance – The most popular refinance loan this year because it is flexible with credit and not much equity is required. The FHA streamline does not allow you to finance closing costs anymore, so we suggest sticking with the traditional FHA refinance loan because rates are available below 5% with no pre-payment penalties. FHA allows cash out to 85% loan-to-value.
Conventional Refinance – This is a great refinance loan for borrowers with credit scores above 700 and at least 20% home equity. There is no private mortgage insurance like FHA loans, so you will get the best of both worlds. Most conventional lenders will allow cash refinancing to 80% LTV.
VA Mortgage Refinance – If you are active in the Military or a retired veteran you will love the VA refinance opportunities. VA offers the VA streamline refinance that allows borrowers who already have a VA mortgage to refinance with reduced lending fees. No appraisal is required, so you save money and do not need to have any equity. No other lending program allows you to go above 100% loan to value and required no appraisal. VA enables cash out refinancing to 90%. The VA mortgage refinance program will even allow you to skip a payment.
Whichever mortgage refinance loan you choose, know that you are locking into the lowest fixed rates seen in a generation. Contact Nationwide for a free rate quote and refinance analysis with no obligation.
FHA Mortgage Loan Programs Expand
Posted by: | CommentsConsumers and mortgage lenders continue to reap the benefits of FHA home loans that boast low FHA rates. The Association of Mortgage Investors announced their support for the second mortgage program announced by the Obama administration to provide a path for reduced principal through a mortgage refinancing program for homeowners who owe more on their mortgage than their house is valued at. Micah Green, an attorney who represents the Association of Mortgage Investors said, “Investors have long felt that the only way to provide homeowners further mortgage relief is to address the affordability and loss of equity issues.” Many home finance executives believe that this step is crucial for the housing market to mend itself long-term.
A few days ago, FHA announced a variety of new home purchase and refinance programs intended to help reduce the number of new home foreclosures. The FHA loan initiatives range from a forbearance plan for unemployed borrowers, to new incentives that encourage principal reductions, to a new FHA refinance option, for which lender participation is voluntary. “Importantly, there are many details of the FHA guidelines that need to be clarified from the latest FHA announcement like, how second mortgages are treated, to ensure that the homeowner’s total debt burden is not excessive,” Green said. 1st and 2nd mortgage investors must be committed to sharing the burden of providing principal reduction in order for troubled homeowners to achieve sustainable relief that will be provided by a properly sized refinanced FHA mortgage, Green says. “This program should also respect the priority of liens. Therefore, principal reductions of senior and junior liens should be carried out accordingly,” he says. FHA mortgage refinancing remains popular with lenders and brokers across the coountry, so chances are HUD will keep FHA lending around.
FHA Mortgage Refinancing with No Equity
Posted by: | CommentsFHA offers loan programs for borrowers who need a FHA refinance loan but have no equity available because of the sluggish housing market. The FHA streamline refinance is great for the homeowner that has a wants a rate and term refinance. No cash out or debt consolidation is available with FHA streamline loans and certain restrictions do apply. To qualify for a FHA streamline, you must currently have a FHA mortgage that you are current on with no late payments in the last year. In late 2009, HUD made some changes to the FHA guidelines and a good payment history on your existing FHA loan is essential.
Let’s face it millions of homeowners owe more than their home is worth. Fannie Mae and Freddie Mac offer the Home Affordable Refinance Program and the DU Refinance Plus program that FHA allows you to refinance your mortgage without an appraisal (so the fact that your house’s value has dropped like a piano from the roof is irrelevant) if you meet certain guidelines.
The FHA streamline refinance has been surging in popularity with FHA lenders because it meets the needs of so many homeowners that are blessed with an FHA loan. FHA mortgage rates are as low as they have ever been and FHA loan companies have become much more efficient processing government refinance loans.
FHA Streamline Refinance Requirements
1. You have to have made at least six payments on your current FHA loan.
2. If you have had your FHA loan for less than 12 months, all the loan payments must have been made in a timely manner. If you have had the FHA mortgage for more than 12 months, you can have been late only once in the last year and must have paid on time the last 3 months.
3. Your new FHA loan payment must be at least 5% lower than your old payment, or you must be replacing an ARM with a fixed loan (the new FHA rate can’t be more than 2% higher) or hybrid loan (the new loan payment can’t be more than 20% higher), or reducing the term of your FHA loan, or reducing your interest rate by at least 2% (if replacing a fixed home loan with an ARM).
4. The property being refinanced must be your primary residence.
5. Closing costs for FHA streamline loans must be paid upfront (with the exception of mortgage insurance premium (MIP), which can be financed in the new loan.
FHA Premium Rising for Bad Credit Mortgage Loans
Posted by: | CommentsFHA loan programs may see changes in 2010. The HUD is seeking White House approval to increase the upfront mortgage insurance premium charged by the Federal Housing Administration to borrowers. FHA officials announced more changes, including tighter underwriting standards for refinance mortgages and new home loans. If approved by the White House, FHA mortgage loans will see an increase to 1.75% upfront mortgage premium paid by borrowers who do not have enough equity to mitigate the risk of a loan default.
