Jacksonville FL real estate listings and homes for sale, home buying, home selling information – Financial Detailz Inc

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FHA Information

July 22nd, 2008 1:14 PM

It's a common misconception, but in fact, the FHA is not a lender. Nor does the FHA give people money to buy a home or set interest rates on home loans. Rather, the FHA, or Federal Housing Administration, is a federal government agency that offers mortgage insurance on loans originated by lenders that are approved by the agency. This insurance protects the lender in case the borrower defaults on the loan.

The FHA was set up in 1934 after the Great Depression and is a division of the U.S. Department of Housing and Urban Development, or HUD. FHA-insured loans enjoyed decades of popularity, but then fell out of favor during the recent housing boom in part because lenders began to offer subprime loans that had artificially low initial interest rates and monthly payments. These subprime loans have since proved disastrous. As a result, lenders have tightened their credit standards and borrowers have flocked to the comparative safety and familiarity of FHA-insured loans.

In 2007, the FHA backed about $60 billion of residential mortgages. In 2008, that figure is expected to skyrocket to almost $224 billion. That means FHA-backed loans now make up a huge segment of the U.S. mortgage market. For many borrowers, an FHA-insured loan is the only option they have to buy a home or refinance their current mortgage. Our FHA loan comparison questionnaire helps borrowers compare FHA loans with other types of loans.

Posted by Kesha Hall on July 22nd, 2008 1:14 PMPost a Comment (0)

FHA

July 22nd, 2008 1:13 PM

What are the advantages of FHA-insured loans?

There are several advantages to obtaining a loan backed by the FHA.
• Competitive interest rates.
• Smaller down payment required as a percentage of the purchase price.
• A gift from a family member, employer or charitable organization can be put toward the down payment.
• Minimum credit score not required, though some lenders expect a score of at least 580.

Posted by Kesha Hall on July 22nd, 2008 1:13 PMPost a Comment (0)

Manufactured Homes

September 12th, 2007 8:40 AM

Hi everyone, I hope all is well and hope that you may be able to use this manufactured home product. The following is a simple dialog that explains this product quite well.

Realtor: I see that you are now offering a product to finance Manufactured Homes. Can you tell me a little bit about this product and if there are any catches to it?

Financial Detailz: This product allows for singlewide or doublewide manufactured homes as old as 1970. The main thing to remember about this product is that it is a full doc only product, which requires both borrowers to have a credit score of 620 or better. This product will finance up to 100% of the costs of the purchase but will require your borrower to contribute at least 5% of the purchase price to the transaction either as a down payment or as closing costs.

Realtor: I am confused, your rate sheet says that you will finance 100% of the purchase price but now you are telling me that my borrower needs to contribute funds to this transaction?

Financial Detailz: You are correct, we require 5% of your borrower's funs into the transaction but will allow you to finance your closing costs up to 100%. In addition, the 5% does not have to be seasoned and it can be a gift from a relative.

Realtor: I see, but can the seller pay some closing costs too?

Financial Detailz: Yes, if the LTV is < 90% the seller can pay up to 8% of the closing costs and if the LTV is over 90%, the seller can contribute 5%. I would suggest using some of the seller concessions to buy the rate down .50 to 1% max 2 points.

Realtor: So can we use this for second homes or investor purchases?

Financial Detailz: Yes, you can do a second home on this product but will require 10% of your borrower's own funds. We do not allow investor purchases but we have a "Buy For Program" that is similar to an investor product where the borrower puts down 15% and has to have a related person live in the property. This buy for program is great for a borrower that has crappy credit but the parents are willing to buy the manufactured home for the poor original borrower.

Realtor: Can this product be used to do a construction to perm home?

Financial Detailz: Yes it can. Also, if your borrower owns the lot for at least 12 months he can use the equity in the property as their minimum contribution. All construction costs can be rolled into the final loan.

Realtor: Real quick, what about REFIs? Can we REFI a manufactured home on this product?

Financial Detailz: Yes you can do a REFI, it does require 12 months title seasoning on title. Also, if the LTV is over 80%, we will require MI only on REFIs.

Posted by Kesha Hall on September 12th, 2007 8:40 AMPost a Comment (0)

LOAN LIMIT REMOVED FROM VA FINANCING

August 31st, 2007 4:34 PM

Starting September 1st, Ginnie Mae is eliminating the $417,000 cap on VA loans. This will give people more buying power and hopefully offer some relief in the form of more finance options for retired vets.

Posted by Kesha Hall on August 31st, 2007 4:34 PMPost a Comment (0)