Many people do not realize when they are buying a property that has been "flipped". What does "flipped" mean? To me it means that a real estate investor bought a house that was run down Read the rest of this entry »
GetLoans.com Blog
Wave Bye-Bye To FHA…
June 16th, 2010
Last week the House of Representatives passed a bill giving HUD the OK to increase the monthly mortgage insurance on FHA loans to 1.55% from the current .55%. Huh? This is really extreme, and to me is akin to FHA taking itself out of the market! Read the rest of this entry »
Have An FHA Loan? Want To Do An FHA Streamline Refinance?
April 5th, 2010
If you have an FHA loan, you have probably heard you can do an FHA streamline refinance. This FHA loan is a type of refinance where you can refi without an appraisal. Read the rest of this entry »
FHA To Make Things A Bit Harder
December 14th, 2009
The FHA is reeling from rising defaults in its mortgage business. By law the agency must set aside 2% cash to deal with unexpected losses. As of September 30, those reserves had dropped from almost $13 billion to just over $3.6 billion. This total represents only one-half of one percent of all outstanding single-family-home loans insured by the FHA, the first time since 1994 that it has been this low. Read the rest of this entry »
All About FHA Loans
September 15th, 2009
FHA loans are federally backed loans insured by the Federal Housing Administration. FHA loans are traditionally used by buyers who cannot come up with the larger down payments required on a Conventional loan (which are normally 5% down to 20% down). FHA loans were typically used more by lower to moderate income buyers, however, that has all changed recently.
The program started during the Great Depression of the 1930s, when the rate of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance to encourage them to lend.
FHA loans fell out of favor during the real estate boom of 1998-2006, as sellers did not want to be exposed to the more marginally qualified buyers that were usually attached to an FHA loan, nor did they want to hassle with the more stringent appraisal requirements of an FHA loan.
However, in a buyer's market, FHA loans are now commonly accepted in most markets, and FHA loans have become a savior for many home buyers, and the real estate and mortgage industry in general. If it were not for the FHA loan, many real estate transactions would not occur.
FHA loans have more relaxed underwriting standards, below is a sample: Read the rest of this entry »