Tag Archive : FHA mortgage insurance

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What Are FHA Rules For Buying A Home After Short Sale?

       FHA Loans

What Are FHA Rules For Buying A Home After Short Sale? HUD that oversees FHA came out with the Mortgagee Letter in Dec 2009 which essentially gave FHA’s blessing for buyers who were forced to short sell their homes to be able to buy a home just 1 day after short sale! Here’s the rules Buyers are NOT eligible if…… Read More »

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HUD Home – What does "IE" mean for a FHA 203(b) Loan? –

       FHA Loans

HUD homes are those being sold by HUD. If such homes are indicated as “IE” this means that the FHA loan on it (203b) can be insured by HUD with Escrow Repairs. So “IE” means “Insured With Escrow Repairs”. Only repairs below a total of $5,000 can qualify for this type of FHA financing and meet minimum property standards required…… Read More »

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What Are Compensating Factors for FHA mortgages ?

       FHA Loans

Often an FHA loan application hang in the balance because the Borrower has marginal credit or income history. Often the debt to income ratio is out of line and an FHA Underwriter may be forced to look for other factors in approving the loan. This is when compensating factors become critical and can tip the loan in the applicant’s favor……. Read More »

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USDA Zero Down Loans Will Have Mortgage Insurance

       Latest News & Updates / USDA Guidelines & Rules / USDA Zero Down Loans

There are some sweeping changes coming in the Fall of this year (2011) which will make Mortgage lenders more accountable for the loans they fund and approve; some speculate that this is the part of the reason the USDA has chosen to tack on Mortgage Insurance (just like FHA’s) to the monthly payment. Thankfully, we the tax payers won’t be…… Read More »

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FHA vs. USDA

       USDA Zero Down Loans

So I often get asked, “why should I purchase a home using the USDA Zero Down loan when I have money for downpayment and can even put 20% down ?” Truth is, your money is better ‘grown’ in other investments than remaining dormant as equity in your home. You see, historically house prices rise anyway, regardless of whether you create…… Read More »