> New FHA Policies May Impact New Home Buying – The Federal Housing Administration faces financial problems derived from defaults on purchase, refinance and reverse mortgages that were insured by the government over the last 5 years. FHA has approached the House and Senate for a possible financial bailout of $943 million but nothing appears to be eminent.
If you're looking to buy a home with a FHA loan, now is the time to do it. With the passage of the Housing and Economic Recovery Act of 2008 (HR 3221), the FHA down payment requirement increases from the current 3% to 3.5%. While this change appears small, it can seriously add up with larger loan amounts.
> Read more about FHA down payment requirements
First Time Home Buying Aided by FHA Mortgages
Yahoo Finance points out that consumers flock to FHA insured loans for purchasing their 1st home because they need to come up with just 3.5 % down-payment if they meet standards required by HUD. Credit guidelines are far more acceptable than those outlined by Fannie Mae or Freddie Mac either.
> FHA Loans for First Time Home Buyers
Uncooperative Mortgage Servicers Face Still Penalties
Traditionally, the FHA loan program was focused on helping buyers in the purchase of a home. But as a result of the HOPE for Homeowners Act, passed as part of the Housing and Economic Recovery Act, the program is being opened up to homeowners who want to refinance. According to the U.S. Housing and Urban Development (HUD) website, "an estimated 400,000 borrowers in danger of losing their homes will be able to refinance into more affordable government-insured mortgages." The problem is, there are lenders that do not want to cooperate with this new legisation.
>Read more about these newly imposed penalties
HOPE for Homeowners Program now in Effect
As of October 1, 2008, the HOPE for Homeowners (H4H) foreclosure prevention program is in effect. It allows hundreds of thousands of homeowners trapped in mortgages they can't afford on homes that have plummeted in value escape foreclosure by refinancing into more affordable, fixed-rate loans backed by the FHA.
>Read more about FHA's foreclosure prevention program
The Effect of the $700 Billion Bailout on Homeowners Facing Foreclosure
Servicers have been under pressure to modify loans since the mortgage meltdown began a year ago. However, they say the biggest roadblock to changing loan terms are the investors who hold the securities created from those mortgages. However, the $700-billion rescue package for the financial system includes measures designed to stem the rising tide of foreclosures.
>Read more about the bailout's effect
FHA's Expanded Role in Resolving the Housing Crisis
Now, more and more are backing President George Bush's recent legislation to expand the role of the Federal Housing Administration (FHA). Two pieces of legislation were passed this year to rescue troubled borrowers with high-risk subprime adjustable rate mortgages (ARMs) and exotic hybrid ARMs (interest-only and negative amortization loans): FHASecure and HOPE for Homeowners.
>Read more about FHA's expanded role
Moratorium on Risk-Based Premiums for FHA Mortgage Insurance
The FHA had implemented risk based mortgage insurance on July 14, 2008. However, in response to the continued housing and foreclosure crisis, President Bush signed into law the Housing and Economic Recovery Act of 2008. Among the provisions of that legislation is a one-year moratorium on the implementation of FHA's risk-based premiums beginning October 1, 2008.
>Read more about the moratorium
Risk-Based Premiums for FHA Mortgage Insurance
Effective July 14, 2008, FHA provides government insured loans with risk based premiums on one- to four-unit single family mortgages. Under this plan, if you have bad credit or are putting less money down on your house, you would have to pay more for the Up Front Mortgage Insurance Premium (UFMIP) and monthly mortgage insurance (MI). The mortgage insurance doesn't have any effect on the FHA mortgage rates. It's just additional money you would need to pay on your mortgage. Read more about these new premiums
Refinancing - FHA Mortgage Refinance Loans
FHA loans are made through banks and other lending institutions like conventional loans. These lenders have a credit scoring requirement, and it typically takes a credit score of at least 580 for a FHA loan. Lenders also look at your credit history for the past year, which is why the positive payment history of at least one year is needed before you apply for a FHA refinance.
>Read more about refinancing with FHA
Government Announces $50 Million for Housing Counseling Grants
The Bush administration believes that FHA needs to play an important role in preventing foreclosures. There are thousands of families in the U.S. that need a better opportunity to secure new housing or need assistance to help retain their existing home. U.S. Housing and Urban Development Secretary Steve Preston announced $50 million in home counseling grants.
Government Insured Mortgage Applications Increase Significantly
Data from the U.S. Department of Housing and Urban Development (HUD) show that the level of conventional to FHA refinance applications has increased 317 percent on a year over year basis in July, the bulk of which is likely from subprime ARM products. > Read More - FHA Home Loan Refinancing Blog
HUD Tells Texas and Louisiana Landlords to List Vacancies in the National Housing Locator to Help Displaced Families
The U.S. Department of Housing and Urban Development is appealing to landlords in Texas and Louisiana to list their vacant properties on HUD's National Housing Locator System (NHLS). Working with federal and private housing databases, HUD uses this web-based system to offer thousands of displaced families referrals to longer term housing.
Over 50,000 apartments and homes available online
More than 50,000 apartments and single-family homes are currently available through the NHLS in Texas, Louisiana, Arkansas, Oklahoma and New Mexico. This includes approximately 240 units within a 300-mile radius of Harris County. Landlords and property owners can obtain advice and assistance on how to add available units to the National Housing Locator by calling (703) 667-9420 x114.
"The National Housing Locator is a critical resource for families who need longer term housing," said U.S. Housing and Urban Development Secretary Steve Preston. "We need property owners and landlords with available units to list their vacant housing so that FEMA and our State and local recovery workers can refer displaced families to a suitable place to live as they put their lives back together." > Read more about the National Housing Locator
FHA mortgage rates displayed are subject to change available loan information can provided by the mortgage lenders directly after application is submitted for further underwriting review. The FHA Mortgage Refinance Loan Company is not directly affiliated with any government agency. We provide an online marketplace for consumers searching for FHA loans and HUD resources. We are affiliated with HUD approved FHA mortgage lenders. If you would like to contact HUD directly please visit their website online.
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