FHA Loan and Refinancing - Home > FHA Home Loan Experts
Can you refinance a conventional loan with a fha loan?
Yes, you can refinance a conventioan loan with a FHA Loan! There are three types of ways to refinance an FHA Loan, such as: streamline refinancing, cash out refinancing, and converting a conventional loan to a FHA Loan.
I am refinancing an existing 2/28 arm and am told I would be perfect for an fha loan. Does the FHA mandate that I escrow both taxes and insurance? Also, must I pay my HOA dues in my monthly mortgage payment? -Liz
Yes, the FHA mandates that you escrow both your taxes and your insurance so that the annual premiums for your taxes and insurance are paid along with your monthly payments. The Homeowners Association (HOA) dues are calculated as part of your monthly mortgage payment for qualification purposes. However, your lender does not usually escrow them, and they are, therefore, your responsibility to take care of as a separate payment from your monthly mortgage payment.
What if you have 12 months cancelled checks of on time rental history. I have a lease that was terminated last year. My rental history was broken but I paid all rent on time.
You may want to consult the lender you are considering for your FHA Loan. It should be alright because your checks were on time, but each lender may be different.
How do I convert my 5/1 arm?
After the first five years of paying the ARM interest rate, in which none of the payemnts go towards a retiring principal. After this time, then it becomes an adjustable-rate mortgage with both principal and interest payments.
I have been in at my current commissioned job for a little over a year. I was at my previous job over 2 years, and it was also commissioned but it was in a different industry. Will I be able to use my current commission income to qualify?
When applying for a FHA Loan, you need to provide documentation of your past two years of employment, and you need to give the average commission income that you received over that period of time. You must also provide documentation of your tax returns over the last two years along with a recent paystub. Commissions earned less than one year will not be considered.
Can you qualify for a larger mortgage with an FHA graduated payment mortgage than with a regular 30 year fixed rate FHA loan? -Diane
No, graduated payment mortgages do not enable you to purchase a home with a larger mortgage. The purpose of a graduated payment mortgage is to help people who cannot afford a high amount of interest on their mortgage in the beginning of paying for their home. The graduated mortgage payment substantially increases in interest over time, so borrowers need to prepare to pay more.
What is the maximum FHA Loan limit in Charles County, Maryland?
The maximum FHA Loan limit varies according to location. You need to use a loan expert. to determine what the maximum FHA Loan limit is in your area.
What if I filed bankruptcy a little over a year ago, re-established credit and my fiance has excellent credit? Can we get approval together, even though it hasn't been 2 years since my discharge?
Usually, they do not make any exceptions to the 2 year rule following a discharge from bankruptcy. The best course of action is to have your fiance apply for a loan on his own, as he has not filed for bankruptcy.
What happens when the loan is paid off? What are the responsibilities of the parties involved and how long should it all take?
Following your completion of paying off your FHA Loan, your mortgage company must notify the HUD of the termination of the FHA mortgage insurance for your loan. Within 45 days, you should receive a check or an application called an HUD-27050-B to ensure that the HUD received proof of the termination of the FHA insurance. If you do not receive either in the mail, you need further contact information. on closing your FHA Loan.
Can you have two FHA loans at the same time?
It is possible to have two FHA loans at the same time, however, it is not usually approved. The underwriter is less likely to give you another loan when you are already paying one off. The main concern of a lender is that you will be able to pay what you owe, when you owe it, and if you are trying to pay for two loan simultaneously, the lenders will have doubt as to your ability to pay them the money that is owed. Also, location may have an impact on whether or not the lenders in your area are more lenient when it comes to giving a second loan. It is best to consult with a local lender.
Are FHA loans available to low income tenants? Where do I go to find information on this type of loan? -Rosi
The HUD was created to help lower income families and tenants afford housing. You send in the same application that everyone does when applying for an FHA Loan, however the underwriter sees that the income circumstances are different. It is not always the amount of money that you make that is important, rather, it is whether that income is a steady source of financial support. If you show that you do not have any outstanding debts to pay and that you are able to pay your mortgage based on your income, you should be approved for a loan.
All variables being equal, will an FHA loan have a smaller interest rate than a conventional loan?
Conventional loans are much more difficult to obtain than an FHA loan, and interest rates are about the same. The requirements for acquiring a conventional loan are much more stringent if you have filed for bankruptcy, and they do not allow for alternative uses of credit like FHA Loans do. FHA Loans also have an adjustable interest rate that is looked at annually. To determine what your interest rate will be if you are approved for an FHA Loan, you should use a FHA Calculator.
My dad has a FHA Loan. Can he co-sign for my FHA Loan?
Yes, he can co-sign for your FHA Loan. However, he will have to provide the same amount of documentation that you will when applying for the loan. The underwriter may be less likely to approve the loan seeing that he is already paying on another loan. The reason for this is because, when agreeing to be your co-signer, your father is agreeing to take over the payments on your loan if you are unable to for some reason. If his financial documents are in order, however, you have good chance of being approved.
I took out an FHA loan in November 06 for my first home. Now, I am looking to sell my house and move back in with my parents. Besides paying back closing costs, what else do I need to be aware of? -Kisa
When closing your FHA Loan, it is advised that you do not rush this process and forget any payments that still need to be paid. It is best to contact your lender and make sure that you don't owe any other fees besides what must be paid for closing costs. It is important thoroughly check what payments you have made and what you still need to make.
What is the difference between FHA Loans and VA Loans? -Charlotte
FHA Loans and VA Loans are very similar. However, only veterans may obtain a VA Loan, whereas FHA Loans are available to all applicants who meet the financial requirements. VA Loans are commonly less expensive than regular loans. Find out more about FHA Loans vs. VA Loans and determine which loan is best for you.
Once the underwriting approval comes the laon is funded, correct? How long does that take? -Evangeline
Yes, that is correct. Your loan is funded after the underwriter approves you for a loan. The approval process from the underwriter can take anywhere from 2-5 days. After your documented information is given to the investor, the funding process can take another 2-4 days.
If I have a previous outstanding judgment, can I ask for the judgment amount be added into the loan to have it cleared?
No, you cannot ask for your judgment amount to be added to the loan. The judgment amount that you have to pay off may prevent you from getting approved for your loan all together. FHA underwriters look to see that you do not have a lot of money to pay off. It is better to take care of debt before applying for a loan.
I was discharged from bankrupcy Sept. 13 2006. When can I apply for a mortgage loan again?
You can apply for another loan two years following your discharge from bankruptcy. Provided that you do not have any outstanding debts, that you have good credit, and that you have proof of a steady source of income, you should be successful in obtaining another loan.
If I currently have an FHA mortgage can I apply for one on another home that I want to buy since my original home is listed for sale?
The underwriter may be hesitant to approve you for a second FHA loan while you are still paying on your existing house. There is no guarantee that your house will sell quickly, and you may be faced with paying two mortgages for longer than you had expected. It is suggested to not apply for a second FHA Loan until you know your house has been or will be sold. The underwriter simply looks at the financial strain that paying a mortgage on two houses will cause.
When purchasing a condo on an fha loan, is the up front mortgage insurance or the monthly mortgage insurance waived because it is a condo? I was told one of the two are not applicable to condos. Please help. -Kevin
Once your condo is FHA approved, then you worry about the mortgage insurance. When buying a condo, there is no up front mortgage insurance.
When getting approved, does the approval need to be through both FHA underwiter and the lenders underwriter?
The lenders are required to have an FHA underwriter. Whether you go through and underwriter from the FHA or from the lender, they are all FHA certified. HUD requires that the lender must hire an underwriter who is FHA-registered with the FHA Underwriter Registry. It does not matter whether you go through the FHA underwriter or the lender's underwriter, because in order to review and certify mortgage documents, they all must meet the requirements of the FHA Mortgage Insurance Program.
What is the difference between the lenders underwriter and the FHA underwriter? -Kevin
The lending companies can actually employ underwriters who have been trained by the FHA Underwriter Registry. The FHA underwriters are simply employed by the FHA. The job that either underwriter does is exactly the same, and they are trained in the same techniques.
I just had a few questions about FHA loans. Do lenders require PMI with FHA loans? What benefit do FHA loans provide in comparison to other companies?
Yes, lenders do require a private mortgage insurance (PMI) to ensure that the total amount of the mortgage will be paid to the lender if the buyer defaults. Usually the PMI will not be put into effect until 20% of the mortgage has been paid. Find out more about the benefits of FHA loans compared to the benefits provided by other companies.
We currently have a Mobile home and land finance through FHA, We found a brick home and the sellers would like to sell it ASAP. We will be going through FHA again. Do we have to sell our current home in order to get the new one or can we sell our mobile home after we move in the brick home.
No, you do not necessarily have to sell your home to apply for another FHA Loan. However, the underwriter may be more reluctant to give you a loan for the home you are trying to buy if you still have another property you are taking care of. It would be to your benefit to try and sell your mobile home before applying for another loan. Even if you do not sell your mobile home right away, at least the underwriter will see, if it is documented in the information that you send in, that you are trying to sell your current home.
We received an FHA Loan with the house we have now, but we want to move. We have lived in the house for 3 years. Is there a certain amount of time we have to live in the house before we can sell it?
What you are talking about is called a prepayment lock-out. A prepayment lock-out depends on the negotiations you were given from your lender regarding your loan. The FHA lock-out is most commonly used for apartments rather than homes, but not always. It is best to consult your lender before you think of selling your home.
What is the income level necessary to get an FHA Loan?
In order to receive an FHA Loan, there is not a specific income requirement. You must be able to provide the information that shows you have enough income to cover the mortgage and any other obligation you must cover for the borrower. The underwriter, who either approves or rejects your request for a loan, is looking to see if you have a steady source of income that will last for an extended period of time.
I am a graduate student and my parents have agreed to cosign with me. I will be taking out student loans for living expenses so that I can make payments without their help, but to qualify for an FHA loan must I, in addition to my cosigner, also meet certain requirements such as income? If so, are my student loans a valid source of income?
When you apply for an FHA Loan, your information must show the underwriter that you have a stable source of income. As you are a student, you must state that fact and show evidence of your student loans. You and your co-signer must have a good credit score and you must illustrate that you will be able to make your mortgage payments on time.
How much would I expect to pay in mortgage insurance on per month on a $170,000 loan?
There are several factors that contribute to how much you will have to pay on mortgage insurance for a $170,000 loan. Since these factors include such information as your own yearly income and other private information, you should go to FHA Calculator on our website, and this should help you find your estimated monthly payments.
Can a person use an ITIN number instead of a social security number for a FHA loan?
Yes, please read more about how to pre-qualify for a FHA loan without a Social Security Number.
Can you explain exactly what the FHA Underwriter does? I'm confused on that process. -Robert
After your file has been submitted to the investor, the underwriter will review your information and come to a decision about your loan. This process can take between 2-5 days. The underwriter makes sure that your information fulfills the guidelines set forth by the FHA, such as employment history, income and debate ratios, etc. They will either approve you for a loan, suspend your file because more information is needed, or they will deny you a loan all together.
With a credit score of 720, what will my $200k payment be for a first time buyer?
The cost varies according to yearly salary, property tax and a variety of other financial payments that you have to make. If you go to the FHA Calculator on our website, and fill out the information, it should give you the exact payment that you will have to make.
My husband and I are looking to purchase our first home. We have no money for a down-payment because we have been in school. Is there a minimum salary that you must make to qualify for an FHA loan, because we need help!
In order to apply for an FHA Loan you need to have all the addresses where you have lived over the past few years, your employer's name and addresses for the past two years, plus the amount of your gross monthly salary. You will also need your W2's and your income tax for the last two years. Receiving a loan does not depend solely on your current salary, but also your financial circumstances over the past several years. You will also be required to have at least 3% of your own funds for the purchase of your home.
If I had an FHA loan that went to foreclosure in 2003, can I apply for another one or not?
Yes. You can apply for an FHA loan three years following the date that you filed for bankrupcy. You may apply for this loan provided that you have maintained good credit for the two years following your file for bankrupcy. It is also required that all your debts have been discharged when you reapply for a loan.
What is the usual time frame that the FHA takes to approve you for a loan once they have received your paperwork?
The time frame for receiving approval from the FHA varies. It can take anywhere between 6-8 weeks following the arrival of your paperwork for the FHA to approve you for a loan.
Do I need certain credit scores?
While credit scores are not required, they are certainly recommended. Credit scores enable lenders to predict whether you will make your credit payments on time. Credit scores also determine whether lenders will charge your interest rate or credit limit on a credit card or sent it to you in the mail. Having good credit can make your financial transactions much easier and can end up saving you a lot of money. This is why it is important to have a credit score. Most people's credit score falls between 600 and 700.
In the FHA FAQ you say that you must show a stable 3 year income. I am of younger age and am curious as to how important those 3 years are. I am currently and will be making enough money to cover any payments my FHA loan will be. Will a bigger down payment help? -Mike
Lenders like to see a few years of steady income, but it certainly is not the end all to if you will be able to qualify for a home loan. Certain factors like age, current and potential income can be taken into account as well. For example, if you are a recent college graduate, who didn't hold a job during college but have just started your career and have decent credit, it is likely you will still me able to qualify for a loan.
Is sending one extra payment every year really cutting much time off your 30 year loan? -Evangeline
Yes. If you send in one extra payment each year, you will reduce the total time of the loan by 1 year every 12 years. So for a 30 year loan, you would reduce the total time by 2.5 years. By paying extra each year, you will also save money in reduced interest as well.
How can you buy a house without a Social Security Number? -Eva
Without a Social Security Number, it is probably assumed that you are an undocumented immigrant to the United States. We want you to know this is illegal, and even if you purchase a home you would still be subject to deportation laws.
However, since you asked, it is not against the law for an illegal immigrant to purchase a home. Lenders do not necessarily need a SSN or lengthy credit history for immigrants. They will process your loan using an Individual Tax Identification Number, known as an ITIN. Here is another loan resource that explains the process in a little more detail.
I've been pre-approved by my lender. Does this mean most likely the FHA will approve on their end? -Kevin
There is a difference between pre-approved and pre-qualified. You are pre-qualified if you have filled out a form on the lender's website, and at the end they tell you that you are pre-qualified. You are not pre-approved until the broker and the lender and reviewed all of your information and agree to work your loan.
If in fact you were pre-approved by your broker, it is likely the FHA will approve the loan as well, though there are no guarantees.
What are the requirements for a FHA Mortgage Loan?
Please review the FHA requirements here.
Are there special incentives for individuals who were in designated Hurricane Katrina Disaster zones? -Shaun
The largest incentive in these areas is that in designated Katrina and Rita disaster zones, employers can receive tax credits for providing employees housing. For a six-month period, employers are eligible for a 30% tax credit for the cost of employer-provided housing for employees, with a maximum cost of $600 per month per employee located in the Zone. Additionally, up to $600 per month of such costs would be excluded from the employee's income. Read the full Zone Act of 2005.
My fiance and I were pre-qualified for a FHA Home Loan. With FHA, we are required to come up with 3% down. Do you know of any down payment assistance programs that we can use in the state of Wyoming? -Virginia
We are unaware of any down payment assistance programs specific to Wyoming. However, there are some National Programs that should work for you. Please find more information on them here.
What costs must a bank include in the APR when posting rates? -Allison
Unfortunately, there are no set specific guidelines for posting an Annual Percentage Rate. Generally speaking, the APR should include all settlement costs that would not have arisen in an all cash transaction. Here is a more comprehensive list of what types of charges are supposed to be included in the APR.
If something needs to be fixed on a house before closing can happen, whose cost would that be? The seller or the buyer? -Iowa
This is up to negotiate between the seller and the buyer. Any repairs made by the seller before the sale or expected to be made by the buyer after purchase will be reflected in the price of the home anyway. However, before the closing, usually the seller pays for repairs because it is risky for a buyer to pay to fix something on a house they do not own yet. If they pay to fix it, and the deal falls thru somehow, then the buyer loses.
Can a borrower have more than one FHA mortgage? -Melinda
Good question, please see the answer to your question here.
Is there a specific type of loan ARM loan program that has caps of 1/4% versus the traditional annual and lifetime caps? -Hayden
An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps:
It is up to you which type of ARM works best, there are pros and cons to both. While we cannot say for sure you would be able to qualify for a loan with a periodic cap of 1/4%, it is certainly possible. It is up to negotations with the lender which type of cap and the amount of the cap you will qualify for.
We already got pre-qualified for a FHA loan but we are having trouble coming up with the 3% down. Is there any way to avoid having a down payment? -Nicole
Currently, there is no way around the down payment requirements of a FHA loan. However, Congress is currently working on improvements to the FHA program that could reduce or eliminate down payment requirements in the future.
It is possible to get grants or gifts to cover the down payment. Two of the most popular programs are the Heart Program and the AmeriDream Assistance Program.
Can you provide a list of Visas that are eligible for an FHA loan?
Only US citizens and resident aliens are eligible for an FHA loan. However, any individual in the United States on an acceptable work visa can be eligible for a conventional home loan.
My husband purchased our existing home before we were married with a FHA loan. Can we qualify for an FHA loan now since I have never purchased a home and we now have a child and the home is to small? -Michelle
There are a few cases where an individual can have more than one FHA loan, including if your family has outgrown your current home. It sounds like this is the case here. It is possible you will not need two FHA loans at the same time, because the sale of your current home will allow you to close that mortgage with the bank, and perhaps you will even have additional money to put toward your new home.
While we cannot guarantee you will qualify without knowing specific details of your loan, odds are if you qualified for a FHA loan in the past, you will qualify for one again.
On a FHA loan what are the buyer cost at closing? - DW
In each case, the closing costs will be different. The FHA defines allowable closing costs that may be charged to the borrower. These costs are determined as reasonable and customary by each local FHA office. It differs by state, purchase price, type of loan, down payment and lender, just to name a few. The best way to determine your closing cost is to ask your lender. Read more about FHA closing costs here.
We are purchasing a home. Can we take out an FHA loan to purchase the house with additional money for home improvements?
Generally speaking, you cannot take out more than the value of the home when you purchase it. However, once you have built up some equity in the home, you can take out a FHA refinance to make home improvements. However, the FHA does allow you to finance the cost of energy-efficient home improvements with your mortgage. These are considered home improvements that will make your home more energy-efficient and lower your monthly utility bill.
The total value of our house is about $250,000. If we qualify for a FHA loan at the maximum amount of $200,160, can we look into other programs that will cover the rest of the amount? Also, we wanted to know if our friend does not qualify to get a FHA loan by himself and we get on the loan with him, can you use our info along with his to determine the loan? -Cindy
Yes. You can use a variety of options to take out a loan for $50,000 to cover the remaining amount.
In this case you would be co-signing the loan for your friend. Both his and your application information would be used to determine the specifics of the loan. Please check out some of our other questions and answers concerning the ability to have two FHA loans.
Do you have to pay off a HELOC (Home Equity Line of Credit) when refinancing thru FHA?
It is up to the lender that has the HELOC, whether they will allow a another mortgage to supercede it. Many times, they will as long as the new first mortgage does not significantly increase from the previous. For best information on this, contact the servicer of your HELOC and they can tell you whether they will subordinate or not to a new first lien.
My ARM home loan is due to reset in about 5 months. I am considering refinancing to a 30-year fixed mortgage. Would an FHA home loan be an option? - John
In most cases, it is possible to refinance a conventional home loan into a FHA refinance. So without knowing the specifics, generally speaking, you should be able to qualify for a FHA Refinance.
Can an individual have more than one FHA loan? - Victoria
There are a few cases where an individual can have more than one FHA loan. If you meet at least one of the following three situations, it is possible to have more than one FHA loan:
Of course, you can always request an FHA refinance for your FHA loan or any type of loan.
Could you explain to me the Extra Credit Teacher Home Purchase Program. How does it work? What are the benefits? What are the qualifications?
This is a program specific for teachers in California. Though it does't necessarily relate to FHA loans, please find the benefits and qualifications from the California Housing Finance Agency.
Could my immigration status affect my application for an FHA loan? I am neither a US Citizen nor a Permanent resident yet, but a missionary in the process of filling for my Permanent Residence status. I need to buy a home now. Could I apply for an FHA loan? - Zedian
Because FHA loans are funded by the U.S. Federal government, only citizens and lawful permanent residents should apply for these loans. Furthermore, if you do get a FHA or other government backed loan, the government has the right to look at the FHA files and decide to go to the house to see if the owners have legal status or not. This could include if you received a government back loan when you were not a permanent resident, but later became one. In your situation, it seems best that you apply for a conventional home mortgage.
It is important to remember that while a FHA lender (or any lender) may not consider your race, national origin, or sex. However, a creditor may consider your immigration status and whether you have the right to remain in the country long enough to repay the debt.
Browse More Pages --- 1 | 2 | 3 | 4 | 5
Mortgage Loan Place.com has positioned itself as a leading FHA lender on the web and our experts are here to help guide you through the process of applying for a loan, or to simply answer a few of your questions. Is an FHA loan right for me? It's time to find out.