Many first time home buyer's ask "What is an FHA Loan?" without ever getting a clear concise answer, we'll give that to you
here -
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Part of the stimulus package of
2009 includes the homebuyer tax credit. This credit is intended to help buyers
with a credit to be applied on -
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In numerous housing markets
across the nation, the increase in housing prices doesn't match the areas
average household -
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The Foreclosure process is
different in all 50 states. If you are having a hard time making your -
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With a long list of charges at
settlement, it's important to know what to expect. The Real Estate Settlement
Procedures Act (RESPA) requires your -
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FHA Graduated Payment Program
Section 245
Section 245 provides FHA insurance to households with limited income
that are expecting their income to increase substantially in the next
5-10 years the ability to buy a home sooner, by making mortgage payments
that start small and increase gradually over time. The programs main
purpose is to help young families who are just starting, this creates an
avenue much sooner then would otherwise be possible.
Section 245 features:
- Three of the five plans permit mortgage payments to increase at a
rate of 2.5, 5, or 7.5 percent during the first 5 years of the loan. The
other two plans permit payments to increase 2 and 3 percent annually
over 10 years. The greater the rate of increase and the longer the
period of increase, the lower the mortgage payments in the early years.
- Buyers should be aware this program will cost more over the life of
the loan versus a conventional loan because of the smaller payments in
the early years.
- Many closing costs can be financed into your FHA mortgage loan.
With most conventional mortgages, the borrower must pay, at the time of
closing, costs equivalent to 2-3 percent of the price of the mortgage
loan. By allowing the borrower to finance many of these charges, the
borrowers upfront costs are reduced significantly when buying a home.
- FHA rules put limits on some of the fees charged by your lenders.
For example, the mortgage origination fee charged by the lender may not
exceed 1 percent of the amount of the mortgage and the tax service fee
is not allowed.