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 -
more
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 -
more
In numerous housing markets
across the nation, the increase in housing prices doesn't match the areas
average household -
more
The Foreclosure process is
different in all 50 states. If you are having a hard time making your -
more
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 -
more
FHA Adjustable Rate Program
Section 251
Section 251 provides FHA insurance on
adjustable rate mortgages (ARM's) for purchase or refinance loans. This enables low to
moderate income borrowers the ability to purchase or refinance their
home at a lower initial interest rate.
Section 251 features:
- Interest rates adjust yearly. The FHA uses the 1-year Treasury
Constant Maturities Index to determine rate changes. The interest rate
may adjust up or down depending on the current market
- The interest rate may not adjust more then 1 percent up or down in
any given year and may not change more then a maximum of 5 percentage
points over the life of the loan.
- Borrowers must be informed at least 25 days in advance before any
adjustment can be made to their monthly payment.
- 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.