FHA Choice Appraisals » Mortgage

How do I calculate PMI mortgage insurance on an FHA loan?

fhacam — Mon, 06 Sep 2010 14:56:10 +0000

I’m putting 0 down, so I know the percentage will be a little higher.

Florida Fha Mortgage, Florida Fha Loans

fhacam — Fri, 27 Aug 2010 17:15:02 +0000

FHA mortgage programs were created to help increase homeownership. FHA loans are less expensive than other mortgage home loan programs. The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations. Here are just some Examples of how FHA can help you buy a Florida home,

Minimal Down Payment and Closing Costs

· Down payment less than 3.5% of Sales Price with 100% Financing options available

· No reserves or required.

· FHA regulated closing costs.

· Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

· No minimum Credit score or needed credit score requirement.

· FHA will allow a home purchase 2 years after a Bankruptcy.

· FHA will allow a home purchase 3 years after a Foreclosure.

Easier Debt Ratio & Job Requirement Guidelines such as:

· Higher Debt Ratio’s than other home loan programs.

· Less than two years on the job is allowed.

· Self-Employed individuals o.k.

FHA loans for Florida first time home buyers have key advantages including:

Easy Qualification – The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Down payment Requirements – FHA mortgages can work with as little as 3.5% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Down payment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Visit www.FHAmortgageprograms.com speak with a friendly Florida FHA loan specialist now!

what mortgage lender really has low fha rates?

fhacam — Tue, 17 Aug 2010 05:08:16 +0000

I would like to know the wholesale company that does the lending, not the broker.

What are the current FHA mortgage rates?

fhacam — Fri, 06 Aug 2010 17:13:55 +0000

Also, what are the pros and cons of an FHA mortgage?

How to Avoid Private Mortgage Insurance (pmi)

fhacam — Fri, 23 Jul 2010 07:42:31 +0000

Many home buyers find it difficult to provide the required 20% down payment and are forced to pay private mortgage insurance, or PMI, in order to buy a home. Private mortgage insurance solves the down payment problem but creates another two: it increases monthly payments and on top of that it is not tax deductible. Fortunately, there is more than one way to get your desired home without having the 20% down payment and avoid PMI at the same time.

Terminating PMI When You Already Have One

The use of private mortgage insurance has been a great way to make it possible for a borrower to buy a home with as little as 3-5 % down payment and give the lender insurance in case the borrower defaults on the home loan. However since PMI payments can be significant, the borrower starts to ask himself/herself how to get rid of those payments.

The Homeowner’s Protection Act includes rules for automatic suspension of PMI payments and cancellation of PMI when 22% equity in the borrower’s home is reached. Those rules apply to mortgages signed on or after July 29, 1999, and exclude government-insured FHA or VA mortgages that are considered high-risk to default.

Additionally, disregarding the time when the mortgage was signed, the borrower may ask for PMI termination once s/he exceeds 20% equity.

Avoiding Private Mortgage Insurance via a Piggyback Loan

Piggyback loans are a very popular way of avoiding private mortgage insurance. It consists of taking a loan (first mortgage) covering 80% of the sale price of the home and taking and placing additional 5%, 10% or 15% on a second mortgage. A combination of 80% first mortgage, 5% second mortgage and 15% down payment is referred to as 80/5/15. Accordingly, the other two loan combinations are 80/10/10 and 80/15/5.

Although second mortgages generally have higher rates, in the end the borrower may save money because in contrast to PMI payments, now the loan payments are tax deductible.

Choosing a Finance Single Premium Option over Private Mortgage Insurance

Since an increasing number of borrowers are turning to piggyback loans in order to avoid PMI, the mortgage insurance industry came up with this solution claiming that it lowers monthly mortgage payments to the same or lower level as a piggyback loan. With this option homebuyers pay a single premium on their insurance and it is amortized over the term of loan.

One of the pitfalls of this solution is that few lenders offer this option, since Fannie Mae and Freddie Mac do not work with this kind of PMI structure.

Finding a Loan with No Private Mortgage Insurance

Loans with no PMI have one great disadvantage – they typically have higher interest rates. Instead of paying regular PMI, the latter is included in the higher rate of the mortgage.

Which of the above solutions will be best for you depends entirely on your particular case. Sometimes paying the private mortgage insurance might turn out more beneficial than choosing to avoid it with a second mortgage. Therefore you should consider your decision carefully and make all the necessary calculations in order to make the right choice.

PMI – Private Mortgage Insurance

fhacam — Mon, 28 Jun 2010 00:59:08 +0000

Lenders generally require you to purchase PMI – Private Mortgage Insurance , if you can’t come up with at a least 20% down payment. PMI is a rather expensive insurance policy that insures the lender against default if you walk away from your home.

Not everyone has to pay this insurance. There are federal and state plans for low income earners to help them buy a home with little or no down payment and without mortgage insurance, If you think you qualify, contact the FHA. Local bank and mortgages brokers can also hook you up with these programs.

Also lenders have come up with schemes to help homeowners avoid paying PMI. These are generally known as 20-80 or 10-10-80 loans or some variation thereof.

Basically the lender arranges for 100% financing through multiple mortgages, using whatever down payment you have. These only make sense if the costs of the loans are less than the cost of the mortgage and PMI combined.

In this article we will only consider borrowers who don’t have the 20% and don’t want to or can’t qualify for 100% financing.

The main purpose of PMI is to allow you to buy a home without having to wait years to save up the down payment. Lenders are more comfortable if you put down 20% or more since you are less likely to walk away from the house if problems arise.

Private mortgage insurance covers the down payment if you default and makes lenders much more eager to grant a mortgage.

Also you can buy a larger house if you use PMI because your down payment can be as low as 5%.

However PMI costs at least $40 a month on a $100,000 loan with 10% down. This is $480 a year until your equity is at least 20% of the value of the house.

The borrower almost always pays for this insurance which can be billed:

Annually. You pay the first-year premium at closing; an annual renewal premium is collected monthly as part of the total monthly house payment.

Monthly. The cost is slightly more than with the annual plan, but dramatically lowers mortgage insurance closing costs.

You pay your private mortgage insurance preminum monthly as part of your total mortgage payment, but you only need to pay one month’s mortgage insurance premium at closing, rather than one year’s.

Single. You pay a one-time single premium. Since single premiums are typically financed as part of the mortgage loan amount, no out-of-pocket cash is used for mortgage insurance at closing.

However, since you are financing the insurance, you are also paying points and interest on the premium, which increases its total cost.

Also make sure the single premium only covers you until you build up sufficient equity in your home. Otherwise make sure excess premiums are refundable.

In 1998, Congress passed the Homeowners Protection Act which went into effect the next year.

This law establishes rules for automatic termination and borrower cancellation of PMI on home mortgages.
These protections apply to mortgages signed on or after July 29, 1999 for the purchase, construction, or refinance of a single-family home.

The law does not apply to government-insured FHA or VA loans or to loans with lender-paid PMI.

For mortgages signed on or after July 29, 1999, your Private Mortgage Insurance must be terminated automatically when you reach 22% equity in your home based on the original property value, if your mortgage payments are current.

PMI also can be canceled at your request when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current.

Exceptions are if your loan is considered high-risk: if you have not been current on your payments within the year prior to the time for termination or cancellation: or if you have other liens on your property.

For these loans, your PMI will probably continue.
Ask your bank for more information about these exceptions.

If you signed your mortgage before July 29, 1999, you can ask to have the PMI canceled once you exceed 20 percent equity in your home, but federal law does not require your lender to comply.

The law also requires that:

New borrowers covered by the law must be told – at closing and once a year – about PMI termination and cancellation.

Mortgage service agents must provide a telephone number for all borrowers to call for information about termination and cancellation of PMI.

Even though the law’s termination and cancellation rights do not cover loans that were signed before July 29, 1999, or loans with lender-paid PMI signed on any date, lenders or mortgage service agents must tell borrowers about any termination or cancellation rights they may otherwise have – rights established by contract or state law.

Some states have laws that apply to early termination or cancellation of PMI – even if you signed your mortgage before July 29, 1999. Call your state consumer protection agency for more information about your state’s laws.

Fannie Mae and Freddie Mac, which buy home mortgages from lenders, also may have guidelines affecting termination or cancellation of PMI on home mortgages signed before July 29, 1999.

Check with your lender or mortgage service agent or call Fannie Mae or Freddie Mac for more information.

It pays to keep track of the equity in your home when paying PMI and asking for its cancellation once you have reached 20%.

Mortgage Loan Tips.

fhacam — Thu, 24 Jun 2010 14:01:49 +0000

Why Some People Almost Always Get The Lowest Interest Rate On Their Mortgage – For The Least Points – And No Junk Fees!
Mortgage Loan Tips.

Florida FHA Loans, Florida FHA Mortgage, Florida FHA Lenders, 97% Financing

fhacam — Thu, 10 Jun 2010 19:36:38 +0000

Florida FHA LOAN

What are FHA Loans?
FHA stands for Federal Housing Authority. The (FHA) Federal Housing Authority home loan provides low-cost insured home mortgage loans that suit a variety of Florida home purchasing options. Whether you’re buying a Florida home or want or refinance your Florida mortgage, FHA loans might be right for you. If you’re unsure about your credit rating, or have concerns about a down payment, a Florida FHA loan can give you piece of mind with super low closing costs and flexible payment options.

What factors determine if I can qualify for an FHA Loan in Florida?
To be eligible for an FHA mortgage in Florida , your monthly housing expense including (mortgage principal payment and interest, 1/12th property taxes, and 1/12 insurance) must be no more than 35% of your gross monthly income. Your credit for the last 12 months will be reviewed to determine your willingness to pay debt. You must be able to make a of 3.5%, and be able cover closing costs and have enough income to pay your monthly obligations.

What is the maximum amount that I can borrow?
The maximum amount for an FHA loan is determined by the Florida FHA lending limits:

Maximum FHA Loan Amount in Florida: The maximum loan amount allowed for Florida FHA loans vary from county to county in FL. The highest maximum FHA loan right now in Florida is $423,750 in Miami Dade, Broward, and Palm Beach Florida.

Maximum financing: In Florida , the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.

How much money will I need for the down payment and closing costs? Florida FHA loans require the Florida home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.

Are Closing cost more with a FHA Loan? NO in fact the seller can pay up to 6% of your closing cost including prepaid taxes and insurance.

What property types are allowed for FHA Loans in Florida?
While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the Florida home loan applicant intends to occupy one part of the multi-unit residence.

What types of refinance programs does FHA offer in Florida ?
There are three main types of FHA Refinance loans available in Florida.

Some advantages of using a FHA mortgage for your mortgage refinance are as follows:

Florida Cash-Out Refinance up to 85% for existing or new Florida FHA mortgages.

Cash-Out up to 85% of your properties value. Consolidate first and second mortgages into single loan. Bill consolidation programs. Easier credit and income qualifications. FHA regulated closing costs.

Refinance your Rate and Term Mortgage Refinancing up to 96.5% of your homes value.

Consolidate first and second Florida mortgages into a single loan. No FICO score OK or min. 530 credit score. Competitive rates for borrowers with a Bankruptcy older than two years. Competitive rates for borrowers with a Foreclosure older than three years. Easier credit and income qualifications. FHA regulated closing costs.

FHA Streamline Refinance for existing FHA loans only.

No Cost Interest Rate Reductions programs. No Income or Credit Qualifications*. Zero cost refinance options available. Easily switch amortization for adjustable to fixed or vice versa. Easily shorten or lengthen term of your existing loan. Easier credit and income qualifications.

FHASecure Refinance with current mortgage lates.

Refinance your Florida mortgage at competitive rates even if you have a mortgage late on your credit that is directly due to adjusting mortgage. Qualify for refinance even if currently in foreclosure.

Seniors Refinance Your Mortgages with a FHA reverse mortgage and Eliminate Your Mortgage Payments

If you are over 62 years old, you maybe able to refinance your existing Florida home loan and get rid of those monthly mortgage payments. View current FHA reverse mortgage refinance guidelines.

Florida Mortgage refinancing with a FHA loan is easy and advantageous for most homeowners. If you currently own a home and would like to discover your refinance your Florida mortgage visit

( www.FHAmortgagePrograms.com )

What is an FHA Loan? What is an FHA mortgage?

fhacam — Mon, 07 Jun 2010 20:54:30 +0000

What is a Florida FHA home loan?

An FHA home loan is a federal assistance mortgage loan in the United States insured by (FHA) Federal Housing Administration. These home loans are issued to eligible borrowers and issued by FHA approved lenders.

FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. The program was created during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance and motivate lenders to provide funding. Some FHA programs were subsidized by the government, but the goal was to make it self-supporting, based on mortgage insurance premiums paid by borrower.

Over time, private mortgage insurance (PMI or Principal mortgage Insurance companies came into play to insure private lenders against loss but have strict qualifying requirements, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise wouldn’t not qualify for PMI.

How to obtain an FHA loan?

The Federal housing administration does not make loans. Rather, it insures loans made by private Florida FHA mortgage lenders. The first step in obtaining an FHA loan is to contact FHAmortgagePrograms.com and fill out an application. Florida mortgage applicants should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.

Apply today by calling 954-667-9110 or visit www. FHAmortgagePrograms.com

Second, Florida mortgage lender l lender assesses the prospective home buyer for risk. The analysis of one’s debt to income ratio enables the buyer to know what type of home can be afforded based on monthly income and expenses and is one risk metric considered by the Florida FHA mortgage lender. Other qualifying factors include , payment history on other debts, are considered and used to make decisions regarding eligibility and terms for a loan.

FHA’s mortgage insurance programs help Florida low- and moderate-income families become homeowners by lowering some of the costs of their mortgage loans. FHA mortgage insurance also encourages Florida mortgage lenders to make loans to otherwise credit-worthy borrowers and projects that might not be able to meet conventional underwriting requirements while protecting the lender against loan default on mortgages for properties that meet certain minimum requirements — including FHA approved manufactured homes, single and multifamily properties, and some health-related facilities. The basic FHA mortgage insurance program is Mortgage Insurance for One- to Four-Family Homes (Section 203(b)).

FHA mortgage loans provide the Best Interest Rates, ((97%w 580 Fico))

fhacam — Sun, 23 May 2010 18:04:40 +0000

FHA mortgage loans provide the Best Interest Rates

Florida FHA Mortgage Loan

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Easier Credit Qualifying Guidelines such as:

No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.

APPLY NOW AT http://www.fhamortgagefhaloan.com/

The Federal Housing Administration (FHA) is a United States government agency created as part of the National Housing Act of 1934. The goals of this organization are: to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgage loans; and to stabilize the mortgage market.

History of FHA home loans

Back in the the Great Depression, the banking system failed, causing a drastic decrease in home loans and ownership. At this time, most home mortgages were short-term (three to five years), no amortization, balloon instruments at loan-to-value (LTV) ratios below fifty to sixty percent.The banking crisis of the 1930’s forced all lenders to retrieve due mortgages. Refinancing was not available, and many borrowers, now unemployed, were unable to make mortgage payments. Consequently, many homes were foreclosed, causing the housing market to plummet. Banks collected the loan collateral (foreclosed homes) but the low property values resulted in a relative lack of assets. Because there was little faith in the backing of the U.S. government, few loans were issued and few new homes were purchased.

In 1934 the federal banking system was restructured. The National Housing Act of 1934 was passed and the Federal Housing Administration was created. Its intent was to regulate the rate of interest and the terms of mortgages that it insured. These new lending practices increased the number of people who could afford a down payment on a house and monthly debt service payments on a mortgage, thereby also increasing the size of the market for single-family homes.

The FHA calculated appraisal value based on eight criteria and directed its agents to lend more for higher appraised projects, up to a maximum cap. The two most important were “Relative Economic Stability,” which constituted 40% of appraisal value, and “Protection from adverse influences,” which made up another 20%.

The FHA Mortgage loans Today

Back in 1965, the Federal Housing Administration became part of the Department of Housing and Urban Development (HUD). Since 1934, the FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages. Currently, the FHA mortgage loan has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio. The Federal Housing Administration is the only government agency that is completely self-funded. However, although it claims to operate solely from its own income at no cost to taxpayers, there is an implicit guarantee that the taxpayer will help them in times of need.

During budget planning for 2008 HUD had been projecting $143,000,000 budget shortfall stemming from the FHA program. This is the first time in three decades HUD had made a request to Congress for a taxpayer subsidy. Even though FHA is statutorily required to be budget neutral, the GAO is projecting taxpayer funded subsidies of half a billion dollars over the next three years, if no changes are made to the FHA program.

FHA Required Down Payment

A mortgage applicant downpayment may come from a number of sources. The 3.5% requirement can be satisfied with the borrower using their own cash or receiving a gift from a family member, their employer, labor union, non-profit or government entity. Since 1998, non-profits have been providing downpayment gifts to borrowers who purchase homes where the seller has agreed to reimburse the non-profit and pay an additional processing fee. In May 2006, the IRS determined that this is not “charitable activity” and has moved to revoke the non-profit status of groups providing downpayment assistance in this manner. FHA has since stopped down payment assistance program through 3rd non profits. There is a bill currently in congress that hopes to bring back down payment assistance programs through these so called non profits.

FHA Mortgage Insurance for Homebuyers

The FHA insures only a limited range of mortgages provided by FHA-approved lenders. PMI insurers service mortgages of the conventional market. PMI is required if a homebuyer borrows more than 80% of the property’s purchase price in one loan; the FHA insurance is required for any FHA mortgage, irrespective of the size of the down payment provided. The premiums for both insurances get cancelled at a certain point (was not true of FHA premiums before Jan. 1, 2001), but the conditions for this to happen are different (see below).

Mortgage insurance is available for housing loan lenders, protecting against homeowner mortgage default. For a small fee, lenders can obtain insurance for a value of ninety seven percent of the appraised value of the home or building. FHA loans are insured through a combination of a small upfront mortgage insurance premium (UFMIP), as well as a small monthly mortgage insurance (MMI) premium.

The (UF)MIP or (Up-Front) Mortgage Insurance Premium is the upfront fee you pay either in cash at close or financed into the loan. The MMI or Mutual (sometimes called Monthly) Mortgage Insurance is your monthly premium which is included in your payment. This MMI is an annual premium which is to be remitted monthly, it must be paid for 5 years regardless of your LTV (loan to value) if after 5 years your LTV is 78% or less it may be canceled on loans originated after 1/1/01. If your loan term is 15 years or less the 5 year rule does not apply.

In many instances where the home owner has a poor to moderate credit history, the monthly mortgage insurance premium will be substantially less expensive with an FHA loan than with a conventional loan regardless of LTV – sometimes as little as one-ninth as much per month depending on the borrower’s exact credit score, LTV, loan size, and approval status. A borrower with an FHA loan always pays the same mortgage insurance rate regardless of their credit score. This is especially of benefit to borrowers who have less than 22% equity in their homes and credit scores under 620. Conventional mortgage insurance premium rates factor in credit scores, whereas FHA mortgage insurance premiums do not. When a borrower has a credit score under 620, conventional mortgage premiums spike dramatically. If a borrower has a credit score under 575, they may find it impossible to purchase a home for less than 20% down with a conventional loan, as the majority of mortgage insurance companies no longer write mortgage insurance policies on borrowers with credit scores under 575 due to a sharply increased risk. When they do write mortgage insurance policies for borrowers with lower credit scores, the annual premiums are sometimes as high as 4% to 5% of the loan amount. Based on this, if a consumer is considering purchasing a new home or refinancing an existing home, they would often be well-advised to look into the FHA loan program.

FHA Choice Appraisals » Mortgage

How do I calculate PMI mortgage insurance on an FHA loan?

Related Posts:

Florida Fha Mortgage, Florida Fha Loans

Related Posts:

what mortgage lender really has low fha rates?

Related Posts:

What are the current FHA mortgage rates?

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How to Avoid Private Mortgage Insurance (pmi)

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PMI – Private Mortgage Insurance

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Mortgage Loan Tips.

Related Posts:

Florida FHA Loans, Florida FHA Mortgage, Florida FHA Lenders, 97% Financing

Related Posts:

What is an FHA Loan? What is an FHA mortgage?

Related Posts:

FHA mortgage loans provide the Best Interest Rates, ((97%w 580 Fico))

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