Red Flags of the FHA 203k Renovation Loan

Fixer-upper homes, foreclosures, short-sales and REO properties have flooded many housing markets across the country. This can be a great thing for home buyers looking for good deals. Unfortunately it also means a lot of housing stock is in need of some TLC. From simple upgrades and improvements to renovations and repairs, many homes need work. Fortunately there's a mortgage loan program that takes aim squarely at these less-than-desirable houses, and turns them into dream homes!

You may have never heard of the loan program backed by the Department of Housing and Urban Development (HUD) called the FHA 203k loan. The 203k hasn't seen much press since its inception in the late 1970's. Since then, lenders have been able to partner with state and local housing agencies, as well as nonprofit organizations to rehabilitate properties. Despite this great move, the 203k remains largely in the shadows. Some of the reason would be a stigma attached to the FHA 203k that it's a difficult loan to deal with. But that doesn't have to be the case. The Standard 203k from the 70's can have issues with difficulty or timing, but an experienced mortgage advisor should be well-equipped to handle this loan program.

Also, the 203k Streamline was added to the program a few years ago. Now home buyers have another option to finance home improvements, repairs, renovations, or rehabilitation.The basic difference between the Full and Streamline loans is the money you can roll into the mortgage (the Streamline covers up to $35,000) and the kind of work that's covered (the Full will cover structural repairs). So whether it's new paint, carpet, siding, appliances or windows that you want to replace, or it's something that you need to replace because it's a structural issue, the FHA 203k can help by rolling the cost into the mortgage.read more>>>

FHA 203K Loan - Getting an FHA Construction Loan

With the current doom and gloom that is all around, most especially plaguing the housing and mortgage market, getting a new loan or mortgage is a lot more difficult. One of the most difficult loans to obtain nowadays is a home improvement and construction loan. But borrowers need not worry because the currently popular FHA loan has a FHA construction loan that you could get for your home improvement requirements.

They call this FHA construction loan as the 203(k) streamline program. This loan can be used to buy a fully furnished or refurbished house or make certain major repairs and upgrades to their home. But it is not limited to that because it can even be used to refinance a current mortgage.

One good thing about this loan is that it is not re-qualified because it has only one underwritten time which is upfront. There is also no minimum amount required for home improvement, repair or upgrade but they have set a maximum limit which averages for most states at around $35,000.

The 203(k) streamline program gives you two good options for interests: fixed and adjustable rates. You don't need even to worry if it would be too high because it would also just be the same like obtaining any standard FHA home loan.

On purchase of a fully furnished or refurbished house, the evaluation is finalized as "subject to" which means that it would be after the repairs or improvements are done. As for refinancing mortgages, two appraisals are needed. The first one would show what would be the current value of the property and the second one would indicate the value after all the payments have been done (including the interest payments).read more>>>

FHA Streamline Refinance Guidelines and Details

FHA Streamline Refinance guidelines and details for current homeowners that have an FHA mortgage. The only homeowners that can take advantage of an FHA streamline refinance is homeowners that currently have an FHA loan on their property.

Are you FHA (Federal Housing Administration) Streamline Eligible?

- Currently have an FHA Mortgage.
- Most recent 12 month payment history is on time.
- Net Tangible Benefit - FHA requires that your payment decrease by at least 5% per month or go from an ARM (adjustable rate mortgage) to a fixed rate mortgage.

There are big advantages when looking into an FHA streamline refinance, one in particular is that there are no appraisals required, which is a huge win for homeowners that currently owe more than the home is worth. Since the FHA currently backs the loan, they are already responsible to the lender if a homeowner were to default on the loan and foreclose. So it is in the best interest of the FHA to refinance a borrower into a lower rate and lower payment, without worrying about the value of the property. There are no loan to value (LTV) limits on an FHA streamline refinance, unlike the HARP program. Some lenders still put a cap on the LTV limits of a HARP loan, whereas FHA, there are no limits, no matter what lender is chosen. For example, a homeowner could have a mortgage that has a balance of $400,000, but the home is worth $50,000, as long as the FHA backs the loan and it is a benefit to the borrower, then they can refinance with no appraisal needed.readmore>>>

FHA Loan Modification Program

Even though the Department of Housing and Urban Development (HUD) is rendering extensive attempts to encourage the Federal Housing Authority (FHA) home loan modification plan sponsored by the government, many borrowers are still not knowledgeable about the plan. They do not understand how useful it would be in adjusting their existing mortgage. The FHA program features can help you customize your existing house loan, and make it less expensive to buy back. The primary target of the FHA loan modification program, also called the "Hope for Homeowners Program" is to aid the homeowners who have financial difficulties in paying their mortgages. The FHA modification aids troubled homeowners on the brink of losing their residences to prevent property foreclosures and keep their property.

Prior to obtaining the FHA loan modification plan, it's necessary for the borrower to completely comprehend the terms and conditions involving the policies of the program. The federal government has issued FHA loan modification eligibility qualification, and it's a need that the applicant be eligible as per their guidelines. As per the FHA modification specifications instruction laid down by the federal government, the client has to fulfil the terms and conditions as stated by the FHA, as well as submit certain documents to become eligible for amendment.

The following documents are: Adversity correspondence. The hardship letter must effectively express your existing financial issues that describe you are extremely experiencing difficulties and it is difficult to settle your current mortgage. The notice should be straightforward, properly written, honest, and self explanatory because this will stand for your case; the individual is the property owner and a tenant of the home; the candidate should be able to pay for a down payment of approximately 3.5 percent of the offered loan amount; bank account transactions; confirmation of monthly salary (pay stubs and pay slips); and credit history.readmore

FHA Mortgage Broker Training - 5 Tips To Make Sure Your FHA Loans Get Approved And Close On Time

Here are five quick tips loan originators can use to help prevent FHA mortgages from falling through during processing. For some mortgage originators these tips will seem ridiculously basic. Unfortunately, conversations with FHA underwriters show me that many loan officers haven't caught on to these ideas yet.

1. Make sure the loan you are submitting makes common sense.

Incredibly, this is one of the most common mistakes made by originators who entered the mortgage business within the last 5 to 7 years. Subprime programs generally only required that the loan fit into their matrix and never cared about the reasons the person had credit problems. Make sure that you can verbalize a good case that it makes sense to believe that this borrower can reasonably be expected to make the payments on the loan. Often this requires asking a lot of uncomfortable questions of the borrower to make sure that you truly understand their situation. Even when your submission is approved by the automated underwriting system and theoretically the underwriter needs only to validate the information and does not need to make a credit decision, the underwriter may well find something wrong if the loan does not make common sense. Lenders are held accountable by HUD for loans that default. They can always find a reason to override the automated underwriting findings if they want to.read maore

Stating a good case for loan approval is even more important when the FHA Total Scorecard underwriting system has referred your loan to an underwriter to make the decision. Do not ever assume that just because the debt to income ratios meet guidelines and the borrower hasn't been late on any payments in the last 12 months that you don't need to submit a well constructed cover letter with your loan - in addition to the borrower's own credit explanation. Make sure that both your cover letter and the borrower's explanation fully account for what happened to cause the borrower to have credit problems and why the underwriter should now believe that the borrower has solved the problem.

Direct Payday Loan Lenders Note Application Increase During Holidays

Have you ever experienced financial shortcomings during the end of the year? Could you blame excessive spending for the setbacks? If you do, you are not alone. Direct payday loan lenders application increase as the end of the year nears. Credit card balances fill up. Bank account totals dwindle. Holiday shopping is upon us.

Financial experts and savvy budgeters alike share helpful hints during holiday season. The unilateral message to not overspend your earnings is clearly heard. The question would be, who is listening?

Money management throughout the year may make or break this season's shopping plans. If you have relied on credit cards and lacked repayment efforts, you may not have that much left to charge when out shopping for the holiday. Some people maxed their limits back in the summer and have scraped by since to make ends meet as credit is no longer an option. Many direct loan payday lenders have already seen a rise in applications as a result of unexpected bills or emergency expenses. What path will these people be on once holiday shopping picks up? Unless they are smart about their financial matters, the path won't be pretty. 

read more

The Best Places To Get A Payday Loan

Sometimes the best places to get payday loans are not in your local area. This is because many regions are now establishing tighter lending laws that severely restrict companies in their efforts to supply consumers with an array of flexible products. Although you can find a number of physical lending institutions near your home, these may not be the best businesses to reach out to.

This is especially true if you have special needs that must be met. For instance, a local company will usually issue a loan amount that reflects a small percentage of your current income. These monies tend to be adequate for buying groceries, putting fuel in the car or paying small-sized utility bills. Most consumers, however, often have needs that are far greater than these things.

Given the restrictions that local legislation places on many lenders, they cannot always offer the limits that people really need when seeking payday loans. If you are late on your rent or mortgage payment, you might want to connect with an online company. These businesses are not required to adhere to local lending laws, given that they operate outside of their jurisdiction. Thus, they can honor requests for far larger sums of money, even though the applicant's earnings information has not changed.read more

Direct Payday Loan Lenders Note Application Increase During Holidays

Have you ever experienced financial shortcomings during the end of the year? Could you blame excessive spending for the setbacks? If you do, you are not alone. Direct payday loan lenders application increase as the end of the year nears. Credit card balances fill up. Bank account totals dwindle. Holiday shopping is upon us.

Financial experts and savvy budgeters alike share helpful hints during holiday season. The unilateral message to not overspend your earnings is clearly heard. The question would be, who is listening?

Money management throughout the year may make or break this season's shopping plans. If you have relied on credit cards and lacked repayment efforts, you may not have that much left to charge when out shopping for the holiday. Some people maxed their limits back in the summer and have scraped by since to make ends meet as credit is no longer an option. Many direct loan payday lenders have already seen a rise in applications as a result of unexpected bills or emergency expenses. What path will these people be on once holiday shopping picks up? Unless they are smart about their financial matters, the path won't be pretty.

Credit Cards - For those who qualify, there are many special offers this holiday season. Creditors are in hopes that they will pick up new long-term debt this season. Many shoppers who use credit cards to pay for the holidays will carry their balances well-throughout the New Year. Some may plan to use their tax returns to pay the new debt off while others will just add it to their monthly expense sheet and work to pay off one debt at a time. Whatever the case, creditors will do what it takes to convince consumers to use their card. The incentives could range from rewards, introductory interest rates or cash back incentives. make sure you read the fine print to all offers before you start charging.read more

Direct Payday Loan Lenders: Unlock The Doors To Better Lenders

Trying to find direct payday loan lenders has never been like searching for a needle in a haystack. Between storefront loan providers and the thousands of online direct lenders the question is never "Where can I find a lender?" but more so towards, "Which lender do I work with?" There are enough horror stories concerning fraudulent lenders lurking to take advantage of financially vulnerable people, it is good to go with a trusted source.

Now, let's not think that the payday loan lending service is the only place where bad things can happen. It is by far a small fish in a big pond. You may have heard reports about customers being duped out of $500 dollars here and there (which by no means makes the act acceptable) while certain banks and federally funded mortgage lenders duped homeowners who have since lost their homes. Unfortunately, within the money industry, there are some companies which have made poor decisions themselves or fraudulent representatives doing it for them.

When you are searching for a fast cash direct payday loan lender many people will turn to a friend or a relative for advice. Oftentimes, there will have been a trusted company's reputations which would have spread from mouth to mouth through the work place, children's sporting events or social media sites. If the company cannot service the loan themselves or connect you to a direct lender then chances are that they will offer some great advice as to where or who to turn to next. Unless you know a lot about the short-term lending industry, it is great to have access to immediate help.read more

Finding The Fun In Payday Loan Lender Articles

Where is the gossip with payday loan lenders? If you take a look at all the articles written about the payday loan lender and its industry, you will find that the majority of them talk about all the bad and ugly which come from someone applying for a payday loan online. What happens to any of the positive or educational articles with payday loan lenders? Well, some might say that they are boring to read.

Let's look at the popularity of talk show hosts on television. There are many educational newsworthy stories which are broadcast weekly. The more popular shows winning awards are those where the focus is on someone's tragic personal story. Good ending or bad ending, the story spills the horrible or tragic details of someone's life and that alone is attention grabbing to will keep a listener engaged. Some of the most controversial stories are found on talk shows tend to be "guilty pleasures" by many a viewer.

News travels fast when somebody is portrayed to be "wronged" financially. The article is more entertaining, it gets emotions involved, and we are more apt to share what we read to our friends. An intellectual article discussing the true APR for a payday loan lender may not keep everyone's interest. No emotions get involved, no one was wronged, and the story topic of interest rates goes unread. When is the last time you heard the chatter in the break room about APR, how it is calculated and that it isn't a true number to report about payday lenders?

So how do the payday lenders educate the masses and stand up for themselves against all the reports attacking their services? They just have to keep trying to report the truth of the industry and hope that the knowledge will trickle down into their brains over time.

A payday loan lender will continue to carry hope that they will be more welcome in the financial industry, especially as banks and credit unions begin to fund similar high interest loans. Is there a hidden message to not trust a payday loan lender but instead get the same, but unregulated, loan through your bank? Can much damage be done to your finances by not repaying the short-term loan? How does a frozen bank account sound? Will they have access to any type of deposit made to your account until it is repaid? The person who fell into deep financial trouble at the hands of a payday loan lender will rank higher in ratings. It's our nature to focus on emotional topics. The horrendous annual percentage rate being charged a person who did not repay a two week term loan will catch someone's attention. This story describing the events will be overly exaggerating the majority of loans, and readers will not give it a second thought. A two week loan spread out over 26 pay periods - does this sound like a short-term loan? An average person will have the payday loan paid off in less than half a year. Take the projected APR of 40% and cut it in half, you will have a loan at an APR very comparable to credit cards interest rates geared towards debtors with low credit scores. This information is less entertaining, but closer to the truth.read mora=>

What Would it Be Like If the Payday Loan Online

 

Just imagine what the world would be like without the payday loan online. Think of what type of financial chaos would exist. Well, there's already financial chaos in the world, but just imagine how much worse it would be if there was not some type of solution for individuals who need a quick monetary fix for an emergency situation. Life would be a lot more difficult and the public would be a lot more stressed out over money matters.

If a cash advance such as a payday loan online didn't exist, then people would be bickering with their families more. They would owe money to family members and not be able to pay it back by the time the family member wanted it back. They would also lose very important pieces of jewelry or other possessions to pawn shops for small amounts of money. Of course anytime someone tries to retrieve those belongings, the cost can be double the cash they received when they pawned the items. Both of these can lead to an utter mess.