Fha Mortgage | NC FHA Expert

The Different Kinds of Mortgage Insurance

February 1, 2012 by admin Leave a Comment

Most folks want to avoid PMI… but they don’t realize that they are happily paying a “kind” of mortgage insurance no matter what kind of loan they are getting!

Mortgage Insurance is not the insurance that covers you if you die, or are disabled and can not pay the mortgage… it’s the insurance that protects the BANK in the event you go into foreclosure.

Given the recent UP TICK in foreclosures, you can see why banks are requiring higher coverage amounts! If you are applying for a Conventional mortgage, and you are putting more then 20% on a property you plan to live in, you avoid this additional insurance…

If not, well, there are some cases whereby you can get it Lender Funded (meaning the rate is higher to cover the cost) or you might be offered secondary financing (often called a 80-10-10). OTHERWISE, you’re stuck… but it’s often tax deductible, and PMI is what’s keeping the mortgage wheels rolling, so play along!

If you are applying for a FHA mortgage – you’re insurance premium has gone up to 2.25% with monthly payments of .55% of the total loan amount. For more information on the FHA PMI (or MIP), please click here.

USDA and VA loans both have Guarantee Fees. These fees are charged by the respective agencies – but I’ve always considered them as the “insurance” collected to cover the agency in the event of a default on the mortgage. The main difference between the Guarantee Fees and PMI (or MIP) is that there’s no MONTHLY fee (plus they call it a fee, not insurance)!

If you have additional questions about MIP, PMI or Guarantee Fees, CALL US!

Steve and Eleanor Thorne, River Community Bank 919-649-5058

Filed Under: FHA Mortgage Loans Tagged With: fha mip, fha mortgage, fha pmi, river community bank, usda home loan pmi, usda home loans, va home loan pmi, va home loans

Refinance Options For FHA Mortgages

December 12, 2011 by Eleanor 1 Comment

If you currently have an FHA Mortgage, we might want to peak and see if you’re eligible for an FHA Streamline Refinance. This is a great program, that differs GREATLY from other mortgage programs! Under the updated FHA guidelines, you can refinance to lower payments with No Income Verification, No Appraisal… it’s pretty simple!

The FHA Streamline Refinance program is only available to folks who currently have an FHA home loan mortgage. Even if you are not currently occupying the property, we MIGHT be able to do a Streamline refinance! This is not a program designed for those who want to take equity out of their home, only for those who currently have an FHA mortgage on their home, and want a lower mortgage rate! It’s one of the easiest, fastest ways to get your payments down!

One of the biggest differences between the FHA Streamline Refinance, and a VA Streamline Refinance (or a USDA Refinance for that matter) is that the program does not require an updated home appraisal. [Read more...]

Filed Under: FHA Mortgage Loans Tagged With: fha home loan mortgage, fha mortgage, fha mortgage guidelines, fha mortgage in nc, fha refinance, fha refinance no appraisal, fha streamline refinance, fha streamline refinance no appraisal, how to refinance with no appraisal, refinance no appraisal, refinance no job, refinance rates

Compensating Factors and FHA

October 17, 2011 by admin Leave a Comment

I was at a seminar today that reminded me of one of my favorite things about FHA…

the 5th C of Credit! We’ve all heard about the other 4 C’s.

Cash: How much can you put into the property, how much have you saved?
Credit: Do you have a credit history? If not, FHA will accept some non-traditional credit. Do you have a spotless credit history? If not, FHA might still be willing to insure your loan!
Collateral: Do you have a property FHA wants to insure?
Character: Have you moved 8 times in the last 3 years? Do you have a history of employment in your chosen field? Do you have a ton of collections? These are all part of the “Character” an underwriter is looking at.

In some cases Conventional Loans will make “exceptions,” but in today’s environment – that’s a rare site.

With FHA though – there’s a 5th point of consideration. COMPENSATING FACTORS. Those factors could be what weighs the loan in your favor! Some of our favorites include: [Read more...]

Filed Under: FHA Mortgage Loans Tagged With: fha compensating factors, fha credit, fha credit requirements, fha home loan, fha minimum credit scores, fha mortgage, FHA mortgage loan

Tiered Pricing and FHA Loans

August 30, 2009 by Eleanor Leave a Comment

There are many many rules that define who many discount points we can charge, or how much money we can earn in commissions in North Carolina. But FHA has ADDITIONAL rules regarding pricing.

FHA’s Tiered Pricing Rules FHA’s Tiered Pricing Rules prohibit a lender from charging higher prices (discount points) for low balance loans than the lender charges for higher balance loans. A lender’s customary lending practices may not provide for a variation of more than two discount points (2.00%) charged on its FHA mortgages within a geographic area. In addition, any variation within two points must be based on actual variations in fees or costs to the lender to make the loan. Mortgagee Letter 1994-16 provides guidance to lenders with respect to tiered pricing rules. Additional guidance regarding pricing with respect to overages and yield spread premiums can be found in Mortgagee Letters 1994-43 and 2001-26.

If you are considering purchasing a home in Cary, NC with FHA financing, please contact Steve and Eleanor Thorne, we have the best rates! 919-649-5058

Filed Under: FHA Mortgage Loans, First Time Home Buyer Tagged With: cary nc, fha mortgage, FHA mortgage Cary, mortgages

FHA Qualifying Requirements

July 31, 2009 by Eleanor 2 Comments

Many of the folks we are talking with right now want to purchase a home using the FHA Mortgage Loan program – and then taking the $8000 Tax Credit (you can get that back NOW, like in 12 weeks, by amending THIS YEAR’s TAX RETURN!) to “pay yourself back” for the downpayment!

Here are qualifying requirements for an FHA Mortgage Loan:

You can have a Co-Signor on a FHA loan.
You need to wait at least 2 consecutive years following a bankruptcy.
Any history of foreclosure must be at least 3 years old
You must have had a stable income for at least 12 months and proof that you have paid all your bills.
You must be able to make a 3.5% down payment, which is considerably lower than conventional loans.
The Downpayment can be a GIFT!
There are also eligibility requirements for the home. Properties that are eligible for a FHA loan include: single-family homes, 2-4 unit properties, condominiums, double-wide manufactured homes and modular homes. Ineligible homes include (but are not limited to) co-ops, boarding houses, commercial properties, hotels, and private clubs. A home is also ineligible if the seller acquired the house within the past 90 days. For any property over 10 acres, the loan will be based on the price of the house and the first 10 acres only. Additionally, the property must be used as a primary place of residence.
You can count Part Time Income for a FHA Loan
You need a credit score of at least 620 to get our best priced FHA Loans… lower scores might qualify- call us for details!

If you are considering a PURCHASE of a home in Cary, NC – or refinancing a FHA Mortgage in Raleigh, NC Steve and Eleanor Thorne – Corporate Investors Mortgage Group, Inc. Cary NC, 919-649-5058 for the BEST (read cheapest!) FHA Mortgage Rates!