FHA Mortgage Loans
Meet Guy
Guy is our Processing Manager amongst other roles as an Originator and a past Real Estate Sales agent. He is also a Real Estate Broker proving his commitment to this industry. His experience is vast which makes him well equipped to handle all facets of our business.
Guy began his career in real estate by taking a frontline position processing loan files and enabling a lender to obtain their FHA approval by submitting Test Cases direct to US Department of Housing. Needless to say, quality was key. Processing lead to originations and then… a national non-profit, hired Guy to develop and manage their Affordable Housing Program in partnership with FHA/HUD which supported low income families in attaining their dreams of Home Ownership. Guy’s expertise with the FHA 203k rehab program, his knowledge of residential construction, and experience with real estate legal details further increased his knowledge and value.
As the Real Estate climate changed Guy transitioned to the Real Estate Sales side of the industry. Guy is one of few real estate agents who takes the time to explain every bit of the contract and the evolution of the real estate transaction. His attention to detail allows buyers and sellers alike to feel taken care of —in good hands.
The ever changing world of real estate has once again shifted so that Guy currently is our Processing manager managing loan transactions for our office as well as about 20 other quality loan originators. He and Ellen make sure the transactions get from Beginning to End with SUCCESS.
Meet Kari
Kari, is our Corporate Advisor who contributes her expertise in areas of Loan processing, originating and underwriting. Kari had been the processor and in-house underwriter for our company for over 15years. The past few years, she has chosen to further enhance her expertise by obtaining her FHA and VA delegated underwriting designations. This comes direct from the Federal Housing Administration and Department of Veteran’s Affairs. The achievement has been substantial. She has been underwriting in the most difficult mortgage environment in history. So she knows what and how to help a borrower get the financing for their homes and dreams. Her experience allows us as a family to benefit through her wisdom.
Kari’s experience and attention to details has lead her to a new role allowing her to develop procedures for quality assurance for a large banking operation.
She will continue to support us and will also be an educator for others in our industry.
The FHA’s mission driven organization encourages home ownership and provides affordable housing opportunities with low down payment and flexible credit requirements.
Since 1934, the FHA has insured millions of home mortgages with a market share of 30% in 2010 vs 3% in 2007. In 2009, FHA programs insured nearly 2 million loans, which included 750,000 first-time home buyers.
According To Wikipedia:
The Federal Housing Administration (FHA) was created out of the National Housing Act of 1934, and was established to increase home construction, reduce unemployment and insure government loan programs.
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 originated 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.
Some FHA programs were subsidized by the government, but the goal was to make it self-supporting, based on insurance premiums paid by borrowers.
While most people believe that the FHA lends money directly to borrowers, it actually just insures a certain type of loan that is financed by traditional banks and mortgage lenders.
Four of the most visible single family housing programs that FHA offers are, Section 203(b), Section 234(c), Section 203(k) and Home Equity Conversion Mortgages (HECM) – Reverse Mortgages.
FHA Loan Type Highlights:
Section 203(b)
- largest of FHA’s single family programs
- 1-4 unit properties are eligible
- flexible credit requirements
- 3.5% down payment allowed
- down payment may be a gift from specific sources
Section 234(c)
- provides mortgage insurance for individual condominium units
- credit, down payment and limits of 203(b) apply
- in 2010, condominium complexes must be approved through HRAP/DELRAP to be eligible for FHA insurance
- primary program for property rehabilitation
- encourages community and neighborhood revitalization
- only 1 mortgage loan is used for both the acquisition and the renovation
- 1-4 unit properties including condominiums are eligible; check with your lender for manufactured housing eligibility
- required improvements include cost effective energy conservation standards and smoke detectors
- consultancy may be required
HECM – Reverse Mortgages
- FHA was the first to promote reverse mortgages nationally
- allows access to equity in property with flexible terms
- lump sum, monthly payments, line of credit or a combination available
- limited to homeowners 62 years of age and older
FHA programs go beyond the scope of the previously listed programs. They offer a Streamline Refinance as well as a Streamline 203(k) for limited repairs. Also, recent legislation has helped FHA offer special programs with incentives to lenders for modifying and refinancing existing mortgages like with the “Making Home Affordable Program.”
When looking for a loan program to fit your specific needs, take a close look at FHA as their programs have become more attractive to both lenders and consumers.
With favorable loan terms, higher loan limits, 30 year fixed repayment terms and flexible down payment options, FHA will continue to encourage home ownership, provide liquidity and stability to the mortgage market.
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Frequently Asked FHA Questions:
Q. What are the credit requirements for most FHA lenders?
As of 2010, the majority of lenders are leaning toward a mid credit score of 640.
Q. How much can I afford?
By providing your mortgage professional the required documentation, a detailed analysis will be provided that includes your maximum loan amount
Q. How will I know if the condo/townhome I wan to buy is eligible for FHA financing?
The following link will allow you to enter your zip code for a list of eligible properties: CLICK HERE
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