By Aideyan Omoregbee

FICO 580 REQUIRE

FHA 203(k) MORTGAGES
FHA section 203(k) insured mortgage enables homebuyers to finance a purchase or to refinance an existing house plus the cost of its rehabilitation through a single mortgage.

Purpose
Section 203(k) fills a unique and important need for homebuyers buying a house that needs repair or modernization by reducing the stress associated with the complicated and costly process. The initial loan for buying and improvement of the property usually come with relatively high interest rates, short repayment terms and a balloon payment at loan’s end.

However, Section 203(k) offers a solution to both borrowers and lenders by insuring a single, long term, fixed or adjustable rate loan that covers both the buying and rehabilitation of the property. 203(k) insured loans save borrower’s time and money and protect the lender by letting them insured the loan before the condition and adequate value of the property can be fully determined.

FHA's Streamlined 203(k)

1.      FHA's Streamlined 203(k) loan program is used for less extensive repairs/improvements, allowing homebuyers to finance between $15,000 - $35,000 into their mortgage to improve or upgrade their home before they move in.

2.      With FHA's Streamlined 203(k), homebuyers can easily tap into cash to pay for property repairs or improvements identified by a home inspector or FHA appraiser.

You can find out more about a Streamlined 203(k) program by calling a Tricont Mortgage Client Advisor (803) 317-2500 or email us @ aomoregbee@tricontmortgage.com about your questions.

Type of Assistance
Section 203(k) insures mortgages by covering the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area at completion.

The value of the property is determined by either:

1.      The value of the property before rehabilitation plus the cost of rehabilitation, or

2.      110 percent of the appraised value of the property after rehabilitation, whichever is less.

Many of the rules and restrictions that make FHA's basic single family mortgage insurance product (Section 203(b)) relatively convenient for lower income borrowers apply here. But lenders may charge some additional fees, such as a supplemental origination fee, fees to cover the preparation of architectural documents and review of the rehabilitation plan, and a higher appraisal fee.

Eligible Customers

1.      All persons who can make the monthly mortgage payments are eligible to apply.

2.      Cooperative units are not eligible.

3.      Individual condominium units may be insured if they are in projects that have been approved by FHA or the Department of Veterans Affairs, or meet certain Fannie Mae guidelines.

Eligible Activities
The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible as long as the existing foundation system remains in place.

203(k) FHA insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses. They can also cover the conversion of a property of any size to a one - to four- unit structure. The types of improvements that borrower may make using Section 203(k) financing include:

1.      Structural alterations and reconstruction 

2.      Modernization and improvements to the home's function

3.      Elimination of health and safety hazards

4.      Changes that improve appearance and eliminate obsolescence

5.      Reconditioning or replacing plumbing; installing a well and/or septic system

6.      Adding or replacing roofing, gutters, and downspouts

7.      Adding or replacing floors and/or floor treatments

8.      Major landscape work and site improvements

9.      Enhancing accessibility for a disabled person

10.  Making energy conservation improvements

11.  HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.

Application
To apply for a 203(k) loan, please call a Tricont Mortgage client advisor (803) 317-2500 or email us @ aomoregbee@tricontmortgage.com for assistance

MORE INFORMATION

For more information and/or to apply for this loan program, please call a Tricont Mortgage Client Advisor @ (803) 317-2500 or email us @ aomoregbee@tricontmortgage.com for assistance. .....Thank you very much for your trust and business.

Hope we can earn your trust and help you with all your mortgage and financial need.....  PLEASE RATE & LEASE US A COMMENT.

Note: A brochure on, rehabilitating a Home with HUD's 203(k), is available by calling a Tricont Mortgage Client Advisor @ (803) 317-2500 or you may email us @ aomoregbee@tricontmortgage.com  with your request.

By Aideyan Omoregbee
FICO REQUIRED (NA)

OBAMA NEW HOME PURCHASE AND REFINANCE INCENTIVES
During the January 31, 2012 State of the Union message, President Obama announced a brand new plan to help responsible homeowners buy or refinance their home and heat up the housing market that is beginning to see some improvement but still sluggish. 

As with previous announcements by the president, if this plan is effectively executed, a lot of homeowners who are now confused about how they will get out of the jam they are in will get help. With this incentives giving them the needed boost to their confidence, they will be able to do all they can to hold on to their homes. We at Tricont Mortgage, believes that this plan will help more of our homeowners get out of this limbo and we urge you to do so. 

To learn more about this plan Please call (803) 317-2500 or click on the following link to read Obama's Plan to Help Responsible Homeowners and Heat the Housing Market 

MORE INFORMATION
For more information on different mortgage loan types, purchases, refinances, blog posts, please visit us at any of our following sister sites @ Tricont Mortgage www.tricontmortgage.com, Tricont Buzz www.tricontbuzz.com, Tricont Post www.tricont.posterous.com  Tricont Blog www.tricontblog.com and Tricont Mortgage Blog www.tricontmortgage.blogspot.com before closing on your purchase or refinance mortgage loan. 

Hope we can earn your trust and help you with all your mortgage and financial needs..... PLEASE RATE & LEASE US A COMMENT. 

NOTE: .......As always, please call your Tricont Mortgage Client Advisor @ (803) 317-2500  for any additional help on how you can take advantage of this latest plan or email us @ aomoregbee@tricontmortgage.com

Related Articles

• Home Affordable Refinance Program (HARP) Allows Homeowners to Refinance to Today's Low Interest Rates. (tricontbuzz.com)

By Aideyan Omoregbee

FICO 580 REQUIRE

FHA 203(b) MORTGAGES
FHA 203b loan program is a HUD's Federal Housing Administration (FHA) insures mortgages made by qualified lenders to people purchasing or refinancing a primary residence. Section 203(b) is the centerpiece of FHA's single family mortgage insurance programs.

FHA One to Four Family Mortgage Insurance is the tool the Federal Government use to expand homeownership opportunities to first time homebuyers and other borrowers who would not otherwise qualify for conventional mortgages on affordable terms, as well as for those who live in underserved areas where mortgages may be harder to get. These obligations are protected and sustained entirely with borrower premiums by FHA's Mutual Mortgage Insurance Fund.

Purpose

203b (FHA) loan program provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.

Eligibility Requirements:

1. The borrower must meet standard FHA credit qualifications.
2.  The borrower is eligible for approximately 96.5% financing.
3. The borrower is able to finance the upfront mortgage insurance premium into the mortgage.
4. The borrower will also be responsible for paying an annual premium.
5. Eligible properties are one-to-four unit structures.

Type of Assistance
203b (FHA) loan program provides mortgage insurance to protect lenders against the risk of default on mortgages to qualified buyers. Insured mortgages may be used to finance the purchase of new or existing one to four family housing, as well as to refinance debt. Section 203(b) has several important features:

1. In contrast to conventional mortgage products that frequently require a down payments of 5 percent or more of the purchase price of the home, single family mortgages insured by FHA under Section 203(b) make it possible to reduce down payments to as little as 3.5%. It is the FHA insurance that allows borrowers to finance approximately 96.5 percent of the value of their home purchase price.
2. FHA rules impose limits on some of the fees that a lender may charge when making an FHA 203(b) mortgage. For example, the mortgage origination fee charged by the lender for the administrative cost of originating the mortgage may not exceed one percent of the mortgage amount.
3. HUD also sets limits on the amount that may be insured. This amount varies depending on your geographic location. For current FHA mortgage limit, please call a client advisor at Tricont Mortgage (803) 317-2500 or email us @ aomoregbee@tricontmortgage.com for assistance

Eligible Customers:
Anyone intending to use the mortgaged property as their primary residence is eligible to apply for an FHA insured mortgage.

Application:
Any person can apply for an FHA insured mortgage. The program is limited to owner occupants

MORE INFORMATION

For more information and/or how to apply for this loan program, please call a Tricont Mortgage Client Advisor @ (803) 317-2500 or email us @ aomoregbee@tricontmortgage.com for assistance.

Good luck on your investment and enjoy your house…..I can be reach @ (803) 317-2500 or email me @ aomoregbee@tricontmortgage.com .....Thank you very much and Welcome

Hope we can earn your trust and help you with all your mortgage and financial needs..... PLEASE RATE & LEASE US A COMMENT.

USDA 100% RURAL HOME LOANS GUARANTEED AND DIRECT LOAN PROGRAMS

Part II

DIFFERENCES BETWEEN THE SECTION 502 (USDA) GUARANTEED AND DIRECT LOAN PROGRAMS

There are several other Section 502 loan programs, but the only one that approaches the guaranteed program in number of loans made is the Homeownership Direct Loan Program.

LENDER

• The lender for Section 502 guaranteed loans is a private savings and loan institution, bank, or mortgage company which also handles all the loan servicing.
• The lender for the direct program is the Rural Housing Service (RHS); Rural Development (RD) handles the servicing.

INCOME LEVELS

• Income levels for Section 502 guaranteed borrowers are capped at 115 percent of the area median income (AMI).
• Income levels for the direct program must be no more than 80 percent of the AMI.

PAYMENT ASSISTANCE

•  Payment assistance subsidy is not available through the guaranteed program.
•  Payment assistance, which can reduce the interest paid on the mortgage to as low as 1  percent, is available for borrowers in the direct program and is based on the borrower’s income as a percent of AMI.

BORROWER PROTECTION

• Borrower protections differ between the programs. Applicants for guaranteed loans do not have the rights of moratorium or of appeal that accompany the direct program.
• Also, in the case of default, Section 502 guaranteed loans are liquidated by the commercial lender, while direct loans are liquidated by the government.

For more information on different mortgage loan types, purchases, refinances, blog posts, please visit us @ Tricont Mortgage www.tricontmortgage.com, Tricont Buzz www.tricontbuzz.com, Tricont Post www.tricont.posterous.com  Tricont Blog www.tricontblog.com and Tricont Mortgage Blog www.tricontmortgage.blogspot.com before closing on your purchase or refinance mortgage loan.

Good luck on your investment and enjoy your house…..I can be reach @ (803) 317-2500 or email me @ aomoregbee@tricontmortgage.com........Thank you very much and Welcome.

Hope we can earn your trust and help you with all your mortgage and financial needs ..... PLEASE LEASE US YOUR COMMENTS.