FHA Mortgage

[Nikita2Charles 32]

I agree with you but it might depends on the states.

Here in California we have CALHFA, California housing federal assistance, in conjunction with the bank, they provide Low interest Loan, but it's based on your income, some limit are set

House purchase Price!

Income Limit, some grant are based totally on income limit, I don't know what states the person is, In NY it's SONYMA, California CALHFA, so look around and you'll find lot of help out there.

Congrats on your loan, as others said it's just like a regular Loan and it's based on Income, it's not like getting FOOD STAMPS or other social services needs. Just wrote something about another vj asking about school financial aids.

Good luck with the house offer

*scratches head*

FHA isn't based on income. Its only limits are the sales price and loan amount.

FmHA is based on income.

You've confused me.

[w¡n9Nµ7 §£@¥€r 123]

FHA isn't based on income. Its only limits are the sales price and loan amount.

Back when I bought my condo, I told told I didn't qualify because my salary wasn't low enough and the sale price wasn't low enough.

[rebeccajo 14]

FHA isn't based on income. Its only limits are the sales price and loan amount.

Back when I bought my condo, I told told I didn't qualify because my salary wasn't low enough and the sale price wasn't low enough.

Ok. Could be a program like Nikita mentions. Which is probably a State bond program.

Generic white-bread FHA has no income limits.

Edited November 2, 2006 by rebeccajo

[Veiled Princess 1]

Question

What are the basic eligibility requirements for FHA financing?

Answer

FHA insures mortgages made by approved lenders to individuals and non-profit and government agencies that are approved to participate in HUD's programs; HUD does not loan money to homebuyers.

Generally, to be eligible for an FHA loan, you must have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in your state. Lenders will verify income, assets, liabilities, and credit history for all parties on the loan. With an FHA loan, you cannot take an ownership interest in a property without qualifying for the loan.

FHA's mortgage programs do not typically have maximum income limits for qualifying, although you must have sufficient income to qualify for the mortgage payment and other debts. Income limits may be present when qualifying for down payment assistance or other secondary financing programs (including those funded by HUD) that may be used in conjunction with an FHA loan.

FHA does not have minimum credit score requirements, although past credit performance serves as the most useful guide in determining a borrower's attitude toward credit obligations and predicting a borrower's future actions. Using FHA's guidelines, lenders will make a credit determination based on the merits of each case. To find out if you qualify, and how much you can borrow based on your income and debts, you should contact a HUD-approved lender.

HUD website this is an excellent website if you're planning on getting an FHA loan.

[chri'stina 190]

We got a low interest rate by using the first time home buyers program, but there were income levels.

There were 2 types of loans available to first time home buyers, in this state at least. One was where you couldn't make over maybe $28,000-30,000/year (I can't imagine how they'd pay a FL mortgage anymore though! maybe if they have a huge down payment).

The other loan had a higher limit which we just barely didn't go over. We are over it now though since Sujeet started his new job. There are some annoying consequences to taking this kind of loan though, such as, if we sell before 9 years then we have to pay a % of our profit IF we make an abnormally big profit or IF Sujeet's income skyrocketed abnormally. I guess they figure they are giving you such a low interest rate that you owe them if you make too much money on your house or if you are rich. I understand it I guess.

Too bad we are thinking of moving in 2 years.

Edited November 2, 2006 by stina&suj

[rob&ana 0]

Well...

Really I dont think this one was based on income, because initially he was planning on using both our incomes. But then, it appeared that we were going to get better rates by applying just in my name (since I had no credit history and good income), than using both mine and Rob's (cause he's credit is not so good). I have not gotten together with the mortgage guy yet, we will meet this weekend, and I will have a whole bunch of questions for him. Though, like I said, it seems pretty straightforward and closing costs arent high.

On the other hand, we made our offer, and we are waiting for the home owner to accept or make a counter offer. So we're still hanging in there. Keep your fingers crossed for us.

Is there anything that you think I should be aware of, to discuss with this guy? Any suggestions are welcomed. This is not the first time Rob's buying a home, but it is my first time ever. So I am kinda nervous, and I just want to make sure I am not making some pretty dumb mistakes.

All help is welcomed!

[rebeccajo 14]

Is there anything that you think I should be aware of, to discuss with this guy? Any suggestions are welcomed. This is not the first time Rob's buying a home, but it is my first time ever. So I am kinda nervous, and I just want to make sure I am not making some pretty dumb mistakes.

All help is welcomed!

He will give you a Good Faith Estimate. Just make sure you understand it. It's an estimate of the closing costs you will be expected to pay on day of closing. Read it over carefully and make sure you understand what all the charges are. Don't be afraid to ask questions - it's your money and by law he is supposed to explain to you what all the fees are for. Listen to your gut if you thing some of the charges seem high - don't commit to the loan until you are satisfied you are getting a fair deal.

Also make sure you understand the terms of the loan. As Christina mentioned sometimes there are pre-payment penalties or recapture fees. These are rare - but by the same token not uncommon for first time buyer programs. Here in our state buyers get $2500 down from the state - if they sell the property before a certain period of time (I think it's 7 years) they have to pay part of that money back. In my mind, there's nothing wrong with these type of 'penalties' because generally you've gotten some benefit that you would not have gotten in the conventional market place. Just make sure you understand the program.

Good Luck! It's very exciting. I can't wait for Wes and I to own our own home - something we have chosen together.

[rob&ana 0]

Good Luck! It's very exciting. I can't wait for Wes and I to own our own home - something we have chosen together.

That's the thing! It is just so amazing to have something of your own. We have been renting since I got here a year ago, and the first place was furnished (and I hated all the furniture), the place we are now felt pretty good because we had our own furniture and decorations, so it felt more ours. But now, having our own place, and being able to improve or remodel or whatever (not that the place needs to, but if we wanted), its just great...

Still we haven't heard from the home owner... but I am sure we will.

Thanks for your help, I will write down all my questions and make sure I understand all the closing costs...

[Anastassia 0]

Ana !!!!!!!!!!!!!

Congratulations !!!!!!!!!!!!!!!!!!!!!!!

Ana

[Nikita2Charles 32]

Here are some link for more infor regarding FHA loans

What is an FHA Loan?

Home ownership rates in America continue to increase at a steady rate due in a large part to the implementation of FHA home loans more than seventy years ago. Over the years, FHA has helped Americans gain the financial independence that comes with owning a home. By creating jobs and reasonable mortgage rates for the middle class, financing military housing, and producing housing for the low income and the elderly, FHA has helped Americans become some of the best housed people in the world with over 73 million Americans currently owning their own homes. Statistics show that by 2005, home ownership rates in the US have climbed to 69 percent.

HOW IT WORKS

By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

FHA loans benefit those who would like to purchase a home but haven't been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure.

NUTS AND BOLTS

The most popular FHA home loan is the 203(B). This fixed-rate loan often works well for first time home buyers because it allows individuals to finance up to 97 percent of their home loan which helps to keep down payments and closing costs at a minimum. The 203(B) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.

Insurance on FHA mortgages are often rolled into the total monthly payment at 0.5 percent of the total loan amount which is roughly half of the price of mortgage insurance on a conventional loan. After five years or when the loan balance reaches 78 percent, the additional mortgage insurance is typically met and therefore drops off the total monthly payment.

GUIDELINES

It is not necessary to meet a minimum income requirement in order to qualify for a FHA loan but debt ratios specific to the state in which the home will be purchased have been put into place to prevent borrowers from getting into a home they cannot afford. This is done through a close analysis of income and monthly expenses.

http://www.fha.com/important_facts.cfm

]

HEre's the breakdown for Pennsylvania

County Name State 1-Family 2-Family 3-Family 4-Family

ADAMS PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

ALLEGHENY PENNSYLVANIA $243,200 $273,920 $332,800 $384,936

ARMSTRONG PENNSYLVANIA $243,200 $273,920 $332,800 $384,936

BEAVER PENNSYLVANIA $243,200 $273,920 $332,800 $384,936

BEDFORD PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

BERKS PENNSYLVANIA $213,750 $256,248 $309,744 $384,936

BLAIR PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

BRADFORD PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

BUCKS PENNSYLVANIA $270,750 $304,950 $370,500 $427,500

BUTLER PENNSYLVANIA $243,200 $273,920 $332,800 $384,936

CAMBRIA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

CAMERON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

CARBON PENNSYLVANIA $280,749 $349,034 $424,060 $489,300

CENTRE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

CHESTER PENNSYLVANIA $270,750 $304,950 $370,500 $427,500

CLARION PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

CLEARFIELD PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

CLINTON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

COLUMBIA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

CRAWFORD PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

CUMBERLAND PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

DAUPHIN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

DELAWARE PENNSYLVANIA $270,750 $304,950 $370,500 $427,500

ELK PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

ERIE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

FAYETTE PENNSYLVANIA $243,200 $273,920 $332,800 $384,936

FOREST PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

FRANKLIN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

FULTON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

GREENE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

HUNTINGDON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

INDIANA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

JEFFERSON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

JUNIATA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

LACKAWANNA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

LANCASTER PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

LAWRENCE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

LEBANON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

LEHIGH PENNSYLVANIA $280,749 $349,034 $424,060 $489,300

LUZERNE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

LYCOMING PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

MCKEAN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

MERCER PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

MIFFLIN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

MONROE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

MONTGOMERY PENNSYLVANIA $270,750 $304,950 $370,500 $427,500

MONTOUR PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

NORTHAMPTON PENNSYLVANIA $280,749 $349,034 $424,060 $489,300

NORTHUMBERLAND PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

PERRY PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

PHILADELPHIA PENNSYLVANIA $270,750 $304,950 $370,500 $427,500

PIKE PENNSYLVANIA $362,790 $464,449 $561,411 $697,696

POTTER PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

SCHUYLKILL PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

SNYDER PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

SOMERSET PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

SULLIVAN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

SUSQUEHANNA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

TIOGA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

UNION PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

VENANGO PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

WARREN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

WASHINGTON PENNSYLVANIA $243,200 $273,920 $332,800 $384,936

WAYNE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

WESTMORELAND PENNSYLVANIA $243,200 $273,920 $332,800 $384,936

WYOMING PENNSYLVANIA $200,160 $256,248 $309,744 $384,936

YORK PENNSYLVANIA $285,000 $321,000 $390,000 $450,000

http://www.fha.com/lending_limits.cfm

Edited November 2, 2006 by Nikita2Charles

[rob&ana 0]

Thanks Ana!...

And thanks for the info Nikita2Charles...

I had read about this a couple of days ago..

[Paul and Melanie 0]

Hiya! I know this thread is a bit old, but I also have a question about a home loan that will be in Paul's name only since he's the one with the good credit. We have an 8 hour class next week for down payment assistance, but now I'm starting to wonder if this would be considered receiving benefits from the Government? I'll have to ask before we even go to the class. Anyone ever hear of any programs like this in your area? Thanks!!!

RE: First Time Homebuyer Program

City of Henderson

Neighborhood Services Division

FIRST TIME HOME BUYER PROGRAM

Who is eligible?

The First Time Homebuyer Program was designed by the City of Henderson to assist low-moderate income families in the purchase of a home. The City of Henderson will assist with a 0% interest deferred loan not to exceed 10% for down payment only. In addition, the Program will loan up to 3.5% in closing costs and include extra financing for home repairs. The maximum loan with home repairs shall not exceed $30,000. The Program may be utilized by families who meet the following guidelines:

* Residing or currently employed within Henderson city limits for at least 1 year prior to the time an application is submitted to the City.

* Must make a minimum investment of $750 of their own funds towards the purchase of the home selected and have an additional $750 in reserves. A total of $1,500 must be present in a verifiable account (savings/checking/retirement) for at least two consecutive months.

* Must complete an approved First Time Home Buyer Education Program.

* All proposed properties must be: within Henderson City limits, at or below the FHA maximum mortgage limit of $297,400.00 purchase price (including repairs). The property selected by applicants must be owner-occupied or vacant (minimum six months prior to offer). Homes can be single family detached or attached units, condominiums or townhomes.

* Must have less than $10,000 in assets. (i.e. all bank accounts, CD's, investments, IRA's, stocks etc.)

* Income below 80% of median, adjusted for family size (see table below).

Number of persons in Household and Income Limit (As of February 11, 2005)

1

$33,100

2

$37,800

3

$42,550

4

$47,300

5

$51,050

6

$54,850

7

$58,650

8

$62,400

When is the loan repaid?

The City's First Time Home Buyer Program provides a deferred payment loan which is repaid by the applicant when the property is sold, the title transfers to another person, or the unit ceases to be the primary residence of the applicant. The loan may be repaid at any time. There are no interest charges or monthly payments. The loan is not assumable.

What do I need to do?

All applicants interested in participating in the City's First Time Home Buyer Program must first complete an approved First Time Home Buyer Education Program. To enroll in the next class, contact Housing for Nevada @ 270-0300 or Consumer Credit Counseling @ 364-0344. Upon completion of the education program, an application for assistance may be submitted to the City. Once the application has been processed and the City has verified the applicant’s eligibility, the applicant will be provided further instructions.

It is important to follow these steps in order since the City's Program requires that a determination of eligibility and a property inspection of the proposed property be completed prior to executing a purchase offer for a property. If a potential applicant and/or their realtor executes a purchase offer prior to the City's determination of eligibility and property inspection, the property will not be eligible for assistance through the City's Program.

For further information concerning the City's Program, please contact the City of Henderson Neighborhood Services Division at 267-2000.

EQUAL HOUSING OPPORTUNIT

[rebeccajo 14]

Hmmm.

Melanie, the only way to know for sure is to ask them! Ask them if the program has been designated as a 'means tested benefit' by your state.

The fact the loan is only going to be granted to your husband is also worthy of mention in this discussion. USC's are not precluded from receiving assistance.

Edited November 10, 2006 by rebeccajo

[Paul and Melanie 0]

Just wanted to say thanks to Rebecca!

That actually helped a lot! I will ask them when I phone them on Monday.

Melanie

[Nikita2Charles 32]

Always good to ask but FHA loans are not mea tested benefit. it's just a way for low income folks to get a house. As long as you meet certain financial critirea.