FHA loans are a government-backed loan designed for people who have mediocre credit scores, a small amount of cash for a down payment, or are overextended on credit – but otherwise can afford to make a mortgage payment. The loans are backed by the Federal Housing Administration (FHA), under the Department of Housing and Urban Development (HUD). Preset spending limits are the hallmark of an FHA mortgage. The loan amounts are set by the median prices of a home in different cities within a particular area. The difference in loan amounts between rural and densely populated areas can vary by several hundred thousand dollars. The best part about an FHA loan is that you generally can have a lower down payment towards the purchase of your home than other loans. But FHA loans may be more expensive. All FHA loans carry mortgage insurance (also known as MI), even if you put down more than 20 percent on the property. FHA loans are assumable. That means that if you sell your home, your buyer can potentially assume your loan and you would be released from the loan.

Rising Mortgage Insurance Costs Could Make FHA Home Loans a Bad Deal for Many Buyers

The rising costs of mortgage insurance could make FHA loans a bad deal for many homebuyers. The Federal Housing Administration, or FHA, allows for low down payments for buyers even if that buyer has a low credit score, but it …

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Problems With Seller Disclosure: Moving a Manufactured Home

If your are having problems with seller disclosure about moving a manufactured home, you may have a legal case against the seller. Q: We have a problem. My son purchased a manufactured home last year at the age of 21 …

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FHA Streamline Refinance Basic Requirements

It is important to know the FHA streamline requirements when trying to refinance. Be sure to shop around for current refinance rates. Q: I have an FHA loan for my house and I was wondering if this is a good …

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Refinancing with HELOC

When a home equity line of credit (HELOC) stops a person from refinancing, they should pay off or pay down the HELOC so they can refinance. Q: I recently attempted to do a FHA streamline refinance and was denied because …

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FHA Streamline Refinancing High Costs

FHA streamline refinancing may not be as easy as may have higher costs than anticipated. Q: I read your recent Real Estate Matters column regarding FHA streamline refinancing. There is one glaring mistake. You wrote “If you have 25 years …

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FHA Streamline Refinancing Not For Everyone

With increased FHA upfront fees, FHA Streamline Refinancing may not work unless the interest rate drop is significant. Q: I read your Real Estate Matters column in the Washington Post regarding FHA streamline refinancing. There is one glaring mistake. You …

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Lowering Interest Rate With FHA Loan

You might be able to lower your mortgage interest rate with an FHA loan. Q: I was listening to your radio show on WSB Radio this past Sunday. The caller had a mortgage with one of the big banks and …

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FHA Requirements: Mortgage Insurance

Q: I noticed when I got my FHA loan that I would have to pay mortgage insurance. That’s fine, because I didn’t have 20 percent to put down on the property when I bought it. But here’s my question: When …

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FHA 203k Loan Slows Loan Approval Process for First-Time Home Buyer

FHA 203k loan slows loan approval process for first-time home buyer. First-time home buyer using FHA 203k loans may find the loan approval process slowed because of FHA 203k loans. The loan approval process for FHA 203k loans is slower than the loan approval process for other loans for first-time home buyers. FHA 203k loans are the most complicated FHA loans and can slow the approval process for a home buyer.

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FHA Loan May Solve Mortgage Dilemma

If you bought a home and now your home is worth less than your purchase price you may be kicking yourself, especially if you’re paying a high mortgage. While buying high end real estate is a risk, every home buyer who does so chooses to take on that responsibility. In a situation like this it may be worthwhile to check whether the FHA can offer you a new home loan.

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