The Federal Housing Administration insures written mortgages against a variety of different types of properties, including single-family homes, prefab homes and condominiums. In order to get a sustained best FHA home loans, however, your home must pass a rigorous evaluation of the FHA. In addition, the FHA has strict guidelines in place for the types of condos and mobile homes that it funds.
Approved FHA properties
You can use a best FHA home loans to finance one to four dwelling properties that are self-contained, semi-detached or row-based structures. The FHA only insures the main residences, so if you use an FHA loan to buy a duplex you must live in one of the units. FHA appraisers inspect funded properties to look for security risks and you must correct any problem before closing on the loan. Risks to safety range from cracked windows to faulty electrical. However, if your home needs major repairs, you can use an FHA rehab loan to repair the property, in which case you can close on the loan before starting work.
You can finance your condominium with an best FHA home loans if the condominium complex has been approved by the FHA. FHA does not guarantee mortgages on condos in buildings exceeding four stories. In addition, the FHA provides condo loans if more than 50 percent of the units in the complex are owner-occupied and the FHA does not cover more than 10 percent of the condos in any complex at the same time. The same restrictions on financing a subdivision, unless the county documents describe your tow home as a single-family home, in which case the condo restrictions are not applicable.
You can finance your home made with a supported best FHA home loans, but only if your home was built after 1976. Before that time, building codes were less stringent and, as a result, older homes do not meet the standards of the FHA. You cannot finance your home made with an FHA loan if it is located in a special Federal Emergency Management Agency-designated flood risk zone. The house must remain beyond the 150-year flood occurrence elevation, which worth it is high sufficient over head the ground to prevent any damage that may occur during the next century of flooding. .
The FHA does not guarantee commercial property and you cannot use an FHA loan to finance your principal residence if you live in a fraternity or sisterhood house. In addition, the FHA imposes loan limits on home financing so that you cannot use an FHA loan to buy or refinance a home, if the amount involved exceeds the limits of the FHA. The maximum amount of best FHA home loans varies from county to county, but a limit of $ 271,050 applies in most areas.
How to qualify for a home loan modification
Homeowners who have lost jobs and other financial issues are under a lot of stress. Loan modification programs are created for homeowners struggling with financial difficulties. With these programs, lenders reduce the monthly mortgage payments of the borrower. For example, a lender may decide to reduce the borrower’s monthly payments by $ 600. Loan modification programs have specific eligibility requirements. Borrowers who meet these requirements can get relief while turning around their financial situation.
Loan of Notice of Change Eligibility Requirements. Debt securities that exceed 55 percent of gross monthly income may qualify borrowers for home loan modification, reports CNN Money. For example, if your gross monthly income is $ 4000 and the monthly mortgage payment is $ 2600, it’s 65 percent of gross income (which is past the 55 percent threshold).
Call the lender. Tell the lender that you want to apply for a loan modification. The company will have to verify that you meet the criteria. Pay stubs and other supporting documents will be required.
Receive approval. After the lender has approved the application, the company will modify the loan. According to CNN Money, loan modifications aim to reduce mortgage payments to 31 percent or less of gross monthly income. For example, if the gross monthly income is $ 4000, the mortgage payments will not exceed $ 1240.
Sign the contract. The lender will provide a contract for the loan modification. Examine the contract carefully. A loan modification is good for a fixed term, such as 24 months. Review the modification term to ensure the information is correct. If you find incorrect information, ask the lender to forward a revised document to the signature. Loan amendments are usually signed at a branch of the bank.
Tips and Warnings
Loan modification participants can benefit from a $ 1,000 reduction on the loan principal for each year they make timely payments, according to US News & World Report. Ask your lender about the details and qualifications.
Take note of the expiration date on the change. At this time, payments will return to the previous amount. Before the expiration of the change, speak with your lender about other options to reduce payments (such as refinancing the loan).