HUD & FHA Loan Programs and Grants!

[Calixto Urdiales]

Hello there everyone-

Not too sure if this qualifies as an announcement but I would like to let people know a little bit more about HUD (Housing and Urban Development) and FHA (Federal Housing Administration). HUD does not only offer people discounted homes to purchase but the ability to finance their purchase or consolidation of existing debt.

FHA does not lend you money but instead much like mortgage insurance they have the lender charge a premium (anually .5% of the loan balance in most cases), and if you do the math (Usually a 0% to 3% simple interest loans) it makes perfect sense for homebuyers and investors. Yes I said investors too, most people think that FHA loans are only meant for low & moderate income families that can't afford conventional lending. But that is just not the case, think of it like this someone tells you hey it is really windy right now (just because you can not see the wind does not mean it is there and you know cause you can feel it) and you know that they are telling you the truth.

Just because you can't see the advertisement on FHA loans and government programs does not mean that it doesn't exist. It just means that you are not looking hard enough or in the right places and for that matter most people ask the wrong questions when looking in the right place.

If you would like to know more just join me in the HUD, VA, and Tax liens sales forum and I may be able to help you. I do realize that it is a bit confusing being that so many people only want to know about the HUD homes for sale. The truth is you do not need to purchase a HUD home in order to qualify for an FHA backed loan (want to know why I just said that then just ask me).

Thank you for your time!

P.S. You would even be surprise at how many grants there are to fix up your home (some grants are monies from the government that does not have to be paid back :shock: yes you heard right), and there are loan programs that are based on timeline (the loan is forgiven after so much time has gone by).

Thanks again hope to hear from many of you soon enough and remember I only want to spead what needs to be known!

[Calixto Urdiales]

Hello there everyone-

If you are all to proud to ask what is out there to benefit you and your family then I will just list them off for you. This is not the case in most situations though, most people do not even know that there are government loan programs and grants available to them. Listed below is some info I thought that the average (not for investors, but do not get worried I have some really awesome stuff instore for you people too) homebuyer would enjoy and benefit from. Thanks and enjoy!

[size=18]Mortgage Insurance for One to Four Family Homes - Section 203(b) [/size]

Summary:
Through this program, HUD's Federal Housing Administration (FHA) insures mortgages made by qualified lenders to people purchasing or refinancing a home of their own.

Purpose:
FHA's mortgage insurance programs help low- and moderate-income families become homeowners by lowering some of the costs of their mortgage loans. FHA mortgage insurance also encourages lenders to make mortgages to otherwise creditworthy borrowers and projects that might not be able to meet conventional underwriting requirements, by protecting the lender against default on mortgages for properties that meet certain minimum requirements--including manufactured homes, single-family and multifamily properties, and some health-related facilities.

Section 203(b) is the centerpiece of FHA's single-family mortgage insurance programs—the successor of the program that helped save homeowners from default in the 1930s, that helped open the suburbs for returning veterans in the 1940s and 1950s, and that helped shape the modern mortgage finance system. Today, FHA One- to Four-Family Mortgage Insurance is still an important tool through which the Federal Government expands homeownership opportunities for 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 by FHA's Mutual Mortgage Insurance Fund, which is sustained entirely by borrower premiums.

Type of Assistance:
This 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:

-- Downpayment requirements can be low. In contrast to conventional mortgage products, which frequently require downpayments of 10 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 downpayments to as little as 3 percent. This is because FHA insurance allows borrowers to finance approximately 97 percent of the value of their home purchase through their mortgage, in some cases.

-- Many closing costs can be financed. With most conventional mortgages, the borrower must pay, at the time of purchase, closing costs (the many fees and charges associated with buying a home) equivalent to 2-3 percent of the price of the home. This program allows the borrower to finance many of these charges, thus reducing the up-front cost of buying a home. FHA mortgage insurance is not free: borrowers pay an up-front insurance premium (which may be financed) at the time of purchase, as well as monthly premiums that are not financed, but instead are added to the regular mortgage payment.

-- Some fees are limited. FHA rules impose limits on some of the fees that lenders may charge in making a mortgage. For example, the mortgage origination fee charged by the lender for the administrative cost of processing the mortgage may not exceed one percent of the amount of the mortgage.

-- HUD sets limits on the amount that may be insured. To make sure that its programs serve low- and moderate-income people, FHA sets limits on the dollar value of the mortgage. The current FHA mortgage limit ranges from $172,632 to $312,895. These figures vary over time and by place, depending on the cost of living and other factors (higher limits also exist for two- to four-family properties).

Eligible Participants:
FHA-approved lending institutions, such as banks, mortgage companies, and savings and loan associations, can make insured Section 203(b) mortgages.

Eligible Customers:
Anyone intending to use the mortgaged property as their primary residence is eligible to apply for an FHA insured mortgage through FHA-approved lenders. This program is not open to investors.

Application:
Any person able to meet the cash investment, the mortgage payments, and credit requirements can apply. The program is limited to owner-occupants. Applications are made through an FHA-approved lending institution. Most lenders who use this mortgage insurance product, however, make their requests through a provision known as Direct Endorsement, which authorizes them to consider applications without submitting paperwork to HUD. Borrowers can locate FHA-approved lenders through the searchable listing provided on HUD's homepage.

Technical Guidance:
This program is authorized under Section 203, National Housing Act (12 U.S.C. 1709 (b), (i)). Program regulations are in 24 CFR Part 203. The program is administered by HUD's Office of Housing-Federal Housing Administration.

For More Information:
General—To learn more about this program and other financing options, homebuyers should contact a HUD-approved lender for a searchable listing of approved lenders nationwide, a HUD-approved housing counseling agency.

Visit the FHA Resource Center for more information on all FHA programs.

Link for more info: http://www.hud.gov/offices/hsg/sfh/ins/203b--df.cfm

On the link page you will be able to find HUD approved lenders near you that can help you acheive the loan program for you. You can also find out what the FHA loan limits are for your particular situation (1-4 units) and area.

Note: Please do note that when some of these programs state that it is a single-family program they are speaking of 1 to 4 unit properties. I do not know why HUD considers multi-family 5 units or more but they do so you can still qalify for a single-family program if you have a duplex, triplex, or a quadraplex!

Thank you for your time.