All Forum Posts by: Calixto Urdiales

Thanks for the advice Jon and off the top of my head I know several places that I can go to right now.

Thanks again!

[size=24]Home Equity Conversion Mortgage Program [/size]

Summary:
The Home Equity Conversion Mortgage program enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for life or a fixed term, or in a lump sum, or through a line of credit.

Purpose:
The Home Equity Conversion Mortgage Program (HECM) can enable an older home owning family to stay in their home while using some of its built up equity. The program allows such a household to get an insured reverse mortgage-a mortgage that converts equity into income. Because older persons can be vulnerable to fraudulent practices, the program requires that persons receive free reverse mortgage housing counseling from a HUD-approved reverse mortgage counseling agency before applying for a reverse mortgage. FHA insures HECM loans to protect lenders against loss if amounts withdrawn exceed equity when the property is sold.

Type of Assistance:
HECM can be used by homeowners who are 62 years of age and older. The total income that an owner can receive through HECM is the maximum claim amount, which is calculated with a formula including the age of the owner(s), the interest rate, and the value of the home. For example, on the basis of a loan at recent interest rates, a 65-year-old could borrow up to 26 percent of the home's value, a 75-year-old could borrow up to 39 percent, and an 85-year-old could borrow up to 56 percent.

Borrowers may choose one of five payment options: (1) tenure, which gives the borrower a monthly payment from the lender for as long as the borrower lives and continues to occupy the home as a principal residence; (2) term, which gives the borrower monthly payments for a fixed period selected by the borrower; (3) line of credit, which allows the borrower to make withdrawals up to a maximum amount, at times and in amounts of the borrower's choosing; (4) modified tenure, which combines the tenure option with a line of credit; and (5) modified term, which combines the term option with a line of credit.

The borrower remains the owner of the home and may sell it and move at any time, keeping the sales proceeds that exceed the mortgage balance. A borrower cannot be forced to sell the home to pay off the mortgage, even if the mortgage balance grows to exceed the value of the property. A HECM loan need not be repaid until the borrower moves, sells, or dies. When the loan must be paid, if it exceeds the value of the property, the borrower (or the heirs) will owe no more than the value of the property. FHA insurance will cover any balance due the lender.

Two mortgage insurance premiums are collected to pay for HECM: an up front premium (2 percent of the home's value), which can be financed by the lender, and a monthly premium (which equals 0.5 percent per year of the mortgage balance). The lender's loan origination charge can vary, but only up to $1,800 in such charges may be financed by HECM. Borrowers may be charged appraisal and inspection fees set by HUD; these charges can also be financed.

As part of the HECM program, HUD has provided for free reverse mortgage counseling (with training for the counselors) for persons considering using such an instrument, and a toll-free information line.

Eligible Grantees:
Any lender authorized to make HUD-insured loans- such as banks, mortgage companies, and savings and loan associations-can participate in the HECM program.

Eligible Customers:
To be eligible for HECM, a homeowner must (1) be 62 years of age or older, (2) have a very low outstanding mortgage balance or own their home free and clear, and (3) have received HUD-approved reverse mortgage counseling to learn about the program.

An eligible property must be a principal residence, but it can be a single-family residence, a one- to four-unit building with one unit occupied by the borrower, a manufactured home (mobile home), a unit in an FHA-approved condominium, or a unit in a planned unit development. The property must meet FHA standards, but the owner can pay for repairs using the reverse mortgage.

Application:
Homeowners who meet the eligibility criteria above can apply through an FHA-approved lending institution, which in turn submits the application to the local HUD Field Office for approval. Borrowers can locate FHA-approved lenders through HUD's searchable listing.

Because there has been a problem of some senior citizens being charged thousands of dollars for information on HECM that is available free, HUD recently directed HECM lenders to stop doing business with companies that charge such fees.

Funding Status:
In FY 1996, the HECM program insured 3,604 homes with a value of $369 million. Through September 30, 1996, approximately 16,000 HECM loans had been made.

Technical Guidance:
TECHNICAL GUIDANCE: This program is authorized by the Housing and Community Development Act of 1987, Section 417, Public Law 100-242 (12 U.S.C. 1715z-20). Program regulations are in 24 CFR 200 and 206. This program is administered by the Office of Single-Family Housing in HUD's Office of Housing-Federal Housing Administration.

For More Information:
Homeowners who want to learn more about this program, or who were charged for HUD approved reverse mortgage counseling should call HUD's toll-free housing counseling information line, 1-800 569-4287 or see the searchable list of HUD approved reverse mortgage housing counseling agencies.

Additional information is available from two nonprofit organizations: the American Association of Retired Persons' (AARP) Home Equity Conversion Information Center (202-434-6044) and the National Center for Home Equity Conversion (NCHEC) at 7373 147th St., Room 115, Apple Valley MN 55124.

Link to HUD: http://www.hud.gov/offices/hsg/sfh/hecm/hecm--df.cfm

enjoy everyone.....

[size=18]Single-Family Cooperative Mortgage Insurance - 203(n) [/size]

Summary:
The Section 203(n) program insures mortgages for persons buying a unit in a cooperative housing project. The mortgage is made by a lending institution, such as a mortgage company, bank, or savings and loan association, and is insured by HUD's Federal Housing Administration (FHA).

Purpose:
The purpose of FHA's mortgage insurance programs is to encourage lenders to make mortgage credit available to borrowers who would not otherwise qualify for conventional loans on affordable terms (such as lower income families and first-time homebuyers) and to residents of disadvantaged neighborhoods (where mortgages may be hard to get).

The basic FHA mortgage insurance program is Mortgage Insurance for One- to Four-Family Homes (Section 203(b)), which offers homebuyers lower initial costs and lower downpayment requirements, and allows borrowers to fold some of the closing costs into the loan. Section 203(n) is one of several FHA programs based on Section 203(b) that have special features--in this case, financing structured to meet the needs of persons who are buying a corporate certificate and occupancy certificate, the instruments that enable them to own a share of and live in a cooperative housing project (co-op).

Type of Assistance:
The program insures a mortgage to purchase an apartment in a residential cooperative--which can be a detached or semidetached building, a rowhouse, or a multifamily building.

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).

Many of the terms of Section 203(n) insurance are the same as those governing basic FHA single-family mortgage insurance. Borrowers can finance 97 percent of the price of their cooperative ownership, and that financing can include many of the closing costs involved in buying a home. Because they can borrow so much of the price of their unit, the downpayment can be a low as 3 percent.

Eligible Participants:
FHA-approved lending institutions can make insured loans under Section 203(n) through HUD Field Offices.

Eligible Customers:
All potential owner-occupants who can make the monthly mortgage payments are eligible to apply.

Application:
Applications must be submitted to the local HUD Field Office through a FHA-approved lending institution. HUD's website offers an interactive directory of approved lenders.

Technical Guidance:
This program is authorized under Section 203(n) of the National Housing Act (12 U.S.C.) and the Emergency Home Purchase Assistance Act of 1974, Public Law 93-449, 88 Stat. 1364. Program regulations are in 24 CFR 203.43c and 203.437. These regulations, as well as handbooks, notices, and letters relevant to this program, are available through HUDCLIPS. The program is administered by the Office of Single-Family Housing Programs in HUD's Office of Housing-Federal Housing Administration

For More Information:
Contact the HUD Homeownership Center that serves your state. Homebuyers can also contact a HUD approved lender for a searchable listing of approved lenders nationwide, a HUD approved housing counseling agency, or the toll-free FHA Mortgage Hotline, 1-800-483-7342

Link to HUD: http://www.hud.gov/offices/hsg/sfh/ins/203n--df.cfm

Hope you enjoyed the info my friends.

This is a touchy situation and it all may depend on your purchase agreement, for example he has an out he may choose to take that route for means of terminating the contract. But you might want to check for I do not think you can force anyone to do anything my friend.

Originally posted by "**********":

Not my intent at all, just asking as most times you get involved in a project the intent is business, correct?

This is true but I had all ready clarified that business was not my intent. I had mentioned that my only intent was to inform those of us who do not use these programs.

Originally posted by "**********":

I didn't know you were in the market for a HUD home, as we last talked you were trying to by a home from a family member if I recall?

No you must have mistaken me for someone else and I didn't say I was in the market for a HUD home all I said was if you knew about the programs why not tell me. You do not need to purchase a HUD home in order to use the porgrams provided by them.

Originally posted by "**********":

Most people are well aware of HUD programs as most first time or assistance programs provide all the information about the various government and regional sponsored programs.

How would your giving out info be a breach of contract? And what contract?

Okay do not know of these most people you speak of but the majority of people only know of the programs that I mentioned before. If they did know about all these programs then why has so much money that is driven towards these programs have not been used? I am only trying to inform them of where to go and how to go about finding more information that will clear things up for them.

Oh and James you missed that if I was a consultanat part this does not pertain to me as I am not an employee of HUD. So I am not breaching an sort of contract what so ever for there is none, do I have to say this over and over again to get this across?

Originally posted by "**********":

Dude, your learning about government programs and thats GREAT, however some of your post have provided some inaccurate information and I know thats not your intent.
I KNOW YOU, and I know YOU would NEVER intend to HARM anyone Lito...
I don't think your coming off rude or in a manner that your selling anything including your self.

Okay James you say that I have provided inaccurate information but yet when you question me on it I have clarified the with answers. So where is this inaccurate information you speak of my friend?

Just because you can not see the wind does not mean that it doesn't exist all you have to do is ask and you shall receive information that may lead you down a different path. If you do not understand my intent with this response I will be gald to clarify if you ask.

Again I am sorry of being on the defense with response towards your postings but I only misread your intentions.

Nice try Ryan. LOL

Oh well thanks anyways!

[size=18]Energy Efficient Mortgages Program [/size]

The Energy Efficient Mortgages Program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficiency features to new or existing housing as part of their FHA-insured home purchase or refinancing mortgage.

Purpose:
This program seeks to help achieve national energy-efficiency goals (and reduce pollution) and provide better housing for people who might not otherwise be able to afford it. By considering the savings on monthly utility bills when determining how large a mortgage the household can afford, as many as 250,000 more new homebuyers could qualify per year, according to a 1986 study by the Joint Center for Housing Studies. Although EEMs have been available in some States since 1980, they have been little understood or marketed. With EEMs, borrowers do not need to get a separate, costly loan for energy improvements when buying an existing home.

Type of Mortgage:

EEM is one of many FHA programs that insure mortgage loans--and thus encourage lenders to make mortgage credit available to borrowers who would not otherwise qualify for conventional loans on affordable terms (such as first-time homebuyers) and to residents of disadvantaged neighborhoods (where mortgages may be hard to get). Borrowers who obtain FHA's popular Section 203(b) Mortgage Insurance for One- to Four-Family Homes are eligible for approximately 97 percent financing, and are able to fold closing costs and the up-front mortgage insurance premium into the mortgage. The borrower must also pay an annual premium.

EEM can also be used with the FHA Section 203(k) rehabilitation program and generally follows that program's financing guidelines. For energy-efficient housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD's Title I Home Improvement Loan program.

How to Get a EEM:

FHA-approved lending institutions-which include many banks, savings and loan associations, and mortgage companies-can make loans covered by EEM insurance.

Eligible Customers:

All persons who meet the income requirements for FHA's standard Section 203(b) insurance and can make the monthly mortgage payments are eligible to apply. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or an energy consultant. Up to $200 of the cost of an energy inspection report may be included in the mortgage. Cooperative units are not eligible; 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.

EEM can also be used with FHA's Section 203(h) program for mortgages made to victims of presidentially declared disasters. The mortgage must comply with both Section 203(h) requirements, as well as those for EEM. However, the program is limited to one-unit detached houses.

Eligible Activities:
EEM can be used to make energy-efficient improvements in one to four existing and new homes. The improvements can be included in a borrower's mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life. The cost of the improvements that may be eligible for financing as part of the mortgage is either 5 percent of the property's value (not to exceed $8,000) or $4,000--whichever is greater. The maximum mortgage limit for a single-family home is $160,950, plus the cost of the eligible energy-efficient improvements. (Limits may be lower in some areas of the country.) .

Application:
Applications must be submitted to the local HUD Field Office through an FHA-approved lending institution. HUD's homepage offers a searchable list of approved lenders.

Funding Status:
In FY 1996, 3,500 loans were endorsed. In FY 1997, 4,700 loans were endorsed.

Technical Guidance:
EEM is authorized under Section 513 of the Housing and Community Development Act of 1992. Program regulations are in Mortgage Credit Analysis for Mortgage Insurance on One-to-Four-Family Properties (HUD Handbook 4155.1), paragraph 2-20. This and other FHA programs are administered by the Office of Single-Family Housing in HUD's Office of Housing-Federal Housing Administration. Contact the Director of Single-Family Housing at the nearest HUD Homeownership Center.

For More Information:

The Department of Energy (DOE) and HUD established a Joint Initiative on Energy Efficiency in Housing. To learn more about this collaborative effort, see DOE/HUD Initiative on Energy Efficiency in Housing: A Federal Partnership, Program Summary Report, which is available from HUD USER (1-800-483-2209).

Link to HUD: http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm

I hope you enjoyed this segment!

God one simple question and I can not even get an answer, please someone from the biggerpockets community help me. :crying:

Originally posted by "**********":

BTW-

How are you making money with all of the public HUD information? Are you a HUD consultant, or charging other to inform them of HUD programs or??

Oh James you insult me with this how do I make money stuff. Have you not read my postings?

If you read my postings you will understand that there is money to be made regardless if you are a homebuyer or an investor. I do not charge people for this information if they would like help getting what they need then all they have to do is ask. I am not a HUD consultant (takes too much schooling and I want to make money investing myself now not tie my time up be in class) nor am I pid by HUD in anyway and even if I was that would mean HUD is paying me not the people who want the info.

If you were well aware of the programs in the first place and you knew how much help they provide why not tell me in the first place?

The only programs most people know about are section 8 and welfare to are great regreat they do not solicit their other programs (hence I am not a consultant and if I was giving the info in such detail would be a breach of contract in one form of another)!

Thanks James I all ways enjoy your conversations!

P.S. You are questioning me in a manner that reminds me of REI, it seems like you think I am intending harm on people James and you know me better than that. Sorry if I came off as some rude way but I did not mean to offend anyonw nor did I think I was selling myself!