Fha Housing Loans

Rita Said:

What is the difference between Conventional Financing AND Federal Housing Administration (FHA) Loans?

We Answered:

I'm not a lender, but a REALTOR. I believe we will be seeing modifications in all the loan programs soon. But as far as I know:

FHA requires owner occupancy, the required amount of 3 - 3.5% buyer participation (part required to be used as Down Payment, and part can be used for closing costs), allows for "gifts" for help with expenses in buying. Property must appraise for the sales price. Increased maximum loan amounts in place thru 12/31/08 vary according to the average local housing prices. FHA loan limits used to be very low compared to housing prices, but were increased. Gov. may or may not extend current loan limit amounts. FHA has restrictions on loans to purchase condos depending on percentage of units that are owner occupied. Used to have more lenient debt to income rations than conventional loans.

Conventional loans now require larger down payment - I've heard 10% is the minimum and a minimum credit score. Stricter debt to income ratios back in place, I think. Property must appraise for the loan amount. Much higher loan amounts than FHA for "conforming" loans.

USDA - allows for 100% financing, but is restricted to owner occupied in certain "rural" areas based on 2000 census and has income restrictions.

Jennie Said:

Are house sellers who accept FHA loans subject to an oversight board?

We Answered:

Yes, find another house. If the contract had a inspection clause in it, and the inspector found a faulty A/C, you can request that it be repaired (or get an allowance for it). The seller can either do it, negotiate it with you, or outright refuse to do it. If you dont reach an agreement, then the contract is void.

Not knowing what was in your contract, or where you live, I could be wrong, but thats how it works where Im from.

Corey Said:

What are the requirments for the Seller when the buyer wants to use a rural housing loan or an FHA loan?

We Answered:

If this is a newly built home there shouldnt be anything. FHA has changed allot recently. Before FHA would have an inspoection done that was very tedious. Now they just send an appraiser and if he/she sees something that could be a problem they will note that. When writing a contract for a home that would be purchased with FHA there will be a form that stated what they want the seller to pay in repairs for the FHA loan. It usually is around $500. THese would be for repairs that normally wouldn't need be in a newer home. On the RDA loan I believe it's the same. If your home is newer and their isn't any safety hazards like showing wires or leaking roofs etc you should be fine. I just had a house built in 1950 pass just fine.

Clifford Said:

FHA loans: HELP! What is the minimum percentage needed to get a house with an FHA loan?

We Answered:

3.5% down and closing costs are about the same. You can often get the seller to pay closing costs. I just purchased at 164,000 with around 6500 out of pocket.

Beatrice Said:

How hard is it to get approved for a housing FHA loan?

We Answered:

How low is your credit score and also how much will you be willing to put down for a loan. Try this web site and see what kind of rate you get with FHA. Also with this amount you might not need FHA loan depend on where you want to buy your house.


http://www.amerisave.com/partner/chongth…

Tiffany Said:

Do FHA loans automatically require the house to be inspected?

We Answered:

FHA highly recommends you get a home inspection but they do not require it. They recommend it so highly that they actually give you a form to sign saying that you are aware that they recommend home inspections. Home inspections range from 200 to 350 depending on the size of the home in my area. I'm sure they are comparable where you are.

I've never heard of inspection costs being put into your loan as mentioned by another post. Appraisal costs yes, but not inspection costs.

by the way, congrats on Colton, he is a cutie!

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