FHA Home Mortgage Loans

FHA Home Mortgage Loans

Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans are popular homebuyer choices. These loans must meet certain requirements.

FHA Mortgage Insurance

The Federal Housing Administration (FHA) provides mortgage insurance on loans made by approved lenders. FHA mortgage insurance provides lenders with protection against losses against mortgage payment default. The cost of the mortgage insurance is paid by the homeowner as an upfront amount which is usually financed into the loan amount, as well as an amount that is included in the monthly mortgage payment. The amount of mortgage insurance paid on an FHA loan is dependent on the base loan amount, loan term and loan-to-value (LTV) ratio.

VA Funding Fee

You are typically required to pay a one-time funding fee on VA loans. This fee ranges from 0.5 to 3.30 percent, depending on your service type, prior use of VA eligibility, and type of loan transaction.

Private Mortgage Insurance

Insurance written by a private company protecting the mortgage lender against loss resulting from a mortgage default.

Mortgage insurance (MI)

Mortgage insurance protects the lender against a loss if a borrower defaults on the loan. On conventional (non-government) loans, private mortgage insurance (PMI) is usually required if your loan amount is greater than 80% of the home’s value. On government-backed FHA loans, mortgage insurance is usually required in the form of both an up-front premium, as well as a monthly premium. The amount of mortgage insurance paid on an FHA loan is dependent on the base loan amount, loan term and loan-to-value (LTV) ratio.


A.A. for Homebuyers. Zero Down FHA loans tied to

2004-01-26 14:30:51 by Your_pensions-funded-by-

Don't read this if you're invested in the mortgage market: you'll throw up:
Last week, the Bush administration proposed that the FHA allow zero-money-down financing for first-time homebuyers. Zero money down for a house. The new provision would give additional teeth to an already absurd mandate of the FHA: approving applicants who have demonstrated they pose too high a credit risk to get a loan through the conventional mortgage market.
- Lenders, of course, love the idea. "Any down payment," Angelo Mozilo, CEO of Countrywide Financial Corp. told the LA Times, "even 3% [the current requirement of the FHA] is a major, unnecessary obstacle for lower-income borrowers

Questions about FHA loans

2002-07-05 13:04:12 by markster

I've read about these loans at If you have a FHA loan or even considered one please reply.
Is it really true you only have to put down 3%?
Is the following true? Your total move in cost is the FHA premium (2.25% of the mortgage), closing cost (3% of the home value) and down payment (3% of home value).
Also, I've heard that instead of PMI you pay a monthly FHA premium, if so, how much is it?
I've heard that FHA rates are considerbly lower than conventional rates. How much lower are they?
Thanks in advance for your time.
Markster

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One of the topics in our [indiscernible] has significant earnings tailwinds [indiscernible] and is well-position for growth, as private mortgage insurance redeem market share from the FHA. With that, I'll turn it over ..

2014 Debt-to-Income Ratio Update: FHA, Conventional Mortgages, and QM  — Home Buying Institute
The front-end or “housing” ratio only looks at housing-related debts, such as monthly mortgage payments and property taxes. The back-end or total DTI ratio takes .. the back-end debt ratio, in particular.

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