Tagged : financing your home

FHA Loan Costs Going Up Again

Phil Boren

Friday, March 2nd, 2012 at 11:22am. 244 Views, 2 Comments.

FHA loan costs are going up . . . again.  According to a HUD press release on 2-27-12, both the up-front and monthly costs of obtaining an FHA loan will be going up effective with all FHA case numbers generated on or after 4-1-12.  According to HUD, these changes are necessary to "... strengthen the Federal Housing Administration's (FHA) Mutual Mortgage Insurance Fund."  In other words, they appear to have lost some money recently and, like the post office, they need to raise the price of stamps (again)!

The nest questions are, how much is the increase and what does this translate to for FHA borrowers in the near future?

Change Number 1: Annual Mortgage Insurance (MIP), will be increasing by 0.10%.

Change Number 2: The up-front premium (UFMIP), will be…

Read Full Post »

FHA's 203k Loan Program: Buy and Rehab Homes With One Loan

Phil Boren

Friday, May 7th, 2010 at 1:22pm. 419 Views, 1 Comments.

FHA's 203k loan program may not be as well-known as "typical" FHA loans, but it can be a great financing tool.  Basically, the loan program allows you to purchase and rehab a home - all with one loan.  Many times someone will consider buying a home that needs work, but they struggle with how to acquire the property then come up with the additional money to rehab it.  The FHA 203k loan was designed to address this situation.

There are some guidelines and restrictions (it is a government program . . .), but it can be a very effective way to finance the property acquisition and rehab costs with one low down payment.  Here are some brief highlights of the FHA 203k loan program:

• One-to-Four unit properties are eligible
• The improvements must have been…

Read Full Post »