From the monthly archives:

January 2009

January 23, 2009

How can I make FHA assume responsibility for the flaws in the property discovered after their inspection?

I don’t believe you can. A little consolation is that you are not the only one. The purpose of the FHA house inspection has been misinterpreted by generations of homebuyers all through the years. The FHA only insures your mortgage; it does not guarantee the flawlessness of the property being bought. They do conduct an [...]

January 22, 2009

Can first-time homebuyers get a discount on the upfront FHA insurance premium?

This whole issue was eliminated by the FHA Modernization Act of 2008 (within the Housing and Economic Recovery Act of 2008), or rather suspended for the period starting October 1, 2008 through September 30th, 2009. Before September 30, 2008 first-time homebuyers with credit score below 559 and LTV above 95 were eligible for a reduction [...]

January 21, 2009

What’s the difference between an FHA mortgage insurance and PMI?

The FHA insures only a limited range of mortgages provided by FHA-approved lenders. PMI insurers service mortgages of the conventional market. PMI is required if a homebuyer borrows more than 80% of the property’s purchase price in one loan; the FHA insurance is required for any FHA mortgage, irrespective of the size of the down [...]

January 16, 2009

How much home purchase money can I borrow from the FHA?

The short answer is none. I am serious. The thing is that the FHA does not lend you the money. The so-called FHA mortgages are in fact the FHA-insured mortgages. The FHA insures your mortgage to protect the lender in case you default on your payments. It is sort of like PMI, but the rules [...]

January 15, 2009

I hear the FHA pays the insurance premiums back?

It is certainly true, but not every FHA-insured borrower is eligible for this refund; even those who are, cannot get all the money paid as insurance premiums back Normally, if you are eligible you receive a check or an application within 45 days after you paid off your loan. Your mortgage company sends HUD a [...]

January 12, 2009

FHA-Insured Mortgages

There has been a lot of change in probably the most liberal until recently mortgage offer – the FHA-insured mortgage. Are you confused by the middle word in the title? Well, it is there rather to clarify any possible confusion or misunderstanding that FHA mortgages (that’s how they are called a lot more often) usually [...]