Mortgage Inspections
FHA Mortgage Home Inspection Requirements

 For those wanting to sell their home or for investors looking to purchase a HUD property one  of the things you will need is a home inspection, the requirements necessary for a FHA inspection is to first understand that the fha loan is insured by the federal government so they will want to make sure that the value and the condition of the home is worth the price the home is selling for. Some things that may need repair include a leaking roof, chipped paint, replacing handrails, broken windows

FHA inspection Checklist

On the list of items looked at by the fha home inspection are things that have to do with safe and healthy deficiencies such as inadequate blocked entrances, missing exterior doors, as well as garage doors working properly. Lead based paint hazard can be detected with the chipping or flaking of paint on the walls, porch, windows or fences. Next things such as the plumbing system of toilets working properly and leaks of pipes, electrical systems, outlets and wiring of appliances, air conditiong unit, heating system are checked for irregular noises or smell, structional condition of floor, framing or attic of water damage, ventilation or visible holes.

Private road access for all weather surface such as gravel and reachable by foot or vehicle, grading and drainage, water supply and property considerations such as soil contamination or termites as well as location hazards are determined for high voltage transmission lines, gas wells, or excessive noise from heavy highway traffic are all things considered in a home inspection that will determine if you will get the fha loan before buying a real estate investment property.

FHA Appraisal Inspection

 The appraisal is the part the has the most weight in a home purchase, the propertys condition must be documented for a FHA mortgage. Other requirements include that you must use a appraiser from a FHA approved list, Then the appraiser will get a case number from the broker or lender. Some appraisal changes that has happened in the last few years is that minor defects, normal wear and tear and cosmetic, are reported to the lender but if they are not safety hazards or the stuctural soundness of the home will not cause a major problem then it may not require automatic repair, in other areas such as with a flat roof, septic or wood destroying insects, or the functioning of the water system.

Change in FHA Cash out FHA allowable fees

FHA has waived its 90 day property flipping rule for one year, as well as raising the minimum down payment, establising a minimum credit score, increasing the cost of mortgage insurance while relaxing limits on origination fees, the u.s. department of housing and urban development removed the 1% loan origination fee cap on FHA mortgages as well as a change in the FHA cash out refinance policy with the maximum loan to value ratio on cash outs going from 95% to 85% for all loan amounts. Owner occupied financing is limited to one primary residence, after one year out of bankruptcy you can qualify for a FHA loan, with no minimum credit score requirement.

HUD FHA Inspector Requirements

Inspectors and 203 K consultants must review FHA handbook policies and guidelines, of the minimum property standards, architectural processing and inspection for home mortgage insurance, learn requirements for 1-4 single family existing housing 203 K rehabilitation mortgage insurance, HOC reference guide - inspector fees and repair conditions, FHA repair and inspection requirements for existing properties and revisions to FHA appraisal protocol.

A home inspection gives the buyer more information of the overall condition of the home before purchase and a qualified inspector will evaluate the physical structure, identify items to be repaired or replaced, estimate usefulness of systems and equipment, the difference with appraisals is that the lenders estimate the market value of the home making sure that the house meets FHA minimum property standards and this will deternine if the property is marketable. You can also request a radon gas testing with your home inspection. Being a informed buyer is key to getting a home that is worth the asking price

Freddie Mac Mortgage Rates

Freddie Mac works with mortgage lenders to help people get lower housing costs and collects mortgage rates on Monday thru Wednesday of each week from lenders across the country while releasing the results of its primary mortgage market survey, showing that the 30 year fixed rate (FRM) remained relatively stable despite the weakening of a strengthening housing market, and mortgage rates remained flat. The desire to boost home loan demand and aid the housing market recovery is taking longer than previously expected. Fixed mortgage rates are prompting homeowners to refinance.

Mortgage applications rise but the demand for loans to purchase a home is down, has mortgage rates rebounded? The primary mortgage market survey reports the 5 year treasury indexed hybrid adjustable rate mortgages averaging 4.32 percent compared to 4.44 with fees and points declining.

Freddie Mac Appraisal

Freddie mac will purchase all the seriously delinquent loans from their fixed rate and adjustable rate mortgage participation certificate securities, this cost saving move comes at a time when determining the cost of guaranteeing payments to the holders of the securities including advances of interest at the security coupon rate, exceeds the cost of holding the nonperforming loans. 

The companies mortgage related portfolio will carry these purchases to help preserve capital and reduce the amount of draws from the U.S. Department of Treasury by adopting new accounting standards for transfers of financial assets, which will lead to the consolidation of variable interest entities.

The mortgage bankers association releases a weekly survey of mortgage application activity  done by mortgage bankers, commercial banks and thrifts, it is important to note that mortgage rates are primarily set by the trading of mortgage backed securities. The demand for MBS is higher during weak economic times due to investors moving their money into fixed income sector such as U.S. Treasury Bonds. Appraisals must be ordered through and appraisal management company if a transferred appraisal is to be accepted by the new lender

Freddie Mac Cash out Refinance

Cash out refinancing is a good option when the equity in your home value has increased from the purchase amount, these equity loans are also called second mortgages, home equity lines of credit, or reverse mortgages. Some choose to refinance their mortgage for more than they owe so as to use the difference for personal use. The Freddie Mac cash out refinance is a replacement of your first mortgage with a lower interest rate, and has closing costs attached.

It is important to note that if you borrow more than 80 percent of your homes value, you will have to pay private mortgage insurance. Also consider how you will spend the money, for a home addition to add value to the home or on a mission to clear up credit debt could have you paying back the loan for the length of the mortgage.

Freddie Mac Foreclosure

Home losses and the suffering economy is seeing more Freddie Mac foreclosures on the rise. Home loan financing companies are taking steep mortgage losses, causing loan modifications from lenders to increase.

Freddie Mac to rent foreclosed properties

As an investment company that purchases home loans from various banks and brokers, and when one of the loans goes into foreclosures Freddie Mac takes ownership of the property and offers it at auction or at a REO property through a real estate agent. Freddie Mac extends evictions suspension by launching rental option for foreclosed borrowers, qualified owners and tenants can lease property on a month to month basis to help with property values and housing market recovery by keeping homeowners in their homes longer.

Mortgage Relief FHA Loan

FHA Refinancing Program

The Hope for Homeowners Program

The FHA is the insurer of residential mortgages, providing mortgage insurance on loans that helps home buyers with competitive rates. Federal mortgage relief comes for those who qualify for a FHA refinance program that allows the hope for homeowners program provides assistance to borrowers who are facing difficulty paying their mortgage may be eligible to refinance into a FHA insured mortgage that is more affordable. Homeowners needing help can find mortgage rescue through refinancing and modified loans designed to lower monthly mortgage payments which involves the reduction of your interest rate.

Even if you are keeping up to date but the amount owed on the home exceeds the value a loss mitigation specialist can determine if you are considered underwater and if so temporary interest rate reduction from an independent loss mitigation company. Financial hardship is the beginning of seeking help so you can stay in your home, if you receive notice of default in the mail you have the right to seek an escrow analysis to ensure that the delinquent payments, being capitalized reflect the actual escrow requirements. You may be required to furnish a financial review of household income and expenses to determine if you can meet the new modified mortgage payment.

Obama Mortgage Refinancing Program

Making home affordable is a FHA refinance option for homeowners,  the first step is to go online and learn your mortage options, if you are using your home as your primary residence. Before the economic collapse and the banks failed many homeowners where experiencing a real estate boom and at a time when ones home which has increased in value since the home was purchased, many qualified for a cash out refinance allowing them to take out  larger mortgage for more than they owed to utilize the equity in the home. For those with a original FHA home loan in good standing you can refinance to lower your monthly mortgage interest payments, good financial standing with no significant debt can try a streamlined refinancing because it does not require a appraisel, income verifications, qualifying debt ratios or credit check, this made it possible for many to get mortgage relief.

Some who now are unable to pay their mortgage due to lost jobs or disability can look to the obama mortgage with this home rescue plan if you have missed one or more payments, the amount you owe on your first mortgage must meet certain guidelines, by helping with reducing your interest rate, extending the loan term, You can get a portion of the principle deferred along with the interest waived until the loan is payed off. Many borrowers will be limited and unable to refinance due to owing more than 5 % of their homes current value, making one out 10 homeowners with a mortgage ineligible. 

FHA Mortgage Refinancing Guidelines
FHA Mortgage Assistance Programs

 FHA adjustable rate mortgage, is something the new legislation is making it possible for borrowers to refinance mortgage rates, into a more affordable FHA loan with help from fannie mae and freddie mac, the u.s. government requiring borrowers to show that they can repay the newly refinanced loan, since the lender is required to pay a risk adjusted premium to receive financing if the house then eventually sold the proceeds would be shared with the government. The collapse sub prime market has made it harder to get a federal housing administration mortgage.

Mortgage insurance with FHA Loans

A policy that protects lenders against losses resulting from defaults on home mortgages ususally have FHA insured mortgages that borrowers are required to have when making a down payment.  As a owner you will want to find out what the FHA loan limits are, mortgage insurance requirements for a FHA loan, as well as what conditions will automatically terminate the FHA's monthly mortgage insurance payments.

FHA Mortgage Insurance Costs 

As a FHA loan borrower the mortgage insurance premium that you will be charged includes the renewel premium as well as the purchase price of the property.In comparison to a conventional program one will find that the FHA loan is significantly higher at closing an upfront premium of the is paid and usually can be financed into the mortgage amount, in addition to the monthly MIP amount of the PITI. Your goal as a homeowner is to get the lowest fixed rates of 4.1 to 4.2 percent interest. If the loan to value is greater than 80 percent mortgage insurance is required. FHA loans can be either adjustable rate mortgages or fixed rate mortgages. The popularity of FHA loans is due to easy underwriting requirements compared to subprime lending. 

FHA Mortgage Refinancing Guidelines