|
FHA PRODUCTS
WHAT IS A 203(b) LOAN?
This is the most commonly used FHA program. It offers
a low down payment, flexible qualifying guidelines,
limited lender's fees, and a maximum loan amount. WHAT
IS A 203(k) LOAN?
This is a loan that enables the homebuyer to finance
both the purchase and rehabilitation of a home through
a single mortgage. A portion of the loan is used to
pay off the seller's existing mortgage and the remainder
is placed in an escrow account and released as rehabilitation
is completed. Basic guidelines for 203(k) loans are
as follows:
- The home must be at least one year
old.
- The cost of rehabilitation must be
at least $5,000, but the total property value - including
the cost of repairs - must fall within the FHA maximum
mortgage limit.
- The 203(k) loan must follow many of
the 203(b) eligibility requirements.
- Talk to your lender about specific
improvement, energy efficiency, and structural guidelines.
WHAT IS AN ENERGY EFFICIENT MORTGAGE
(EEM)?
The Energy Efficient Mortgage allows a homebuyer to save
future money on utility bills. This is done by financing
the cost of adding energy-efficiency features to a new
or existing home as part of an FHA-insured home purchase.
The EEM can be used with both 203(b) and 203(k) loans.
Basic guidelines for EEMs are as follows:
- The cost of improvements must be determined
by a Home Energy Rating System or by an energy consultant.
This cost must be less than the anticipated savings
from the improvements.
- One- and two-unit new or existing homes
are eligible; condos are not.
- The improvements financed may be 5%
of property value or $4,000, whichever is greater.
The total must fall within the FHA loan limit.
WHAT IS A TITLE I LOAN?
Given by a Lender and insured by the FHA, a Title I loan
is used to make non-luxury renovations and repairs to
a home. It offers a manageable interest rate and repayment
schedule. Loans are limited to between $5,000 and 20,000.
If the loan amount is under 7,500, no lien is required
against your home. Ask your lender for details.
WHAT OTHER LOAN PRODUCTS OR PROGRAMS DOES THE FHA OFFER?
The FHA also insures loans for the purchase or rehabilitation
of manufactured housing, condominiums, and cooperatives.
It also has special programs for urban areas, disaster
victims, and members of the armed forces. Insurance for
ARMS is also available from the FHA.
HOW CAN I OBTAIN AN FHA-INSURED LOAN?
Contact an FHA-approved lender such as a participating
mortgage company, bank, savings and loan association,
or thrift. For more information on the FHA and how you
can obtain an FHA loan, visit the HUD web site at www.hud.gov
or call a HUD-approved counseling agency at 1-800-569-4287
or TDD: 1-800-877-8339.
HOW CAN I CONTACT HUD?
Visit the web site at www.hud.gov or look in the phone
book "blue pages" for a listing of the HUD office near
you.
Getting
Started
Searching For Your New Home
General Financing,
Questions: The Basics
First Steps
Finding The Right
Loan For You
Closing
How Can HUD And The FHA
help Me
Become a Homeowner
Mortgage Insurance
 FHA
Products
Real Estate Trivia
Question: What famous writer's home is Rowan Oak?
Answer: Rowan Oak in Oxford, Mississippi, was the home of William Faulkner from 1930 until his death in 1962.
|
