What Is The FHA?
FHA stands for federal housing administration. It was originally set up as part of the National Housing Act of 1934. Historically it was set up because of the great depression. Its original goals were to provide financing, improve housing conditions and create a more stable mortgage market. There is a loan known as a FHA loan which is very popular with first time home buyers as well as buyers who do not have 10-20% down payment. It is also available to those who have a lower credit score. Be sure to check with your lender on what credit score they require. FHA homes are acquired using these loans and they can be used to buy condos, town houses, housing units and single family homes. There are also several different FHA loan products like adjustable rate...
Read More5 Reasons To Consider An FHA Mortgage
Since the early 1930s, the Federal Housing Administration has been providing federally-insured home financing to qualified borrowers. With its lower up-front costs, accommodating terms and forgiving credit requirements, the FHA loan is a popular choice for first time and low income buyers; however, you don’t necessarily have to have low income or poor credit to be approved. Review the following five reasons to consider an FHA loan to see if this home mortgage program might be right for you. 1. Less Money Up-Front FHA financing was first introduced in the midst of the Great Depression, as a way to make it easier for people to buy homes and stimulate the economy. One of the major ways in which it did this was by requiring less of a down payment when compared...
Read MoreJust A Reminder: USDA Will Change Fees Effective 10/1/11
There are two very important changes that are scheduled to take effect with loans obligated on or after October 1, 2011. The changes are: (1) A monthly mortgage insurance fee of 0.3 percent will be charged on all loans obligated on or after this date (2) The up-front guarantee fee for purchase loans transaction will decrease from 3.5 percent to 2 percent of the loan amount. Please note these changes are effective October 1, 2011. Currently the up front “guarantee” fee is 3.5% of the loan amount. For example, on a $150,000 loan, the fee is $5,250 which is normally added to the final loan amount. The new fee will be lowered to 2%, or $3000 in the above example. USDA will also begin to charge an annual fee of 3% of the outstanding loan balance. On a...
Read MoreKokomo Makes Forbes’ ‘Best Places to Live Cheaply’ List
Two Indiana communities have made the top 10 Forbeslist of Best Places to Live Cheaply in the United States. The rankings are based on factors including housing affordability, cost of living and public schools. Forbes Magazine’s latest ranking of cities placed the City of Kokomo fourth on the list of Best Places to Live Cheaply in the United States. No other Indiana city ranked higher. The list was based on data factoring housing affordability; cost of living; FBI’s very low crime rating; unemployment rate and the quality of the city’s public schools. In the overall comparison, Kokomo stood out against cities across the country. The Forbes list noted Kokomo’s relatively high median household income of $61,400 coupled with the $88,000 median house price...
Read MoreThe Government Shutdown and How It Will Affect You
Everyone’s panicking about the government shutdown, which may happen this Friday at midnight, but what does it really mean for you and me? It isn’t as scary as it sounds — the government has shut down several times in the past. The most recent one occurred from Dec. 16, 1995 to Jan. 6, 1996, according to Reuters. The length of the shutdown (if it will happen) is still not clear, but it has historically ranged from a few days to months. Shutdowns happen when the government can’t come to an agreement about the budget when the federal funding is about to run out. What it basically means is that “nonessential” governmental services will temporarily be closed. Essential services like the military, police, fire department, and air...
Read MoreHome Buyer Tax Credit Repayment Begins for 2008 Buyers
Most home buyers who claimed the federal tax credit of up to $7,500 for buying their first home in 2008 are required to start repaying the credit in 15 annual installments, beginning with their 2010 tax returns. The credit—some form of which was offered for qualified home purchases in 2008, 2009 and 2010—has different repayment rules depending on when and under what circumstances the home was purchased. As tax season approaches, this may cause confusion among home buyers who received the tax credit. “It is important that home buyers consult a qualified tax professional to make sure they are receiving all the tax benefits as well as fulfilling the obligations of their home purchase,” said Bob Nielsen, chairman of the National Association of Home...
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