FHA

NEED-TO-KNOW

    For many years, a mortgage loan guaranteed by the Federal Housing Administration (FHA) was not a particularly hot ticket in major real estate markets.

What is an FHA Loan?

    An FHA loan is offered by a conventional lender, but the government agrees to insure the loan, meaning less risk for the lender in case the borrower defaults. FHA loans are attractive to buyers as well, as they require lower down payments and are available to those with less than perfect credit.

    The most common FHA loan is the FHA 203(b) program, which backs loans for common 1-4 member family units at 15-year or 30-year terms. HUD also offers what is calls the 203(k) "Streamline" program for financing as additional $35,000 in repairs or home improvements before moving in. It is required that the borrower put down 3.5% of the loan amount.

    If this sounds like something you are interested in please let me know and I will refer you to a qualified professional.

FHA Energy Efficient Mortgages

    The intent of the Energy Efficient Mortgage (EEM) Loan Program is to assist current or potential homeowners to significantly lower their monthly utility bills by enabling them to fold the cost of adding energy-efficient improvements into their mortgages. The cost of the improvements that may be eligilbe is either 5% of the property's value (not to exceed $8,000) or $4,000 whichever is greater. FHA loan limits do not apply, but the loan amount may not exceed the projected savings of the improvements. Homebuyers or Current Homeowner's must submit a Home Energy Rating (HER), contractor bids, and a FHA B Worksheet.

If you would like to be referred to one of these specialists please ask me and I will be happy to provide it to you.