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How To Find The Best Loan Programs
Author David Schneider | Dec 03,2007
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The Department of Housing and Urban Development has helped thousands of low- and middle-income families have a chance at homeownership through FHA loans. To apply for an FHA loan, you’ll need a HUD approved lender. The FHA offers a variety of loan programs. Talk to an FHA lender for more information on these programs.
203(b) and 203(k) Loan Program
The 203(b) program is the FHA’s most commonly used loan program. The qualifying guidelines of this program are flexible allowing low down payments. It charges limited lender fees allowing for a maximum loan amount.
If you’ve found your dream home, but it needs a little work, the 203(k) FHA loan program might be just for you. A portion of the loan is used to pay off the seller’s existing mortgage. The remaining balance is put aside into an escrow account. The funds are released once all repairs are complete. The 203(k) has specific guidelines in place to determine a prospective homebuyer’s eligibility:
· The property must be at least one year old.
· The rehabilitation costs must total at least $5,000. The total value of the property along with the repair costs must not exceed the FHA maximum mortgage limit.
· The 203(k) loan must match most of the 203(b) guidelines and requirements.
Energy Efficient Mortgage (EEM) Loan Program
The EEM loan program allows homebuyers and homeowners to save money on utility bills. This is done by financing the cost of adding energy-efficiency features to new and existing homes through an FHA-insured home purchase. It can also be used in conjunction with the 203(b) and 203(k) loan programs. The guidelines for EEM loans include:
· You must have the cost of the energy-efficiency improvement verified by a Home Energy Parting System or an energy consultant.
· Condos are ineligible for this program.
· Five percent of the property value or $4,000 may be financed for the improvements -- whichever is greater.
· The total amount of the improvements plus the cost of the home must not exceed the FHA loan limit.
FHA Bridal Registry Program
As you take time to create gift registries through different department stores in preparation for your big day, why not consider the FHA Bridal Registry Program. The program allows couples to register with an approved FHA lender and create an interest bearing account. Family and friends can deposit gifts of cash into the account. The collected funds will later be applied toward a down payment on a home.
Title Loan Program
This loan program can be used to make “non-luxury renovations” and repairs. The loan amounts start at $5,000 and are limited to $20,000. If the current mortgage amount is under $7,500, then the loan can be granted with no lien placed against the property.
The FHA loan program offers a variety of lending resources for prospective homebuyers. They have even developed special programs for disaster victims, urban areas and members of the armed forces.
The Department of Housing and Urban Development has helped thousands of low- and middle-income families have a chance at homeownership through FHA loans. To apply for an FHA loan, you’ll need a HUD approved lender. The FHA offers a variety of loan programs. Talk to an FHA lender for more information on these programs.
203(b) and 203(k) Loan Program
The 203(b) program is the FHA’s most commonly used loan program. The qualifying guidelines of this program are flexible allowing low down payments. It charges limited lender fees allowing for a maximum loan amount.
If you’ve found your dream home, but it needs a little work, the 203(k) FHA loan program might be just for you. A portion of the loan is used to pay off the seller’s existing mortgage. The remaining balance is put aside into an escrow account. The funds are released once all repairs are complete. The 203(k) has specific guidelines in place to determine a prospective homebuyer’s eligibility:
· The property must be at least one year old.
· The rehabilitation costs must total at least $5,000. The total value of the property along with the repair costs must not exceed the FHA maximum mortgage limit.
· The 203(k) loan must match most of the 203(b) guidelines and requirements.
Energy Efficient Mortgage (EEM) Loan Program
The EEM loan program allows homebuyers and homeowners to save money on utility bills. This is done by financing the cost of adding energy-efficiency features to new and existing homes through an FHA-insured home purchase. It can also be used in conjunction with the 203(b) and 203(k) loan programs. The guidelines for EEM loans include:
· You must have the cost of the energy-efficiency improvement verified by a Home Energy Parting System or an energy consultant.
· Condos are ineligible for this program.
· Five percent of the property value or $4,000 may be financed for the improvements -- whichever is greater.
· The total amount of the improvements plus the cost of the home must not exceed the FHA loan limit.
FHA Bridal Registry Program
As you take time to create gift registries through different department stores in preparation for your big day, why not consider the FHA Bridal Registry Program. The program allows couples to register with an approved FHA lender and create an interest bearing account. Family and friends can deposit gifts of cash into the account. The collected funds will later be applied toward a down payment on a home.
Title Loan Program
This loan program can be used to make “non-luxury renovations” and repairs. The loan amounts start at $5,000 and are limited to $20,000. If the current mortgage amount is under $7,500, then the loan can be granted with no lien placed against the property.
The FHA loan program offers a variety of lending resources for prospective homebuyers. They have even developed special programs for disaster victims, urban areas and members of the armed forces. |
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