Pennsylvania FHA Mortgage News

FHA 203k Mortgages – Help you avoid renovation headaches

January 27, 2017 FHA 203K

  FHA 203k Mortgages – Help you avoid renovation headaches The majority of mortgage programs only provide permanent financing. This means that there is no mortgage closing until the condition and value of the home provides adequate loan security. When a home needs rehabilitation, this means that a bank will require the improvements to be finished […]

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FHA Mortgages and Gift Funds

February 28, 2014 Buying a House

FHA Mortgages allow borrowers to use Gift Funds to meet the 3.5% down payment requirement. When using Gift Funds to purchase a home it is important that Gift Funds be documented properly to avoid any issues with the FHA underwriting process. The primary intention of these rules is too make sure that the FHA borrower […]

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Maximum FHA Loan Limits Have Been Lowered

January 8, 2014 Pennsylvania FHA Mortgage News

Maximum loan amounts for Pennsylvania FHA Mortgages have changed. These amounts have been lowered to in most counties in PA. Why have they been lowered? The Housing and Economic Recovery Act of 2008, also known as HERA, limited FHA insurable loan amounts to 115 percent of a county’s median home price. In an attempt to […]

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FHA Streamline Refinance just got much, much cheaper (for some)

June 8, 2012 Pennsylvania FHA Mortgage News

HUD has announced a change to the FHA Streamline program that will make refinancing an FHA Mortgage in Pennsylvania and the rest of the country much cheaper for many homeowners. Essentially, HUD is drastically reducing the amount of Mortgage Insurance required for qualified FHA Streamline Refinances. FHA has always had two types of mortgage insurance […]

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Maximum FHA Loan Amounts in Pennsylvania Reinstated to Higher Limits Again

January 16, 2012 Buying a House

The maximum FHA loan amounts for Pennsylvania mortgages have changed again.  Previously these maximum loan amounts had reset back to the lower pre-2008 maximum loan amounts after the time limit on the temporary increase had expired.  Pressure from the housing industry and the home buying public helped push a reinstatement through Congress and the Oval […]

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Allowable Improvements under the FHA 203K Program

June 27, 2011 FHA 203K

The FHA 203K Program allows homeowners to make repairs, improvements, modifications and upgrades that increase the value of their current home or a home they are purchasing. Several times I have been asked what improvements are allowed under the 203K program. This program is not intended to provide funds for what HUD may consider luxury […]

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Buying a 3-4 Unit Property

May 1, 2011 Buying a House

Buying a 3-4 unit property in Pennsylvania is often a great investment.  The buyer obtains a primary residence and has extra units to rent out and collect extra income.  Often this extra rental income ends up covering the mortgage payment and expenses of the property.  This enables the owner to live in the property with […]

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A Mortgage Program That Can Also Reduce Your Energy Bills

March 14, 2011 Pennsylvania FHA Mortgage News

This winter has been particularly cold in Pennsylvania.  Homes with older windows, inadequate insulation and improper air sealing have a hard time keeping out the winter chill.  High utility bills can also cost homeowners quite a bit as they try to keep their home warm.  Is there a possible solution to reduce these bills and improve the […]

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FHA 203K Mortgages – How Are They Different from other Mortgages?

February 23, 2011 Pennsylvania FHA Mortgage News

An FHA 203K mortgage is the HUD’s primary program for the rehabilitation and repair of single family properties. HUD provides this 203K program as an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. FHA 203K Mortgages – How Are They Different from other Mortgages? Most mortgages only provide permanent financing. This […]

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Teachers can buy certain HUD homes for a 50% discount

February 17, 2011 Pennsylvania FHA Mortgage News

HUD offers some special incentives to Teachers when it comes to buying a home and obtaining amortgages for teachers mortgage. These incentives are offered through the Good Neighbor Next Door Sales Program. HUD offers a 50% discount from the list price of the home for eligible properties. In return you must commit to live in […]

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Is Old Man Winter Holding Up Your FHA Closing?

December 27, 2010 Pennsylvania FHA Mortgage News

FHA appraisal policies have always dictated that certain exterior repairs (peeling paint, faulty handrails, broken porch step, etc) be completed before the mortgage can close.  Sometimes completing some of these minor repairs can be near impossible if the weather will not cooperate.  Peeling or chipped paint is a common FHA exterior repair.  When the appraiser […]

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FHA changes will affect many who have 2nd Mortgages

August 7, 2010 Pennsylvania FHA Mortgage News

HUD has announced some changes that will affect many homeowners who have current 2nd mortgages. Previously FHA loans allowed for unlimited Combined Loan-to-Value (CLTV).  This allowed homeowners to refinance their first mortgage and resubordinate their current second mortgage, as long as their first mortgage was at 97.75% Loan to Value (LTV) or below.    Now FHA loans will […]

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FHA now represents over 1/3 of new mortgage loans

June 7, 2010 Pennsylvania FHA Mortgage News

A few years ago, FHA loans made up less than 5% of all mortgage originations.  At that time, there were countless 100% financing options and easier qualifying guidelines for conventional Fannie Mae/Freddie Mac programs.  Most of these programs had less paperwork, no mortgage insurance requirement and fewer restrictions than FHA loans. The collapse of the […]

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Savings for Home Buyers Under Contract Before April

February 16, 2010 Pennsylvania FHA Mortgage News

Savings for Home Buyers Under Contract Before April Increase in Upfront Premiums for FHA Mortgage Insurance Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This policy change will increase premiums for purchase money and refinance […]

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