The FHA’s move to eliminate a prepayment penalty starting next year will relieve borrowers of a financial hit that’s entirely out of their control.
Did you know?
You can purchase a home using a reverse mortgage.
The Home Equity Conversion Program (HECM) for purchase is an innovation that helps seniors use the equity from the sale of their previous house to fund the purchase of their next home.
The HECM for Purchase is a Federal Housing Administration (FHA) insured home loan that allows seniors to use the equity from the sale of a previous residence to buy their next primary home in one transaction. Regardless of how long they live in the home or what happens to their home’s value, they only make one, initial investment (down payment) towards the purchase.
On new Applications submitted on or after August 16, 2014, FNMA’s new wait period for a Short Sale or Pre-Foreclosure sale is being updated to a four-year waiting period; though a two-year waiting period will be permitted if the event was due to extenuating circumstance (must be a major extenuating circumstance like death or a wage earner) and the loan complies with all other requirements.
A good credit report gives you financial Muscle!
If you thought you got the last report card of your life when you graduated from school, you might be surprised to find that you’re being graded right now – on how you pay your bills. Just the way a good report card got you into the school or job you wanted, a good credit report can help you get the things you want now – a credit card, a mortgage or other loan, better terms on the money you borrow, an apartment, even a job. Since good credit is such a valuable financial tool, you’ll want to protect yours so that it’s there for you when you need it someday.
A conventional mortgage does have its advantages. The primary one is that with a conventional mortgage you probably won’t have to pay for the mortgage insurance upfront or for the monthly mortgage insurance you would be required to pay with an FHA loan. As of April, 2010 the FHA requires upfront mortgage insurance of 2.25% on the loan amount, regardless of how much you put down. As an example of what this would cost you, if you were applying for a $l00,000 mortgage, you would have to pay an extra $2,250 for the mortgage insurance upfront, plus your down payment and your other closing cost.