Are you FHA-Approved????
That's an important question all condo, townhome, and villa owners should be asking.
Why? Great question.
The government has a program run through the Federal Housing Administration that will allow qualified borrowers access to mortgages of UP TO 96.5% of the home's value (notice I did not say contract price, as an FHA appraisal will supercede a contract price). The borrower has to come up with the other 3.5% down payment, as well as closing costs. Closing costs can be paid by the seller on behalf of the buyers.
This is a terrific program that gets buyers with meager savings and blemished (but not sub-prime) credit into homes. Think first-time homebuyers, newlyweds, single parents, lower-income, etc. Truly a great program that encourages home ownership among a class that doesn't qualify for conventional loans.
Ok, so that's FHA in a nutshell. How does that help you, the condo/TH/villa owner? Well, since the 100% loans have gone the way of the dodo bird (non-existent) it is one of the most popular loan programs in the market today, aside from VA loans. This means more and more buyers are qualifying under this program. THE FLY IN THE OINTMENT IS THAT THE COMPLEX HAS TO BE APPROVED BY THE FHA FOR FHA LOANS.
It's an involved process with forms, documentation, and some elbow grease. Some complexs, due to their restrictions, will never qualify. However, it's well worth it for enterprising residents to ensure they have explored getting approved for FHA loans.
How can you tell if you're already approved? Luckily, FHA has a continuously updated website to check. It's: https://entp.hud.gov/idapp/html/condlook.cfm
Most likely your complex will not be approved, but it's normally for lack of trying. Once approved, it's something you want to SCREAM from the rooftops and let all buyers know. Ask you Association if they have ever tried to get approval. If they have not, volunteer to be a liaison and get them approved. Visit HUD.gov for more info.
FHA is a gift to buyers AND SELLERS so do your best to take advantage of it today.
Showing posts with label closing cost assistance. Show all posts
Showing posts with label closing cost assistance. Show all posts
Monday, October 26, 2009
Monday, June 15, 2009
BUYERS: FREQUESTLY ASKED QUESTIONS
What Does a Title Company Do?
Orchestrates everything leading to the closing, issues title insurance to the
new owner and the lender, conducts the closing and handles post-closing
requirements.
• Works with Seller’s lender to pay off mortgage(s)
• Works with Buyer’s lender to set up new mortgage
• Conducts the closing
• Disperses funds, records deed and mortgage, sends signed loan documents to lender
• Issues the title insurance policy
What Should I do Before Closing?
• Apply for your loan and provide all necessary documents to lender.
• Make arrangements for Homeowner’s Insurance as soon as possible.
• Have the Utilities placed in your name effective the day of closing.
• If you are using a Power of Attorney, have the title company review the document ahead of time. The Lender and Sunbelt Title must approve it before closing. Bring the Original Power of Attorney document to closing.
What Should I Bring to Closing?
• Your spouse if this will be your primary residence.
• A Cashier’s check made payable to Sunbelt Title Agency if you are required to bring funds to closing. State law will not allow personal checks over $500.00 to be accepted. - or -
Wiring instructions can be obtained from Sunbelt Title.
• Government issued photo ID such as Driver’s License, Passport or Military ID and your Social Security Number or Green Card.
• Original Power of Attorney document, if applicable.
What Happens at Closing?
The Closing is the final step toward owning your new home:
• Buyer signs closing and mortgage papers, brings funds and receives keys to property.
• Seller signs closing papers, gives keys to buyer & collects funds from sale of house.
• Title company disperses funds, pays off seller’s mortgage, records new deed and mortgage.
• In about an hour everyone leaves happy.
What is Title Insurance?
• Unlike other insurance which protects what might happen in the future, title insurance protects you from what has happened in the past by searching public records.
• Provides coverage for losses due to defects in the title that occurred prior to your ownership.
• Protects against things such as unpaid taxes & liens, judgments, fraud & forgery or other issues that might go undetected until after closing. These could affect your ownership and investment.
What does Title Insurance Cost?
• Title Insurance is a one-time fee regulated by the State and is paid at Closing.
• The cost varies because it is based on the purchase price of the property.
• In this region, the seller customarily pays for the owner’s policy which protects new owner. The buyer pays for the policy that covers the lender.
• Example: $100,000 purchase price = $575 for the owner’s policy. The lender’s policy is just $25.
• The protection lasts as long as you or your heirs retain an interest in the property.
What Expenses Should I Expect?
• Closing Fee
• Lender’s Policy
• Endorsements to Lender’s Policy, if applicable
• Recording Fee for the Warranty Deed and Mortgage
• Documentary Stamps on the Mortgage
• Intangible Tax on the Mortgage
• Survey, Termite Inspection, Condo Approval Fee, HOA Dues and Transfer Fee, if applicable
• Home Inspection Fee, usually paid at time of inspection
• First Year Homeowner’s Insurance (and Flood Insurance, if applicable)
• Lender Fees. Appraisal and credit report are usually paid at time of application.
• Recording Fee for the Assignment of Mortgage, if applicable
What Does a Title Company Do?
Orchestrates everything leading to the closing, issues title insurance to the
new owner and the lender, conducts the closing and handles post-closing
requirements.
• Works with Seller’s lender to pay off mortgage(s)
• Works with Buyer’s lender to set up new mortgage
• Conducts the closing
• Disperses funds, records deed and mortgage, sends signed loan documents to lender
• Issues the title insurance policy
What Should I do Before Closing?
• Apply for your loan and provide all necessary documents to lender.
• Make arrangements for Homeowner’s Insurance as soon as possible.
• Have the Utilities placed in your name effective the day of closing.
• If you are using a Power of Attorney, have the title company review the document ahead of time. The Lender and Sunbelt Title must approve it before closing. Bring the Original Power of Attorney document to closing.
What Should I Bring to Closing?
• Your spouse if this will be your primary residence.
• A Cashier’s check made payable to Sunbelt Title Agency if you are required to bring funds to closing. State law will not allow personal checks over $500.00 to be accepted. - or -
Wiring instructions can be obtained from Sunbelt Title.
• Government issued photo ID such as Driver’s License, Passport or Military ID and your Social Security Number or Green Card.
• Original Power of Attorney document, if applicable.
What Happens at Closing?
The Closing is the final step toward owning your new home:
• Buyer signs closing and mortgage papers, brings funds and receives keys to property.
• Seller signs closing papers, gives keys to buyer & collects funds from sale of house.
• Title company disperses funds, pays off seller’s mortgage, records new deed and mortgage.
• In about an hour everyone leaves happy.
What is Title Insurance?
• Unlike other insurance which protects what might happen in the future, title insurance protects you from what has happened in the past by searching public records.
• Provides coverage for losses due to defects in the title that occurred prior to your ownership.
• Protects against things such as unpaid taxes & liens, judgments, fraud & forgery or other issues that might go undetected until after closing. These could affect your ownership and investment.
What does Title Insurance Cost?
• Title Insurance is a one-time fee regulated by the State and is paid at Closing.
• The cost varies because it is based on the purchase price of the property.
• In this region, the seller customarily pays for the owner’s policy which protects new owner. The buyer pays for the policy that covers the lender.
• Example: $100,000 purchase price = $575 for the owner’s policy. The lender’s policy is just $25.
• The protection lasts as long as you or your heirs retain an interest in the property.
What Expenses Should I Expect?
• Closing Fee
• Lender’s Policy
• Endorsements to Lender’s Policy, if applicable
• Recording Fee for the Warranty Deed and Mortgage
• Documentary Stamps on the Mortgage
• Intangible Tax on the Mortgage
• Survey, Termite Inspection, Condo Approval Fee, HOA Dues and Transfer Fee, if applicable
• Home Inspection Fee, usually paid at time of inspection
• First Year Homeowner’s Insurance (and Flood Insurance, if applicable)
• Lender Fees. Appraisal and credit report are usually paid at time of application.
• Recording Fee for the Assignment of Mortgage, if applicable
Friday, December 26, 2008
The Housing Finance Authority of Pinellas County announces the return of its popular Making Pinellas Home down-payment program. The program will offer interest-free, deferred payment assistance to help qualified home buyers achieve the dream of home ownership.
Loans of up to $15,000 are available to households with incomes up to 80 percent of area median income. Loans can be used for a down payment and closing costs. The program is available anywhere in Pinellas County.
There are no payments for the first five years and no interest, ever. Homes must be priced at or below $240,158. For more information about the Making Pinellas Home program, or for referral to an approved lender, contact the Housing Finance Authority of Pinellas County at (727) 464-8210 or visit www.pinellascounty.org/ community/hfa.
Loans of up to $15,000 are available to households with incomes up to 80 percent of area median income. Loans can be used for a down payment and closing costs. The program is available anywhere in Pinellas County.
There are no payments for the first five years and no interest, ever. Homes must be priced at or below $240,158. For more information about the Making Pinellas Home program, or for referral to an approved lender, contact the Housing Finance Authority of Pinellas County at (727) 464-8210 or visit www.pinellascounty.org/ community/hfa.
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