Reactions to story from FHA Loans and FHA Mortgages - Loans and Mortgage Rates Center : Mortgage Knowledge at its BEST

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  Renting vs Buying -- Understanding & knowing the difference -- Part 1 of 3

  http://activerain.com/blogsview/781639/Renting-vs-Buying-Und...
  25 days ago in Huntsville, Alabama Real Estate Agent's Blog · Authority: 5

  Occasionally, I run across information that someone has written that I feel is important to share. Jeff Belonger has hit another home run, in my opinion. I stumbled upon Jeff's Blog on Active Rain a few months ago. Am I ever glad I did! I have learned so much from reading his posts. Jeff Belonger is in the Mortgage Industry. I appreciate his honesty, integrity and willingness to share his knowledge with others. The most important thing I learned is that Jeff Belonger knows his "stuff". More importantly, he treats every client as if they were family, keeping their best interests at heart. I find his philosophy to be about educating his clients and guiding them, It is so important to have a knowledgeable, honest lender, now more than ever! With an honest Realtor AND Lender by your side, your home purchase will be the right one, for you. This month, Jeff wrote a 3 part series on Renting versus Buying. I found it to be very informative and thought I would pass it on. I hope you enjoy it! Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages : Are you throwing money out the window by renting? More than likely, yes. But this can be a complicated decision based on several different factors. Sure, you can try the many rent vs buy calculators online, but I have found so many not to be the same as the first one. When should you not buy a home? If your rent is very low. (usually 2/3 or less of your monthly payment) You intend to move in a few years. (unless you get into the house with no money out of pocket) Is this statement, "throwing your money away on rent", a myth? It certainly can be and here is why. When you buy a home, you still have expenses unlike renting. maintenance original closing costs when buying the home monthly property taxes yearly homeowners insurance sometimes mortgage insurance [but there are many types of PMI loans (Private Mortgage Insurance)] If it's a FHA loan, there is monthly mortgage insurance, but it's cheaper than conventional MI. Okay, are you confused, since I have mentioned some negative reasons why not to buy a house. It's because the positive reasons will outweigh the negative reasons of buying a home. Key word being usually. Your home can become your own personal bank. Positive reasons for buying a home You can write off the interest yearly You can deduct the points that you paid when purchasing, the 1st year Your home will appreciate, becoming more valuable over time ****** Pride : The home is yours. You can basically do what you want, within reason. Once your home is paid off, you just have yearly taxes and homeowners Overall, this is the best time to buy. Home values have dropped in many places and they are now leveling out, stablizing. Also, rates are still low.... anything from 6% to 6.750%. In Part 2 : I will talk about comparing renting vs buying in dollar figures. And I will also introduce a few different types of programs to help you in buying your dream home. The First Time Homebuyer Series : First Time Homebuyer Tips : FHA - Conventional - VA - Subprime -- Part 1 of 4 First Time Homebuyer Tips : Getting Qualified & Knowing your Credit -- Part 2 of 4 First Time Homebuyer Tips : FHA, is the best mortgage program? -- Best Programs & Why -- Part 3 of 4 First Time Homebuyer Tips : Understanding the Total Process -- Part 4 of4 Renting vs Buying -- Understanding the difference........ FHA? -- Part 1 of 3 Renting vs Buying -- Showing the difference in $$ -- Part 2 of 3 Renting vs Buying -- Knowing your loan options -- Part 3 of 3 Buying Tips : What's behind a home inspection..... - FHA Loans - Conventional Loans - VA Loans - Experience & Knowledge at its BEST !!! ____________________________________________________________________________________ For more information on FHA loans, please go to this link. The FHA Expert For more information on how you can obtain your dream home, please click here : Mortgage Financing Options For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!! Copyright © 2008 by Jeff Belonger
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  FHA PMI update

  http://ncfhaexpert.com/?p=106
  45 days ago in NC FHA Expert · Authority: 4

  FHA PMI update October 20th, 2008 This is an update to an earlier post reagarding FHA’s version of Mortgage Insurance (which is sometimes referred to as PMI).  As we mentioned, FHA mortgages have a one-time mortgage insurance premium, known as upfront mortgage insurance. The cost of this insurance has bounced around alot this year - and is NOW 1.75% of the loan. This upfront fee is non-refundable.  There’s also a monthly fee that’s based upon several things, but will generally run .5% of the loan amount.  If you live in the property for more than 5 years, and you have a 20% equity gap - the monthly amount can be dropped just like with it’s conventional counter part - PMI. The program is similar to the USDA and VA programs.  Both of those loan programs have a type of mortgage insurance (called a Guarantee Fee), that’s non refundable.  The biggest difference is that FHA also has a monthly fee collected. The monthly mortgage insurance on a FHA loan is very expensive.   MYTH   This is called annual mortgage insurance or MMI (monthly mortgage insurance. No matter how much you put down, it’s either .55 percent or .50 percent of your base loan amount. Comparing this to a conventional mortgage, you need to put down at least 10% in order to get to .52 percent. And again, you will still have to worry about credit scores being an issue. Filed under FHA Programs | Comment (0)
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  FHA Loans - FHA Mortgages are not a bad mortgage !!!!!

  http://activerain.com/blogsview/745417/FHA-Loans-FHA-Mortgag...
  48 days ago in The Friendly Neighborhood Mortgage Guy's Blog · No authority yet

  Sean Wheelan Personal Mortgage Consultant The Mortgage Group, Ltd 401-965-9384 Cell SWheelan@TMGLtd.biz Email www.TheFriendlyNeighborhoodMortgageGuy.com Web Site Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages : We have been in a doom and gloom housing market for the last 6 months to a year. Largely due to the part of the media and uneducated loan officers and realtors. Let me tell you something, there is still plenty of mortgage money to lend. The problem is that you have some lenders that don't know anything other than conventional mortgages. Or they aren't FHA approved to do FHA Loans. And not to knock realtors, but there are many realtors that have been in this business for 20 years or so, that keep relating to FHA mortgages of the past. Yes, they were sometimes harder on appraisal repairs, but that was prior to 2001. Since then, HUD did away with the VC sheet. Only those items harmful to the borrower, must be repaired only if noted by the appraiser. The reason I bring this up is because I just spoke to a loan officer in Maryland that told me that he met 2 realtors that have been in real estate for 25 years, who told him that they don't like FHA mortgages. The funny thing is that they haven't had a buyer or seller do a FHA loan in 10 years. Hence why I want to give a quick education on FHA loans right now. FHA loans & FHA mortgages - The basic principals and myths... FHA mortgages have a one-time mortgage insurance premium, known as upfront mortgage insurance, that makes the loan more expensive. MYTH And some realtors still think it's 3.00 percent. Again, that was the 90's. As of 10/1/08, it's 1.75% of the base loan amount. And no, it's not that expensive. Example : On a $250,000 loan amount, it's about $30 a month added to the payment. And keep in mind, that is with 2.25% down. If you put 3% down on a conventional loan, just the payment alone would be $65 or more higher based on that same loan amount. And that is not including any pricing hits on the rate for credit scores under 720. The monthly mortgage insurance on a FHA loan is very expensive. MYTH This is called annual mortgage insurance or MMI (monthly mortgage insurance. No matter how much you put down, it's either .55 percent or .50 percent of your base loan amount. Comparing this to a conventional mortgage, you need to put down at least 10% in order to get to .52 percent. And again, you will still have to worry about credit scores being an issue. FHA loans overall are just hard to qualify for. MYTH Conventional loans are much harder to qualify for now, even with 10% down in some cases. If a conventional loan is not approved in the system, through DO/LP/ or DO, then it's a dead deal. I can still do manual underwrite loans down to a credit score of 500. Most lenders can't go below a 580. It all comes down to a loan officer that truly understands on how credit works and how to qualify on income. FHA Cash out loans to 95% of the appraised value. FHA jumbo cash outs to 85% LTV. Non occupant co borrowers on both purchases or refinances. A non occupying co borrower has to be a relative though. And you can't use the better credit score or the credit of the co-borrower. Their credit is still a factor though. The primary concept here is to use their income to help you qualify. Bankruptcies - A Chapter 13 needs to be 1 year old and a Chapter 7 needs to be 2 years old. On conventional loans, it's 4 years old. Overall, these are just some of the basics. In many cases, FHA loans are the way to go, no matter what the nay sayer says. Yes, mortgage money is still out there. Lenders are still making loans and lending money. Those that are usually having trouble after they told you, the borrower yes, are those that really don't know what they are doing. They were just trying to get a deal in the doors and in many cases, hoping that it sticks on the wall. The real professional doesn't have time to hope, but a real professional loan officer knows it will work, because of their expertise and knowledge. - FHA Loans - Conventional Loans - VA Loans - Experience & Knowledge at its BEST !!! ____________________________________________________________________________________ For more information on FHA loans, please go to this link. The FHA Expert For more information on how you can obtain your dream home, please click here : Mortgage Financing Options For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!! Copyright © 2008 by Jeff Belonger

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