fha Home Appraisal Report
Florida FHA Mortgage Information
Florida Mortgage applicants should understand the advantages of FHA home loans.
Q: What is a FHA mortgage?
A: A FHA mortgage is a form of insurance that makes buying a Florida home easier and less expensive then other type of Florida mortgage programs. The Federal Housing Administration does not lend money; private Florida lending organizations, such as banks, credit unions, or savings and loans, lend money. An endorsed FHA-approved mortgage is insured to the lender in case the homebuyer defaults on the loan.
Q: What are the advantages of a FHA mortgage?
A: There are many advantages of a FHA mortgage. Requires only a 3.5 percent down payment is required to secure a FHA mortgage. Unlike conventional Florida mortgages, the money for down payment does not have to be verified as the buyer’s money; it can be a gift from a family member to the home purchaser from outside sources. In addition, the credit qualifications for a FHA mortgage are not credit score driven and less stringent than qualifications for conventional mortgages. Bankruptcy or foreclosure does not necessarily disqualify a borrower from approval as long as the borrower has re established credit history.
Q: Are FHA mortgage processes complicated?
A: FHA mortgage loans are No more complicated than conventional mortgage processes. FHA financing procedures have slimmed down in the past 20 years. In most cases, it is easier to qualify for a FHA mortgage than it is for a conventional mortgage.
Q: Who is eligible for a FHA mortgage?
A: Anyone who meets the credit, income, and employment requirements is eligible for a FHA mortgage. U.S. citizenship is not required to qualify for an FHA mortgage. The property secured with the mortgage must be the purchaser’s primary residence. A social security card is necessary to qualify for a FHA mortgage.
Q: What is mortgage insurance, and how does it apply to FHA mortgages?
A: FHA Mortgage insurance is required to secure a FHA mortgage. Insurance money is collected by the lender (the bank, credit union, or savings and mortgage) and paid to the FHA fund. If a buyer defaults on the FHA insured mortgage, the money will be returned to the lender in the form of insurance against the default. FHA Mortgage insurance costs are typically 1.5 percent of the total mortgage. Private mortgage insurance may be required until 20 percent of the equity in the home has been paid.
Q: What are the different types of FHA mortgages?
A: Like conventional mortgages, there are several different types of FHA insured mortgages. A fixed-rate mortgage secures an interest rate at the time of purchase and remains constant for the life of the mortgage. There is also an adjustable-rate mortgage (ARM). The interest rate on an ARM fluctuates throughout the life of the mortgage, mirroring the current national index. There is also a graduated-payment mortgage (GPM), which requires a down payment and has negative amortization.
Q: What are the interest rates on FHA mortgages?
A: FHA mortgage interest rates are on par with the national average for conventional mortgages. FHA mortgage interest rates reflect current market conditions. A buyer may also use points when securing a FHA mortgage. “Points” lower the interest rate, and must be used as a down payment or financed through the mortgage.
Q: What are the expenses incurred with an FHA mortgage?
A: When purchasing a house with a FHA mortgage the buyer is responsible for the following: Down payment (usually no more than 3.5 percent), appraisal fee, escrow, mortgage origination fee (typically 1 percent of base mortgage amount), recording fees, credit report charges, title insurance policy fees, MMI impounds, hazard insurance and reserves, MIP (mortgage insurance, which can be financed), and property taxes.
About the Author
Thomas Martin
1st Continental Mortgage
Florida FHA mortgage Lender
http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml
http://www.fhamortgageprograms.com/florida/
FHA appraiser appraised home $22K lower than offer, $7K lower than our requested FHA loan amount. What’s next?
This is a REO, owned by Fannie Mae. Will Fannie Mae see the appraisal report and decide rather to offer the home for appraisal amount, make some kind of offer for us to qualify for the FHA loan, or back out? If they back out will we get our deposit back?
Also FHA appraiser requested some repairs/inspections (i.e. roof inspection due to water stains on ceilings, kitchen faucet replacement) before releasing a loan.
Is this asking too much from Fannie Mae?
We are scheduled to close in escrow in 5 days and frustrated that all of this is happening only now. I admit I have begun to have emotional attachment to the home already.
The FHA appraisal has rendered an official value to the property. The purpose of the appraisal is to PROTECT you from overpaying for a proeperty.
There are two options:
1. You can simply walk away….there should be a clause in your sales contract that says if it doesn’t appraise, the deal is dead.
2. The seller CAN lower the price of the home to match the appraisal but is NOT required to.
The bank will NOT loan one dime more than the appraisal..not one dime.
The FHA appraiser DOES NOT release the loan…the bank does. The appraiser has no authority over it…the FHA underwriter isn’t going to approve the appraisal of a home that has a leaky roof (that can cost thousands of dollars to repair), etc.
So my questions to you are these:
WHY do you want to buy a home with major problems?
WHY do you want to pay more for a home than it’s worth?
Baton Rouge Real Estate Tube: O’Neal Place Subdivision 2009 2010 Tube Update
7 crucial facts about FHA loans
FHA loans play a vital role in today’s real estate market. Here are seven important facts to know.
In a perfect world, you have to have willing buyer and a willing seller. Neither is under duress. fha home appraisal report Both are in a position to maximize gain and are trying to do this. But in the real world, things are rarely that simple and equally balanced. fha home appraisal report Which is why people feel differently about the appraisal value of a house.