PART 3 OF 9: Credit Education Video Series
Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.
If you're interested in working with HUD REO properties and buyers who need FHA financing, you may come across appraiser-required conditions to perform lead-based repairs.
The only time lead-based repairs are required for an FHA-financed HUD REO property is when the property was built prior to 1978.
The FHA recently announced changes to its guidelines that will make it easier for home buyers to qualify for their home loans. These changes are effective for FHA case numbers assigned on or after April 21, 2014.
You may have heard about a new rule that may impact people looking to purchase or refinance a home.
What is This Rule?
As of January 10, 2014, lenders are required to more thoroughly assess a borrower's "ability to repay" a loan, so that he or she can receive a "Qualified Mortgage" (QM).
The Federal Housing Administration (FHA) recently announced the FHA loan limits for 2014. There are several important items to note:
- The high cost market maximum is reduced from $729,750 to $625,500
- The floor loan limit remains unchanged at $271,050
- The formula for calculating area loan limits between the floor and the cap will be reduced from 125 percent of area median value to 115 percent
One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. This can often be accomplished with a no-points no-fees loan program, which essentially means at “no cost” to the borrower.