Have you read the 5 secrets to getting an FHA mortgage loan for home ownership published by HUD? There’s a secret out there about FHA mortgage loans that HUD wants you to know about. It’s so secret, that they published
an informational brochure but didn’t tell anyone about it.

The Secret Is OUT!

That’s right, HUD’s little secret about FHA mortgage loans is
out. And I’m proud to say that I bring the 5 Secrets to you now… so
buckle up, hold on to your seat… wake the neighbors and call the kids…

HUD’s 5 Secrets To HomeEconomics

Secret #1 – Organize

Set money goals and develop a plan to meet them. Decide what is
important to spend money on, and then save the rest for a down payment
(3.5% now). Basically, set a goal to save a certain amount of money
each month and then stick to it.

Read the rest of this entry

Just when you thought it was safe to go out and buy a new home HUD has changed the FHA mortgage rules with Mortgagee Letter 2008-25 which is a response to the “Walking Buyer” and “Buy and Bail” trends in Arizona as well as the rest of the country.

A Walking Buyer (or Buy and Bail buyer) who has a home they cannot sell because they are upside down on the mortgage simply finds an affordable home and rents the current home. This helps them to qualify for the new home and then, once they move into the new home… they let the old one go into foreclosure.

Additionally, this fraudulent practice put yet ANOTHER FORECLOSURE HOME on the market and we just don’t need additional foreclosures out there bringing property values down further.

Under the old rules (up until a few days ago) it was acceptable to use rental income on your existing home to qualify for your new Arizona FHA Mortgage Loan.

There are certain circumstances in which the new rental income may be used to qualify for the new Arizona FHA Mortgage Loan.

There are 6 things FHA home buyers need to know about this change:

1. It is temporary
2. To use the income the home buyer must be moving to a new city
3. To use the income the new home must be outside reasonable commuting distance from the old home
4. To use the income the old home must be leased for at least one year
5. To use the income the home buyer must document the receipt of the security deposit
6. To use the income the existing home must have a 25% equity position

Apply for an Arizona FHA Mortgage Loan Now.
Read the rest of this entry

FHA Loan Requirements have changed for borrowers who do not have an established credit history or do not have a credit score to qualify for conventional mortgage financing. The Federal Housing Administration (FHA) has allowed for borrowers who lack a credit profile with Experian, Trans Union or Equifax to use other types of credit to qualify for FHA mortgages. Other types of credit includes: rent, phone bills, cell phone bills, cable and utility bills, payments to local rent-to-own stores, etc. These changes will impact the ability for buyers to obtain FHA mortgage loan financing who lack a traditional credit history.

Read the rest of this entry