Buying a Home/U.S. Department of Housing and Urban Development (HUD).
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Realty Times – Get a HUD Home for $100 Down
Realty Times – Get a HUD Home for $100 Down.
Get a HUD Home for $100 Down
Call it the U.S. Department of $100 Down Housing.
HUD like other federal agencies, are anxious to unload properties they hold, because they can be a financial drain.The U.S. Department of Housing and Urban Development (HUD) is offering its foreclosed homes for a mere $100 down from now until October 2012.
Of course you’ll have to qualify for a mortgage, you may have to pays some closing costs, the deal isn’t available everywhere and the condition of the homes is strictly “as-is.”
If you can handle those qualifiers, here’s the deal:
• You can only buy HUD homes. Go to the HUD Homes For Sale web page.
• You must use a HUD-registered real estate broker or agent.
• You must qualify for and use Federal Housing Administration (FHA) financing.
• You must plan to be an “owner-occupant,” buying the property to live in and not as an investment.
• The home’s purchase price must be no more than the appraised value of the property. If you bid a higher price you can pay the difference in cash, minus $100.
• The $100 down incentive must be on the executed contract. That means you have to specifically request the incentive. Your real estate agent should be aware of this provision.
• In some cases, HUD will also cover up to 3 percent of the closing costs.
• The $100 down payment program is eligible for the FHA 203(k) loans. The loans allow borrowers to use a portion of their purchase loan to repair and renovate run-down homes.
That’s a good thing because HUD homes are sold in an “as-is” condition — what you see is pretty much what you get. You could find a diamond in the rough or fool’s gold. HUD homes often include a property condition report, but that is not a warranty.
The property report can resemble a home inspection report, but HUD home buyers are always encouraged to get a home inspection to determine just what “as is” is.
The deal is offered in states in two HUD regions:
Arkansas
Colorado
Iowa
Kansas
Louisiana
Missouri
Minnesota
Montana
Nebraska
New Mexico
North Dakota
Oklahoma
South Dakota
Texas
Wisconsin
Wyoming
Utah
Alabama
Florida
Georgia
Kentucky
Illinois
Indiana
Mississippi
North Carolina
South Carolina
Tennessee
Published: November 10, 2011
Use of this article without permission is a violation of federal copyright laws.
Down Payment Assistance Program – Housing & Community Development – LouisvilleKy.gov
Down Payment Assistance Program – Housing & Community Development – LouisvilleKy.gov.
Down Payment Assistance Program
The Down Payment Assistance Program provides qualified homebuyers a loan to assist with purchasing a home which will be their primary residence.
Homebuyer households must have income no greater than 80% of median income, adjusted for family size.
All Homebuyers must complete HUD approved homeownership counseling before assistance can be committed. A Certificate of Completion from the counseling agency must be submitted with the application. Contact The Louisville Urban League at (502) 585-4622 or The Housing Partnership Inc.at (502) 585-5451 for counseling.
Metro Government has revised its Down Payment Assistance Program increasing the amount of assistance.
We are now offering Metro Wide assistance, and homebuyers may qualify for a forgivable mortgage which will be forgiven over a five (5) year period of 10% of the purchase price of the home to a maximum of $10,000.
We will continue to provide maximum assistance in our 2009 Target Area neighborhoods, and homebuyers may still qualify for a forgivable mortgage which will be forgiven over a ten (10) year period of 20% of the purchase price of the home to a maximum of $20,000.
Our Department has also allocated closing cost assistance in the amount of up to $2,000 for down payment assistance programs; however, homebuyers must pay all prepaid costs from their own funds.
Homebuyers are responsible for obtaining primary financing with a fixed rate mortgage from a reputable lender.
A Housing Quality Standards inspection will be conducted by a Louisville Metro inspector before closing. All deficiencies must be corrected and verified by re-inspection prior to closing
A HUD-1 closing statement must be received two working days (48 hours) prior to closing.
Applications will be accepted at any time. Assistance is granted on a first come, first serve basis. For more information about the Down Payment Assistance Program, please call 574-3107.
810 Barret Avenue, Louisville, Kentucky 40204
Office Hours: 8:00 a.m. – 5:00 p.m.
Clients are seen by appointment – please call
Phone: (502) 574-3107
April 2012: The New (& Expensive) FHA Mortgage Insurance Premium (MIP) Schedule
April 2012: The New (& Expensive) FHA Mortgage Insurance Premium (MIP) Schedule.
via April 2012: The New (& Expensive) FHA Mortgage Insurance Premium (MIP) Schedule.
The FHA will raise its mortgage insurance premiums April 1, 2012. All FHA mortgage applicants — first-time buyers, repeat buyers, and users of the FHA Streamline Refinance program — will be subject to the new fees.
New FHA Mortgage Insurance Premium Schedules
The new FHA mortgage insurance premium schedule raises FHA loan costs significantly.
FHA mortgage insurance is paid in two parts.
The first part is the “Upfront Mortgage Insurance Premium”. Sometimes abbreviated as UFMIP, upfront mortgage insurance premiums will rise from 1.000% of your FHA loan size to 1.750% of your FHA loan size.
For example, if you live in Chicago, Illinois and you borrow up to the FHA’s local loan limit of $417,000, your upfront mortgage insurance premium will rise 75% from $4,170 to $7,298. This amount is added to your loan size. FHA upfront MIP is not paid via cash. You’ll pay interest on this amount for the life of your loan.
The changes in the FHA’s annual mortgage insurance premiums (MIP) are less extreme, rising only 10 basis points.
The new schedule, for loans with case numbers assigned on or after April 1, 2012:
- 15-year loan terms with loan-to-value over 90% : 0.60 percent annual MIP
- 15-year loan terms with loan-t0-value under 90% : 0.35 percent annual MIP
- 30-year loan terms with loan-to-value over 95% : 1.25 percent annual MIP
- 30-year loan terms with loan-to-value under 95% : 1.20 percent annual MIP
Furthermore, all FHA mortgages made for $625,500 or more will be subject to an additional 0.25 percent annual mortgage insurance fee.
Loans made prior to April 1, 2012 will use the old FHA mortgage insurance schedule:
- 15-year loan terms with loan-to-value over 90% : 0.50 percent annual MIP
- 15-year loan terms with loan-t0-value under 90% : 0.25 percent annual MIP
- 30-year loan terms with loan-to-value over 95% : 1.15 percent annual MIP
- 30-year loan terms with loan-to-value under 95% : 1.10 percent annual MIP
- There is no “jumbo FHA mortgage premium” for loans made prior to April 1, 2012.
Special Cases: FHA Streamline Refinance MIPs
As part of the FHA’s announcement, there was also reference to the FHA’s benchmark refinance program, the FHA Streamline Refinance.
The FHA suggested that a subset of households using the streamline refi program will get access to lower mortgage insurance premiums after refinancing — not higher.
No official announcement has been made, but it’s believed that mortgage insurance premiums — both upfront and annual — will be dramatically lowered for FHA Streamline Refinances used to replace an existing FHA mortgages originated prior to June 1, 2009. New FHA Streamline Refinances that replace loans originally originated after June 1, 2009 will still pay the new, standard FHA mortgage insurance rates listed above.
The June 1, 2009 deadline should sound familiar — it’s the same deadline for Fannie Mae and Freddie Mac’s HARP 2.0 program.
The FHA is expected to confirm new FHA Streamline Refinance mortgage insurance premiums within a few weeks.
Lock Your FHA Rate Before The Price Hike
The FHA will make a formal announcement on its new FHA premiums in the coming days. Some of the exact numbers at top may change slightly. However, the FHA has confirmed the April 1, 2012 rollout date.
If you’re planning to use the FHA for your next home mortgage, get your loan application started today. If you wait, you’ll be subject to the FHA’s new premiums.
Source – Dan Green
Author’s note : This information is subject to final review by the FHA. It’s based on an initial FHA announcement made February 27, 2012. It’s unofficial until the FHA releases its mortgagee letter on the matter.
FHA Mortgage Insurance Premiums Increasing April 9, 2012
FHA Mortgage Insurance Premiums Increasing April 9, 2012.
via FHA Mortgage Insurance Premiums Increasing April 9, 2012.
FHA Mortgage Insurance Premiums Increasing April 9, 2012
Planning to use an FHA-backed mortgage for your next home loan? You might want to get your application in gear today.
Beginning next week, the Federal Housing Administration (FHA) is changing the way it charges mortgage insurance to U.S. homeowners. For the fourth time since 2010, FHA mortgage insurance premiums are rising for all FHA-backed homeowners.
For FHA Case Numbers assigned on, or after, Monday, April 9, 2012, there are two planned changes.
First, FHA Upfront Mortgage Insurance Premiums (UFMIP) will increase by 75 basis points to 1.75%, or $1,750 per $100,000 borrowed. Upfront Mortgage Insurance Premium is paid at closing, and typically added to an FHA borrower’s loan size.
The current UFMIP rate is 1.000 percent.
Second, annual FHA mortgage insurance premiums are rising. All new FHA-backed loans will be subject to a 10 basis point increase in annual mortgage insurance premiums, costing homeowners an extra $100 per $100,000 borrowed per year.
The new FHA annual mortgage insurance premium schedule follows :
- 15-year loan term, loan-to-value > 90% : 0.60% MIP per year
- 15-year loan term, loan-to-value <= 90% : 0.35% MIP per year
- 15-year loan term, loan-to-value <= 78% : 0.00% MIP per year
- 30-year loan term, loan-to-value > 95% : 1.25% MIP per year
- 30-year loan term, loan-to-value <= 95% : 1.20% MIP per year
In addition, for loans above $625,500, beginning with FHA Case Numbers assigned on, or after, June 11, 2012, there will be an additional 25 basis point increase in annual MIP.
To calculate your monthly MIP obligation as a FHA homeowners, multiply your starting loan size by your insurance rate from the list above, then divide by 12.
Note that the FHA mortgage insurance changes apply to new FHA Case Numbers only. If you have an FHA mortgage approval in-process, or an existing FHA home loan, you are not subject to the new MIP schedule. To avoid paying the FHA’s new MIP schedule, therefore, begin your FHA mortgage application today.
Once your FHA Case Number is assigned, you’re locked in to today’s lower premiums.
Changes to FHA Mortgage Insurance Announced
Changes to FHA Mortgage Insurance Announced.
The changes that were initially announced to be effective for cases assigned on and after April and June 1st are now effective for cases assigned on and after April 9, 2012 and on and after June 11, 2012 for loan amounts that exceed $625,500. Additional information was also added regarding reduced up-front and annual premiums for certain FHA streamline refinances and applies for cases assigned on and after June 11, 2012.
Warning to all- HUD couldn’t have made it any more confusing for us. We will all be challenged in the coming months with making sure we have communications and systems in place to assure we are using the correct MI premiums as determined by case assignment date, loan term, loan type, loan amount and LTV. Below I have attempted to lay it out in as organized a fashion as I’ve been able to determine after uncrossing my eyes which crossed while reading through the Mortgagee Letter.
Up-Front MIP Increase
• If the FHA case is assigned on and after 04/09/2012: UFMIP = 1.75% per Mortgagee Letter 2012-4
• If the FHA case is assigned 10/04/2010 – 04/08/2012: UFMIP = 1.00%
Annual MI Increases
If the FHA case is assigned on or after 04/09/2012 per Mortgagee Letter 2012-4
• > 15 yr Term: > 95% LTV = 1.25%
<=95% LTV = 1.20%
• < = 15 yr Term: > 90% LTV = .60%
>=79% LTV = .35%
• Single Family forward mortgages with amortization terms of 15 years or less, and a loan-to-value (LTV) ratio of 78 percent or less, remain exempt from the Annual MIP (see Mortgagee Letter 2011-35).
If the FHA case is assigned 04/18/2011 – 04/08/2012
• > 15 yr Term: > 95% LTV = 1.15%
<=95% LTV = 1.10%
• < = 15 yr Term: > 90% LTV = .50%
>=79% LTV = .25%
• Single Family forward mortgages with amortization terms of 15 years or less, and a loan-to-value (LTV) ratio of 78 percent or less, remain exempt from the Annual MIP (see Mortgagee Letter 2011-35).
If the FHA case is assigned on or after 06/11/2012 AND the base loan amount exceeds $625,500 Mortgagee Letter 2012-4:
• > 15 yr Term: > 95% LTV = 1.50%
<=95% LTV = 1.45%
• < = 15 yr Term: > 90% LTV = .85%
>=79% LTV = .60%
• Single Family forward mortgages with amortization terms of 15 years or less, and a loan-to-value (LTV) ratio of 78 percent or less, remain exempt from the Annual MIP (see Mortgagee Letter 2011-35).
Up-Front MIP Decreases for Certain FHA to FHA Streamline Refinances
If FHA case assignment is dated on and after 06/11/2012 and the current FHA loan being paid off was endorsed prior to 06/01/2009 per Case Query in FHA Connection, up-front MIP = .01% and annual MI = .55%.
FHA determined that these increases are necessary to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund. Taken together, these premium changes will enable FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) Fund, contributing more than $1 billion to the Fund, based on current volume projections through Fiscal Year 2013. FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month.
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Louisville Mortgage Loans
How to Look for Louisville Mortgage Loans
You can’t buy a new home without a mortgage, and one of the most important aspects of Louisville mortgage loans is the interest rate. Mortgage rates can vary greatly and can affect how much you pay for the loan. Therefore, it is imperative that you get the very best rate you can find. How can you find the right rate? Right here, you’ll find the tools you need to find a rate and get a Louisville KY home loan.
A Comparison of Louisville Mortgage Loans and Rates
Comparing Louisville mortgage rates is a great way to find the best rate. Our mortgage directory allows you to look through all of the lowest rates and locate the one that is best for you. The directory also gives you lender information for every rate, so you can contact them as soon as you find the rate you want. Another benefit of our mortgage directory? We update it daily so all of the Louisville rates are current.
Keep Your Louisville Mortgage Loan Under Control
How much of a mortgage you can afford is one of the key criteria banks look at when they approve your home loan. Use any of our mortgage calculators to find out how large of a home loan you can afford for your new Louisville home. Our mortgage calculator shows you approximately how much you will pay each month on your Louisville home loan depending on the interest rate and loan amount.
Our home affordability calculator provides an estimate of the home loan you can afford. Simply enter in the amount you may be qualified to borrow along with the amount of your down payment, and it will estimate the maximum home price for which you may qualify for your new home in Louisville, KY.
The Easy Way to a Mortgage
It can be easy to find a Louisville mortgage loan. Use all of the information and tools
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