FHA and Investor Specialist

This is a non-offensive (in my opinion) Polish joke:

A Polish immigrant went to the DMV to apply for a driver's license. After going through First, of course, he had to take an eye sight test.  The optician showed him a card with the letters  'CZ W I X N O ST A C Z.'   "Can you read this?" the optician asked. "Read it?" the Polish guy replied, "I went to grade school with  the guy."

Author Unknown

   The secondary mortgage market's appetite for manufactured housing(mobile home) financing has declined recently to say the least.  If you are marketing a manufactured home or looking to purchase one, keep in mind that FHA still allows for single, double, and triplewide financing on manufactured homes given they meet FHA's criteria.  Some of the basic criteria include a HUD sticker and an engineer certification that the foundation meets all HUD requirements.  The home also needs to have all axles, wheels , and hitch removed as well.  The property needs to be typical for the area and be taxed as real estate as well. 

     As long as the property and borrower qualify, FHA is still a great opportunity for low down payment financing on manufactured homes.

Here are 10 ways FHA financing can help you qualify to purchase or refinance a home, or ways you can utilize FHA to help someone buy a home:

1.  3% Down Payment with seller concession available for purchases of up to 4 unit properties.

2.  3% Down payment can be from a gift or Down Payment Assistance Program.

3.  Up to a 6% seller's concession can be used.

4.  FHA allows for Manufactured Housing, as long as the property meets their guidelines. 

5.  There is no minimum credit score requirement to qualify, although a clean 12 month history is generally required.

6.  15 Year FHA Loans offer dramatically lower Mortgage Insurance.

7.  A past Chapter 7 Bankruptcy will not disqualify a borrower, provided the the BK has been discharged 2 years and acceptable credit has been re-established.  In some cases, a Ch. 7 may only need to be discharged 1 year if extenuating one-time circumstances can be proven.

8.  Non-Occupant co-borrowers can help to add income to qualify an applicant.

9.  Those with no established credit can use 4 alternative sources of credit such as rent, utilities, etc. in order to qualify.

10.  FHA has programs available for buyers to finance repairs on a home being purchased.

Michael Byrne, Mortgage Banker, www.mortgageprosforum.com  and www.cafepress.com/buyfromclarence

When you are preparing to purchase your first home, finding out what type of purchase you can qualify for and what you can realistically afford are of utmost importance. With the recent news of foreclosures, etc., it is important for the consumer to feel comfortable about making an offer on a home. Here is a quick list of things to bring and plan for when meeting with your mortgage professional to be pre-approved:

1. 2 years of w-2's and 1 month paystubs.  If you are self-employed or 1099'd, bring 2 years of tax returns.

2. 2 months asset statements, including any 401k statements, etc.

Additionally, if you foresee yourself receiving any other income in the near future, make a quick note of that as well.  This could be a tax refund, gift from a relative, or even proceeds from a wedding. 

Look at any expenses you might incur or get rid of in the near future as well.  Are you going to need a new vehicle soon? Or do you have only 11 car payments left?  Are you planning on starting a family?

Take a moment to sit down a decide what you can realistically afford as a mortgage payment, and share this information with your mortgage professional.  Be sure to have taxes and insurance included as part of your total mortgage payment.  Another factor is how long you plan on staying in your new home.  Is it a starter home where you plan to be for 3-5 years?  Another factor is your future income: will you be receiving incremental raises, or finishing up a master's degree which will increase your income?

Sharing this information with your mortgage professional will set you up for success, and allow your real estate professional to find the best home for your needs.

A Conductor's Woes:

   The final rehearsal had not gone well, but the conductor and orchestra decided to go ahead with the concert program as planned. On concert night the first half of the program was adequate and well received.  During intermission, the bass players got hold of a bottle of whiskey and drank  more than they should, but went back on stage as if nothing had happened.  The orchestra started Beethoven's Ninth Symphony (Choral) with great promise, but the violas missed a cue, and the second bass was out of tune.  Suddenly two trumpet players got up and left the stage!  The French horns and trombones tried to cover the missing parts with uneven results. The conductor was now struggling to hold everything together.  Then the conductor turned a page and discovered that string had been wrapped around his music and it was a mess. What a terrible situation! It was the bottom of the Ninth, the score was tied, the players showed poor teamwork, two men were out, and the basses were loaded!!!

Original Author Unknown-although my Mother told me the joke.