Are you among the 62% of Americans who are unaware of the Government Mortgage Relief Programs (HAMP and HARP)? Learn how these programs can help you with your mortgage difficulties?

Those homeowners who are labeled as “underwater”, or as owing more than the value of their home, now account for over one fifth of all mortgage owners. This is not a comfortable position in which to find yourself and most people in this situation feel that there isn´t much they can do about it and they pay the higher mortgage rate or foreclose. However there are other ways of dealing with devalued property such as the government lending programs.

There are two called HAMP (Home Affordability Modification Program) and HARP (Home Affordable Refinance Program) which are specifically designed to help people to make use of lower interest rates when they are “underwater” and in this way avoid foreclosure. The terms of the mortgage are renegotiated and the interest rates refinanced at a lower rate so that the mortgage payments can be adjusted in line with present mortgage values.

The credit rating of anyone who takes advantage of the program will appear on the credit report as “current on payments” (at the newly adjusted amount). Credit information can be monitored from the three national credit bureaus which are Equifax, Trans Union and Experian. This is important because good credit rating can mean better rates and terms when dealing with lenders. To access HARP borrowers must have loans held by Fannie Mae and Freddy Mac (which are now under federal conservatorship). Loans have to have been sold before April 1 2009. In the case of a 30 year fixed rate mortgage or a 15 year loan there is now no limit as to the amount owing in relation to the value of the property.

There is a ceiling for other mortgages, and the loan-to-value ratio for fixed rate loans of more than 30 years is a maximum of 105%. This applies to adjustable rate mortgages with terms longer than 30 years as well as adjustable rate mortgages with fixed-rates for 5 years or over. Additionally you cannot be considered if your payments have been late during recent months. It is still possible to catch up and qualify though because this program will carry on until December 31 2013. An eligible borrower has to benefit from lower payments or a more “stable” loan like changing to a fixed rate from an adjustable rate mortgage. If your payment rises above 20% then you have to re-qualify by having a credit score of no less than 620 as well as not having a debt-to-income ratio of more than 45%. Lenders must verify your assets and income. Borrowers who have been declared bankrupt or whose credit ratings have been lowered due to a foreclosure do not have a waiting period as was previously the case. Another requirement that has been waived is that of lender representations and warrants for the new loan as well as the loan that is being refinanced. The fees charged by lenders called “loan level price adjustments”-a.k.a. “risk-based fees” are much lower now so that mortgage rates will also be lower. This HARP plan is new and could help many “underwater” mortgage holders. The HARP Eligibility Calculator, (visit the Zillow calculator) could help you to know if you are eligible!

Why not look into these programs in more detail and. At the very least you will lower the percentage of Americans that are unaware of them.

HAMP And HARP Offer Underwater Homeowners A Second Chance is a post from: Government Mortgage Help

The government is assisting rural home owners to refinance their mortgages through a pilot program of the United States Department of Agriculture, USDA. This program is designed for rural owners who don’t qualify for a commercial refinance loan but wish to benefit from the low interest rates now available. This is a new program, so if you did not qualify for mortgage assistance through previous USDA programs, you may qualify for this one.

The program will convert the mortgages of borrowers under the Single Family Housing Direct and Guaranteed program into new Guaranteed loans with improved terms. Notice this program only allows borrowers to refinance the balance of their existing mortgage and the one time guarantee fee charge, which works as a type of mortgage insurance. You cannot use this refinance program as a cash-out refinance or a way to increase the balance on your mortgage to remodel your home or finance some other project.

Unfortunately, this program is only available to borrowers who already have a mortgage guaranteed by the USDA for a minimum of 12 months. This also means you cannot add new borrowers to a guaranteed mortgage, all the borrowers must be part of an existing guaranteed loan.

The good news for unemployed workers is that employment is not a requirement to qualify for the Rural Refinance Pilot program. As long as you have a good mortgage payment history for the last 12 months, you are eligible. However, if you have been employed in the last 12 months, you must provide proof of previous earnings, which will be used to calculate total income and determine eligibility.

Another great feature of this mortgage program is that borrowers with a bad credit history will still qualify as long as their mortgage payment history is good. For example, as long as you have been regular with your mortgage payments in the last 12 months, late payments for credit cards, car loans or other debts, you will still be eligible.

Successful applicants of the Rural Refinance Program will see their mortgage’s interest rates drop to at least 100 basis points below their current interest rate. However, mortgages with high interest rates may enjoy greater reductions in order to meet the maximum interest rate set by the program. All successful mortgages will see their terms extended to a 30-year term.

Borrowers will have to pay lenders an origination fee. However, this fee cannot be more than 1 percent of the mortgage’s principal balance.

New Government Assistance for Rural Borrowers: Guaranteed Loan Refinances through the Rural Refinance Pilot Program is a post from: Government Mortgage Help

The Government provides mortgage assistance to veterans, National Guard members, active duty personnel and their surviving spouses. Although the VA Department does not provide the loans directly, they provide approved lenders with insurance so they can afford to approve customers who may otherwise not qualify and offer them premium interest rates. This is called a guarantee, and it allows many service members and their families to qualify for a mortgage home, because lenders know that if the service member does not pay the mortgage, the VA will cover the balance up to the amount guaranteed.

The maximum loan guarantee a service member can qualify changes on a yearly basis, sometimes more often, depending on the policies set by the legislature. The 2012 loan limits have changed considerably from the 2011 limits. The numbers quoted in this article for 2012 could still change if Congress allows the Veteran Affairs Department to calculate the maximum loan guarantee as it has in previous years. If this happens, the loan limits may increase a little, but they will not drop.

Notice that the VA does not limit the amount a veteran or an eligible service person borrow, that is between the veteran and the lender. However, the VA does set a limit on the loan amount it will guarantee, which will often end up being the maximum amount the lender is willing to lend. The loan limits set below do not represent the maximum amount the VA will repay if the veteran fails to meet mortgage payments, the VA will repay up to 25 percent of these loans amounts. Additionally, if a veteran has previously used similar entitlement benefits and failed to repay them, the veteran’s maximum guarantee amount will be reduced accordingly.

The maximum loans amounts vary from county to county based on the cost of living and the average price of property in the region. The general upper limit for guaranteed loans is $417,000. However, due to particularly high property prices in certain regions, some counties qualify for a higher VA maximum amount.  The list below, provided by the VA Department, includes all counties that qualify for a higher VA loan limit, the state they are in, the maximum loan amount and the regional VA loan center you must contact for assistance.

AK ALEUTIANS EAST $625,500 DENVER
AK ALEUTIANS WEST $625,500 DENVER
AK ANCHORAGE $625,500 DENVER
AK BETHEL $625,500 DENVER
AK BRISTOL BAY $625,500 DENVER
AK DENALI $625,500 DENVER
AK DILLINGHAM $625,500 DENVER
AK FAIRBANKS NORTH $625,500 DENVER
AK HAINES $625,500 DENVER
AK HOONAH-ANGOON $625,500 DENVER
AK JUNEAU $625,500 DENVER
AK KENAI PENINSULA $625,500 DENVER
AK KETCHIKAN GATEWAY $625,500 DENVER
AK KODIAK ISLAND $625,500 DENVER
AK LAKE AND PENINSULA $625,500 DENVER
AK MATANUSKA-SUSITNA $625,500 DENVER
AK NOME $625,500 DENVER
AK NORTH SLOPE $625,500 DENVER
AK NORTHWEST ARCTIC $625,500 DENVER
AK PETERSBURG $625,500 DENVER
AK PRINCE OF WALES-HYDER $625,500 DENVER
AK SITKA $625,500 DENVER
AK SKAGWAY MUNICIPALITY $625,500 DENVER
AK SOUTHEAST FAIRBANKS $625,500 DENVER
AK VALDEZ-CORDOVA $625,500 DENVER
AK WADE HAMPTON $625,500 DENVER
AK
WRANGELL
CITY/BOROUGH $625,500 DENVER
AK YAKUTAT CITY $625,500 DENVER
AK YUKON-KOYUKUK $625,500 DENVER
CA ALAMEDA $625,500 PHOENIX
CA CONTRA COSTA $625,500 PHOENIX
CA LOS ANGELES $621,000 PHOENIX
CA MARIN $625,500 PHOENIX
CA NAPA $460,000 PHOENIX
CA ORANGE $621,000 PHOENIX
CA SAN BENITO $625,500 PHOENIX
CA SAN DIEGO $477,000 PHOENIX
CA SAN FRANCISCO $625,500 PHOENIX
CA SAN LUIS OBISPO $457,700 PHOENIX
CA SAN MATEO $625,500 PHOENIX
CA SANTA BARBARA $598,000 PHOENIX
CA SANTA CLARA $625,500 PHOENIX
CA SANTA CRUZ $610,650 PHOENIX
CA SONOMA $419,750 PHOENIX
CA VENTURA $518,650 PHOENIX
CO EAGLE $625,500 DENVER
CO LAKE $625,500 DENVER
CO PITKIN $625,500 DENVER
CO ROUTT $523,250 DENVER
CO SAN MIGUEL $625,500 DENVER
CO SUMMIT $621,000 DENVER
CT FAIRFIELD $601,450 CLEVELAND
DC DISTRICT OF COLUMBIA $625,500 ROANOKE
GU GUAM $625,500 HONOLULU
HI HAWAII $625,500 HONOLULU
HI HONOLULU $695,750 HONOLULU
HI KALAWAO $625,500 HONOLULU
HI KAUAI $625,500 HONOLULU
HI MAUI $625,500 HONOLULU
ID TETON $600,300 DENVER
MA DUKES $625,500 CLEVELAND
MA ESSEX $460,000 CLEVELAND
MA MIDDLESEX $460,000 CLEVELAND
MA NANTUCKET $625,500 CLEVELAND
MA NORFOLK $460,000 CLEVELAND
MA PLYMOUTH $460,000 CLEVELAND
MA SUFFOLK $460,000 CLEVELAND
MD ANNE ARUNDEL $494,500 ROANOKE
MD BALTIMORE $494,500 ROANOKE
MD BALTIMORE CITY $494,500 ROANOKE
MD CALVERT $625,500 ROANOKE
MD CARROLL $478,400 ROANOKE
MD CHARLES $625,500 ROANOKE
MD FREDERICK $625,500 ROANOKE
MD HARFORD $478,400 ROANOKE
MD HOWARD $478,400 ROANOKE 

MD MONTGOMERY $625,500 ROANOKE
MD PRINCE GEORGE’S $625,500 ROANOKE
MD QUEEN ANNE’S $478,400 ROANOKE
NH ROCKINGHAM $460,000 CLEVELAND
NH STRAFFORD $460,000 CLEVELAND
NJ BERGEN $625,500 CLEVELAND
NJ ESSEX $625,500 CLEVELAND
NJ HUDSON $625,500 CLEVELAND
NJ HUNTERDON $625,500 CLEVELAND
NJ MIDDLESEX $625,500 CLEVELAND
NJ MONMOUTH $625,500 CLEVELAND
NJ MORRIS $625,500 CLEVELAND
NJ OCEAN $625,500 CLEVELAND
NJ PASSAIC $625,500 CLEVELAND
NJ SOMERSET $625,500 CLEVELAND
NJ SUSSEX $625,500 CLEVELAND
NJ UNION $625,500 CLEVELAND
NY BRONX $625,500 CLEVELAND
NY KINGS $625,500 CLEVELAND
NY NASSAU $625,500 CLEVELAND
NY NEW YORK $625,500 CLEVELAND
NY PUTNAM $625,500 CLEVELAND
NY QUEENS $625,500 CLEVELAND
NY RICHMOND $625,500 CLEVELAND
NY ROCKLAND $625,500 CLEVELAND
NY SUFFOLK $625,500 CLEVELAND
NY WESTCHESTER $625,500 CLEVELAND
PA PIKE $625,500 CLEVELAND
UT SALT LAKE $594,550 DENVER
UT SUMMIT $594,550 DENVER
UT TOOELE $594,550 DENVER
VA ALEXANDRIA $625,500 ROANOKE
VA ARLINGTON $625,500 ROANOKE
VA CLARKE $625,500 ROANOKE
VA FAIRFAX $625,500 ROANOKE
VA FAIRFAX IND $625,500 ROANOKE
VA FALLS CHURCH $625,500 ROANOKE
VA FAUQUIER $625,500 ROANOKE
VA FREDERICKSBURG $625,500 ROANOKE
VA LOUDOUN $625,500 ROANOKE
VA MANASSAS $625,500 ROANOKE
VA MANASSAS PARK $625,500 ROANOKE
VA PRINCE WILLIAM $625,500 ROANOKE
VA SPOTSYLVANIA $625,500 ROANOKE
VA STAFFORD $625,500 ROANOKE
VA WARREN $625,500 ROANOKE
VI ST. CROIX $625,500 ST. PETERSBURG 

VI ST. JOHN $625,500 ST. PETERSBURG
VI ST. THOMAS $625,500 ST. PETERSBURG
WA KING $458,850 DENVER
WA PIERCE $458,850 DENVER
WA SAN JUAN $432,400 DENVER
WA SNOHOMISH $458,850 DENVER
WV JEFFERSON $625,500 ROANOKE
WY TETON $625,500 DENVER

2012 Changes To Government VA Home Loan Program is a post from: Government Mortgage Help

There are different products from which to choose according to your circumstances. In particular we mention 1^st Gold which is suitable for the majority of buyers. Then there is OHFA (Oklahoma Homeownership Financial Assistance)Shield especially designed for police officers and fire fighters. Those who work in the field of education may find that OHFA 4 Teachers would be a good alternative. These are the OHFA advantage products which include low interest, 30 year loans and 3.5% down payment assistance for homebuyers in the state. If you meet the requirements for OHFA advantage and you would like to take advantage of the offer you should apply for a loan from a participating lender(list on the website). These lenders accept all those who have the minimum income and a good credit rating as long as the price of purchase is within the limits – that is not over $189,607. If you call the Homebuyer Hotline we can give you more information. The number to call is 1-888-937-1122.

In Oklahoma it is feasible for those who are at present receiving housing assistance, and are using the payments to pay rent to change to mortgage payment and thereby purchase their own property. This is the Homeownership Program called the Section 8 Housing Choice Voucher Homeownership Program. This program is available to you if you want to own your first home and you participate in both, The Family self Sufficiency Program (FSS) at the time as well as the Section 8 Housing Choice Voucher. The FSS is a program that helps you to grow financially. You make a contract to progressively reach certain objectives helped along by OHFA and FSS workers. You learn how to use an Escrow Saving Account among other things.

To be accepted for the program the main wage earner of the household must have an annual income of at least $14,500 and must have had a job for one year working on average 30 hours a week unless the head of the household is disabled or elderly in which case the minimum annual income is $8,088. You can choose any type of property if you qualify for the program. It could be a new home or it could be an older single family home. You might prefer a condo or a manufactured home or a town house. The property must be inside the area that OHFA operates and it must be within your price-range. Those with a disability may buy their property from a member of their family but otherwise this is not permissible. Neither is it allowed that the property be a means of earning money.

The OHFA may inspect the house to be purchased so as to decide whether or not it qualifies for assistance. In order to arrange for a loan you may have help from OHFA staff when you decide upon a mortgage lender. OHFA will help in the whole buying process giving assistance too when it comes to down payment and closing costs. Once the home is purchased assistance will continue as long as you are entitled to section 8 Housing Choice Voucher Program. As soon as this terminates you are responsible to continue payments and the mortgage lender will be informed of the situation. To find out more call (800) 256-1489 ext. 171

Oklahoma Makes Homeownership Achievable is a post from: Government Mortgage Help

The state of Mississippi knows that one of the main difficulties people face when trying to find a suitable home is the upfront money needed for the down payment. People require help in this regard and also when it comes to the payment of closing costs. For this reason the Mississippi Home Corporation has arranged for a Down Payment Assistance Program designed to help those of low to moderate income to buy their first home. First time homebuyers with a low or moderate income and who have an acceptable credit rating are eligible if they meet the credit eligibility requirements and have need of a second mortgage to pay the down payment.

They are also required to complete an 8 hour homebuyer training course.

The Down Payment Assistance Program consists of a first mortgage (FHA, VA, or RD qualifying guidelines) and a second mortgage with a ten year fixed rate f 7%. The maximum down payment assistance is 3% of the loan amount and it can be used for closing costs too. It is required that the applicant´s liquid assets not exceed $4,500. The property must be the primary residence of the owner.

The Mississippi Home Loan Plus Program Grants of up to $14,999 are available for low income homebuyers who meet the requirements. The funds provided to the Mississippi Home Corporation (MHC) by the Mississippi Development Authority(MDA), Community Service Division are to make it possible for those who otherwise could not purchase a property of their own to acquire their first home. There are certain requirements that are to be met in order for the grant to be awarded. For example the property to be purchased must meet section 8 Housing Quality Standards so must have written clearance from a US HUD approved appraiser or it must meet local housing quality standards in areas that have their own local building codes. It should be noted that the whole County of Harrison and the City Hattiesburg as well as the City of Jackson are not eligible for this program. The grant can be used with the MHC programs Mortgage Revenue Bond with no cash advance (MRB) and Mortgage Credit Certificate(MCC).

The applicant must be a US citizen or qualified registered alien who has a social security card and it is required that the homebuyer have Homebuyer education with a housing counselor approved by HUD. The household income must be below 80% of the average household income according to the size of the family. The limit as to Purchase Price is $150,000. The buyer must purchase the property by permanent fixed-rate mortgage through a lender approved by MHC. As for the property itself it must be located in an area that is eligible for the grant and it must be the primary residence of the buyer. The home to be purchased must not be in a flood zone. To qualify the property has to be a site built single family home. Condos and town homes do qualify. If the construction is newly built it must be complete. Properties built before 1978 will be subject to a lead based paint inspection and test. Anyone who would like to participate in the program can find a participating lender list as well as a homebuyer guide on line.

Mississippi has Programs to Help You to Buy Your Home is a post from: Government Mortgage Help

Forget the adverts. Forget who your broker recommended. Forget who has the nicest offices. If you are searching for a mortgage refinance company to improve the terms of your loan, you need to forget about the gimmicks and look at what really matters in a refinance lender. This article summarizes some of the most important tips on selecting the best company for your refinance mortgage.

First Step. Forget the Annual Percentage Rate.

Many finance advisors encourage borrowers to check the annual percentage rate, or APR, of a mortgage refinance loan when deciding which is the best deal. On the surface, this is good advice. After all, the APR claims to provide a benchmark with which to compare loans by converting the total cost of the loan as a yearly percentage. If there was a standard method to calculate the APR this would be a great method, unfortunately there are no set standards to calculate a loans APR. Some lenders include certain costs and expenses while others choose to leave them out. This is not to say the APR of a loan is a worthless measure of a loan’s cost, but you do need to check what has been included in the APR. This means you cannot judge a loan by its advertised APR until you request a breakdown of how the APR has been calculated.

Second Step. Use the best mortgage brokers, but don’t let them use you.

Good brokers have access to a wide variety of mortgage providers and to the lowest mortgage refinance rates. Unfortunately brokers also have a, often deserved, reputation of charging expensive fees and offering little value to customers. However, a reputable broker with good connections can help you avoid lender junk fees and give you access to wholesale mortgage rates. How can you tell the good brokers from the bad ones? There are no easy solutions. Look for brokers with a good and long standing reputation, use brokers people you trust recommend and prefer brokers who operate as brokers and not as a mortgage banker or broker bank. Why? Because broker banks and mortgage bankers are protected from key disclosure laws which allow them to sell mortgages without the need of disclosing markup or profit margins on your loan. A broker, however, is not protected from the Real Estate Settlement Procedures Act and must comply with the Act’s disclosure laws.

Final Step. Ask for a complete breakdown of your mortgage rates.

Whoever you end up choosing, make sure you request a complete breakdown of the costs, fees, and rates applicable. Don’t let the banker or broker blind you with jargon and well scripted speeches. Ask for hard facts, in writing, and compare it to the information other lenders offer. This way you will get the best mortgage refinance lender, not the one with the best salesperson.

The Best Mortgage Refinance Companies: How To Select Them is a post from: Government Mortgage Help

If you are living from paycheck to paycheck and never seem to have enough money to pay your bills, you may be a candidate for credit counseling. However, credit counselors may not be what your thinking they are. You see, there are many types of “professionals” offering you help to get back on your feet, financially speaking, and most of them will do exactly the opposite. After the real estate crisis of 2008 an army of foreclosure avoidance and debt relief “consultants” appeared out of thin air just as the business for subprime mortgage lenders ran into the ground. Needless to say, these are not type of counselors we are talking about when we mention credit counselors. The trouble is they are hard to set apart sometimes.

The government is offering struggling borrowers who are at risk of defaulting on loans or need a hand to get their financial matters in line the opportunity of speaking to debt relief specialists who know how to help you reduce debt without resorting to more high interest loans that only offer a short term relief. These are counselors financed by government subsidies who are not in it for your money. So, how to set them apart. Here are some things to look out for.

Choose credit counseling companies that help you organize your finances by creating a budget and offer you free credit workshops and educational material. Choose credit counselors that employ certified operators in consumer credit, debt management and budgeting. Avoid like the plague any company that requires you to provide personal information before they can help you. Call your state Attorney General, your local consumer protection agency and the Better Business Bureau. Find out what they have to say about the credit counseling companies you are looking into. You should only consider accepting the help of government approved credit counseling companies. How do I know if they are government approved? Easy, visit the Department of Justices’s U.S. Trustee Program website and see if your potential companies appear on their list of approved credit counseling agencies.

Strike out any company that does not pass these tests. Once you are left with an approved shortlist of credit counseling agencies ask the following questions.

What services do you offer? Avoid companies that push a debt management plan down your throat as your only option.

Do you offer information? Avoid agencies that charge for debt management information.

How are your employees compensated? Avoid agencies who offer commissions to agents who sell certain debt management products.

Government Mortgage Help: Credit Counselors is a post from: Government Mortgage Help

The first step to repairing your credit is to know what you are facing. It is not only important to know what your current credit score is, but also what black spots on your credit history are lowering it. Credit repair clinics may offer you this service: finding out your credit score and a report of your credit history, but the truth is you can find all this yourself for free. The Fair Credit Reporting Act, also known as FCRA, dictates everyone has the right for a free credit report if a) a company denies you service or takes adverse action against you based on your credit score, or b) if 12 months have passed since the last time you applied for a free report. Let us look more closely at the details of these rights .

Imagine you apply for a mortgage loan and your bank denies your application based on your credit score or some problem with your credit history. In that case the bank has the legal obligation to tell you why they denied your application and you will have the option of asking for a free report. If this happens, you would be well advised to make use of this right and request your free credit report. Of course, there are some rules you must take into account. You must apply for the free credit report within 60 days of your loan or service denial. You also have the right for a free credit report if you’re unemployed and considering looking for a job within 60 days. You see, your credit report is no longer only used to assess loan applications, it is also a factor when you apply for a job. If you are on welfare, you fear you have been the victim of identity theft or you believe your report is inaccurate, you also have the right for a free report.

In effect, you have the right for a credit report with each of the main credit reporting agencies in the United States: Equifax, Experian and TransUnion. What is more, you have the right for a free report from each of these organizations once every 12 months. You just have to ask for it.

How do you do that, you may ask. Does it involve a long and tedious process requiring sending coupons or waiting for hours on the phone? It can, or you can go to annualcreditreport.com and do it online. The other option is to call 1-877-322-8228 or send a credit report request form to 

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

Government Mortgage Help: Your Credit Repair Rights is a post from: Government Mortgage Help

Applying for a mortgage can be a daunting exercise, especially if you have made financial mistakes in the past and feel that your credit score may interfere with your loan application. This also applies to government subsidized loans through agencies such as the Federal Housing Administration which offers low-cost mortgages to medium- to low-income families. However, if you feel your credit rating will get in the way of your home purchasing dreams, take heart, this is not necessarily the case. Although your credit score is a significant factor when applying for an FHA loan, it is not the only factor. The FHA lending and underwriting rules allow for flexibility with reliable lenders which may have had some credit hiccups in the past.

So what are the FHA rules on lending? This article provides a brief overview on what the FHA looks at when assessing a loan.

There are four factors that determine the eligibility of a borrower to a loan: credit history, steady employment, debt-to-income ratio and your payment history in the last 12 to 24 months. This means that if your credit score is low because of a financial problem or mistake you made several years ago, but you score well in the other areas, you may still qualify for an FHA loan. Nevertheless, what constitutes a good or acceptable credit score for the FHA? This depends on the loan, but the FHA does have a general standard for most of its loans.

The FHA and Credit Scores

The FHA applies a sliding scale rule on loans depending on the credit score of the borrower. Borrowers with a higher credit score can apply for a higher loan to value percentage of the purchasing price of a property. For example, credit scores between 500 and 579, which would be considered very low by commercial lenders without the insurance of the FHA, can qualify for a maximum of 90 percent of the loan to value rate of the property. If your credit score is higher than 580, you may be eligible for the maximum FHA loan financing, as long as the other areas are also satisfied. If your credit score is below 500, you are not eligible for an FHA loan.

Therefore, the answer to the initial question of this article, the minimum credit score to be even considered for an FHA loan is 500. Anything less and your application will not even be considered. However, even applicants with credit scores as low as 500 to 600 can qualify for loans as long as the other elements the FHA looks into are above board.

Government Mortgage Assistance: What Is The Minimum Credit Score For An FHA Loan is a post from: Government Mortgage Help

In the current economy, few of us have the savings or income to finance the purchase of a brand new home. Even second hand homes in prime condition can be out of the reach of the average household. So what can you do if you need a new home or you are a first-time buyers looking to buy yourself a slice of the American dream? A good option for many, especially those not scared to invest some sweat and elbow grease in their home, is investing in a fixer upper and doing or at least supervising the work required to make the home livable again.

Rehab Loans with FHA

If that is your plan, you can get government mortgage assistance from the Federal Housing Administration. The FHA has a specific product for buyers interested in saving money and investing money and hard work in a fixer upper home. If you know where to look (think foreclosures, auctions, repossessions…) you can buy homes that have fallen into disrepair and need some heavy doses of tender loving care at bargain prices. Remember banks, which more often than not end up with dilapidated homes, are not in the real estate industry; they are in the lending business. So, they are often very happy to unload properties in need of renovation.

The loan you may be looking for is the FHA’s 203(k) Fixer Upper Loan. This product is based on the Housing and Urban Development’s, HUD, 203(k) program and allows buyers invest in fixer-uppers with a FHA guaranteed loan. The best things about this loan is that it is especially designed for fixer-uppers and comes with an inbuilt protection for borrowers if the repair work costs more than they expected. And let’s face it, it is next to impossible to estimate accurately how much a fixer-upper will cost to get back into shape until you actually get started.

How Do You Apply?

As usual, the FHA does not provide loans directly to borrowers, but uses lending partners. Approach a selection of lenders and request information on their 203(k) fixer-upper loans. The application process is similar to a normal FHA loan. The lender will go through the regular credit checks and debt-to-income analysis. In addition to the basic paperwork requirements of an FHA mortgage, you will need to provide a detailed list of the repairs the property requires and the estimated cost of those repairs.

Government Mortgage Assistance for Fixer-Upper Homes is a post from: Government Mortgage Help