Jump to content

FHA questions-experienced help needed!


hi-liter
 Share

Recommended Posts

I get the feeling the mortgage consultant that we're working with does not do very many FHA loans, so I need a bit of clarification that she has been unable to give us. She gave us our pre-approval letter for FHA and keeps emailing us to remind us that we can only buy FHA approved properties and that the realotr should only be showing approved properties. Ok, I've heard about the approved list but don't know a whole lot about it. However, if a property is not on the approved list, I was under the impression that the mortgage company must submit it for approval. What's the real story?

I was also under the impression that after Jan 2003, approval requirements for PUDs (Planned Unit Developments) were eliminated and that FHA would no longer maintain a list of approved PUDs. Am I incorrect?

Link to comment
Share on other sites

I am not quite sure about what happened in 2003 but I purchased my home back in 1996 through FHA and I did not have an "approved" list of properties. What I was told is that the home needs to meet FHA requirements. I found a lender who does FHA loans and went from there. I was never given any list. :confused:

Link to comment
Share on other sites

I get the feeling the mortgage consultant that we're working with does not do very many FHA loans, so I need a bit of clarification that she has been unable to give us. She gave us our pre-approval letter for FHA and keeps emailing us to remind us that we can only buy FHA approved properties and that the realotr should only be showing approved properties. Ok, I've heard about the approved list but don't know a whole lot about it. However, if a property is not on the approved list, I was under the impression that the mortgage company must submit it for approval. What's the real story?

I was also under the impression that after Jan 2003, approval requirements for PUDs (Planned Unit Developments) were eliminated and that FHA would no longer maintain a list of approved PUDs. Am I incorrect?

Two months ago worked with borrower trying to go FHA on a condo purchase, even though an FHA Appraisal was done. Underwritters who reveiwed the file shot it down.

This was because the property was a new constrution, and the value was based on future information. Basically it didn't meet FHA guidelines.

The borrower ended up getting a better deal on another property. Went with a conforming loan, got a better rate.

FHA loans are good loans because they offer low interest rates for people that have low credit. Interest rates are around 6.5%. They allow a minimum of 5% down.

They have a max of 2pts for the loan origination fee, that is what the broker gets paid.

They require more paper work (full doc), the appraisal charge is higher. You will pay PMI, because you have less than 20% equity in the property.

The bond just dropped today, meaning interest rates on conforming loans should be coming down. You should tell the loan officer you working with to look at other options for a better loan.

Good Luck.......xdancex

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.