The Wall Street Journal recently reported the 2010 personal bankruptcy figures for 2010. Personal Bankruptcies rose 9% to 1,530,078 nationwide. This has been the highest year since the 2005 change in Bankruptcy Laws. The top two states with the largest increases were Hawaii and California. Hawaii had a 28.9% increase with California a close second at a 25% increase from 2009. Alabama and Kentucky had a decrease in the new bankruptcy filings in 2010.
The good news is the Federal Housing Administration still insures loans after filing a personal bankruptcy. Below are the 2011 rules for obtaining a FHA mortgage after Chapter 7 and Chapter 13 Bankruptcies:
Chapter 13 Bankruptcies:
Bankruptcies are allowed after 12 months of the payout period provided performance has been satisfactory and borrower receives court approval to enter into the mortgage transaction.
Chapter 7 Bankruptcies:
Bankruptcies are allowed after 24 months since the discharge date and good credit has been reestablished.
The first step in qualifying for an FHA Loan is to speak with an FHA consultant who can analyze your unique situation. Click here to start the FHA Loan Application. You will learn how much of a house you can afford and the exact monthly payments you will have on your new home. Your consultation will involve a detailed overview of your income, down payment source, and credit history. Once you speak with a FHA Loan Consultant you will have the peace of mind knowing that you are fully approved for a new FHA Purchase Loan.
Reverse mortgages are a viable option for seniors and are increasing in popularity.
The Federal Government insures Reverse Mortgages through their Home Equity Conversion Mortgage or HECM. This program is only available through an FHA approved lender. If you are over the age of 62 you can apply for a Reverse Mortgage. This mortgage type will allow you to stop making monthly payments to your lender. The loan allows for seniors to spend more time on life and less on worrying about their monthly mortgage payment.
Below are a few FHA Reverse Mortgage facts:
- Receive a lump sum or monthly payments
- Credit score or income is not a factor
- You and your heirs retain full ownership and title- even after passing
Many homeowners are unaware that the reverse loan can be refinanced in the future to a traditional forward mortgage.
Apply for an FHA loan or consultation.
Reverse mortgages are neither endorsed or approved by the Federal Government.
If you are considering buying a new home you are probably exploring the many benefits of using FHA financing. The first step is to get preapproved. The Pre-Approval process for FHA is similar to conventional financing. A FHA specialist will review your income, assets, and credit to determine the maximum amount borrowed. With frequent guideline changes, it is crucual to speak with a FHA specialist.
Two years of employment history will be requested. In the event that you do not have a two year history, the FHA loan program allows for your education to count toward the twenty four month requirement. Your income will be analyzed through a review of your pay stubs, tax returns, and bank statements. Review FHA Purchase guidelines for further clarification.
NOTE: If you are currently a student, you are able to qualify without employment. Your schooling is considered your employment and are able to have a parent qualify as a co-signer.
Below are the most common items requested to get FHA Pre-Approved;
- Most recent two years of Federal Tax Returns (1040′s ALL Schedules)
- Most recent two years of W2′s
- Most recent two pay stubs covering the last 30 days
- Most recent two bank statements (ALL Pages -Checking, Savings, Retirement)
- Copy of Driver’s License for all borrowers
Click here to start the FHA Loan Process.
Congress wasted no time in passing the bill H.R. 5981. This bill gives FHA the ability to modify it’s current annual mortgage insurance premium. The move will provide an addtional $300 Million to FHA’s Mutual Mortgage Insurance Fund.
Below are the changes the FHA changes that take place September 7, 2010:
OLD UPFRONT MORTGAGE INSURANCE PREMIUM
NEW PROPOSED UPFRONT MORTGAGE INSURANCE PREMIUM
OLD MONTHLY MORTGAGE INSURANCE PREMIUM
NEW MONTHLY MORTGAGE INSURANE PREMIUM
.85% – .90%
Read the August 5th memo from HUD on H.R. 5981.
A new HUD Mortgagee letter will be issued once President Obama signs the H.R. 5981 bill into Law.
The first step in qualifying for an FHA Loan is to speak with an FHA consultant who can analyze your unique situation. Click here to start the FHA Loan Process.
Do FHA Jumbo Loans Exist?
FHA Jumbo Loans do exist. At least for the remainder of 2010.
In October 2009, Congress agreed to extend the high balance FHA Jumbo loan for 2010. The FHA loan limits depend on county. Certain high cost areas have the ability to lend Jumbo FHA loans up to $729,750. The rates are slightly higher than a traditional FHA loan but offer underwriting guidelines not seen in any other loan program.
In certain cases, a Streamline FHA Refinance will allow a rate reduction without an appraisal at all. In the past few years many homeowners were refinanced in to a FHA Jumbo loan because that was their only option. In today’s lending environment, you may be eligible to refinance your FHA loan into a Conventional or Conventional into an FHA Jumbo Loan. For more information, fill out an FHA Loan Application.