What should I be cautious about during the FHA mortgage loan process?

Posted on Oct 16, 2012 in FHA Information

Question by lran_vt: How are the consumers who signed and received reverse mortgages making out in this time of economic downturn?
None of the news articles are addressing this problem. And my friends wont tell me how they are making out financially.
Just curious.

Best answer:

Answer by shippywoman
They don’t have a change and are still spending down equity.

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Question by : Are FHA loans assumable when the home is worth less than the loan?
My friend and I purchased a home together a couple of years ago. I potentially will be moving to another city because of a job transfer. Can she assume my portion of the FHA loan? The home is currently worth less than the loan by about $ 30K.

Best answer:

Answer by Steve D
Nope…no one has written an assumable loan in years. However, health the mortgage contract will have a clause that says whether the loan is assumable or not. If the home is underwater, nurse then there is very little chance that your friend will be able to re-finance in their name only, which would be the only way you can get your name off the mortgage.

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income for home loan
by eyewashdesign: A. Golden

Question by SPCStevens: can i use rotc stipends scholarships and gibill as income for home loan?
Im in the national guard and rotc. I get stipends, purchase gibill, check drill pay, discount and a room and board scholarship totalling around 25000 a year. Can i use this for income when applying for a home loan?
The room and board scholarhip goes directly to my bank account and is allowed for off campus/. I have a 720 score

Best answer:

Answer by WCHS1970
If you can prove income with pay stubs of course it will be considered.
However your room and board scholarship is not income – I presume that goes directly to the school?
So really all they are going to consider is actual income which would be the stipend and drill pay I would think.
The lender is also going to look at your down payment amount, credit score and credit history, other liabilities and job stability.

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Question by OZARK_IAN: What should I be cautious about during the FHA mortgage loan process?
So Im knee deep in purchasing this home in Michigan. Ive gotten all the way to the loan application process. Once it is filled out, thumb I will get guaranteed financing. Today when E-signing the documents, this web I got to page two and there was a red flag. Even know we had agreed with our lender that the rate would be 5%, he had the rate listed as floating rate. After a somewhat heated phone convo that had me fending off a $ 400 fee to lock the rate, the lender agreed to Lock it in at 5%. But I am very nervous about the rest of the process. Im afraid of expensive surprises that can ruin this dream that Me, my Wife and Kids are so excited about. Any suggestions?

Best answer:

Answer by chatsplas
Stay on top of everything
NO sure-things no guaranteed financing
Don’t you have a competent real estate attorney representing you in the biggest purchase of your life?
READ everything you sign carefully–good catch on the rate.
Don’t let them rush you or hurry you through the docs.

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4avg.rating 12 votes.

One Comment

  1. No lender can guarantee a rate lock until you fill out and submit the loan application. Also there is no such thing as guaranteed financing. I’ve see tax liens pop up after the loan was approved and within a few days of closing. A rate lock should be good for 30 days without any fee for locking in the rate.

    Sounds like you failed to use a direct FHA lender, but a mortgage broker who has absolutely no control of how fast your loan can be funded. Generally speaking trying to get an attorney involved in your transaction just slows down the escrow process and adds another $ 500-$ 1000 to your purchase costs.

    Most attorneys just end up mudding the water with BS on the smallest inconsequential details only because they need to justify their exorbitant and useless fees.