The three major sources of credit information about consumers are Equifax, Trans Union, and Experian. Lenders will obtain your credit record from all three of these credit bureaus. The lender will evaluate this information to determine whether or not you are likely to repay the mortgage loan in a timely fashion.

How does the mortgage lender evaluate the information in the

credit report? One way is through credit scoring.

What is a credit score? A credit bureau score, is one of many pieces of information that the lender will use when evaluating a mortgage loan application. A credit score is a summary of a borrower’s credit report and a numerical measurement that reflects a borrower’s management of credit. Your credit score is based on the records compiled by credit bureaus and includes the information reported each month by your creditors, such as the amount of existing credit you have and your payment history. A credit score considers all of the information in the credit report and converts this information into a number that helps the lender determine the likelihood that you will repay your loan on time. 00 is the lowest possible score, 900 is the highest. 680 to 700 is considered excellent, and less than 620 is typically considered sub-rime, though if there are errors on the report, this would be considered.

Credit scoring is an objective process, based only on the infor¬mation in your credit report. Factors such as age, race, religion, gender, national origin, marital status, your income, employment, and where you live are not considered in determining your credit score.

Is credit scoring new? Banks and other lenders have used credit scoring for over 30 years for credit cards and other types of consumer loans, such as automobile and home equity loans. Now, credit scoring is being used in mortgage lending.

Why is credit scores used? Lenders want to extend credit to people who will pay them back, and pay them back on time. They also want to be objective in making lending decisions. In order to approve your application for a mortgage loan, your lender must evaluate and understand many different risk factors, including your ability to repay the debt as well as how you have managed credit in the past. Because borrowers’ credit histories can range from being very simple to being very complex, it is sometimes difficult to determine whether a given credit history is acceptable or unacceptable, or whether certain information represents a strength or a weakness.

By using credit scoring, a lender can quickly and objectively evaluate your credit history in a consistent manner, and determine the likeli¬hood that you will repay the loan as agreed. The use of credit scores not only improves the accuracy of the analysis of your credit history, but does so in a way that enhances the efficiency and consistency of the underwriting process.

How does a lender get my credit score? When you apply for your mortgage loan, you will give your lender permission to check your credit history with the various credit bureaus. More than likely, the lender will obtain your files from the major credit bureaus: Equifax, Trans Union, and Experian. In addi¬tion to obtaining a credit report, the lender will also request a credit score. Your score is calculated by the credit bureau — not your lender — and is based only on the information contained in each of the credit bureau’s files.

Myself webmaster of www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Home Loans, refinance loans, constructions loans.

If you are buying the home you currently live in, most likely you are paying a mortgage for the loan you took out when you bought the home. The type of loan that borrowers obtain when they are buying their primary home is called a mortgage. However, when borrowers wish to make a loan for a second home, a non-primary residence, the loan will probably be the form of an investment loan not a mortgage.

Owner occupied debt is the differentiating feature between a mortgage and an investment loan. Often investment debt allows minimal repayment amounts, for instance interest only payments. Owner occupied debt payments are made in an amount adequate to amortize the loan over a period of 30 years (generally). If you are considering purchasing property that you would consider investment property, it is very wise to discuss your plans with a financial planner or an accountant to assure that your intent will result in investment rather than personal use categorization of your financing.

Investments loans can be made for various reasons, not just as a loan to help a borrower buy an investment property. Investment loans may be obtained temporarily while the borrower is in the process of selling another property they own, commercial or industrial real estate loans and while the borrower’s investment property is being built (apartments, offices, hotels etc.). Borrowers who get a mortgage can get a construction loan but it only applies to the personal residence in which the borrower intends to live.

It may sound a bit confusing, but it really isn’t. Mortgages are for personal homes that the borrower will reside in; investment loans are for those who do not intend to reside at the premise that is the subject of the loan.

When considering an investment loan, there are many ways to go about finding financing. However, rather than spend a lot of time and energy pounding the pavement or thumbing through the phone book, why not go online and shop for your investment loan there? Online you will find a multitude of investment loan lenders and brokers eager to assist you in finding the perfect loan for your particular situation.

If you are fairly “financing savvy” you may already know exactly what type of investment loan you want, at what rate and for what term. You may even already know what rate of return to expect from your investment. If so, shop for the lenders that can lend you exactly what you need. The lending industry is quite competitive currently so be sure and shop around before settling on a lender to be sure you get the best possible deal.

If you are not well versed in investment type loans, it is highly recommended that you utilize the services of an investment loan broker. Your broker will not only search for the best loan for your needs but they will be a liaison between the borrower and lender to assure that the whole application process flows smoothly and quickly.

The lender begins the process of mortgage loan analysis, looking at the ownership and financing proposal. Using the property address and legal description is assigned an evaluator to prepare an assessment of the property and a title search is ordered. These measures are taken to determine the fair market value of the property and the condition of title. If not, this is the guarantee that the lender must return to recover the loan. If the loan application is related to a purchase, instead of refinancing an existing property, the mortgage lender will know the purchase price. As a general rule, mortgage loans are made on the basis of the value or purchase price, whichever is less. If the value is less than the purchase price, the usual procedure is to require the buyer to make a larger cash payment. The mortgage lender does not want excess loan, simply because the buyer overpaid for the property.

The year was built the home is useful in determining the date of maturity of the loan. The idea is that the length of the mortgage should not survive the remaining economic life of the structure that serves as collateral. Note, however, age is just a part of this decision because the age should be considered in light of the maintenance and repair of the structure and quality of its construction.

Loan-value ratios

The mortgage lender reviews the next payment amount the borrower intends to make the size of the loan requested and the amount of financing the borrower plans to use. This information is then converted into loan-to-value ratios. In general, the more money the borrower puts in the deal, the loan insurance is that the mortgage lender. In an unsecured home loan, the ideal of value-loan from a lender in owner-occupied residential property is 70% or less. This means that property values would fall more than 30% before the debt would exceed the value of the property, thereby encouraging the borrower to stop making mortgage payments. Due to the almost constant inflation in housing prices since the 40s, very few residential properties have been reduced by 30% or more of its value.

Loan-value ratios of 70% to 80% are considered acceptable, but to present the highest risk mortgage lender. Lenders sometimes compensate by charging slightly higher interest rates. Loan-value ratios above 80% at a higher risk of default to the lender and the lender or to increase the interest rate charged on these loans or housing that would require an insurer, such as FHA or a private insurer mortgage, is provided by the borrower.

Funds for closing mortgage payment

The lender will then want to know if the borrower has sufficient funds for the settlement (closing). These funds are currently in a checking or savings account, or from the sale of the borrower’s current property? In the latter case, the mortgage lender knows this loan depends on the other end. If the payment and liquidation of the loan funds, the lender will have to be more cautious because experience has shown that the smaller of their own money a borrower makes a purchase, the greater the probability of failure and exclusion.

Purpose of mortgage

The lender is also interested in the proposed use of the property. Mortgage lenders feel more comfortable when a mortgage loan for the purchase or improvement of property of a loan applicant actually occupy. This is because owner-occupants usually have the pride of ownership in maintaining their property and even in poor economic conditions will continue to make monthly payments. An owner-occupier also realizes that if he / she stops paying, they will have to leave and pay for housing elsewhere.

If the applicant’s home loan to buy a house for rent as an investment, the lender will be more cautious. This is because during periods of high vacancy, the property can not generate sufficient income to meet loan payments. At that time, a bundle of cash by the borrower is likely to default. Also note that lenders generally avoid loans secured by real estate purely speculative. If the property value falls below the amount owed, the borrower can not see the logic in making loan payments.

Finally, the mortgage lender evaluates the borrower’s attitude toward the proposed loan. An informal, like “I’m buying real estate because it always goes up”, or an applicant who does not seem to understand the obligation being undertaken would score low here. Much more welcome is the home loan applicant to show a mature attitude and understanding of the mortgage obligation and which demonstrates a strong desire and sense of ownership.

Borrower Analysis

The next step is the mortgage lender to begin an analysis of the borrower, and if there is one, the co-borrower. At one time, age, sex and marital status played an important role in the decision of the lender to lend or not lend. Often, young and old had trouble getting housing loans, as well as women and people who were single, divorced or widowed. Today, the Federal Equal Credit Opportunity Act prohibits discrimination based on age, sex, race and marital status. Mortgage lenders are no longer allowed to offset income earned by women, even if it is from part-time jobs or because they are women of childbearing age. The house applicant decides disclose it, alimony, separate maintenance and child support must be counted in full. Young adults and single persons can not be rejected because the lender does not feel “put down roots.” Seniors may not be rejected, if life expectancy exceeds the early period of the loan and risk guarantee is sufficient. In other words, the emphasis on analyzing the borrower is now in stable employment, adequate income, net worth and credit rating.

Mortgage lenders will ask questions to the duration of the plaintiffs have maintained their current jobs and the stability of the jobs themselves. Lender acknowledges that the loan will be required monthly and want to make sure the applicants have a regular monthly income of cash in an amount large enough to meet the payment of the mortgage loan and the rest of their expenses subsistence. Therefore, an applicant possesses the skills and the labor market has been employed with a stable employer is considered the ideal risk. People whose incomes go up and down erratically as in charge of sales, this increased risk. People whose skills (or lack of skills) or lack of job seniority in unemployment are often more likely to have difficulty paying a mortgage. The mortgage lender also investigates the number of dependents, the applicant must support their income. This information provides an idea of how much is left to the monthly payments for the house.

Home loan applicants monthly income

The lender is the amount and sources of income of applicants. Quantity alone is not enough loan approval for home, sources of income must also be stable. Therefore, a lender will pay for overtime, bonuses and commissions, to estimate the levels at which they can reasonably expect to continue. Interest, dividends and rental income is considered in light of the stability of their sources. Under the heading “other income” category, income from alimony, child support, social security, pensions, public assistance, etc. is introduced and added to the total applicants.

The lender will then compare what the plaintiffs have been paid for housing which will be paying if the loan is approved. Included in the total project cost of housing are the main interest, taxes and insurance, together with any assessments or home association fees (as in a condominium or townhomes). Some mortgage lenders add the monthly cost of utilities to this list.

A proposed monthly housing expenses compared to gross monthly income. A general rule is that monthly housing costs (PITI) should not exceed 25% to 30% of gross monthly income. A second guideline is that total fixed monthly expenses should not exceed 33% to 38% of revenues. This includes housing payments, over payments car loan payments for installation, maintenance, child support, and investments with negative cash flows. These are general guidelines, but mortgage lenders recognize that food, medical care, clothing, transportation, entertainment and income taxes must also be the applicants’ income.

Liabilities and Assets

The lender is interested in the application of the sources of funds for closure and if, once the loan is granted, applicants have to use the assets in the event of a decline in revenue (a job lay-off ) or unexpected expenses, such as hospital bills. Of particular interest is the portion of the assets that are cash or easily convertible into cash within a few days. These are called liquid assets. If income drops, they are much more useful in meeting the costs of mortgage payments and that the assets that may require months to sell and convert into cash, ie, the assets are liquid.

A mortgage lender also considers two values for the holders of life insurance. Cash value is the amount of money that the insured would receive if you surrendered your policy or, alternatively, the amount he / she can borrow against the policy. The nominal amount is the amount to be paid in case of death of the insured. Mortgage lenders are more comfortable if the nominal amount of the policy equals or exceeds the amount of the proposed mortgage. Amounts are less satisfactory than the proposed loan or none at all. Obviously the death of a borrower is not expected before the loan is repaid, but the lenders to recognize that increases the probability of default. The risk of foreclosure is considerably reduced if the survivors receive the benefits of life insurance.

A lender is interested in the application of existing liabilities and debts for two reasons. First, these issues are going to compete against each month living expenses for the monthly disposable income. Therefore the high monthly payments can reduce the size of the loan to the lender calculates that applicants can pay. The presence of negative monthly liabilities is not all: You can also show the mortgage lender that plaintiffs are able to pay its debts. Second, applicants of the total mortgage debt is subtracted from the total of their assets for their net worth. If the result is negative (owe more than property), mortgage loan application will probably be rejected as too risky. In contrast, a substantial net worth can often compensate for deficiencies elsewhere in the application, as very little monthly income in relation to the monthly cost of housing.

Records of past credit

Lenders consider the request of the history of debt repayment as an indicator of the future. A credit report shows that no derogatory information is most desirable. Applicants without prior experience of credit will carry more weight on earnings and employment history. Applicants with a history of collections, judgments or adverse bankruptcy in the last three years will have to convince the mortgage lender that the loan will be repaid on time. In addition, applicants may be considered poor if the risks are guaranteed the repayment of the debt of another person, acting as a co-maker or endorser. Finally, the lender may take into consideration whether the applicants have adequate insurance protection in case of major medical expenses or a disability that prevents return to work.

When a mortgage lender will not provide a loan on a property, one must seek alternative sources of funding or lose the right to buy the house.

11 Niches for Mortgage Originators

Wednesday, October 25th, 2006

Marketing to a niche is my favorite way to get results. Why? Because you know better what your target customers need and want, compared to simply marketing to the general public. The more you know, the better you can tweak your marketing message and boost your return on investment (ROI). Niche marketing applies to many businesses but following is a list of eleven niches specific to originating mortgages:

Purchase Loans. We start with one of the basics. You can
find subsets of niches within the purchase niche like FSBOs, Investment Properties, Land/Farms/Ranches, and referrals from Realtors. The various sub-niches represent a different group to whom you can market, all of which have different needs and interests, therefore they will likely respond differently to your marketing materials.
  Construction Loans. Much like purchases, construction loans have sub-niches like Custom Home Builders, Subdividers, Condo/PUD Builders, Owner-Builders, Second Home/Vacation Home Builders.
  Loans for Home Repairs. There are a wide variety of needs home owners might have when it comes to home repairs, including: updating roofs, windows, doors, heating, air conditioning, or other worn or outdated basics of the home. Home Repair customers might also be interested in finishing a basement, remodeling an area of their home, or adding a pool in the backyard. All these repairs and updates require money. Imagine the opportunity of networking with roofers, HVAC companies, window and door companies, etc. They have customers that need the money you can provide them.
  Converting ARMs. This particular niche is hot right now, with rates on the rise and many ARMs set to make their first rate adjustment in the near future. You can get a list of borrowers with ARMs from your local county records and set up a simple mail merge in Microsoft Word to send a customized letter reminding the borrowers that their rate may soon increase. The more targeted you get, the better.
  Mobile / Manufactured Home Loans.  If you can find a good lender or two with some good programs for manufactured homes, you can make a nice living focusing on these types of loans.
  Foreclosure Bailout Loans. Yet another niche that requires knowing what wholesale programs are available to fund these loans. Find some good ones and you can make a good living working this niche.
  Chapter 13 Bankruptcy Loans. FHA is your best friend when it comes to Chapter 13 BKs. Study up on the requirements under FHA and find other wholesale programs that allow recent BKs and you’re well on your way to working a solid niche. Here’s a direct quote from HUD’s website:
A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower’s payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction.

Debt Consolidation Loans. This niche is almost too big to be called a niche, but it can’t be forgotten. The only problem I have with this one is that it’s one of the most competitive. SmartLeadz generates leads from qualified and motivated borrowers in need of a debt consolidation loan every day!
 

Cash-Out Loans. Same deal for this niche – not very specific and could probably be combined with debt consolidation.
  Rate and Term Refis. Perhaps “refis” should be the niche with debt consolidation, cash-out, and rate & term as the sub-niches. However, it is probably easier to find data that will allow you to target borrowers eligible for rate & terms than it would be to find those interested in debt consolidation or plain old cash-out refis.
  FHA Streamline Refis. This is it’s own niche because of the nature of the FHA Streamline. Easy, fast, and somewhat neglected. Loan Officers can do well focusing on this niche. REVERSE Mortgage: Target seniors in your area that either have a high amount of credit card debt (over $20k) or who have struggled with their mortgage payment. You can use CreditSure data to target qualified borrowers and use a targeted direct mail campaign to generate a steady flow of qualified leads.

10 benefits for Florida FHA Mortgage Applicants

There are several major benefits for Florida home buyers choosing an FHA Mortgage Loan if you’re a Florida First-Time Home Buyer..

There have been several changes by HUD to the FHA Mortgage approval process over the years.

However, the main benefits that FHA provides Florida FHA mortgage applicants have remained consistent:

Max LTV 96.50% based on purchase price – not including financed MIP (Mortgage Insurance Premium) Low monthly FHA mortgage insurance, with no adjustments due to low credit scores Less conservative credit requirements/scores, with no adjustments to interest rate Gift funds of 100% Flexible Asset Sources 6% seller contribution Non occupying co-borrowers allowed Most investors do not have declining market policy for purchase and rate/term refinance Manual underwrite allowed

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or use our quick application to find out more about the many FL mortgage programs we can make available. Or Apply now for a FL FHA home loan.

APPLY NOW AT   http://www.fhamortgagefhaloan.com/   Florida FHA Loan Programs

At one point and time many years ago, the FHA loan was the only alternative to local bank financing for home buyers. In the fashion world, there is a saying: Wait long enough, and everything comes back into style. That rule applies just as well to Florida FHA mortgage program. Long-overlooked, the FHA mortgage is becoming popular again with Florida Home Buyers for its low rates and the real security it provides borrowers.

For Florida banks and other mortgage lenders, FHA mortgage loan financing offers the security of a government insured Mortgage. Win/Win! To learn more, call today at 1-800-570-0448 or just use our fast and easy quick application!

For first time home buyers and other borrowers, the FHA home loans can have key advantages:

Easy Qualification – The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Downpayment Requirements – FHA mortgages can work with as little as 3% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Downpayment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!

The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.

FHA Home Loans for Purchasing a Florida Home

Although Florida FHA home loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Florida is not much different from applying for conventional financing. In fact, for many borrowers the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Florida Mortgage.

At 1st Continental Mortgage, we have been working with the FHA program for many years. We’re experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It’s one of the ways that we have earned our reputation for closing FHA home loans in Florida on-time.

You may be surprised at how flexible sellers are in the current market and how many programs there are that provide Downpayment assistance to applicants for FHA financing to purchase Florida homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!

The FHA program offers excellent fixed rate options and never a prepayment penalty. If other mortgage lenders are quoting you subprime rates, you owe it to yourself to make the call to 1st Continental Mortgage to compare the costs of getting an FHA home loan for your home purchase. Call 1-800-570-0448 to speak with an FHA mortgage expert before accepting any conventional mortgage quote as the best you can do!

FHA Home Loans Offer the Convenience of Streamlined Refinance

An FHA streamline refinance is one of the easiest home loans for Mortgage Lenders and borrowers. Since HUD approved you for the original FHA loan, the paperwork to refinance is minimal and the process is simple.

So long as you have made your FL FHA loan mortgage payments on time for the previous 12 months, you can lower your monthly payment if interest rates go down with minimal out of pocket expense. Even if you have been late on your FHA mortgage, you might still qualify for an FHA streamline refinance in Florida under very specific conditions.

Less documentation and no appraisal are just two of the reasons a FHA streamline refinance is cheaper and faster for the borrowers who qualify.

FHA Mortgage Loan Streamline Refinance Requirements

When your 1st Continental Mortgage lender helps you get a streamlined FHA refinance on your existing mortgage loan, he or she will make certain that you meet these conditions:

Your current mortgage must be an FHA mortgage. You must have had your FHA Mortgage for at least 6 months. You must have paid your mortgage on time for the most current 12 months. Your FHA Streamline Refinance must lower the principal and interest portion of your mortgage payment by at least $50 or convert the mortgage from an ARM to a fixed rate FHA home loan. You can’t get cash out on the FHA streamline refi. You must have an FHA appraisal if you are rolling the closing costs into the FHA streamline refinance. Any existing liens on your Florida home must be subordinate to the new FHA mortgage. FHA Mortgage Loan Refinance Programs for Cashing Out Equity

Although a streamline refinance does not allow you to cash out equity, we have a FHA loan refinance program that is specifically designed for borrowers who want to cash out equity to consolidate debts, make home improvements or to access funds for other purposes.

Unlike many conventional loan programs, the FHA mortgage does not adjust the rate based upon loan to value or credit score. You will find the FHA has very reasonable underwriting guidelines for cash out refinancing.

We have helped many clients borrow up to 85% of the appraised value of their homes and use the funds to consolidate debts or to make home improvements and other purposes. Qualified borrowers will have to look hard to find lower rates and better terms than they can get on Florida FHA cash out refinance right now!

Call 1st Continental Mortgage today at 1-800-570-0448 or use our quick application to apply for an FHA refinance on your home in Sumter County or any of the other Florida counties we offer FHA mortgages in.

FHA Home Loans For Mobile Homes with Land

Although some conventional lenders in Florida shy away from making a loan on Mobile Homes or manufactured homes, many FHA mortgage loan lenders do not.

In fact, mobile homeowners fortunate enough to connect with a Florida mortgage lender, who is well schooled in how FHA loans work for mobiles and manufactured homes, can get a better interest rate, better terms, and a lower monthly payment by going FHA in nearly every case.

If you’re shopping for financing to buy a mobile or manufactured home on land in Sumter County or any of the other 66 counties in Florida that we serve, call 1-800-570-0448 and let us give you a quote for an FHA mortgage loan to purchase your mobile or manufactured home.

It only takes a few minutes to get an FHA loan mortgage quote on your Florida mobile home. We’ll wager that the savings on your monthly mortgage payments will make it some of the highest paid work you’ve ever done.

Few people realize that the FHA loan uses the same underwriting criteria for single and double wide mobile homes and manufactured housing as it does for traditional site built block or stick homes. In addition, FHA is one of the very few programs that can offer up to 97% financing on mobile homes on land. In addition, did you know that the seller can contribute up 6% toward your closing costs on an FHA mobile home loan and that down payment assistance can be used in Florida? It’s true! You could package your mobile home financing to create a real no money down loan with unbelievably low rates.

Call 1-800-570-0448 or use our secure online quick application for a free no obligation quote on financing your manufactured or mobile home using an FHA mortgage loan.

FHA Mobile Home Lending Guidelines

The Department of Housing and Urban Development (HUD) sets forth these guidelines for determining if a mobile or manufactured home qualifies for an FHA mortgage loan in Florida:

The mobile or manufactured home must be constructed in accordance with the Federal Manufactured Home Construction and Safety Standards. A red tag is attached to the rear of each section of homes that comply with the standards. The home must be taxed as real estate by the local tax assessor’s office. The mobile or manufactured home must have been built after June 15, 1976. The mortgage must have a term of at least 30 years from when amortization begins. The mobile home or manufactured home must be on a permanent foundation. The axles and tongue must be removed from the mobile or manufactured home. The mobile home or manufactured home must have adequate skirting and insulation, and the crawl space must have adequate ventilation.

If you would like to determine if your mobile or manufactured home meets the guidelines for section 184 financing from FHA, call one of our Florida mortgage pros at 1-800-570-0448. We’ll be glad to help you determine if the property that you are interested in can be used as collateral for an FHA mobile home mortgage.

FHA 203k Mortgages For Florida Homeowners Making Home Improvements

The FHA 203k loan program is nothing more than a specialized FHA home loan designed to help homeowners make home improvements. It is especially popular in neighborhoods with properties in need of rehabilitation.

The FHA 203k loans work in Florida communities in much the same way as Construction loans for home improvement. Eligible borrowers can use the proceeds from these mortgage to renovate and improve their primary residences.

Qualifying for a 203k FHA mortgage uses the same guidelines as a standard FHA mortgage for the purchase of a Florida home.

Target Borrowers for FHA 203K Mortgages

This specialized FHA mortgage is for Floridians who wish to buy a home that needs repairs or renovations. Just as is the case with a conventional construction loan, a single FHA 203k loan covers both purchase of the Florida real estate and renovation. FHA 203K financing can be used to purchase a property on a site and move it to a new foundation on the mortgaged property and rehabilitate it.

In addition, Florida homeowners can also use a 203k FHA mortgage to refinance existing debt when they finance one or more home improvements using the FHA 203k mortgage program.

Many borrowers are finding out what a good deal a Florida FHA home loan really is. Call 1-800-570-0448 today or simply use our quick application to find out more!

Understanding what goes into a construction mortgage will be extremely important if they are comes a time that one is going to have a home built from the ground up and on land that is either bought or already owned. This type of mortgage can come in really handy when financing such construction and land purchases as may be necessary, there are a number of steps and features that should be examined.

To begin with, a typical construction mortgage is of short duration. Known as a short-term mortgage, it usually runs no more than three years. It is a form of real estate financing and is secured by a mortgage on the home or property being financed. It is specifically meant to cover various costs, which usually revolve around the cost to develop the land and to build the structure.

It is an excellent way to build on land or build or renovate a home that already exists before moving into it. This sort of mortgage can make sense for those who are “cash poor” and do not have large sums of money to put towards the construction of a home built from the ground up. These kinds of mortgages allow a borrower to obtain a significant portion of the total cost of the construction project.

Much better rates are available on these mortgages in the case where a person has need of a relatively small amount of funding in order to engage in improvements to a home prior to obtaining a certificate of occupancy from the local municipality, also. There are several different variations of this kind of mortgage, with a common one known as “construction to permanent loan” financing.

It can make for an excellent way to avoid paying double closing costs — because you will only be paying closing costs one time — and the construction loan will become a traditional mortgage once construction has been completed and a certificate of occupancy obtained. This sort of loan also allows the borrower to lock in a permanent rate at the beginning of construction.

This last feature is particularly outstanding, as there have been many persons who have obtained these kinds of mortgages who have later been able to avoid a significant increase in the mortgage interest rate when the construction was completed. More traditional forms of this mortgage, carried out in two stages, would see the new mortgage being executed at a significantly higher rate.

One thing to keep in mind with a construction mortgage regardless of the type is that the contractor building the home, the borrower and the lender will need to make arrangements for a payment schedule that will be effective and mutually beneficial to all three parties. Usually, this loan is dispersed as each stage in the construction has been completed. Still, make sure of when payments are due.

In almost every case, it makes financial sense to keep all mortgage activity with the same lender. In other words, try to avoid taking out a loan for construction from one lender and then a separate long-term mortgage from another lender because each will charge you fees that can add up to a significant amount. A construction mortgage makes for an excellent way to get a home built from scratch.

Mortgage rates are at historic lows and are predicted to stay low for some time to come. The end result is good news for the real estate market, in both resale and new homes. Recent reports outline just how good the news has been:

The Canada Mortgage and Housing Corporation (CMHC) is predicting that new home construction will increase in the latter half of 2009 and into 2010. They are expecting housing starts to reach 141,900 units in 2009 and improve to about 150,000 in 2010. These numbers are still far off the mark of 200,000 or more that the market has reached every year since 2002, but they are a clear sign that the new home market is regaining strength. Most experts predict that we are not likely to see housing starts in the 200,000 range again, since there is less demand. As the market stabilizes, 170,000 starts per year will probably become the new norm. Even the luxury market is bouncing back. The Globe & Mail recently reported on the Vancouver market, noting that in the spring of 2009 houses sold in the city for $10 million and $9 million. Victoria saw two sales in the $6 to $7 million range. Canada’s most expensive residential real estate deal of 2009 (at the time of writing) occurred just outside of Calgary, as the Falkridge Centre sold for $13.1 million. Another sale in the city of Calgary netted former Calgary Flames goalie Mike Vernon $10.3 million. Not to be outdone, the city of Toronto posted its strongest performance ever in the luxury market in May, 2009, with 273 high-end homes sold. Low mortgage rates are the reason for the huge 18% increase in resale homes sales, year over year from July, 2008 to July, 2009. Major lenders announced another cut to mortgage rates in early September, 2009. Rate cuts will help maintain strong home sales in all sectors of the market, from small condos to the luxury homes discussed in the previous point. Along with low mortgage rates, low inventories of resale homes have helped boost home prices and are, in part, responsible for the uptick in housing starts.

There is also good news for sellers, if not necessarily for buyers, at least in the Toronto market. There is some serious competition for housing, which has marked a return to bidding wars over resale homes.

If you are looking to enter the market, whether you are a first-time buyer or a current owner seeking to upgrade to a bigger home, be sure to get off on the right foot. Securing your financing is an essential first step. When you know how much you can afford, you can tailor your search for a new home accordingly. A meeting with a mortgage professional can help you analyze your current income and expenses so you can determine exactly how much you can spend.

Some new options are surfacing gradually, but you should be prepared to pay the down payment if you wish to get an easy mortgage loan in Alabama, Florida, or Georgia.

2. A suitable combination of the type of mortgage loan, term of the mortgage loan and the amount of down payment you pay can significantly lower your interest rates. For longer term mortgage loans you can also choose for fixed rates and save considerably on the interests.

3. Interest rates for Florida Mortgage loans, Georgia Mortgage loans, and Alabama mortgage loans can be significantly lower if your credit score is high. Interestingly, people with high credit scores are also offered mortgage loans with no down payment.

There are a large number of mortgage loans available in Florida, Georgia and Alabama and hence getting an affordable and easy mortgage loan should not be a problem. Even if you have a bad credit history, you should shop around a bit and surely will come across a suitable mortgage loan.

Myself webmaster of www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida mortgage loans, refinance loans, constructions loans.

. Agreed that the home buying process has simplified, however, you need to be precautious before applying for any mortgage loan. Following are some steps that you can follow to make your home approval process easier and faster.

Evaluate Your Credit Report- This should always be your first step. Ensure that your credit report does not have any errors or discrepancies.

Determine Your Budget – Do not leave it for the lender to decide how much a mortgage you require. You need to decide it yourself based on your income, recurring expenditures, etc. Mortgage calculators are effective utilities, which you can use to calculate your monthly payments you’re you get the mortgage loan that you have desired.

Shop around – Once you have decided upon your requirements, start looking for a lender. Though all lenders have to stick to some rules laid down by the state, some minor differences still exist and that can make a huge difference when the money involved is large. A favorable idea is to select a number of lenders offering home loans and mortgage loans in Alabama, Georgia, and Florida, and compare what they are offering.

As a rule of thumb, try to go with mortgage loan providers who have been around a while, and those who have a strong reputation. This ensures security and a hassle free home buying process. This is especially important when online home loans are concerned because the Internet is often used by unscrupulous users trying to extort money from innocent homebuyers through all means available.

Myself webmaster of www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida mortgage loans, refinance loans, constructions loans.

? How you paid your bills in the past gives the lender some indication of how you can be expected to pay them in the future. If you have a record of paying your bills after the due date, this can lower your score. How often you have been late paying your bills, how recently your payments have been late as well as how long you remained delinquent on any bill at one time are important factors.

OUTSTANDING DEBT.

How many consumer loans and open charge accounts do you have? What are the current balances on these accounts? The lender wants to know how much credit you have and how much you have used. Research has shown that the number of credit accounts you have as well as how much of your available credit is used is important.

CREDIT HISTORY. How long have you had credit? Generally, the longer you have had and have successfully managed credit, the higher your credit score. However, people with relatively new credit histories or those with only one or two accounts can obtain high scores as well.

If you have recently established credit or have only a few credit refer¬ences, which does not mean that you cannot get a mortgage. Working with your mortgage lender, you may be able to establish a “nontraditional” credit report that is based on how well you have paid other types of debts, such as rent and utility payments.

CREDIT INQUIRIES. How many times have you authorized a lender to check your credit record? How many new accounts have been opened recently? Every time you apply for credit for an automobile or con¬sumer loan, to open a new charge account, etc. the lender checks your credit history with one of the credit bureaus. This is called an “inquiry” and is recorded in your credit report. Sometimes, having many inquiries within a recent period on your file indicates that your credit usage may be increasing and creates an additional level of risk for the lender. However, don’t worry that checking with several lenders about a mortgage loan will have a negative effect on your credit score. The credit report data used to calculate credit scores does not include auto or mortgage loan inquiries that occur in the 30-day period prior to the score being calculated, and auto and mortgage inquiries that occur in any 14-day period are always considered one inquiry.

TYPES OF CREDIT. What types of credit do you have in use? Do you have a mixture of types of credit, such as credit cards, personal loans, etc.?

Your credit score is calculated based on your history in these and other areas. Having established credit, paying your bills on time, and keeping the balances on open accounts to moderate levels will help ensure that you have a strong credit history and a good score.

Are credit scores discriminatory? No. Credit scoring is an objective process, based only on the infor¬mation in your credit report. Factors such as age, race, religion, gender, national origin, marital status, income, employment, and where you live are not considered in determining your credit score. Credit scoring is a bias-free tool that helps lenders evaluate the likelihood that you will repay the loan based on how you have managed debt in the past. Because credit scoring evaluates the information in credit reports in the same objective manner, one borrower is just as likely as another to have a high credit score.

What’s my score? Is that good or bad? Credit scores typically used in mortgage lending range from approxi¬mately 300 to 900. Generally, the higher your credit score, the less risk of future default you represent to the lender. This is a strong indica¬tion that you have successfully managed credit in the past and are likely to repay a mortgage loan.

Keep in mind that your credit score is only one factor that the lender uses to evaluate your mortgage loan application and that the final decision whether or not to approve your mortgage loan is made by the lender after careful analysis of all of the information the lender has collected.

Can my score be improved? The answer is, over time, certainly. But it may be difficult to immediately “fix” your credit score. The most effective way to make sure that you have the best possible credit score is to manage the credit you already have in a responsible manner. You can do this by following two simple rules.

1. Avoid becoming delinquent on any of your credit obligations (credit cards, automobile loans, or other installment loans).

Consumers occasionally miss a payment on one of their bills. This can happen for any number of reasons. Isolated situations like these, although they should be avoided and will have some effect on your credit score, should not have an effect on your ability to get new credit.

A mortgage foreclosure on your credit report will have a major effect on your credit score and your ability to get new credit in the future.

2. Avoid overuse of your credit cards and other credit accounts.

Just as it is important for you to pay your bills on time, it is also important that you control how much money you owe, especially on your credit cards. Lenders are increasingly concerned about the credit risk of consumers who seem to overextend themselves by using most or all of their available credit even if these consumers are still making payments on time.

Why would the lender need to be concerned if you still are making your payments on time? In recent years, there have been many news accounts of people in financial difficulty because they have used their credit cards up to their maximum limits and then struggled to make their monthly payments. For some consumers in this situation, the burden of these monthly payments becomes so great that they stop making payments altogether. Some file bankruptcy. This can happen to people who have never before missed a payment.

So, while you may think everything is fine no matter how much you charge, as long as you can pay your monthly bills on time, the fact is that you are actually a higher credit risk than those that manage their credit accounts more conservatively.

Credit scores are developed by looking at the way millions of consumers manage their credit and are able to identify consumers who are becoming overextended, before they become delinquent. This risk is reflected in the credit scores of those consumers.

Myself webmaster of www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Home Loans, refinance loans, constructions loans.