The FHA’s reverse mortgage program, known as the Home Equity Conversion Program, (HECM) has been very popular with retired borrowers. The program allows homeowners 62 years of age or older to withdraw some of the equity from their homes without having to make a mortgage payment. The money obtained under the HECM can be in […]
Banks Exit FHA Reverse Mortgage Program As Defaults And Losses Skyrocket
June 29, 2011 Filed Under: FHA HECM, FHA Home Equity Conversion Mortgage, FHA mortgage
FHA Lending Plunges By 39% Through May As Default Rate Exceeds 8%
June 24, 2011 Filed Under: FHA mortgage
The recently released Single-Family Outlook from the FHA shows a steep drop in FHA applications through May 2011. According to the FHA the estimated rate of annual applications plunged by 39% from a year ago and down 21% from April. The FHA estimates that total applications for mortgage loans this year will be 1.3 million. […]
FHA Mortgage Insurance Compared To Private Mortgage Insurance (PMI)
June 22, 2011 Filed Under: FHA Mortgage Insurance
FHA financing remains the only mortgage option available to many borrowers able to make only a minimal down payment for a new home. Offsetting this advantage, however, is the high cost of FHA mortgage insurance . Due to a large number of loan defaults, the FHA was recently forced to raise monthly mortgage insurance premiums […]
FHA Energy Efficient Mortgage (EEM) Can Reduce Home Energy Costs
June 10, 2011 Filed Under: Benefits of FHA Mortgage, FHA 203(k) Loan, FHA Energy Efficient Mortgage
The largest monthly expenditure for most homeowners, after the mortgage payment, is for heating and cooling. Making a home more energy efficient can result in substantial monthly savings. The FHA has a program that allows homeowners to borrow the funds necessary to upgrade a home’s energy efficiency. Besides lowering utility bills, an energy efficient home […]