FHA - PRODUCTS
91. What is a 203(b) loan?
This is the most commonly used FHA program. It offers a low down payment, flexible qualifying guidelines and a maximum loan amount.
92. What is a 203(k) rehabilitation loan?
A 203(K) loan enables the homebuyer to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the seller's existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed.
Basic guidelines for 203(k) loans are as follows:
- The home must be used as a primary residence
- The total property value including the cost of repairs must fall within the FHA maximum mortgage limit
- The 203(k) loan must follow most of the 203(b) eligibility requirements.
- Streamline 203(K) is available for simple repairs
93. What is an Energy Efficient Mortgage (EEM)?
The Energy Efficient Mortgage allows a homebuyer to save future money on utility bills. This is done by financing the cost of energy efficient improvements to a new or existing home as part of an FHA-insured home purchase. The EEM can be used with both 203(b) and 203(k) loans. Basic guidelines for EEM's are as follows:
- The cost of energy saving improvements must be determined by a Home Energy Rating System or by an energy consultant. This cost must be less than the anticipated savings from the improvements.
- One and two-unit new or existing homes are eligible; condos are not.
- The improvements financed may be up to 5% of property value or $4,000, whichever is greater. The total must fall within the FHA loan limit.
94. What other loan products or programs does the FHA offer?
The FHA also insures loans for the purchase or rehabilitation of manufactured housing, condominiums and cooperatives. Insurance for Adjustable Rate Mortgages (ARMS) are also available from the FHA. In addition, FHA has special programs for disaster victims along with reverse mortgages for seniors. Ask your lender for details.
95. What is an FHA 203k streamline loan?
FHA 203k streamline loans are using for minor repairs and cosmetic updates. Some examples of these include painting, new carpet, hardwoods, roof work, etc. These carry a max renovation amount of $35,000 and usually are completed in 90-120 days.
96. Can I purchase a mobile home with an FHA program?
FHA loans may be used to finance manufactured homes that are placed on a rental site in a manufactured home park, or on an individual home site owned or leased by the borrower.
97. What is a HUD home?
A HUD home is a 1-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. For more information on purchasing a HUD home, consult with your real estate broker or visit FHA's website at www.fha.gov.
98. How can I obtain an FHA-insured loan?
Contact us by phone at 972-725-9110 or simply click here to start the application process.
99. How can I contact the FHA?
Visit the web site at www.fha.gov or telephone the FHA Resource Center at (800) CALL - FHA (800-225-5342
100. How can I contact HUD?
Visit the website at www.hud.gov.
NOTE: This information was found on the official Federal Housing Authority website. For more information, visit www.fha.gov.FHA's DISCLAIMER: All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.