Apr
5
FHA loans require only a habitable house in the state before closing. If you buy a property that needs major repairs, then you will not be able to get an FHA loan to purchase a property. Often a bank will not grant a mortgage on a house that is in poor condition, until repairs are completed, and repairs can not be performed until you buy the house. Talk about a Catch 22! An alternative is the HUD 203 loan program (K).
The HUD 203 (k) program, it is possible to buy property and are in the loan the cost of repairs and improvements. This is a program that insured loans available through approved lenders throughout the country, but is only for people who will inhabit the house. The prerequisite for the payment of 3% of total cost of ownership and repair.
Here are the steps to get a 203 (k) loans:
o Search for a property fixer. If you secure an offer that your purchase and sale agreement states that it is for a 203 (k) loan and the contract is in force, subject only seek the approval of the 203 (k).
o Look for a lender that is approved by FHA to make such loans. Your loan application must contain the detailed cost of each repair or improvement and evaluation to determine the value of the property after renovation.
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Apr
5
Mortgage fraud is a word that describes a wide range of criminal activities, with the intention to misrepresent or omit information about a mortgage application for a loan or a large loan. In the courts, it is condemned as wire fraud, mail fraud, bank fraud and money laundering with a maximum of 30 years in prison.
To increase due to increasing fraud in recent years, some states have also begun to implement their own sanctions for this crime. Examples of mortgage fraud:
1. Undisclosed rebates as an agreement with a seller, you cash or a check on the table to pay for a new roof and the lender is not aware of it because it will not be posted on the purchase contract; Supplement or Final Declaration estimate then it is considered mortgage fraud.
2. If a borrower to borrow without a deposit payment from the seller in exchange for giving a silent seller a second mortgage that is not stored and concealed from the mortgage company.
3. Fake earnings by inflating their income above and beyond the W-2. In other words, intentionally false entries received in the income per month. Click here to read more.. »
Apr
5
An earnest money deposit will be paid in the form of a check to the seller and is accompanied by the offer to purchase, for a piece of property. Its purpose is to demonstrate it in good faith that the buyer is ready for an immediate investment that is often called to make in good faith. Often the agent will provide a copy of the check to the seller and keep the original, until the seller accepts the terms of the proposed agreement. During the test is issued to an escrow account.
The earnest money deposit is often used as part of the deposit. For example, suppose you buy a house for $ 100,000 and you have an FHA loan. Your deposit is probably $ 1,000, which is 1% of the purchase price of the property and it becomes your total FHA loan, which is 3.5% or $ 3,500 to go. You may be required with $ 3,500 down payment and subtract the deposit have been given if you submit the offer and now have $ 2,500, what’s the difference. Click here to read more.. »
