FHA Mortgage Government loan programs FHA and VA- Sterling Home Mortgage in Arizona

Government loan programs

FHA loans

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

Only a 3 percent down payment is required.
Closing costs can be financed.
Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
More flexible underwriting criteria than conventional loans
Loans are assumable to qualified buyers.

FHA Loan Programs

FHA 203(b) This FHA mortgage loan is funded by an approved lending institution and insured by HUD
FHA 203(h) This FHA mortgage is for victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.
FHA Section 255 Home Equity Conversion Mortgage (HECM) aka Reverse Mortgage This FHA mortgage loan is for senior homeowners age 62 and older who want to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home.
FHA 203(k) Mortgage HUD's primary FHA program for the rehabilitation and repair of single family properties.
FHA 203(k) Streamline Mortgage This FHA Loan program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in.
FHA Energy Efficiency Mortgages FHA mortgage program helping homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficiency features to new or existing housing as part of their FHA-insured home purchase or refinancing mortgage.
FHA Adjustable Rate Mortgage
FHA Mortgage Buydown program

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

Negotiable interest rates.
Closing costs are comparable and sometimes lower - than other financing types.
No private mortgage insurance requirement.
Right to prepay loan without penalties
The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

Mortgage News in Arizona

More Negative Press for Fannie and Freddie
8/19/2008 1:23 PM
Last week former Federal Reserve Chairman Alan Greenspan strongl y criticized the form of the Congressionally mandated Freddie Mac/Fannie Mae "backstop" program and a survey by the Wall Street Journal found that a small majority o......

Fed's Lacker Says Rate Hike Should Come Sooner Rather than Later
8/19/2008 1:08 PM
Speaking in an interview with Bloomberg TV, Richmond Federal Reserve President Jeffrey Lacker (non-voter) said the Fed should not wait too long for a rate hike. The Richmond Fed President said inflation will slow if oil prices drop. He added that inflation is still a "risky situation," and that keeping inflatio......

Fed's Fisher Says FOMC Cannot Risk Credibility, Must Act if Inflation Continues
8/19/2008 11:50 AM
The Federal Reserve must be prepared to take action and curb inflation if slowing growth doesn't moderate prices as expected, said the most hawkish member of the FOMC on Tuesday. Dallas Fed President Richard Fisher (voter), who has dissented from keeping interest rates on hold at the last two FOMC ......

Soft Freddie Mac 5-Year Auction Shows Credit Worries
8/19/2008 11:43 AM
U.S. government-backed mortgage finance company Freddie Mac caused ripples through the debt market on Tuesday after weak results in a $3 billion, 5-year note auction. The reference note sold for 113.0 basis points above the 5-year Treasury benchmark. Before the auction, the 5-year spread was 105 bps.

Weakening Economy Favours Obama Win, Economists Say
8/19/2008 11:39 AM
The weakening economy is a major negative factor for the Republicans and presents candidate John McCain with an uphill battle for the Oval Office, economists from Global Insight say. Historically, there has only been one other election year where year- over-year growth in disposable income per capita was negative......

Drop in U.S. Housing Starts Due to Inflated June Figure, but Trend Still Downward
8/19/2008 7:19 AM
Despite coming in slightly higher than was expected, housing starts still slid 11% to 965k in July, though economists say the drop is misleading given the artificially high reading in June. Last month, economists unanimously agreed that the headline index was misleading due to a change in the housing code of New......

Tuesday's Events: PPI, Housing Starts and Building Permits
8/19/2008 5:59 AM
The release of U.S. producer price index along with housing starts and building permits for July tops news today. Markets will also be paying attention to comments from Dallas Fed President Richard Fisher and U.S. Treasury Secretary Henry Paulson speaking at separate events. July All-Items PPI Soars 1.2%, Core up 0.7% M/M
8/19/2008 5:56 AM
The U.S. Department of Labor's seasonally adjusted core measure of producer price inflation grew well beyond expectations with a 0.7% month-over-month gain in July, much faster than the 0.2% gain seen in the previous two months. The all-items measure of producer price inflation soared 1.2% in the month, following an even......

U.S. Housing Starts Fall 11% in July
8/19/2008 5:53 AM
U.S. housing starts fell in July, but came in above expectations at 965k, representing a month-over-month decrease of 11.0%, according to data released from the U.S. Department of Commerce on Tuesday morning. The drop in the headline is misleading, however, as changes in the housing code of New York City raised June's ho......

Foreclosures Loom as Possible Public Health Menace
8/18/2008 12:23 PM
It seems hard to believe, but there appears to be yet one more thing for which we can blame the mortgage crisis. And this is not a financial problem; it is a public health concern. Several cable networks have reported over the last few weeks that the hundreds of foreclosed houses covering suburban neighborhoods m......