Entries for the ‘Financing’ Category

What is a Survey Fee?

The Title insurance company or Lender may require a survey of the property if you are obtaining a mortgage loan.  The survey is to verify the boundaries of the property and that your lot has not been encroached upon by any structures.   Costs for a survey typically range from $250-$350. Usually the Borrower pays for [...]

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What is a Credit Report Fee?

The credit report fee covers thte cost of the credit report, which shows the Lender the Borrower’s attitude and willingness to pay debt on time.  The three major national credit bureaus are Equifax, TransUnion, and Experian and they supply Lenders with the information on your credit.

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What is Leverage?

Leverage is the use of other people’s money to increase the investor’s return.   Leverage is most commonly used in real estate transactions through the use of a mortgage loan to purchase a property.

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What is FHA MAP?

Multifamily Accelerated Processing (MAP) is designed to establish national standards for approved Lenders to prepare, process and submit loan applications for Federal Housing Administration (FHA) multifamily mortgage insurance.  Here is the FHA MAP guide.

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What is Homepath Financing?

A HomePath mortgage allows a borrower to purchase a Fannie-Mae owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance.   Seller contributions to closing costs are allowed. A HomePath Renovation mortgage allows a borrower to purchase a property that requires light to moderate renovation.  The one loan amount [...]

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What is the Current FHA Seasoning Waiver?

FHA extends the 90-day seasoning waiver.   On Friday, January 28, 2011, HUD announced the extension of the 90-day seasoning waiver. There are 4 things you should know about the waiver:  1. The extension is effective for all sales contracts executed on or after 2/01/2011 through 12/31/2011 unless otherwise extended or withdrawn by FHA 2. All [...]

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How Do You Apply for a VA Loan?

You can apply for a VA loan with any mortgage lender that participates in the VA home loan program.   You will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.  You will need to complete the VA form 26-1880.

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What is the ECOA?

The Equal Credit Opportunity Act (ECOA) was passed in 1974 and ensures that financial institutions and firms engaged in extending credit will make credit available with fairness and without discrimination on the basis of race, color, religion, national origin, sex, marital status, age or receipt of income from public assistance programs.

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What Does FHA Stand For?

The Federal Housing Administration (FHA) insures mortgage loans made by FHA-approved lenders on homes that meet FHA standards.

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What is Flood Insurance?

When purchasing a house it is important to understand a property’s flood risk and your options to financially protect it.   Homeowners insurance does not cover floods.  Only a flood insurance policy will cover flood damage.  FEMA’s National Flood Insurance Program enables homeowners, business owners and renters, in participating communities, to purchase federally backed flood insurance.    [...]

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