Chapter 11 FHA Insured Loans

Chapter 11 FHA Insured Loans - Financing Residential Real...

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Financing Residential Real Estate Lesson 11: FHA-Insured Loans
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Introduction In this lesson we will cover: FHA loan programs, rules for FHA loans (including those governing maximum loan amounts, the minimum cash investment, sales concessions, secondary financing, and assumption), FHA insurance premiums, underwriting FHA loans, and specialized FHA programs.
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Overview of FHA Loans Federal Housing Administration (FHA) was created in 1934 as part of National Housing Act. Federal Housing Administration
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Overview of FHA Loans Federal Housing Administration (FHA) was created in 1934 as part of National Housing Act. Purpose of act was to: generate new jobs by increasing construction activity, stabilize mortgage market, and promote financing, repair, improvement, and sale of real estate. Federal Housing Administration
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Overview of FHA Loans Today, the FHA is part of the Department of Housing and Urban Development (HUD). I Primary function is insuring mortgage loans. I Compensates lenders for losses from borrower default. I Does not build homes or make loans. Federal Housing Administration
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Overview of FHA Loans FHA insurance program is called the Mutual Mortgage Insurance Plan. I Funded by premiums paid by FHA borrowers. FHA mortgage insurance
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Overview of FHA Loans Prospective FHA borrowers apply to lender, not directly to FHA. FHA mortgage insurance
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Overview of FHA Loans Prospective FHA borrowers apply to lender, not directly to FHA. Lenders authorized to make FHA loans either: submit applications to FHA for approval, or underwrite applications themselves. FHA mortgage insurance
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Overview of FHA Loans Prospective FHA borrowers apply to lender, not directly to FHA. Lenders authorized to make FHA loans either: submit applications to FHA for approval, or underwrite applications themselves. I Direct endorsement lender: Lender authorized to underwrite its own FHA loans. FHA mortgage insurance
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Overview of FHA Loans If FHA borrower defaults on loan: FHA reimburses lender for full amount of loss. Borrower required to repay FHA. FHA mortgage insurance
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Overview of FHA Loans FHA-insured loan program is intended to help low- and moderate-income home buyers. Role of FHA loans
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Overview of FHA Loans FHA-insured loan program is intended to help low- and moderate-income home buyers. I But eligibility isn’t restricted by income. I Instead, FHA sets maximum loan amounts. I Maximum generally only enough to buy moderately priced house. Role of FHA loans
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FHA-insured loan program is intended to help low- and moderate-income home buyers. I But eligibility isn’t restricted by income. I Instead, FHA sets maximum loan amounts.
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This note was uploaded on 09/30/2011 for the course REAL 102 taught by Professor N/a during the Spring '10 term at City College of San Francisco.

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Chapter 11 FHA Insured Loans - Financing Residential Real...

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