First, you must know that FHA loans are the easiest type of real estate mortgage you can qualify for. This is because FHA loans requirements are the most flexible among all mortgage loans that require less than 5% downpayment.

Here are the basic FHA loans requirements:

• You must have had at least two years of steady employment, preferably with the same employer
• Your last two years’ income should be the same or increasing
• Your credit report should typically have less than two thirty-day late payments in the last two years
• Your bankruptcies must be at least two years old, and you’ve had good credit since then
• Your foreclosures must be at least three years old, with good credit since then as well
• Your new mortgage payment should be approximately 30% of your gross income

And finally, you must be aware that FHA loans rates will vary daily, and depending on the state you’re residing in. Many websites have FHA loans rates calculators, usually as a free service offered by FHA loans companies.

It’s a solid fact that it is harder to get a loan now compared to two years ago. However, lenders say it’s possible and fairly easy for borrowers who possess the right credentials. Interested loan candidates only need to prove they can repay the money they intend to borrow.

With the way mortgage rates predictions have been the past few months, where monthly payments on mortgage have been yo-yoing wildly, it’s easy to see why most people have been pessimistic about buying their own homes.

Arlene Allert, a regional manager and vice president at Wells Fargo Home Mortgage, stated that due to the current news headlines on the credit crisis, people think that they can’t get the credit they need to buy the homes they want.

But truth be told, monthly payments on mortgage are definitely reachable, though with a bit more difficulty. There are only three things you will need to qualify for a loan: proof of income, good credit (a score of at least 620), and a down payment (at least 10% in most cases).

Some of the highly influential factors on mortgage rates predictions include Federal Reserve Actions (or usage of Federal funds), and consumer spending (which accounts for approximately two-thirds of all national economic activity). Other factors that contribute are GDP or gross domestic product (another term for national income), consumer confidence, as well as unemployment rates.

Under FHA loans plans, lenders will modify interest rates or forgive part of the principal, in order to bring the ratio of mortgage payments (including homeowners’ association dues), to just 38% of income. FHA home loans need the following requirements for borrowers:

• You must have a home loan on a primary residence that was made before Jan. 1, 2008
• You must contact loan service providers and cooperate on giving needed information from you
• You must be at least 90 days behind on your payments
• You must not have filed for bankruptcy protection
• You must confirm that a hardship (like job loss or illness) has affected your ability to repay, and that you did not purposely default to get a home loan modification

If you don’t qualify for these rules, yet find yourself in financial trouble because of home loans, here are a few suggestions:

• Try the HOPE for Homeowners (H4H), a program created by Congress to help out those who are at risk of default and foreclosure. It is an additional mortgage option that will refinance you into more affordable, suitable loans.
• Contact a respectable credit counseling agency, and find out what your options are besides foreclosure. The Department of Housing and Urban Development (HUD) links to free or low-cost counselors. The National Foundation for Credit Counseling has an online tool that finds members nearest your home.
• Contact your loan service provider to and find out who owns your loan. After which, do call the lender to try to work out a deal.

There are so many other options out there for home loans aside from bankruptcy. Consider those options first before “giving up,” so you may have a bigger chance of keeping your house and retaining a reputable credit score.

The home loan modification program for FHA loans will be implemented sometime around mid-December. However, not everyone who’s feeling the pinch will be able to receive help. Just because your house’s value may have dropped since you bought it, doesn’t automatically mean that lenders will let you off easily. The project for home loans and its latest terms apply only to those who cannot pay because of hardship, and are at impending risk of losing their homes due to foreclosure.

What may be adding to this tense issue would probably be the fact that the maximum FHA home loans size limit will fall from $729,750 this year to just $625,500, effective January 1, 2009. This new limit was included in a bill passed by Congress over the summer.

On the other hand, another housing bill has raised the required down payment on FHA loans to 3.5 percent, an increase from the traditional requirement of 3 percent.

Struggling homeowners who aren’t qualified for a home loan modification still have options, however. Next week, we will discuss the requirements for borrowers, and a tip or two for those who don’t qualify for the home loan modification program.

There are many different campsites where one can build or settle their mobile home. A mobile home refinancing loan may be used in any of these accommodation areas. Here are a few:

• Trailer park - A trailer park is a neighborhood area or land where travel trailers rest. It may also mean “mobile home park” or a community of manufactured homes in a specific lot area. It is common to have mobile homes in trailer parks as permanent residences.
  • Emergency trailer park - These are trailer parks created to help those affected by disasters. Displaced victims are invited and allowed to settle as long as necessary.
• RV park or caravan park - People with recreational vehicles or caravans may park in these campgrounds either overnight or longer but with contract. They are allowed to stay in spaces known as pitches, which have different facilities to plug in. These include drinking water, sewage, AC power, television, telephone and hotspot or Wi-Fi connections.

For any of these types of accommodation areas, a mobile home refinancing loan is helpful if you plan to stay for quite a long time.

Getting a mobile home refinancing loan means exchanging an existing mortgage for a new one, usually with better rates of interest and better payment terms. A mobile home is still considered real estate. Hence, you have just as any right to refinance a mobile home as you can on any other type of home or real estate property, no matter what kind of accommodation area you choose to construct it on.

A mobile home refinancing loan consists of two types: 1) loans provided for the mobile home itself, and 2) loans provided for the mobile home and the land on which it set up.

Loans provided for the home itself supply money for the construction of the home, including the money needed for the required building materials. However, they do not provide for other charges, such as transportation and involved taxes. This kind of mobile home refinancing loan is usually taken by people who live in mobile home community parks, or places with temporary arrangements.

A mobile home refinancing loan provided for the home and the land is comparatively easier to obtain. However, the loan amounts are significantly higher, since the price for the land is included. Still, taxes involved are not provided for by this type of loan, either.

Next week, we will discuss the requirements regarding mobile home refinancing loan types, as well as the different kinds of accommodation areas and campsites for these mobile homes.

Investors and first-time homebuyers are getting foreclosed houses in Los Banos City, where the number of local sales went up almost five times compared to this time last year. According to the National Association of Realtors, there are signs that even the most damaged of markets are starting to recover already.

If you go online to search about California home loans or stumble upon these articles on Internet news, don’t be surprised to find out how fierce the competition is. It’s best to know what factors to consider when obtaining home loans in California.

These factors are the following:

• Loan type – There are several types of California home loans, classified according to terms, rates, and use. Do research on these before closing any deal.
• Trusting your mortgage company – Times are hard, and fraud is quite common these days. Do go to companies who have established names, rather than “secure” companies who turn out to be con artists.
• Pre-qualified loan approval – This is only possible if you submit all documents required, have a stable source of income, and a great credit score. Else, you have to apply first, and then wait for the lender to contact you about your status.
• Approval time – Know the maximum approval time a company takes to process your application. Remember: the sooner, the better.
• Closing costs – Finally, make sure they provide details on closing costs such as fees and commissions in connection with your home loan and purchase.

A jumbo loan, or a non-conforming loan, is a type of home loan that does not follow the rules established by Fannie Mae (Federal National Mortgage Association or FNMA) or Freddie Mac (Federal Home Loan Mortgage Corporation or FHLMC). Instead, a jumbo loan exceeds the limits and guidelines that Fannie Mae or Freddie Mac requires for loans they’re willing to buy from original mortgage sources.

Jumbo loans are a small percentage of home loans. This is because this type of home loan is seen as a high-risk loan to most lenders. Also, new conforming loan limits are set January of each year, and the jumbo loan amounts are based on those new limits, which may vary per state and per property unit.

If you are planning on financing a house that can be a little bit more costly than a regular house, or if you live in the state of California where home prices are significantly higher than normal, then a jumbo loan is something you should consider.

The internet is filled with many websites that offer jumbo loans, but be wary. Do not get tricked by offers, such as being given the lowest interest rates possible. The lender might charge you for other fees that you might not know about until the end of your loan. As a precaution, always do a comparison of quotes from different lenders to see which company can offer the best jumbo loan for you.

FHA loans are great for people who want to buy a house with a small down payment. Right now, the down payment for FHA loans is only 3%, but come January 1, 2009 the down payment will be 3.5%. That’s still reasonable for those who fall in the low-income bracket.

In fact, even those with no credit at all yet (or zero credit) can receive a loan using the FHA loans program. This is one of the main reasons why people who normally think they don’t qualify for a mortgage turn to FHA loans instead.

These reasons make FHA loans the first choice for first-time homebuyers. The FHA allows a higher debt-to-income ratio, and because the down payment is incredibly low, people with little savings can still afford to purchase one that they like. It’s better than wasting it on paying rent for a house they can barely call a home. FHA loans are also okay for those who have higher incomes. There is no maximum income for qualification, but it also depends on certain counties.

First-time homebuyers should seriously consider FHA loans. Not only will they have enough time to prepare for future mortgage payments, they will reap the benefits of being in a home early in the program, too.

“Who” are they?

These three, Fannie, Freddie and Ginnie, are the three big institutions that buy the majority of mortgages for all homes across the nation. They set some regulations and guidelines for lenders to follow so consumers can avail of lower risk loans. Many recent foreclosures have caused these guidelines to become a little bit more strict than usual, and that more documentation is required to close a loan.

How to they work?

Fannie, Freddie and Ginnie, or the “big three” are what you call secondary market lenders. Often, many retail lenders actually receive their funds from a secondary market lender. These secondary lenders have assisted the national mortgage market by allowing money to flow easily from one state to another. The movement of these loan funds helps in avoiding situations where mortgages are only available in certain areas, cities or states. This is to benefit everyone who are in need of loans, no matter where they reside.

Mortgage lenders sell your loan to another company which sells it to one of the big three, or sometimes the lender you got your loan from itself does that. In turn, Fannie, Freddie and Ginnie buy “pools” of loans which get grouped according to size, interest rate and type. The servicer then gets a monthly fee (about 3/8 of a percent) from the institution for doing all the necessary actions regarding your loan and its payments. It may seem small, but when the “pool” gets big enough it can create quite a big amount when sold to any of the big three.

How did they get their names?

The names of these “big three” actually come from their acronyms, pronounced phonetically. Fannie Mae (FNMA) is the Federal National Mortgage Association, Freddie Mac (FHLMC) is the Federal Home Loan Mortgage Corporation, and Ginnie Mae (GNMA) is the Government National Mortgage Association.

Now that you know “who” Fannie, Freddie and Ginnie are, you know you’re in good hands when you obtain your home loans.