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Home Buyer's Recession Survival Guide - FHA Q&A

Updated on May 27, 2009

Q: Do I have to be a U.S. citizen?
A: No. You need a valid Social Security number and if you are not a permanent resident, need to show documentation that grants you the right to work in this country.

Q: Am I eligible for an FHA loan?
A: If you meet the credit, income, and employment requirements set by the agency, you will certainly be considered for a loan. Keep in mind that does not guarantee that you will be approved, but most people are.

Q: Does the FHA just offer one kind of mortgage?
A: There are several different categories of FHA loans, such as a graduated payment mortgage which has negative amortization, and an adjustable rate mortgage with varying terms. The FHA can provide you with the information you require to confirm which mortgage type is best for your situation.

Q: Do I need mortgage insurance?
A: Mortgage insurance is obligatory in every FHA loan. The premium is collected by the local lender and paid to the FHA directly. The costs are usually around one percent of the total mortgage, but varies widely.

Q: How long does it take until I can move in?
A: If everything goes well, as little as two weeks. But there are various factors that can lengthen that period considerably, such as problems found in a house inspection that need to be rectified, problems verifying documentation, etc.

Q: I've paid my rent a bit late every month. Is that a problem?
A: Late rent is only once the rent has gone a full month late. Although your landlord doesn't necessarily agree, the FHA does not consider rent payments that are consistently 20 or 25 days late as a problem.

Q: When can I get my co-signer off my loan?
A: If you've obtained your FHA loan with the assistance of a co-signer and have made the first 12 months of payments in full and on time, there should be little trouble in having the FHA remove their name from the documents.

Q: I moonlight for cash. Can I use that as income for the FHA?
A: The FHA is part of the Federal Government just like the IRS. If you are ripping off the government by refusing to pay them taxes through taking cash under the table, that is the last thing you want to admit!

Q: Can I get an FHA mortgage to refinance my conventional loan?
A: The funds the FHA provides can be used to pay off any mortgage whether public or private.

Q: Can I get an FHA loan to buy a house I can rent out?
A: Absolutely not. The FHA is designed to help Americans get into homes to live in, not as an investment. However, the FHA will grant mortgages for multiple family dwellings (and apartment buildings are a special case), as long as you will have one of the units as your permanent residence. Should you want to take on a boarder to help pay the expenses in your single family home, the FHA would not look unfavourably towards that, as long as you continued to live there with the boarder.

Read The Entire Survival Guide

Home Buyer's Recession Survival Guide - The Subprime Meltdown
Home Buyer's Recession Survival Guide - The Advantage Of Renting Over Buying
Home Buyer's Recession Survival Guide - Why Rent? Why Not?
Home Buyer's Recession Survival Guide - Five Common Mistakes House Buyers Make
Home Buyer's Recession Survival Guide - Get Your Home Sold Quickly & At Your Asking Price
Home Buyer's Recession Survival Guide - Improve Your Home's Value And Sell It For More!
Home Buyer's Recession Survival Guide - Learn The Value Of Curb Appeal
Home Buyer's Recession Survival Guide - Home Staging: Valid Selling Technique Or Fraud?
Home Buyer's Recession Survival Guide - Before You Go House Shopping
Home Buyer's Recession Survival Guide - The Home Condition Checklist
Home Buyer's Recession Survival Guide - Getting A Mortgage From Different Types Of Lenders
Home Buyer's Recession Survival Guide - What To Do After You're Turned Down
Home Buyer's Recession Survival Guide - New Initiatives To Help Get You Approved
Home Buyer's Recession Survival Guide - Isn't HUD An Old Paul Newman Movie?
Home Buyer's Recession Survival Guide - Jumbo Isn't As Huge As He Once Was
Home Buyer's Recession Survival Guide - FHA Q&A
Home Buyer's Recession Survival Guide - The FHA's Credit Requirements Vs. The Bank's
Home Buyer's Recession Survival Guide - Your Credit Score And Your Mortgage
Home Buyer's Recession Survival Guide - Credit Score Confusion
Home Buyer's Recession Survival Guide - Keeping That Credit Score Nice & High
Home Buyer's Recession Survival Guide - Minimize The Interest Payable
Home Buyer's Recession Survival Guide - What Is PMI & Why Do I Care?
Home Buyer's Recession Survival Guide - The LIBOR-COFI-COSI Alphabet Soup
Home Buyer's Recession Survival Guide - REO: Get Rich Quick Or Just Waste Time?
Home Buyer's Recession Survival Guide - Obtaining Flipping Money
Home Buyer's Recession Survival Guide - Consider The Additional Costs
Home Buyer's Recession Survival Guide - What Is Escrow?
Home Buyer's Recession Survival Guide - Tips To Avoid Foreclosure
Home Buyer's Recession Survival Guide - The Changing Value Of Your Mortgage Dollar
Home Buyer's Recession Survival Guide - How To Ride The Interest Rate Spikes
Home Buyer's Recession Survival Guide - Can't Get A Mortgage? What A PITI!
Home Buyer's Recession Survival Guide - Calculating Your Closing Costs
Home Buyer's Recession Survival Guide - Mortgage Broker or Mortgage Banker?
Home Buyer's Recession Survival Guide - The Magic Of A Down Payment
Home Buyer's Recession Survival Guide - A Refinance Checklist
Home Buyer's Recession Survival Guide - Refinancing With Bad Credit
Home Buyer's Recession Survival Guide - The Self-Employed Mortgage Maze
Home Buyer's Recession Survival Guide - VA Loans
Home Buyer's Recession Survival Guide - Offset & Reverse Mortgages
Home Buyer's Recession Survival Guide - The Reasons To Not Buy An Offshore Retirement House
Home Buyer's Recession Survival Guide - How To Pay Less Than $500 A Month
Home Buyer's Recession Survival Guide - Five Easy And Cheap Tips To Save Big $ On Energy

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    • Hal Licino profile imageAUTHOR

      Hal Licino 

      9 years ago from Toronto

      Thanks. That's an interesting point, as Arnold's http://books.google.ca/books?id=oTQfHBa2_E0C&a... states that under 221 (d) (4) they'll cover 90% of the total, so that is in need of clarification.

    • ocbill profile image

      ocbill 

      9 years ago from hopefully somewhere peaceful and nice

      Hal,

      good hub on FHA financing. it is actallu a better loan most of the time when compared to a conventional loan. Also, you may want to edit out the apart about them not insuring on 5+ units or apartment buildings. They do indeed. Great information overall.

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