FHA Low Rate At 3%

October 17th, 2012 Author:

FHA Mortgage Rates : Approaching 3.00 Percent

The Federal Housing Administration is a government agency, created in 1934. It serves three primary purposes : (1) That is, to improve housing standards related to home-loans, (2) To stabilize the mortgage market, whatever that means and (3) To insure mortgage loans, which means actually backed by the taxpayer.

It is important to remember that the FHA claims that they do not make loans directly. For example, it doesn’t lend money to home buyers or give money for a refinance type of loan. Rather, the FHA insures the loans that mortgage lenders make, again remember the tax payer exemption, so long as those loans meet the FHA’s minimal mortgage home loan guidelines.

FHA purchase mortgage guidelines are similar to conventional mortgage guidelines :

Annual income is verified with W-2 statements and tax returns. Remember, no more STATED or NINA loans
Monthly debts are verified via a credit report and personal statements. No more bank account statements showing cash flow deposits
Employment and assets are verified prior to closing

However, the FHA tends to be more easy with respect to who gets approved. The FHA will often insure the reason-ability test on loans that Fannie Mae or Freddie Mac turn down as a matter of policy, and it does so without charging high mortgage rates.

FHA mortgage rates have been under 4 percent since January 2012.

New Jersey Realty Holding Up

November 13th, 2008 Author:


                New Jersey real estate is holding up in this current credit market. Certain counties in New Jersey are maintaining prices and some cities are even rising. Bergen county and Hudson County in particular are seeing home prices appreciate according to our survey of appraisers. Red Bank which is a Borough in Monmouth County is still attracting home buyers we are being told. The easy ability to commute from Red Bank to New York City via rail is perhaps one reason why real estate prices are holding up so well in Red Bank. Many of the other cities and suburbs that are within commuting distance to New York City have home prices that are holding strong. So long as the broader economy does not experience a financial shock, New Jersey real estate in certain locations may continue to be a good investment.