FHA Mortgage from Loan Fox Inc.

203k Program information

Loan Fox Inc. is a leader in this industry and we will assist you in making this process as effortless as possible.  Included in this package is information that you will find helpful as we work together toward the closing of your loan.

Please take the time out to review all of the information. If you have any questions, please call our office.

1. Use the Eligible Improvements list and the Ineligible Improvements list that are enclosed to help you determine which household improvements you would like to include in the mortgage.
2. Once you have determined that, follow the instructions on the Bid/Proposal Requirement Checklist
3. After you determine which contractor's bids you will use, refer to the Homeowner/Contractor Agreement checklist.
4. Submit the contractor's bids and licenses along with the completed Homeowner/Contractors Agreements to Acceptance Capital Mortgage

That's all it takes! Once our office receives the above information from you, we will submit that information to the underwriter as well as to the appraiser.

Thank you for choosing Loan Fox to help you with your financial needs.

Sincerely,

Drew Richman NMLS# 289152 

The Back to Work Program allows extenuating circumstances for financing for borrowers who experienced a negative economic event!

What are some of the economic event related items?

• Reduced income of 20% or more due to loss of employment, income or both for a period of six (6) months.
• Reduced income can come from job loss, household income loss even if the co-borrower is not on the new loan.
• Loss of income could come from reduced bonus, lesser overtime or reduced hours/pay.
• Has re-established of Satisfactory Credit for the past 12 months.
• Related Collections and Judgments.
• Related Mortgage Foreclosure.
• Related Short Sale.
• Related Chapter 7 and Chapter 13 Bankruptcy.

Lender must verify as follows:

• Loss of employment or reduce income.
• Verify borrower's household income after the onset of the event.
• Must verify the event resulted in 20% reductions of income for a minimum of six months.
• Eligibility for Borrowers for at least 12 months is as follows:
• No history of delinquency on rental payment and
• No more than one thirty day (30) days delinquency on payment due to other creditors and
• Satisfactory Housing Counseling 30 days prior to taking loan application.
• No collection account/court records reporting (other than medical and/or identity theft).

Energy Efficient Mortgage Program

FHA's Energy Efficient Mortgage program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage.

Purpose

In 1992, Congress mandated a pilot demonstration of Energy Efficient Mortgages (EEMs) in five states. In 1995, the pilot was expanded as a national program.

EEMs recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD. FHA insures loans. FHA does not provide loans.

Type of Mortgage:

EEM is one of many FHA programs that insure mortgage loans–and thus encourage lenders to make mortgage credit available to borrowers who would not otherwise qualify for conventional loans on affordable terms (such as first time homebuyers) and to residents of disadvantaged neighborhoods (where mortgages may be hard to get). Borrowers who obtain FHA's popular Section 203(b) Mortgage Insurance for one to four family homes are eligible for approximately 96.5 percent financing, and are able to add the upfront mortgage insurance premium to the mortgage. The borrower must also pay an annual premium.

EEM can also be used with the FHA Section 203(k) rehabilitation program and generally follows that program's financing guidelines. For energy efficient housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD's Title 1 Home Improvement Loan program.

How to Get a EEM:

To apply for an FHA insured energy efficient mortgage, contact an FHA approved lender

Eligible Customers:

All persons who meet the income requirements for FHA's standard Section 203(b) insurance and can make the monthly mortgage payments are eligible to apply. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or an energy consultant. The cost of an energy inspection report and related fees may be included in the mortgage. Cooperative units are not eligible.

EEM can also be used with FHA's Section 203(h) program for mortgages made to victims of presidentially declared disasters. The mortgage must comply with both Section 203(h) requirements, as well as those for EEM. However, the program is limited to one unit detached houses.

Eligible Activities:

EEM can be used to make energy efficient improvements in one to four existing and new homes. The improvements can be included in a borrower's mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life.

• The borrower is eligible for a maximum FHA insured loan, using standard underwriting procedures. The borrower must make a 3.5 percent downpayment. This 3.5 percent downpayment is based on the sales price or appraised value. Any upfront mortgage insurance premium can be financed as part of the mortgage.
• Eligible properties are one to four unit existing and new construction. EEMs may be added to some other loan types, including streamline refinances.
• The cost of the energy efficient improvements that may be eligible for financing into the mortgage is the lesser of A or B as follows:

              A. The dollar amount of cost-effective energy improvements, plus cost of report and inspections

              B. The lesser of 5% of

                          •  The value of the property,

                          •  115% of the median area price of a single family dwelling

                          •  150% of the conforming Freddie Mac limit.

• To be eligible for inclusion in the mortgage, the energy efficient improvements must be cost effective, meaning that the total cost of the improvements is less than the total present value of the energy saved over the useful life of the energy improvement.
• The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating report that is prepared by an energy consultant using a Home Energy Rating System (HERS). The cost of the energy rating report and inspections may be financed as part of the cost effective energy package.
• The energy improvements are installed after the loan closes. The lender will place the money in an escrow account. The money will be released to the borrower after an inspection verifies that the improvements are installed and the energy savings will be achieved.
• The maximum mortgage limit for a single family unit depends on its location, and it is adjusted annually. Look online to find FHA's maximum mortgage limits by county.

Who is Federal Housing Administration?

• The Federal Housing Administration generally known as “FHA” was established in 1934 as a division of the U.S. Department of Housing and Urban Development.
• They provide mortgage insurance on loans made by FHA-approved lenders throughout the US and its territories.
• It is the largest insurer of mortgages in the world insuring over 34 million properties since its inception.

How is FHA funded?

• The proceeds from the MI paid by the homeowners is used to operate the program entirely.
• FHA operates from self-generated income and costs the taxpayers nothing.

What is FHA Mortgage Insurance?

• FHA MI protects lenders against loss if homeowner defaults on loan.
• The lender bears less risk because FHA will pay the lender should a homeowner defaults on their loan.
• The cost of the insurance is passed along to the borrower and is typically included in the monthly payment.

Low Score Program

Credit scores from 500-579 qualify for 10% down 580+ qualifies for full 96.5 % loan with only 3.5% down-payment under some circumstances. All late payments and collections must be over 12 months old and credit must be reestablished with three creditors

No Score Program

if you have absolutely no score we can establish your credit worthiness using alternative, that is to say credit that does not usually report to credit reports, such as cell phone and car insurance.

Loan Fox offers Construction to Permanent loans for new manufactured and modular homes. Our One Time Close program provides construction financing, lot purchase and Permanent loan, all wrapped up in one loan. Why worry about re-qualifying, re-appraisals or incurring additional costs?

ACMC provides interim financing and administration for true one-time close staged funded construction-to-permanent loans. Designed for manufactured and modular housing, this programs allows Acceptance Capital Mortgage the ability to offer our clients this unique loan product.

Loan Fox underwrites and approves the permanent portion of the loan before the construction begins. The construction portion of the loan is also underwritten and approved. When all conditions for closing are cleared, other than the final construction related conditions, the closing will be coordinated. Once closed, construction can begin.

Because the permanent loan is closed before construction begins, there is no "re-qualifying" the borrower. This is a true one-time close; therefore, the borrowers will not need to return to the settlement agent for a second closing once construction is complete.

Benefits of One Time Construction Loan:

• Reduction in total cost due to only one closing
• Reduces interest rate risk
• FHA 96.5 LTV financing allowed
• 660 minimum FICO
• Only one closing prior to the start of construction
• No payments due from borrower during construction
• Borrower’s first payment begins once construction is complete
• No credit, document or appraisal expiration once the loan closes
• No re-qualification of borrower once construction is complete
• Builder/Retailer is allowed staged funding draws during construction based on line-item percentage completion

• 580+ Credit on Manufactured Home to 96.5% Purchase and 97.75% Refinance
• 500-579 = 90% max LTV
• No derogatory crdit for 12 months

• For borrowers currently on FHA loans, FHA to FHA refinances can be accomplished with no appraisal and no documentation of income
• For borrowers currently on VA loans the VA offers the same no appraisal and no income underwriting called an IRRRL – Income Rate Reduction Loan mortgage
• We do both types of reduced documentation loans available now

The Solution for Seniors

Problem- One of the problems in the housing market is that seniors, who have liquid assets are either feeling the pinch of the slow economy or are slowing down and are semi-retired or retired without the income they are accustomed to. They cannot show enough documented income to support the house they would like to purchase.

Solution- HUD has now authorized purchase mortgages with higher down payments and no verification of income or credit score for people over age 62 and a half. This mortgage has a fixed rate option and requires NO PAYMENT for the rest of the life of the owner-It is called a Home Equity Conversion Mortgage and it is now available for purchases.

“When we were ready to retire and move to Arizona, with adequate savings and funds for a down payment, we found that we did not qualify for a conventional mortgage because we could no longer offer proof of regular employment and income. A savvy friend suggested that we contact Drew Richman. With his help and our reverse mortgage we now live in our beautiful new home, with no worries about losing it and no more payments for the rest of our lives! “

– Ann Lamm, Sedona, Arizona

Reverse Mortgage Misconceptions

I could lose my home.

With a reverse mortgage you retain ownership of your home and control of the title. You can remain in your home as long as you wish and cannot be evicted or forced to sell.

The lender will own my home.

The fact is that you retain title and ownership to your home, and can choose to sell your home anytime you wish. The lender cannot force you from your home or foreclose on you as long as you maintain your home and pay your property taxes and homeowners insurance.

My children or heirs will be responsible for the repayment of the loan.

A reverse mortgage is a non-recourse loan, which means that your house stands alone for the debt. The lender can only derive repayment of the loan from the sale or refinance proceeds of the home. You or your estate can never owe more than the home's value at the time the loan is repaid.

I must own my home free and clear in order to qualify for a reverse mortgage.

Not true. If you have a balance on a mortgage or home equity loan, a portion of the proceeds from the reverse mortgage will be used to pay off your existing loan, thereby eliminating your current house payment. You are then free to do whatever you wish with the remaining funds available to you from the reverse mortgage.

I must have good credit and income to qualify for a reverse mortgage.

Your credit or income is not even a consideration when applying for a reverse mortgage.

Only the "cash poor" or desperate seniors that failed to plan for retirement get reverse mortgages.

Although some seniors may have a greater need than others for the cash or monthly income, reverse mortgages have become a popular financial planning and estate-planning tool. Long term health care insurance and in home health care are popular uses for reverse mortgage proceeds. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

By getting a reverse mortgage I would be living off of borrowed money.

The money from a reverse mortgage is already your money. It's just that it's trapped in your home and not accessible to you unless you take out some type of mortgage. All other mortgages, except a reverse mortgage, require you to make payments back to the lender. But with a reverse mortgage you make no payments because no payments are required. You do not repay the loan for as long as you choose to live in your home. You are simply accessing money that is already yours through a safe government insured program. And best of all it is TAX-FREE.

When a reverse mortgage comes due, the bank sells my home.

Not true. At the time the last borrower permanently leaves the home the loan must be repaid. At that time, you or your heirs can either pay the balance due on the reverse mortgage, through a traditional refinance or from other assets and keep the home, or sell the home and use the proceeds to pay off the reverse mortgage.

The Reverse Mortgage will impact my Social Security or Medicare.

Not true. Reverse mortgage proceeds do NOT affect any other benefits except perhaps MediCal. However, if your payout options are structured properly, even MediCal will not be affected.

A Reverse Mortgage is expensive.

While a reverse mortgage generally costs more than a conventional loan, it is much less expensive on a monthly basis with no minimum monthly payment required