FHA HUD Loan Guide

Guide to FHA/HUD Loans
by Craig Grella
The All New

Guides for Today’s Lifestyle
Copyright © 2009 • LendingTree • All Rights Reserved

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The All New
Contents
FHA Home Loan Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Qualifying for a FHA Insured Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Mortgages Offered Through FHA Loan Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Make a Home Purchase with a FHA Purchase Loan. . . . . . . . . . . . . . . . . . . . . . . . . 4
What is a Disaster Recovery Loan?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Use a FHA Rehabilitation Loans to Purchase or Refinance a Home. . . . . . . . . . . 6
Energy Efficient Mortgages through FHA Loan Programs . . . . . . . . . . . . . . . . . . . 7
Home Equity Conversion Mortgage Basics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Section 248 Loans For Homes on an Indian Reservation . . . . . . . . . . . . . . . . . . . . 9
Improve your Home with a Title 1 Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Fixer Upper Loans for The Handyman Special Home. . . . . . . . . . . . . . . . . . . . . . . 11
Streamline Refinance Programs from the FHA . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Common FHA Home Loan Myths. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Avoiding FHA Loan Scams: What to Watch Out For. . . . . . . . . . . . . . . . . . . . . . . . . . 14
What Does an FHA Certified Housing Counselor Do?. . . . . . . . . . . . . . . . . . . . . . . . . 15
Working with an FHA-Approved Lender for Your Home Loan. . . . . . . . . . . . . . . . . . 16
HUD and FHA Loan Programs in Your State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
HUD Offers Public Housing Assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
How to Protect Yourself Against Predatory Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Copyright © 2009 LendingTree. All rights reserved.

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The All New
FHA Home Loan Basics

An FHA insured loan is a loan product offered to borrowers across the country for the purchase of a new home or
refinance of an existing home. FHA insured loans can also be used to construct or rehabilitate a home, and even to
add energy-efficient features to a property.
Benefits of an FHA insured loan include: FHA Loan Program Qualifying Guidelines
The FHA makes applying for a loan easier than most
• A low down payment
conventional, conforming loans. There are only five
• A market interest rate
basic requirements that must be met in order to qualify
• Low loan closing costs
for a FHA insured loan:
• No credit or income restrictions.
1. The borrower must be a U.S. citizen, a permanent or
FHA insured loan dollars do not actually come from the
non-permanent resident alien
government—rather, the loans are made by companies
2. The borrower must provide a down payment of at
who agree to lend money to borrowers who meet
least 3.5 percent (with some seller concessions or
certain guidelines established by the FHA. These
gifts allowed)
companies are called HUD approved lenders, and the
3. The loan must be no more than the maximum loan
loans they make are insured by the FHA.
limit applicable in your area
If a borrower defaults on a loan made through the FHA 4. The property must be a one-to-four unit structure
insured program, the FHA will repay the lender for the 5. The property must be used as the borrower’s
amount of the default. For this reason, FHA insured principal residence.
loans are very secure and allow the borrower relaxed
credit and income restrictions.
Approved FHA Lenders
To obtain an FHA insured loan, you must apply through
Popular FHA Insured Loan Programs an HUD approved lender. This can include commercial
The FHA offers several programs for which they insure banks, local lenders, non-profit companies and
loans. The most popular and widely used FHA loan special agencies in every state across the country.
programs include: Approved FHA lenders agree to adhere to FHA rules
when underwriting loans, which include screening
• 203(b): The main FHA insured loan, which provides
each borrower to make sure they meet the guidelines
insurance for the purchase or refinance of a principal
established above.
residence of 1 to 4 units.
• 203(k): Also known as the “Streamline Limited
Repair Program,” this allows buyers to finance costs
to make property repairs or improvements.
• EEM: Energy efficient mortgages allow the borrower
to finance the cost of adding energy efficiency
features to new or existing housing.

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The All New
Qualifying for a FHA Insured Loan

The US Department of Housing and Urban Development (HUD) makes qualifying for an FHA insured loan quick and
easy for borrowers. Due to relaxed credit and income restrictions, FHA insured loans are available to a larger pool of
borrowers than conventional, conforming loan counterparts.
While the HUD lending partner will set the final loan No FHA Credit Requirements or Income
interest rate and payment terms, there are only five Guidelines
major qualifying guidelines you need to meet in order to Currently, the FHA does not impose a minimum credit
be approved for an FHA insured loan. They are: score or income requirement on borrowers. However,
1. Borrower must be a US citizen, or a permanent or the FHA does issue its lending partners suggestions for
non-permanent resident alien. reviewing these two important factors when considering
2. Borrower must have a down payment of at least a loan approval.
3.5 percent (with some seller concessions or gifts The FHA suggests that borrowers have good credit
allowed) history and steady employment. Generally, lenders will
3. The loan must be no more than the maximum loan look to approve loans for borrowers with a track record
limit applicable in your area of paying their bills on time and employment with the
4. The property in question must be a one-to-four unit same company for a period of 2 years or more. While
structure FHA insured loans are available for borrowers with less
5. The property in question must be used as the than perfect credit, like those who’ve had past financial
borrower’s principal residence. issues such as bankruptcy or foreclosure, individual
lenders make final decision on loan terms, which means
FHA Loan Limits they may set prohibitively high interest rates or choose
The FHA has a maximum loan amount they will insure, to deny the loan altogether.
and their lending partners cannot grant FHA loans
above that amount. For most states, the maximum loan
limit is $417,000, though it can be elevated for high cost Finding a HUD Approved Lender
of living areas (such as New York City, Los Angeles, and FHA insured loans are made through lending partners
Hawaii). across the country. These include commercial and
community banks, stage agencies, and non-profit
lenders.

The All New
Mortgages Offered Through FHA Loan Programs

Many FHA loan programs offer different types of home financing. Keep reading for a brief overview of
these programs, and the FHA home loans that are available in each option.
FHA Home Purchase Loans FHA Disaster Loans

One of the most popular loan programs available The FHA makes money available to insure
is the FHA 203(b) insured loan, offered through mortgages made to victims of major natural
HUD lending partners. This loan allows potential disasters. This loan program is known as the FHA
borrowers to purchase a home with as little as 3.5 203(h), and is available to residents located in
percent of the purchase price as a down payment. presidentially declared disaster areas. In order to
There are no minimum credit score or maximum be eligible, homes must have been destroyed or
income restrictions, and these FHA home loans are damaged to such an extent that reconstruction or
available in all 50 states. Generally, market interest replacement is necessary. The 203(h) loan can be
rates are available for well qualified borrowers, used for the purchase of a new or existing home.
and even those with past bankruptcies and or the rehabilitation and construction of a home
foreclosures can apply. in the designated areas. A great feature of the
disaster loan is that no down payment is required.
Borrowers can get up to 100 percent financing,
The FHA Rehabilitation Loan and closing costs for the loan can even be covered
Among the many loans give borrowers the ability by the seller or given to the buyer as a gift at
to rehabilitate new and existing homes. These closing.
FHA home loans, also known as 203(k) loans,
allow purchasers the ability to buy a home and
add rehabilitation costs to the amount of money FHA Streamline Refinance
borrowed. These loans have maximum limits, For those who wish to refinance existing FHA
which are determined by the state in which the home loans, they can apply to a HUD approved
property is located. Improvements must be made lender for a streamline refinance. This reduces
within 90 days of the FHA loan closing, and must the amount of documentation and underwriting
be inspected by a HUD approved appraiser. normally accompanied with applying for FHA
home loans. The current FHA loan must not be
a delinquent account, and the refinance must
FHA Energy Efficient Mortgages result in a lower monthly principal and lower
For energy conscious homeowners, the FHA offers interest payments on the loan. The FHA streamline
energy efficient mortgages. These FHA home refinance can be used for rate and term refinances
loans allow borrowers to get money for installing only, these FHA home loans won’t allow you to
high energy efficiency appliances and materials in take cash out of your home equity.
their homes. Energy efficient features must also be
installed within 90 days of loan close and are to be
inspected by a HUD appraiser. Such improvements
include:
• Energy-efficient doors, windows and insulation
• Geothermal heat pumps
• Solar panels.
The All New
Make a Home Purchase with a FHA Purchase Loan

One of the most popular FHA loan programs is the 203(b) mortgage insurance program. This program allows
borrowers to obtain a FHA purchase loan through a HUD approved lender. This loan can be used for a new or
existing home purchase. In order to qualify, however, the home must be used as the borrower’s principal residence.
To be eligible for the FHA 203(b) loan program, a buyer must make a home purchase on a property that is one to
four units in size. In addition, he must have a down payment of at least 3.5 percent of the purchase price.
Limits on FHA Purchase Loans How a FHA Purchase Loan Differs from a
Each HUD/FHA home loan has a maximum amount Conventional Loans
that can be borrowed. This loan amount is $417,000 for Conventional lenders use credit and income as the two
most areas of the country. The HUD and FHA recognize main underwriting criteria. Generally, a higher credit
that some areas of the country have a higher cost of score and income level of the borrower means a less
living and a higher average home price. Accordingly, likelihood of loan default. Because of this, conventional
FHA home loan limits can be higher for high cost areas lenders usually set their minimum required credit score
like Los Angeles, New York and Hawaii. You can visit in the high 600 to low 700 ranges. Conventional loans
HUD’s website to find the FHA home loan limit for your also require large down payments, sometimes as high
area. as 20 percent of the purchase price or more.
If you plan to use your FHA home loan for a home An FHA purchase loan has no minimum credit
purchase or refinance, you can only borrow up to the requirement or income restrictions, and can be obtained
maximum loan limit. If the home purchase or refinance with a down payment of as little as 3.5 percent. These
requires a larger amount, the difference must be brought lenient requirements give more people the opportunity
in cash as a down payment or in a junior lien position. to get a FHA home loan. It also allows those with less-
Keep in mind that in addition, the minimum 3.5 percent than-perfect credit and lower cash reserves to make a
down payment requirement must also be met. home purchase.
Where to Find FHA Home Purchase

Loans
FHA home purchase loans can be obtained through
any HUD approved lender, which may be a commercial
bank, non-profit, or a state agency. Commercial banks
are the largest FHA insured lenders, and they can be
found in each state across the United States. In order
to find an approved lender for a FHA home loan, check
out the extensive database offered by LendingTree, or
consult HUD’s website.

The All New
What is a Disaster Recovery Loan?

A disaster loan, also known as the FHA 203(h) loan, makes mortgages available to residents in presidentially
declared disaster areas. Some examples would be those areas of the country ravaged by major floods, hurricanes
and earthquakes. Keep reading to learn about this vital part of a disaster recovery plan. Perhaps you are eligible for
the 203(h) loan program, one of many FHA loan programs.
Disaster loans allow the borrower to obtain money for Disaster Recovery Loans Can Stop
the: Foreclosure
• Construction of a new home: If a borrower’s home Disaster recovery loans offer a distinct advantage for
was destroyed by a natural disaster, the 203(h) loan those who are currently in foreclosure and are located
will allow the reconstruction or new construction in a disaster area. HUD can issue a moratorium on
of the home, up to current building and safety the loan in foreclosure. This prevents the lender from
standards. proceeding with the foreclosure process for a period
• Purchase of a new or existing home: A borrower’s of up to 90 days from the issue date of the HUD letter.
home may be destroyed, damaged beyond repair, This time period allows HUD the chance to review the
or deemed unlivable after a natural disaster. If this subject property and its loan.
should happen, one of these FHA loans can provide
the resident with funds to purchase another home. Applying for Disaster Loans
• Rehabilitation of an existing home: If a borrower’s FHA disaster loans are made through HUD approved
home wasn’t destroyed, but damaged to the point lenders in all 50 states where a presidentially declared
where repairs are necessary, the 203(h) loan provides disaster area exists. To find out if you are eligible for a
the funds to do so. disaster recovery loan, contact your lender to begin this
step in your disaster recovery plan. You also have the
Eligibility for Disaster Loans option of searching the extensive lender database on
To be eligible to receive disaster loans, borrowers LendingTree.com for a provider.
must have been directly affected by a natural disaster.
In addition, their home must be located within a Current national disaster areas are listed on the
presidentially declared disaster area. In order to qualify Department of Homeland Security website and through
for these FHA loans, borrowers must also qualify under the Federal Emergency Management Agency (FEMA)
standard FHA insured loan guidelines. website. You’ll want to find out if your area has been
included on this list before applying for a disaster
recovery loan.
Benefits of Disaster FHA Loans
While forming a disaster recovery plan, disaster victims
need to use their readily available funds for staple items
like food, water and safety items. Because of this, FHA
203(h) disaster loans allow borrowers to get as much
as 100 percent financing (no down payment) on the
purchase of a new or existing home. Borrowers also
have the option of financing 100 percent of the cost to
construct a new home or rehabilitate an existing home.

The All New
Use a FHA Rehabilitation Loans to Purchase or Refinance a Home

The HUD/FHA rehabilitation loan, also known as the 203(k) loan, provides money for borrowers to rehabilitate
an existing home, or to purchase a home and immediately make improvements to it. These loans are great for
borrowers who are purchasing homes that need immediate repairs. Examples of these improvements may include:
• Adding handicap accessible features

• Bringing the home up to code
• Remodeling a home that has significant wear and tear.
Qualifying for rehab loan is relatively easy. The application process mirrors that of other another FHA loan program’s
203(b) loan.
Eligible Repairs under the 203(k) Loan Rehab Loans for Less Extensive Repairs
Program For less extensive repairs or improvements, the FHA
The FHA rehabilitation loan can be used to make repairs Streamline-K program permits borrowers to get up
to a residential property, or to the residential portion of a to $35,000 rolled into their mortgage to improve or
property that also has non-residential uses. Some of the upgrade their home after purchase. The requested
acceptable uses for these rehab loans include, but are repairs must be documented when the loan application
not limited to: is filed. These improvements must also be inspected
by a HUD or FHA appraiser after installation, as well as
• Adding handicap accessible features before the homeowner can move into the home.
• Adding roofs, gutters and downspouts
• Eliminating health and safety hazards
• Making changes to eliminate obsolescence How a FHA Rehabilitation Loan Differs
• Making landscaping and site improvements from Most Rehab Loans
• Making structural alterations In a typical rehab situation, the borrower would need
• Making the home more energy efficient to purchase the property with a purchase loan, and
• Modernizing the home. then obtain a separate construction loan to fund the
costs of the improvements or repairs. These additional
FHA Rehab Loan Limits construction loans are typically offered as short-term
The cost of planned improvements to a home can be loans with a higher than market rate interest rate.
rolled into the rehab loan’s amount. This amount must
The FHA/HUD rehabilitation loan offers a single loan to
be equal to or less than the maximum allowable loan
complete both the purchase and rehabilitation. There is
limit applicable for the borrower’s geographic location.
just one closing, and rehab loans feature a market rate
The maximum loan limit is set by HUD at $417,000
interest rate which can be fixed for the term of the loan.
for most areas of the country. Limits for an FHA
rehabilitation loan may be higher for in areas where cost
of living is higher.

The All New
Energy Efficient Mortgages through FHA Loan Programs

HUD and the FHA rewards residents who want to lower their utility bills and make their homes more energy efficient.
In order to do this, FHA loan programs allowing homeowners access to energy efficient mortgages, also known as
EEMs.
The energy efficient mortgage program helps homebuyers and homeowners finance the addition of energy efficient
features and products to their new or existing homes. The mortgage allows the borrower to roll the cost of the
added features into her overall loan. These FHA loan programs can be used in conjunction with other FHA-insured
programs like the 203(b), 203(h) and 203(k).
Qualifying for the Energy Efficient Energy Efficient Mortgage Program

Mortgage Program Limits
All borrowers who qualify for FHA loan programs Do you need to find out how much money you can get
are eligible to apply for energy efficient mortgages. for improving your home’s energy efficiency? There are
In addition, the cost and features of energy efficient two ways to determine this amount:
appliances to be installed must be evaluated by an FHA
1. The cost of the energy efficient improvements, their
approved energy consultant.
installation and the cost of reports and inspections.
2. The lesser of 5 percent of one of the following:
Energy Efficiency and Eligible Purchases • 115 percent of the median price of the same
Money for energy efficient improvements can be used property type for your area; or
for the construction of a new home, or the rehabilitation • 150 percent of the conforming Freddie Mac limit.
of an existing home. Typical improvements for energy • The value of the property.
efficiency include the following: The additional money for energy efficiency
• Installing active or passive solar technology improvements is placed in an escrow account after the
• Installing geothermal heat pumps FHA insured loan closes. Once the improvements are
• Insulating an attic or crawl space completed, these funds are released to the borrowed,
• New doors and windows and an inspection is done to confirm proper installation.
• Replacing or adding a furnace or cooling system.
To find out if your planned improvement can be included Learn More About FHA Loan Programs
in FHA energy efficient mortgages, you should consult Energy efficient mortgages are obtained through select
with an energy rater in your area. You can check out HUD approved lenders. Feel free to review the lender
Energy Star’s website to find local energy raters. database offered by LendingTree.com or consult with
HUD in order to find local approved lenders.

The All New
Home Equity Conversion Mortgage Basics

There are many FHA loan programs that offer different type of home finance options. The home equity conversion
mortgage insurance (HECM) program from the FHA allows homeowners to convert their home equity into cash
payments from a HUD approved lender. Reverse mortgages are a good option for those who can qualify for the
HECM program.
Unlike traditional loans, no payments are required on reverse mortgages until the borrower sells the home or stops
using it as her principal residence. Typically, proceeds from home sales are used to repay reverse mortgages.
Calculating Your Home Equity for • Modified term combines the term option with a line
Reverse Mortgages of credit.
Home equity is defined as the difference between the • Tenure gives the borrower a monthly payment
current market value of the home and the sum of its from the lender for as long as the borrower lives
outstanding debt. To calculate the equity in your home, and continues to occupy the home as a principal
subtract the total of all mortgages on the home from the residence
current market value. For instance, if your home is worth • Term gives the borrower monthly payments for a
$300,000 and you have a $25,000 mortgage, your home fixed period selected by the borrower
equity is $275,000 ($300,000 - $25,000).
Each option has a maximum loan or line amount
that can be withdrawn. That number is based upon
Properties Eligible for the HECM Loan underwriting and credit decisions made by the individual
To be eligible for the program, the home must be one of lender.
the following:
• HUD-approved condominiums Advantages of the FHA Loan Program’s

• HUD-approved manufactured homes HECM
• Multifamily properties of 1-4 units, with one unit There are many great advantages of home equity
occupied by the borrower conversion mortgage program. The FHA does not
• Single family home. have credit requirements, and the HECM is available
regardless of your current income. The amount that can
Reverse Mortgages and Payment Options be borrowed relies chiefly on the following:
HECMs or Reverse mortgages from FHA loan programs
• FHA mortgage limits for your area
allow borrowers to unlock the equity in their homes,
• Interest rate
and use that cash for any purpose. The home equity
• The current market or appraised value of your home
conversion mortgage allows borrowers to get a loan
• Your age.
with one of five payment options:
• Line of credit allows the borrower to make Other Program Requirements

withdrawals up to a pre-determined maximum The program requires that borrowers receive free or low
amount cost reverse mortgage housing counseling from a HUD
• Modified tenure combines the tenure option with a approved reverse mortgage counseling agency before
line of credit applying for a reverse mortgage.

The All New
Section 248 Loans For Homes on an Indian Reservation

Traditionally, tribes prohibited non-Indian companies from closing on tribal property. This made conventional lenders
hesitant to lend money for property in those locations. Because of this, financing for tribal properties was very hard
to obtain, forcing many residents to live in sub-standard conditions.
Section 248 was added to the National Housing Act to provide FHA home loans and mortgage insurance for those
living on an Indian reservation or other restricted lands. Section 248 loans make it more feasible for conventional
lenders to offer mortgages for property on reservations. It also allows more reservation residents to afford standard
housing.
Eligibility for Section 248 Loans Indian Reservation/Tribe Participation

To be eligible for section 248 loans, both a borrower Although funds for section 248 FHA home loans don’t
and property must meet certain guidelines. They come from the tribe, it must agree to participate in the
borrower must be an individual member of any federally program if one of their residents is to do so. There are
recognized Indian tribe. An “Indian tribe” is defined as several program requirements that must be satisfied
an Indian or Alaska Native tribe, band, nation, or other by the tribe before FHA will insure mortgages on the
federally recognized organized group or community reservation. The tribe must:
of Indians or Alaska Natives. Unfortunately, native
• Agree to the lease form that HUD provides
Hawaiians are not eligible to receive this FHA home loan
• Confirm with HUD that the tribe has eviction
program’s benefits.
procedures in place, and that they will enforce them
Eligible homes include homes located on an Indian • Create legislation that would make section 248 loans
reservation or restricted land, including Alaska Native in first lien (on an Indian reservation where the tribal
areas. Section 248 loans can be used on any property courts have jurisdiction over foreclosures)
type approvable under general FHA insured loan • Permit HUD access for the purpose of servicing
guidelines. These include: properties.
• Manufactured homes
• Mobile homes Other Tribal Conditions on Section 248
• Multi-family homes Loans
• Single family homes. Most are assumable upon the sale of the property to
a new buyer/borrower. Conversely, section 248 loans
require the approval of the tribe to be resold. If the FHA
takes back a home in foreclosure, they can attempt to
sell it to another family on the reservation. However,
these new borrowers must also receive tribal approval.

The All New
Improve your Home with a Title 1 Loan

Although there are many FHA home loans, the FHA title 1 loan allows homeowners to borrow money to alter, repair,
or improve their properties. The title 1 home improvement loan program was initially enacted to encourage banks
to lend to buyers of manufacturing housing. It has, however, been expanded to other properties as well, including
single family homes and multi-family properties.
Traditionally manufactured housing loans were offered as short term personal loans. Fortunately, the title 1 program
is changing the market by issuing FHA home loans with longer terms (up to 20 years) and lower interest rates. The
program is available in all 50 states, and money is lent through HUD approved lending partners.
Title 1 Home Improvement Loan FHA Conditions of Title One Loans

Guidelines The title 1 loan allows purchasers of manufactured
The FHA title 1 program can help you to improve your housing more time to pay off their loans than
home in several ways. There are, however, certain conventional loan programs. Your repayment term will
guidelines as to how you can use a FHA improvement depend on the type of home that you own:
loan. Eligible home improvements will depend on the • Manufactured home (personal property): 12 years
type of home you own: • Manufactured home (on a permanent foundation): 15
• Multi-family properties: In multi-family homes, the years
FHA title 1 program can only be used for building • Multifamily structure: 15 years
alterations and repairs. It cannot be used for site • Single family home: 20 years.
improvements.
• Single family properties: With single family homes, Other Qualifying Guidelines for the Title 1
the improvement loan can be used for alterations, Loan Program
repairs or site improvements. This includes major Borrowers who wish to apply for the FHA title 1 loan
landscaping jobs, new roofs, additions and bringing program can do so through HUD approved lenders,
the property up to building and safety codes. many of which can be found right here on LendingTree.
In both cases, the title 1 home improvement loan can com. While these FHA home loans have minimum credit
be used in conjunction with other FHA insured loan or maximum income requirements, each individual
programs, such as the 203(k) rehabilitation loan. lender may impose their own financial restrictions.
The interest rate set on the title one loans may also be
negotiated directly between the lender and borrower.
Title 1 Home Improvement Loan Amounts
To qualify for the FHA title 1 loan program, you must
also adhere to strict rules concerning maximum loan
amounts, which are:
• Manufactured home (personal property): $7,500

• Manufactured home (on a permanent foundation):
$17,500
• Multifamily structure: $12,000 per living unit up to
$60,000
• Single family home: $25,000.
The All New
Fixer Upper Loans for The Handyman Special Home

A handyman special is a home which needs only minor repairs to be brought back to retail, or model home
condition. This type of property, also known as a fixer upper, is popular with people who like to purchase a home
and tailor it to their tastes.
Some of the ways you can find a fixer upper are:
• Attending bankruptcy and foreclosure sales and auctions

• Consulting with investors and wholesalers
• Perusing bank REO portfolios
• Searching for abandoned properties in your neighborhood.
Purchase a House with Conventional and insurance (PITI) payments into the loan amount to
Loans cover the mortgage while they repair the fixer upper.
When using conventional loans to repair a fixer upper, What if you purchase a house and your fixer upper has
there are often two steps to follow, and two loans to necessary repairs costing less than $35,000? If so, you
obtain. First, the purchase loan is used to acquire the can borrow FHA home loans from the Streamlined K
property, and then the construction loan is used to program.
make the repairs. This can limit the borrower in that
construction loans are usually very expensive to obtain,
and are usually short term loans. The New Streamlined K Repair Program
This program allows borrowers to purchase and
They also require large cash down payments, which can
renovate homes that have home improvement costs
be prohibitive for most buyers. After the construction
of $35,000 or less. Improvements allowed under the
is completed, the borrower has to refinance the
streamlined K program include:
construction loan with a permanent loan and pay new
loan fees. The borrower has gone through two closings, • Basement finishing and remodeling, not involving
and paid two sets of loan fees to buy a fixer upper. structural repairs
• Minor remodeling, such as kitchens, not involving
structural repairs
FHA Home Loans and Handyman Special • Repair or replacement of existing HVAC systems
Homes • Repair or replacement of flooring
FHA home loans can be used to purchase and repair • Repair or replacement of roofs, gutters and
handyman special homes, all with only one loan. First, downspouts
the loan allows the borrower to purchase a house. Then, • Repair, replacement or addition of exterior decks,
before they move in, the loan also provides the money patios or porches.
they need to pay for home improvement costs.
FHA home loans through this program don’t require as
If the home improvement costs are more than $35,000, stringent an underwriting procedure as the full 203(k)
the borrower must use the 203(k) FHA home loans in loan program. It also allows the borrower to complete
addition. There are maximum loan limits that apply, and the work himself, without having to use an approved
the borrower must use a HUD approved contractor in contractor. In this case, however, the borrower needs
order to improve the fixer upper. The borrower can even to prove that he has the necessary expertise and
put an additional six months of principal, interest, taxes experience to perform the work competently.

The All New
Streamline Refinance Programs from the FHA

Streamline programs offered through the FHA are loan programs which do not require the full panel of loan
underwriting that other FHA mortgages require. These FHA loan programs are usually quicker to complete than
conventional mortgages, and require much less paperwork.
There are two FHA loan programs that offer streamline refinances: the Streamline Refinance and the Streamlined K.
The Streamline Refinance The Streamlined K Loan Program

The FHA provides an easy method of refinancing your The streamlined K program is the streamlined version
existing home loan through HUD approved lenders. of the FHA insured 203(k) loan program. These FHA
This is done through their streamline refinance program. loan programs allow borrowers to rehabilitate homes
This allows for quick loan reviews and less intensive that need only minor work, up to $35,000 in cost, while
document processing. The basic requirements are the refinancing existing FHA loans.
following:
For example, consider a homeowner with a current
• No cash may be taken out on mortgages refinanced FHA loan in first position. She wants to make some
using the streamline refinance process. minor repairs to her home, like finishing the basement,
• The mortgage being refinanced must already be an or replacing the doors and windows. As long as
FHA insured loan. the improvement costs are less than $35,000, the
• The refinance must result in lower monthly principal streamlined K program can be used not only to pay for
and interest payments. the repairs, but also to refinance the entire existing FHA
• The streamline refinance can’t be on a delinquent loan amount.
mortgage.
For example, let’s say an existing loan is $100,000 and
Some lenders can wrap the costs of the refinance into home improvements cost $20,000. The streamlined
the new loan amount. This allows the borrower not to K loan program would provide the borrower with
bring any out of pocket money to the closing table. $120,000, assuming she meets the FHA loan program’s
guidelines.
For those with significant equity in their homes, this FHA
streamline program can also be done without getting a
new appraisal. Your previous appraisal will suffice, as
long as the refinanced mortgage doesn’t exceed the
amount of the old mortgage.
The streamline refinance program is basically a

refinance that affects only term and FHA loan rates.
If you want to tap into your home equity for cash or
to payoff other high interest debt, you can’t use the
streamline refinance.
You may need to make repairs to your home, and you

only have FHA loan funds available. In this case, you
might want to consider the streamlined K loan program.

The All New
Common FHA Home Loan Myths

The HUD and FHA are the largest insurers of real estate mortgages in the world, and through approved lending
partners, offer many affordable loan options to eligible borrowers across the United States. Because FHA home
loans are so desirable, uneducated applicants can be targets for scams and companies that practice predatory
lending.
Predatory lenders often perpetuate false information in Some of the more prevalent rumors you may have heard
an effort to confuse the public and take advantage of are:
unsuspecting borrowers. Those who don’t understand
• I need excellent credit to get an FHA loan:
their loan options are more likely to fall victim to scams
Currently, the FHA does not have a minimum credit
and predatory lending practices.
score requirement to obtain an FHA insured home
In an effort to dispel false rumors and educate loan. However, some FHA approved lenders may
borrowers about their loan options, the HUD has posted have credit requirements, or may charge high interest
information and qualifying loan guidelines for all their rates for borrowers with lower credit scores.
programs online. Additional information is also available • I need a large down payment to get an FHA home
through the many housing and mortgage articles on loan: An FHA insured purchase loan requires only a
LendingTree.com. cash down payment of 3.5 percent of the purchase
price of the home. This is significantly lower than
most conventional loan products. In addition, part of
that down payment can come as a gift from a family
member, or even as a seller concession.
• Since I’ve declared bankruptcy, I don’t meet FHA
loan requirements: Borrowers are allowed to apply
for an FHA home loan after only two years from the
date of bankruptcy discharge. However, if you’ve
declared bankruptcy, you’ll be required to show
proof that you’ve met all your payment obligations
since then and have had a clean credit record for the
entire two years.
• I can’t get an FHA insured loan because I’ve
been foreclosed on: In fact, you can get an FHA
insured loan even if you have been foreclosed on.
The waiting period is three years from the date of
foreclosure, and again, you must show a perfect
credit report since that date. You must demonstrate
that you have met all payment obligations without
any late payments, judgments, or re-defaults.

The All New
Avoiding FHA Loan Scams: What to Watch Out For

A loan scam happens when a person, or group of people, take advantage of a borrower trying to obtain a loan to
purchase or refinance a home. Because some borrowers don’t take the time to understand how loans work, how
they’re made, who offers them and who does not, they make themselves a prime target for a potential scam.
FHA home loans are particularly susceptible to mortgage loan scams, since they’re a highly desirable type of loan.
Types of Mortgage Loan Scams 4. Beware of people who pressure you to sign papers
As a borrower, there are many mortgage loan scams immediately, or who try to convince you that they
that you can fall prey to. Most happen when borrowers can “save” your home if you sign or transfer over the
are in an extreme time of need, like when they face deed to your house
foreclosure. 5. Never make a mortgage payment to anyone other
than your mortgage company without their approval
Some borrowers are convinced to sign over their deed
6. Never sign a blank document or a document
to fraudulent loan companies who promise the borrower
containing blanks. Also, do not sign anything that
they can save their home only to get kicked out of the
you don’t understand; and
home or foreclosed upon when the company gets title.
7. Shop for a lender and compare costs. Be suspicious
Some scam artists convince borrowers to refinance their if anyone tries to steer you to just one lender.
mortgage and to take more money than they actually
need. This causes the borrower’s payments to increase RESPA Prevents Loan Scams
which can put them in jeopardy of falling behind in The real estate settlement procedures act (RESPA)
the mortgage, defaulting, or even losing their home to requires all loan originators to provide borrowers with a
foreclosure. good faith estimate that clearly discloses key loan terms
and closing costs they will incur as a result of taking
Other people pose as loan companies just to get your
that loan. These items are laid out in an easy to read
personal financial information like bank accounts and
form called a settlement statement, also known as a
social security numbers.
HUD-1 form.
All reputable lenders use the HUD-1 form in their loan

Tips to Avoid FHA Loan Scams transactions. If you are working with a lender who does
The more educated you are on the process of taking out
not provide such a form you may be party to a mortgage
a loan the less susceptible you will be to loan scams.
scam.
Here are a few tips to make sure you spot a scam in
advance:
1. Always ask for references from real estate agents

What to Do if You Are a Victim of a Loan
you work with and the lenders they refer you to Scam
2. Attend a homeownership education course offered If you feel you have been taken advantage of during the
by HUD loan process, if the lender has discriminated against
3. Beware of anyone who asks you to pay a fee in you, or if you are part of a loan scam HUD encourages
exchange for a counseling service or modification of you to make a report. You can do this by calling the
a delinquent loan Federal Trade Commission (FTC) at 1-877-382-4357, or
by filling out a form on their website.

The All New
What Does an FHA Certified Housing Counselor Do?

Some people may want to participate in FHA loan programs, but don’t know how to begin. For these individuals,
the United States government offers certified housing counselor services that provide low-cost or free assistance in:
• Buying a home • Dealing with defaults • Handling foreclosures

• Rectifying credit issues • Renting a home.
The service is offered to create a more informed public with respect to the housing industry and credit related
housing decisions.
What a Certified Housing Counselor Can also have access to resources to keep borrowers
Do For You from re-defaulting, and seniors from becoming too
HUD approved housing agencies are available to overextended on their HECM loans.
everyone in the community. They will meet with anyone
who is interested in learning more about FHA loan
HUD Certified Housing Counselor Costs
programs, or to provide counseling regarding a specific
Most HUD approved counseling agencies are funded by
transaction.
government grants. These grants subsidize their work,
After interviewing the prospective client to determine allowing them to offer services to many borrowers at no
their housing needs, the HUD counselor can perform cost. HUD counselors may charge a reasonable fee for
the following services: the following services:
• Assist clients in filling out and submitting loan • Pre-purchase consulting

applications to approved lenders • Rental and non-delinquency post-purchase
• Assist clients in making appointments with lenders, counseling services
other counselors or agencies • Reverse mortgage help.
• Explain to clients the steps necessary to resolve their
In addition to cost structure of the service provided
problem, or get permission to take these steps for
by counselors, HUD also has specific rules about
clients
fee disclosure to clients before providing services.
• Identify resources that might help resolve issues
Counseling agencies must:
• Monitor clients’ progress toward resolving issues
• Recommend additional private or group counseling • Inform clients of the fee structure before providing
sessions. services
• Provide free counseling to those who demonstrate
Some FHA Loan Programs Require they cannot afford the fees
• Set appropriate fees for services provided.
Counseling
You will be required to work with a HUD certified
housing counselor if you are applying for the following How to Find a HUD Housing Counselor
FHA loan programs: If you need help in getting FHA home loans, you can
find a HUD housing counselor anywhere in the country.
• FHA reverse mortgage (HECM) program Feel free to visit HUD’s website to find a certified
• Making Home Affordable program loan modification housing counselor in your local area.
and your back-end DTI is 55 percent or greater.
Most housing counselors work for local or state non-
These FHA home loans carry higher risk for the profit agencies, which receive funding from the federal
lenders, so they require more education on the part government to assist the public with their housing
of the borrower. A HUD housing counselor has been needs. These are typically located in urban centers,
specially trained to provide this education. She will near county offices, or anywhere other public agencies
operate.
The All New
Working with an FHA-Approved Lender for Your Home Loan

FHA loans can’t be found just anywhere. They can only be made through lenders that have passed a rigorous panel
of government tests and certifications.
Such lenders are deemed “HUD approved lenders,” and are allowed to offer their borrowers FHA insured loan
programs.
Why Are Approved FHA Lenders Special? Correspondents are different than mortgage brokers,
To become an approved FHA lender, banks must pass who do not lend money. Rather, mortgage brokers
several rigorous tests to ensure they’re offering the best arrange for their borrower clients to obtain loans from
loan products at competitive prices. HUD approved banks and correspondents.
lenders also certify they do not offer predatory loans or
perform any predatory lending practices.
Where to Find HUD Approved Lenders
To gain approval, the lender must also: There are approved FHA lenders in every state across
• Carry extensive errors and omissions insurance to the country, and they offer loans in almost every city and
protect against fraud and other loan liability local area.
• Display a quality control plan to make sure the loans There are several ways to find a HUD approved lender.
they are originating do not exhibit a high risk of
default • Check online: You can check databases online--
• Post a fidelity bond look for lenders that have passed HUD’s rigorous
• Prove they have physical loan offices – they cannot requirements and are allowed to make FHA loans to
operate virtually or just over the phone. any borrower that qualifies.
• Review the HUD website: Additional lenders can also
Put simply, HUD approved lenders are among the be found via HUD’s approved lender list, which is
safest, most reputable lenders to borrow from. They available on their website.
exist to help borrowers obtain the very best loans • Call a housing counselor: Finally, you can call a HUD
possible. housing counselor who can not only help you find an
approved FHA lender in your area, but also fill out the
required paperwork and submit an application for a
Using HUD Approved Correspondents FHA home loan.
In addition to banks and other lending institutions,
a borrower can obtain a loan from a correspondent.
Correspondents make mortgage loans available by
lending their own money or pooling money from several
outside investors.
Most correspondents are smaller lenders who sell their

loans on the secondary market, but retain the right to
service them. These lenders must meet a separate set
of guidelines to become approved by HUD to make FHA
insured loans.

The All New
HUD and FHA Loan Programs in Your State

FHA insured loans are available in every state across the country. The FHA or HUD doesn’t provide the actual loan
dollars--rather, they’re provided by government lending partners, called “approved lenders.”
To obtain an FHA insured loan, you apply directly through the approved lender in your area.
Who Offers FHA Home Loans? For example, if you’re considering a home with a
FHA home loans are offered by several types of purchase price of $500,000, the 3.5 percent down
companies. Some of them include: payment rule only requires you to bring $17,500 to the
closing table in cash. However, that would make the
• Commercial banks and credit unions
resulting mortgage $482,500. If you live in an area where
• Loan correspondents
the maximum loan limit is $417,000, you’d have to
• State agencies and non-profits.
bring an additional $65,500 for a total down payment of
The bulk of FHA insured loans are made through $83,000, or 16.6 percent.
commercial and retail banks in major cities across
the country. Typically, they offer market interest rates,
speedy qualifying and low cost processing. Accessing HUD Housing Assistance
If you want to confirm something a lender told you,
or need to perform research on an approved FHA
Know Your FHA State Limits and lender, you can meet with a HUD housing counselor.
Maximum Loan Amounts Counselors operate at low cost, or no cost, to the
An FHA insured loan is limited to a maximum loan potential borrower, and provide them with knowledge
amount, which varies depending on your location. to better understand the loan process. HUD counselors
Generally, the maximum loan amount for any one FHA can also help a borrower complete an FHA insured loan
home loan is $417,000, though areas with higher priced application and submit it to a list of approved lenders.
real estate--such as Los Angeles, Hawaii, and New York
City--have higher loan limits.
While the FHA insured loan program only requires a

down payment of 3.5 percent, if the amount of money
you need exceeds the local maximum loan limit, you’ll
have to bring the difference to the closing table in
cash, or get part of it as a gift from the seller or a family
member.

The All New
HUD Offers Public Housing Assistance

Public housing assistance was established to provide safe housing for eligible low-income families, the elderly
and people with disabilities. FHA loan programs range from providing funds to help revitalize older, run-down
neighborhoods, to giving public housing renters FHA loans to purchase a new home.
The Good Neighbor Program, in particular, has become very popular among FHA loan programs. This program
allows the public to obtain low-cost, affordable housing in areas that have been designated for revitalization.
The Good Neighbor Program These FHA loans can also be combined with other
This FHA loan program’s goal is to encourage FHA insured loan programs, such as the 203(k) loan.
professional people to own and maintain homes in This FHA loan allows the borrower to finance home
areas that need revitalization. To do this, they offer improvements necessary to make the property safe and
HUD owned single family homes to eligible participants habitable.
at a discount of up to 50 percent, and with a down
payment of only $100. For example, a HUD owned
home appraised at $100,000 can be purchased for only HUD Eligible Homes for FHA Loans
$50,000 with FHA loans. Not all homes are eligible for the Good Neighbor
Next Door program. Approved homes are available in
Congress designated revitalization areas. These homes
The Good Neighbor Program Eligibility can be accessed through HUD-approved brokers and
To be eligible to participate in the FHA’s Good Neighbor real estate agents. You can consult HUD’s website to
program, you must be one of the following: find HUD-approved homes for sale and revitalization
areas.
• Firefighter or emergency medical technician: Those
who are employed in these fields full-time by a fire
department, medical responder unit of the federal How FHA’s Good Neighbor Program
government, state, local city or an Indian tribe.
Works
• Law enforcement officer: Those who are sworn to
When you find a home you’d like to purchase with an
uphold and make arrests for violations of federal,
FHA loan, you contact the agent listed along with the
state, tribal, county, township or municipal laws. Can
property information and submit a bid for full price.
be a police officer, sheriff, FBI agent, or one of many
The accepted bid then receives a discount of up to 50
other types of law enforcement officials.
percent of the purchase price. That discounted amount
• Teacher: Those who are employed full-time by
is made in the form of a silent second mortgage. No
a state-accredited public or private school with
payments are necessary, as long as the buyer lives in
students in grades pre-K through 12.
the home for a full 36 months.
The eligible buyer must also agree to live in the home
If a borrower leaves before the 36 months are up, or
as their personal residence for a full 36 months.
stops working as an eligible employee, she may be
Participants don’t need to be first-time buyers in order
responsible for paying HUD back on the discount she
to be eligible for the Good Neighbor program.
received.

The All New
How to Protect Yourself Against Predatory Loans

Predatory lending happens when a bank or lender offers a loan at an inflated interest rate, charges extra fees that
they should not charge, or convinces a borrower to take more money on their loan than they can afford. Keep
reading to learn about predatory loans, anti-predatory lending legislation, and where to find predatory lending help.
If you’re a beginner at home lending, it may be hard to Signs of Predatory Loans and Subprime
identify subprime lending practices. Predatory loans Lending
usually: There are tell-tale signs of predatory lending practices.
• Charge extra fees or false products and services Some of them include:
• Charge high interest rates due to race or origin, and • A lender tells you that they are your only chance of
not credit history getting a loan, and discourage comparison shopping.
• Aren’t reasonable for your credit or financial risk • The cost or loan terms at closing are not what you
• Pressure you to accept risky loans, interest-only agreed to
payments, and high pre-payment penalties. • You’re asked to sign loan documents that are blank
or contain false information.
How Predatory Loans Can Hurt You
Predatory loans hurt everyone involved in the process, Anti Predatory Lending Policy
and most importantly the borrower. Most times, There are anti predatory lending policies in act to
subprime lending mainly causes financial damage. For protect you against subprime lending. The real estate
instance, a disreputable appraiser may tell a buyer that settlement procedures act (RESPA) requires that all
a home is worth more than it really is. That buyer then lenders give borrowers a good faith estimate. This
overbids on a property, only to find out after they move document, also known as the settlement statement
in that the property is not worth that much. or HUD-1, contains all loan terms and fees in an easy
Some victims of subprime lending have been stripped of to read statement. In order to protect yourself against
their home equity, while others have seen their monthly predatory loans, review this document before you sign
payments go up dramatically to the point where they any loan documents. If you don’t receive a HUD-1, you
can no longer afford them. Predatory loans can even might be a victim of subprime lending.
cause borrowers to lose their homes to foreclosure.
Where to Get Predatory Lending Help
You may have been party to a subprime lending
transaction, or know someone who needs predatory
lending help. If you’ve fallen for predatory loans, you’re
encouraged to call a HUD housing counselor or the
Federal Trade Commission for assistance.

The All New
We hope you enjoyed this guide authored by Craig Grella, compliments of LendingTree.com. Craig Grella
specializes in business, finance, and real estate topics. He has held positions with several national banks
and lending institutions, and has worked with and consulted for small businesses, non-profits, government
municipalities, and Fortune 500 firms alike.
Thanks for trusting LendingTree to help you find a loan. We put you in control of your loan by asking lenders
to compete for your business. Comparing real loan offers from different lenders just makes sense. Just like
you comparison shop for other large purchases, smart consumers know a loan is no different. Except at
LendingTree, we do all the work, and you reap the benefits.
WHY IS LENDINGTREE BETTER?

• Low rates: Up to four offers that could lower your
monthly payments.
• Personal service: 24/7 customer service and online tools to help you make a smart borrowing decision. Our
Customer Care Consultants will help you understand your options, and help you select the best loan for you.
• Our Network: Our Lender Network has more than 200 lenders. Some are household names, while others are
smaller, with regional, product or customer segment specialties that may make them ideal for you.
• Trust: Join the 20 million people who started their search for a better loan through LendingTree.
Connect with us:

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Contact us:
1-800-555-TREE (8733)
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The All New
Additional sources of information:
IRS website:
www.irs.gov
The Federal Reserve Board:

http://www.federalreserve.gov/consumerinfo
Federal Citizen Information Center:

www.pueblo.gsa.gov
Department of Housing and Urban Development:

www.hud.gov
Center for Responsible Lending:

www.responsiblelending.org
DOCUMENT INFORMATION
This material has been prepared by Craig Grella. The opinions contained within this document (which are subject
to change without notice) are those of the author and may not represent LendingTree’s (or its affiliates) views on
the market. LendingTree (and its affiliates) issue publications from time to time for informational, educational and
promotional purposes only. The data and analysis presented are based upon information obtained from sources that
we consider reliable and any mention of levels or prices are indications only and do not represent firm market levels.
Changes in market conditions since the issuance of this document may affect some or all of the levels and prices
listed. We make no warranties, express or implied, regarding the accuracy or completeness of any information,
analysis, or opinions presented. No part of any LendingTree publication may be reproduced in any manner without
the written permission of LendingTree, LLC. LendingTree (and its affiliates), its employees, agents, and contractors
are not registered investment advisors, financial advisors, or broker dealers, and they are not acting in a fiduciary
capacity. The information contained in this document does not constitute a recommendation, offer to sell, or
solicitation of an offer to purchase any particular investments or products, including without limitation securities
of any companies discussed, and it should not be construed or relied on as such. It is the reader’s responsibility
to evaluate the suitability, risks, and merits of any investment, funding strategy, or business proposal presented
in this publication. Products mentioned in this document may not be eligible for sale in some states or countries,
nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely
affected by exchange rates, interest rates or other factors.


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Guide to FHA/HUD Loans

The All New

Copyright © 2009 • LendingTree • All Rights Reserved

FHA Home Loan Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Copyright © 2009 LendingTree. All rights reserved.

FHA Home Loan Basics

Copyright © 2009 LendingTree. All rights reserved.

Qualifying for a FHA Insured Loan

Copyright © 2009 LendingTree. All rights reserved.

Mortgages Offered Through FHA Loan Programs

FHA Home Purchase Loans FHA Disaster Loans

Make a Home Purchase with a FHA Purchase Loan

Where to Find FHA Home Purchase

Copyright © 2009 LendingTree. All rights reserved.

What is a Disaster Recovery Loan?

Copyright © 2009 LendingTree. All rights reserved.

Use a FHA Rehabilitation Loans to Purchase or Refinance a Home

• Adding handicap accessible features

Copyright © 2009 LendingTree. All rights reserved.

Energy Efficient Mortgages through FHA Loan Programs

Qualifying for the Energy Efficient Energy Efficient Mortgage Program

Copyright © 2009 LendingTree. All rights reserved.

Home Equity Conversion Mortgage Basics

• HUD-approved condominiums Advantages of the FHA Loan Program’s

• Line of credit allows the borrower to make Other Program Requirements

Copyright © 2009 LendingTree. All rights reserved.

Section 248 Loans For Homes on an Indian Reservation

Eligibility for Section 248 Loans Indian Reservation/Tribe Participation

Copyright © 2009 LendingTree. All rights reserved.

Improve your Home with a Title 1 Loan

Title 1 Home Improvement Loan FHA Conditions of Title One Loans

• Manufactured home (personal property): $7,500

Fixer Upper Loans for The Handyman Special Home

Some of the ways you can find a fixer upper are:

• Attending bankruptcy and foreclosure sales and auctions

Copyright © 2009 LendingTree. All rights reserved.

Streamline Refinance Programs from the FHA

The Streamline Refinance The Streamlined K Loan Program

The streamline refinance program is basically a

You may need to make repairs to your home, and you

Copyright © 2009 LendingTree. All rights reserved.

Common FHA Home Loan Myths

Copyright © 2009 LendingTree. All rights reserved.

Avoiding FHA Loan Scams: What to Watch Out For

All reputable lenders use the HUD-1 form in their loan

1. Always ask for references from real estate agents

Copyright © 2009 LendingTree. All rights reserved.

What Does an FHA Certified Housing Counselor Do?

• Buying a home • Dealing with defaults • Handling foreclosures

• Assist clients in filling out and submitting loan • Pre-purchase consulting

Working with an FHA-Approved Lender for Your Home Loan

Most correspondents are smaller lenders who sell their

Copyright © 2009 LendingTree. All rights reserved.

HUD and FHA Loan Programs in Your State

While the FHA insured loan program only requires a

Copyright © 2009 LendingTree. All rights reserved.

HUD Offers Public Housing Assistance

Copyright © 2009 LendingTree. All rights reserved.

How to Protect Yourself Against Predatory Loans

Copyright © 2009 LendingTree. All rights reserved.

WHY IS LENDINGTREE BETTER?

Connect with us:

Copyright © 2009 LendingTree. All rights reserved.

Additional sources of information: