Monthly Archives: April 2014

The FHA home loan Process Four easy steps to your FHA loan!

The FHA home loan Process Four easy steps to your FHA loan!

1. Applying for an FHA home loan.

Applying for an FHA home loan through is simpler than ever before. We have combined the speed and ease of the Internet with the hands on approach that our FHA home loan applicants have come to expect. Once you apply online for an FHA home loan, you are entered into our database where your FHA home loan is processed. Within 24 hours, your assigned FHA home loan officer will contact you, via e-mail or phone, to schedule your interview.

2. The FHA home loan Interview

During your FHA home loan interview your FHA home loan officer will go through your FHA home loan application to determine your eligibility. If you are unable to be pre-qualified at the time of application, your FHA home loan officer will offer you advice on how to improve your credit situation so that you may become eligible within weeks time. Within 20 minutes you will know the determination of your FHA home loan application! The FHA home loan telephone interview also serves as an excellent opportunity to get acquainted with your FHA home loan officer. Your FHA home loan officer plays an important role throughout the FHA home loan process. Good communication with your FHA home loan officer will increase your chances of FHA home loan pre-approval and speed the processing of your FHA home loan!

3. FHA FHA home loan Processing

The processing of an FHA home loan involves the gathering of documents to verify all information inputted in your FHA home loan application. This includes, but is not limited to; W2’s, paystubs, credit report, bank statements, etc. When your FHA home loan pre-qualification is sent to you (after your interview) it will include a checklist that is specific to your file. This checklist will state all the items that you must submit to your FHA home loan officer in order to receive your FHA home loan commitment!

4. Closing your FHA home loan

The closing is the “end of the line” in obtaining a FHA home loan. At the closing you will sign all FHA home loan documents and take possession of your new home. If you are refinancing, you will not take possession of a new home, but you will get a lower interest rate, cash out, or both!

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FHA loans make it Easy to buy a Florida home.

FHA loans have been helping Florida homebuyers become homeowners since 1934. How does FHA help? The Federal Housing Administration (FHA) – which is part of (HUD), provides mortgage insurance to insure private lenders against loss. The mortgage insurance allows private Florida lenders to lend up to 97% of the purchase price and allows financing with No Minimum credit score requirement for Florida homebuyers.

Easy Qualification – The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA loans with terms that make it easier for you to qualify.

Minimal Down payment RequirementsFHA loan can work with as little as 3% down and those funds can come from a family, grant , or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that there are many Florida down payment assistance programs to help you with the down payment.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage loan lates get approved every day for FHA loans to buy or Refinance homes in. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the Florida borrower.

Safeguards for Borrowers Who Get Behind – FHA loans also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA loan.

Options for Manufactured Housing – Under certain conditions, you can even secure an FHA loan for a Mobile Home or manufactured home using a Florida FHA mortgage loan.

FHA Loans Are Fully Assumable – When you are ready to sell your Miami home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.

Serving These Fine Florida Communities:

Arcadia :: Boca Raton :: Boynton Beach :: Bradenton :: Brandon :: Cape Coral :: Clearwater :: Clewiston, Crestview :: Daytona Beach :: Deerfield Beach :: Deland :: Delray Beach :: Deltona :: Destin :: Englewood, Fort Pierce :: Ft. Lauderdale :: Ft. Myers :: Ft. Walton Beach :: Gainesville :: Hollywood :: Homosassa Springs, Jacksonville :: Key West :: Kissimmee :: Lake City :: Lakeland :: Lynn Haven :: Marathon :: Marco Island, Melbourne :: Miami :: Miami Beach :: North Fort Myers :: North Miami Beach :: Naples :: Ocala :: Okeechobee, Orlando :: Ormond Beach :: Osprey :: Palatka :: Palm Bay :: Palm Beach :: Palm Coast :: Panama City :: Pensacola,  Pompano Beach :: Port St. Lucie :: Punta Gorda :: Santa Rosa :: Sarasota :: Sebastian :: Sebring :: Springhill, St. Augustine :: St. Petersburg :: Tallahassee :: Tampa :: The Villages :: Titusville :: Venice :: Vero Beach, Wauchula :: Wesley Chapel :: West Palm Beach :: Winter Park

Answers to Mortgage Questions

Whether Refinancing or Buying, We
Deliver Good Answers to Great Questions!

Shopping for Bad Credit Personal Loans Online

Acquiring a bad credit personal loan is an option for people with less-than-perfect credit scores to get the financing aid they need without difficulty. Since a high credit rating is often a requirement sought by regular loan lenders, those with poor credit can still get the loan they need by getting bad credit loans.

The said loans are also known as guaranteed approval loans because these loans grant approval for anyone regardless of their credit standing. Guaranteed loans are also easily available online. All one has to do is fill up an online application form, submit it from the lender’s website, and wait for an approval. Because of its convenience, most people prefer to get this loan rather than go through the processes of a standard loan.

If you’re planning on getting a guaranteed approval loan yourself, consider your options first. Do you really need the cash in a hurry? Or is it possible for you to work on improving your credit rating by keeping up with your payments on time? It’s important to note that poor credit loans are designed as a short term help, never as a long term financial solution.

Why are Bad Credit loans only good for short term financing?

Because these loans are accompanied with high interest rates, they are designed to be a short term financial solution. Yes, compared to standard loans, bad credit loans charge higher interest to protect the lenders. To make up for the high risk, creditors impose high rates and more strict repayment terms.

Bad credit personal loans also come in various types or categories. Some lenders may require collateral as security for type of loan. In this case, the guaranteed approval loan can be considered as similar to a home equity loan, in the sense that the borrower puts his property on the line. In case he fails to submit payments on time or is forced to default on his debts, the lender has the right to take away his property.

Another type of bad credit personal loan do not require collateral. Usually, these loans are limited to just small amounts. Nevertheless, a borrower will be required to present a proof of a stable income and a checking account. The amount of loan that will be given will depend on how much the borrower earns from his monthly salary.

Obviously, bad credit loans that do not require a collateral or security from a borrower would impose higher interest rates. If you want to stay away from loans that put your property on the line, be prepared to shoulder more expensive interest. For this reason, those who seek bad credit personal loans are advised to consider the matter of borrowing seriously.

If you feel that this loan is the best option for your current financial need, make sure that you can take on your repayment responsibility. Remember, failing to submit your due payments on time can only cause your debt problems to worsen. Before seeking a guaranteed personal loan, be aware of all terms and conditions you’ll be bound to.

Florida Mortgage, $8000 Tax Credit


Frequently Asked Questions
 In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home.  The credit was designed as a mechanism to decrease the over-supply of homes for sale. 
For 2009, Congress has increased the credit to $8000 and made several additional improvements.  This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. 
Tax Credits — The Basics
1.       What’s this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers.  Any home that is purchased for $80,000 or more qualifies for the full $8000 amount.  If the house costs less than $80,000, the credit will be 10% of the cost.  Thus, if an individual purchased a home for $75,000, the credit would be $7500.    It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. 
2.       Who is eligible?
Only first-time homebuyers are eligible.  A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3.       How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar.  Credits are claimed on an individual’s income tax return.  Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due.  Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill.  So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due.    ($9,500 – $8000 = $1500)
4.       So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what’s called “refundable” credit.  Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000.  The refundable amount is the difference between $8000 credit amount and the amount of tax liability.  ($8000 – $6000 = $2000)  Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.  
5.       How does withholding affect my tax credit and my refund?
A few examples are provided at the end of this document.  There are several steps in this calculation, but most income tax software programs are equipped to make that determination.
6.      Is there an income restriction?
Yes.  The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return.  Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000.  Married couples who file a Joint return may have income of no more than $150,000. 
7.       How is my “income” determined?
For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return.  AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements.  AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.
8.       What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US.  Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI).  Their eligibility for the credit will be based on their MAGI.
9.       Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always.  The credit phases-out between $75,000 – $95,000 for singles  and $150,000 – $170,000 for married filing joint.  The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be.  The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return). 
For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:
 Couple’s income    $165,000
Income limit          150,000
 Excess income                     $15,000
The excess income amount ($15,000 in this example) is used to form a fraction.  The numerator of the fraction is the excess income amount ($15,000).   The denominator is $20,000 (specified by the statute).
In this example, the disallowed portion of the credit is 75% of $8000, or $6000
($15,000/$20,000 = 75% x $8000 = $6000) 
Stated another way, only 25% of the credit amount would be allowed.
 In this example, the allowable credit would be $2000 (25% x $8000 = $2000)
10.   What’s the definition of “principal residence?”
Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%).  It is also defined as “owner-occupied” housing.  The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling.  Even some houseboats or manufactured homes count as principal residences. 
11.    Are there restrictions on the location of the property?
Yes.  The home must be located in the United States.   Property located outside the US is not eligible for the credit.
12.   Are there restrictions related to the financing for the mortgage on the property?
In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit.  Congress eliminated the financing restriction that applied in 2008.  (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.)  Now, mortgage-revenue bond financing will not disqualify an otherwise-eligible purchaser.  (Mortgage revenue bonds are tax-exempt bonds issued by a state housing agency.  Proceeds from the bonds must be used for below market loans to qualified buyers.)
13.   Do I have to repay the 2009 tax credit? 
NO.   There is no repayment for 2009 tax credits. 
14.   Do 2008 purchasers still have to repay their tax credit?
YES.  The $7500 credit in 2008 was more like an interest-free loan.  All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return. 
Some Practical Questions
15.   How do I apply for the credit?
There is no pre-purchase authorization, application or similar approval process.   All eligible purchasers simply claim the credit on their IRS Form 1040 tax return.  The credit will be reflected on a new Form 5405 that will be attached to the 1040.  Form 5405 can be found at
16.  So I can’t use the credit amount as part of my downpayment?
No.  Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction. 
17.  So there’s no way to get any cash flow benefits before I file my tax return?
Yes, there is.  Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments.  Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer.  In many cases their withholding would decrease and their take-home pay would increase.  Those who make estimated tax payments would make similar adjustments.
Some “Real World” Examples
18.  What if I purchase later this year but can’t get to settlement before December 1?
The credit is available for purchases before December 1, 2009.  A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser.  Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.
19.   I haven’t even filed my 2008 tax return yet.  If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process.  Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008.  Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009.  They actually have three filing options. 
·         If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.
·         They can extend their 2008 income-tax filing until as late as October 15, 2009.  (The IRS grants automatic extensions, but the taxpayer must file for the extension.  See for instructions on how to obtain an extension.)
·          If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X.  (Form 1040X is available at 
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return.  Their 2009 tax return is due on April 15, 2010.
20.   I purchased my home in early 2009 before the stimulus bill was enacted.  I claimed a $7500 tax credit on my 2008 return as prior law had permitted.  Am I restricted to just a $7500 credit?
No, you would qualify for the $8000 credit.  Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year.   This amended return will enable them to obtain the additional $500 credit amount.
21.   If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?
No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.
22.   I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return.  My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in.   Will he qualify for the $8000 credit, as well?
No.  Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit.  Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first-time homebuyer. 
23.   I live in the District of Columbia.   If I qualify as a first-time homebuyer, can I use both the $5000 DC credit and the $8000 credit?
No; double dipping is not allowed.  You would be eligible for only the $8000 credit.  This will be an advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.
24.   I know there is no repayment requirement for the $8000 credit.  Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government.  If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it.  A few exceptions apply.   (See below, #24).  Note that this same 3-year recapture rule applies, as well, to the $7500 credit available for 2008.  This provision is designed as an anti-flipping rule.
25.  What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances.  If the homeowner who used the credit dies within the first three years of ownership, there is no recapture.  Special rules make adjustments for people who sell homes as part of a divorce settlement, as well.  Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.
26.   I have a home under construction.  Am I eligible for the credit?
Yes, so long as you actually occupy the home before December 1, 2009.
Note:  The impact of estimated tax payments would be the same.
Situation 1:  Sally plans her withholding so that her withholding is as close as possible to what she anticipates as her income tax liability for the year.  When she fills out her 1040, her liability is $6000.  She has had $6000 withheld from her paycheck.  She also qualifies for the $8000 homebuyer credit. 
Result:  Sally’s withholding satisfies her tax liability and reduces it to zero.  She will receive a refund of the full $8000.
Situation 2:  Nick and Nora file a joint return.  Nick is self-employed and makes estimated payments; Nora has taxes withheld from her salary.  When they compute their taxes, their combined withholding and estimated tax payments are $11,000.  Their income tax liability is $9800.  They also qualified as first-time homebuyers and are eligible for the $8000 refundable tax credit. 
Result:  Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 – $9800 = $1200).  Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit = $9200)
Situation 3:  Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return.  When they file their income tax return, their combined withholding is $5000.  However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 – $5000).  They also qualify for the $8000 first-time homebuyer tax credit.
Result:  Cesar and LuzMaria have been under-withheld by $2200.  Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties).  Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability.  In addition, they will receive an income tax refund of $5800 ($8000 – $2200 = $5800).  If they owed penalties and/or interest, that amount would reduce the refund.

Thomas W. Martin

1st Continental Mortgage 

FHA in AL, CA, FL, IN, KY, LA, MD, MS, MO, NM, PA, TN & TX.

Licensed in Alabama, Florida, California, Colorado, Indiana, Louisiana, Maryland, Minnesota, Missouri, Mississippi, New Mexico, Pennsylvania,  Tennessee, Texas.