# FHA/Hud loans



## Maggie (Nov 5, 2010)

Has anyone used these type of loans for financing a new home? Any helpful suggestions? We are trying to find and purchase our first home and I just feel so lost!


----------



## mjgh06 (Sep 4, 2012)

Our first home was an FHA home. It is best to get a real estate agent and explain you are looking into FHA/Hud financing. They get those listings fast and research for you. Both loans have certain restrictions/requirements that must be met outside of a traditional loan. I prefer them because of the strict inspections that you get versus traditional where you don't have to have all that. They will require the house to basically be up to or above code on everything, where a traditional loan doesn't really care what you buy. There's also an allowance built in for remodeling/repairs.

Start here http://portal.hud.gov/hudportal/HUD?src=/buying/loans
and then go here to find local lenders http://www.hud.gov/ll/code/llslcrit.cfm
They are also a great resource because they know the ins and outs of the loan process.


----------



## Maggie (Nov 5, 2010)

So not every property would qualify for a hud loan then?


----------



## ksalvagno (Oct 6, 2009)

I can't remember all the rules. A home would have to pass the home inspection and whatever fixes have to be made, the homeowner would either have to fix or say no and you won't be able to buy that home.

I would go in to the bank you want to use and talk to a mortgage specialist. They can tell you what you want to know. Things have changed and there are different types of FHA loans. So you would want to find out what you qualify for and what will give you the best chance of buying the home you want.

We just went through one of those Fannie Mae mortgage/renovation loans. That was a huge pain but the mortgage guy showed us the paperwork for an FHA loan and the stack was at least double the amount of paperwork than our loan. Just to warn you that no matter what it will be a painful process but worth it if you get the home you want.


----------



## Maggie (Nov 5, 2010)

Well what makes it really difficult is that we want to move out of state... and even more difficult is that we are self empoyed.
We talked someone at our own bank and was bascially told we coudn't get a loan. She had told us to look into farm loans.


----------



## ksalvagno (Oct 6, 2009)

That is going to be really tough. 

Our house is up for sale and someone wanted to buy it and her husband works overseas. His work is considered temporary so they couldn't get a loan either.

Banks have gotten so incredibly strict about loaning that a lot more people can't get mortgage loans. 

Look into the small mortgage companies. They may be able to do more for you than the regular banks.

There was a program from USDA that offered home loans on farms. I don't know if that is still going on. Only certain homes qualify for that.


----------



## Maggie (Nov 5, 2010)

Hud loans only require 3.5% down. It would be difficult for us to come up with the traditional 20% ... and move to a new area and re-establish our business all at once.


----------



## ksalvagno (Oct 6, 2009)

Fannie Mae Homepath Renovation loan offers the same but you would have to buy a Fannie Mae foreclosure that is offering that loan.

It sounds like you will have to talk to someone in the mortgage business.


----------



## Maggie (Nov 5, 2010)

Thanks. We have just been pretty much stuck here for the last three years renting part of my husband's grandmother's farm, it just causing a lot of conflict. Its just really time that we have our own place.


----------



## mjgh06 (Sep 4, 2012)

Back when used FHA it was very easy to get a loan through it. It is made for those who can't get another type loan. This was in 2007, so not that long ago. My brother also got one in 2005 and he was self-employed. He just had to provide three years of tax returns. Things may have changed, but I wouldn't think that much. It is still a program for those who need a home loan but can't get one elsewhere. Definitely go to the link I gave you find a FHA approved lender - most regular lenders know nothing about the FHA/Hud process and will just say you won't be approved. Talk to one of the approved lenders or call their 800 number. 

Yes, it is a lot of paperwork. I have done both FHA/Hud and traditional home loans. FHA was almost double the paperwork. But most of it related to inspections. It's really not that hard if you get involved with someone who knows the loan process.


----------



## Maggie (Nov 5, 2010)

We talked to a guy from usda loans and he is going to send us a packet to get started. Haven't heard back from hud.... so I guess we will see. 
I am sooo beyond ready to move right now!


----------



## Maggie (Nov 5, 2010)

Its looking like we won't be getting a loan. Because we are wanting to move to another state and because we are self employed, we need to show a years tax return in that state. So that would mean we would need to either pay cash for a farm... which we aren't that rich lol! Or we need to rent for a year. I looked around for some places to rent, but for the places I have seen for far it would be unreal for the house, barn for horses, goats, plus we have the trucks/trailers/tractors/excavator to store. Most places that have a horse barn say no livestock so there goes the goats.... 
Really discouraging. The woman told us if it was 5 years ago we would have no problem getting the loan, they have just had to change so much because of the amount of people that have defaulted on a loan.


----------

