Fha Loans News for March 9th, 2014
Are FHA loans abusive with low-income Americans?
Buyers need to be able to provide a sizable down payment and have a good credit score to qualify for most conventional loans. Not all hopeful homebuyers meet these qualifications, and that's where FHA loans come in to save the day. However some critics …
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California Mortgage Rates for March 9th, 2014
REAL ESTATE: FHA loan limit falls to 5350 in '14
The maximum Federal Housing Administration-conforming loan limit for homebuyers in Riverside and San Bernardino counties will fall 29 percent from $ 500,000 to $ 355,350, a reduction of $ 144,650. “Anything that's in escrow as a pre-qualified loan will …
Read more on Press-Enterprise
Question by d r: How to get FHA loan if property tax already payed for the next year?
I have already payed all of my property tax for 2010, but I understand that FHA loans will charge property tax with each payment. If i get an FHA loan do i risk having to pay property tax twice for 2010?
Answer by Mike
You won’t pay property taxes twice.
When you finance your home and property taxes are placed in escrow, a check will be made for the property taxes paid or owed. From that, they will calculate whether you need to make a deposit in the escrow account and the amount that will need to be withheld for the next property taxes.
Even though you already paid this years taxes, the escrow account must have regular monthly payments in advance to pay your next years taxes.
As an example, in California 1/2 of the property taxes are due December 10th and the other 1/2 is due by April 10th. If a person has already made the December 10th payment, the other half is due in 4 months. Therefore about 2 months will required at closing for the escrow account and another 4 payments will be paid monthly with your mortgage payment so there will be enough in the escrow account to make the next property tax payment.
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