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Services
Tucson, Arizona
520-318-5605
5151 E. Broadway Blvd., Suite 1600
Tucson, AZ 85711

Services

FHA Lending

FHA began as a program to allow people who wanted to get into homes, but were unable to save the 20% down payment required at the time to purchase homes. It offered a guarantee to the lenders that if the lender had to foreclose on the home, the mortgage insurance would offset some of the lender’s losses. It has worked wonderfully over the years and conventional loans then copied the program when Mortgage Insurance companies came into existence. A great place to find out more about FHA is on their website: U.S. Department of Housing and Urban Development (HUD).

We have been doing FHA loans since the 1970s and are well versed in the correct way to proceed. This is your largest purchase most people will make in their lives and don’t feel that anyone should be able to counsel you on your decisions.

FHA Streamline Refinance

FHA has permitted streamline refinances on insured mortgages since the early 1980s. The “streamline” refers only to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean there are no costs involved in the transaction.

The basic requirements of a streamline refinance are:

    • The mortgage to be refinanced must already be FHA insured
    • The mortgage to be refinanced should be current (not delinquent)
    • The refinance is to result in a lowering of the borrower’s monthly principal and interest payments
    • No cash may be taken out on mortgages refinanced using the streamline refinance process

We offer streamline refinances in several ways. We offer regular refinances where you, the borrower, pay for your closing costs at the title company.

We offer “no cost” refinances by charging a higher rate of interest on the new loan than if you paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction. You still pay the prepaid and impound expenses at closing and then you skip one month house payment, then within the month, you receive your impounds back from your current lender.

We offer streamline refinances and include the closing costs in the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the current loan amount. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal.

Your Way Home

This program allows the borrower to qualify for and receive a 22% second mortgage for the purchase of a foreclosed home and if they live in that home for over 5 years (or up to 10 years, depending on the loan amount), that loan will be forgiven entirely. We choose to offer this home loan to our borrowers who qualify for it as it is an excellent chance to purchase a vacant foreclosed home, thus increasing the entire value of the neighborhood. There are many, many qualification restrictions, so please call us or email us for more information. You can find more information about this program on Your Way Home’s website, but please come back to us to learn more.

Reverse Mortgages

  1. What is a reverse mortgage? A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.FHA’s Home Equity Conversion Mortgage (HECM) provides these benefits. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

  2. Can I qualify for FHA’s HECM reverse mortgage? To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are further required to receive consumer information from an approved HECM counselor prior to obtaining the loan.

  3. Can I apply if I didn’t buy my present house with FHA mortgage insurance? Yes. It doesn’t matter if you didn’t buy it with an FHA-insured mortgage. Your new FHA HECM will be FHA-insured.

  4. What types of homes are eligible? To be eligible for the FHA HECM, your home must be a single family home or a 1-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

  5. What is the difference between a reverse mortgage and a bank home equity loan? With a traditional second mortgage or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income.The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities. With an FHA HECM you cannot be foreclosed or forced to vacate your house because you missed your mortgage payment.

  6. Can the lender take my home away if I outlive the loan? No. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than the value of your home at the time you or your heirs sell the home. The loan is due and payable 6 months after the final borrower has moved out of the home.

  7. Will I still have an estate that I can leave to my heirs? When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

  8. How much money can I get from my home? The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You can use an online calculator like the one on the AARP website to get an idea of what you may be able to borrow.

  9. How do I receive my payments? You have five options:
    • Tenure — Equal monthly payments as long as at least one borrower lives and continue to occupy the property as a principal residence
    • Term — Equal monthly payments for a fixed period of months selected
    • Line of Credit — Unscheduled payments or installments, at times and in amounts of your choosing until the line of credit is exhausted
    • Modified Tenure — Combination of line of credit with monthly payments for as long as you remain in the home
    • Modified Term — Combination of line of credit plus monthly payments for a fixed period of months selected by the borrower