FHA 203(k) Loans Come as Two Types with Their Own Features The FHA 203(k) loan program solves a difficult problem for first-time home buyers who need a mortgage and a home renovation loan. When buying a home that needs repairs, banks will not grant a mortgage until repairs are complete. But, until you own the home, repairs cannot be made. The FHA 203(k) program is a loan for home renovation combined with an FHA-insured mortgage.…
Private Mortgage Advisors, LLC is a mortgage brokerage firm that is located in Danville, California. This mortgage lending agency was established in 2004. Their loan options include purchase loan and refinance. Their purchase options include conventional financing, Federal Housing Administration loans, FHA 203k loan also known as a rehabilitation loan, fixed-rate loan, Veteran Affairs loans, and adjustable-rate mortgage loan. Private Mortgage Advisors, LLC delivers the highest class of service.…
The FHA followed HOLC and created a housing standards for the allocation of mortgage insurances or loans. FHA favors suburban development rather than the development of industrial areas. Therefore, inequality emerged in housing sphere. Unlike appraisal system of HOLC, FHA's appraisal system depended on the appraisers who measured the quality of residential areas according to eight categories: relative economic stability, protection from adverse influences, freedom from special hazards, adequacy of civic, social, and commercial centers, adequacy of transportation, sufficiency of utilities and conveniences, level of taxes and special assessments, and appeal. “The appraisal system of FHA allowed personal and agency bias in favor of all-white sub-divisions…
Banks or mortgage originators who sold mortgages onto Fannie Mae had to abide by their rules, Fannie Mae prohibited lenders to engage in the practice of red lining.…
81. The William D. Ford Federal Direct Loan program has been a key pillar of the financial aid landscape in higher education. However, the President-elect has made references to privatizing the program, increasing its costs, and returning to a setup that puts students at risk for predatory lending. What assurances will you make to students who are depending on this program to finance their education?…
The Federal Housing Administration (FHA) was created by National Housing Act of 1934. The FHA set standards for mortgages, properties, and buyers and insured loans originated by qualified lenders. While the FHA provided reassurance to mortgage lenders and created liquidity for the housing market, HOLC helped to avert default in the U.S. by refinancing defaulted loans. The Home Owner’s Loan Corporation (HOLC) raised capital by issuing bonds and buying FHA-insured mortgages. Subsequently, the HOLC purchased these toxic financial instruments; they reconstructed mortgages.…
In March 1933, millions of people faced the loss of their homes due to large-scale unemployment and by wage reductions in the Great Depression. Many borrowers were unable to meet mortgage payments resulting in a wave of foreclosures and homelessness. The Home Owners Loan Act of 1933 and the Home Owners' Loan Corporation Act was passed by Congress on June 13, 1933 and created the Federal Home Loan Bank Board (FHLBB). The FHLBB was directed to establish a new federal agency, the Home Owners Loan Corporation (HOLC) to provide emergency relief to lower mortgages, to help stabilize real estate that had depreciated, to stop foreclosures and provide relief for troubled mortgage lenders. Home Owners Loan Corporation Franklin D Roosevelt (FDR) was…
The Federal Housing Administration is a government loan program that grants mortgage companies and provides mortgage insurance on the loans extended by those lenders. If you want to have the foremost safeguard for your mortgage, getting a home loan from an FHA accredited entity can provide you with a certain level of safety. The FHA was founded out of necessity. It sets certain requirements and restrictions that loan providers should conform to eligible for the…
Important Guides on Hiring a Home Inspector Gotcha! Finally you are buying your own house. Choosing house can be costly and stressful. That is why most people who at the same time want to safeguard their hard earned money consider first looking to a home inspector in buying house. Buying a house is a tough responsibility.…
As I walk into the room with my hot cup of coffee, I notice the full circle of chairs with bodies sitting and discussing with intensity the concept of renting versus buying a home. I listen for a while to see exactly what everyone is saying. Majority of the room claim that renting a home is better than actually owning a home for several reasons to include no property taxes, no maintenance problems, and no debt. Essentially they are arguing that it is extremely costly to own a home because when you buy a home you are taking on a massive amount of debt that usually takes anywhere from fifteen to thirty years to pay off. They are stating before you can even move into the house you are required to pay closing cost fees and a twenty percent down…
Habitat for Humanity and Affordable Housing in America Habitat for Humanity is an international organization that provides affordable housing for the underprivileged around the world, and offers aid to the areas that have been affected by disaster. Habitat for Humanity offers the opportunity of affordable homeownership, to those who otherwise would most likely never own a home. Safe and livable housing is becoming less and less affordable in America as decent houses are often built in newer areas (Why Habitat for Humanity is needed, 2014), leaving those who cannot afford to live in said neighborhoods to live in poorer neighborhoods that often extremely unsafe because of the exceedingly high crime rate. The stress placed on low income families…
The Veteran’s Administration needed examination in order to understand the reasoning for the veteran’s medical benefits and housing grant programs. Evaluating to determine what policies influence the military to implement these two resources. The United States military has existed for decades, therefore, there has been many battles where soldiers have been wounded and lost. Somewhere along the military’s journey to independence, the government considered the demand for services to aid military personnel that was experiencing trauma. The Veteran’s Administration System started because of all the veterans coming out of the military disabled, whether physically or mentally.…
The Giant Pool of Money Analysis Every individual in the United States wishes to be a homeowner because owning a home is considered as the ultimate achievement by majority of the population and is a symbol of successful and fulfilling life (Grant, Rick). So in the early 2000s when individuals were provided an extremely easy way of getting a loan and buying a home irrespective of their job and background, majority of them grabbed the opportunity. But, this scheme of simplifying mortgage rules and procedures led to overvaluation of mortgages based on an assumption that housing prices will continue to escalate led to the financial crisis of 2008 (Blumberg and Davidson). One of the biggest issue during crisis was that the decisions made around…
The sequential process often results in product misalignment. Sequential process is a traditional approach where processes are done in stages or steps shown in the figure below. Product misalignment occurs when problems occur during the new product development (i.e. the manufacturing department cannot make what the engineering department specifies due to technology limitations.) The concurrent process shows a simultaneous development process where all functions of the marketing, engineering and operations are involved from beginning to the final stage of product launch.…
1. Brand equity Brand leadership One of the FNB’s core value proposition of entrenching their competitive advantage and increasing their market share has been through their brand appeal together with the experience consistency for its customers as well as the prospective customers. According to Aaker & Joachimsthaler (2012), brand equity is an asset that forms a basis for competitive leadership in the long run. The unique resource base of an organization has a direct influence on its strategy and competitive advantage thereto. Marketing of the brand by the bank therefore plays a critical role.…