Ok, so here's the deal.
We might be buying a condo (and thought I'd ask since I saw someone post about the rent-to-own). And since hubby's credit is not so good, the mortgage guy thought it'd be better if I got the loan on my name. Now, he's talking about FHA.

Now, I was not worried at all when he talked about it and it was both of us. But now, if it comes out on just my name. Would this count as receiving benefits from the goverment?

Inputs are welcomed...

Ana

Noooooo, as long as you are talking about Federal Housing Administration, that's not even close to a means tested benefit. All FHA is a government loan backed by securities with such benefits as lower down payment required, etc. There's a limit to the price of house you can buy, and you have to put MIP on it (kind of like mortgage insurance but it works a bit different) unless you have a load to put down. Almost anybody can use this program - my ex and I had one of these loans years ago.

FmHA is Farmers Home Administration. Some of those loans are 'subsidized' - meaning they are intended for low income families and part of the payment is made by the government. I doubt that's what your 'mortgage guy' is talking about. I don't know if that would be means tested or not.

Word of caution - shop around for a 'mortgage guy'. All are not created equal. Watch for more than the rate - watch for closing costs. Unfortunately, in today's world of lending, there's a new kind of creature out there and he's called the 'predatory lender'. He especially loves first time buyers and people with marginal credit.

No FHA loans are not under that category.

What's the definition of a "means tested benefit"?

http://www.visajourney.com/forums/index.php?showtopic=28910

Thanks guys...

And Rebecca... I have talked to a some people, and this 'mortgage' guy seems to be quite honest, as in explaining pros and cons of different types of mortgages, and even discussing closing costs upfront. So far so good, Im keeping my fingers crossed!!

Thanks again for your replies!!

BTW, if I could move your house to Pitts... I'd buy it in a heartbeat. Real Estate sucks, and seldom you see a house in such a good shape as yours.

Ana

The loan we got for our mortgage last April, is mostly through Sujeet because he was the one with the income. We both have good credit, but I wasn't working. Both our names are on the mortgage though.

We used the first time home buyers program that I believe is associated with FHA loans. Everything went very well for us.

Good luck!

Yes. Many states will offer a 'first time buyers' program in conjunction with FHA. You get the lower rate of the state program with the lower down payment benefits of the FHA program. The best of both worlds!

ooooh... keep your fingers crossed!

I dont really know why the guy said it was better to put the loan in my name. But hey, if it'd get me lower rates, I am all for it. I was reading on FHA, and the 'guy' has told us pretty much the basics of it, and the different opportunities we might be able to use. They have the first time buyers, and they also have a program for people that are buying condos (which is our case), and the rate that he has been talking about, even though it's not the lowest, at least it's not like last time when they (other people) were offering us like 8,25% like it was a huge deal.

This will be our first 'real' home, and I am so excited about it, I can hardly wait til this guy calls and tells me what the deal is, and if we're going to be able to make an offer. I know this is certainly not the season to be moving around (winter time) or so Rob says, but I cant wait to move!!...

Ok... time to chill... and pretend I am not so excited...

Oh, go ahead, be excited. It's your first home!! Enjoy!

We got approved!! We got approved!!! Making an offer tonite, and crossing our fingers so it gets accepted!!!!

Hey, very cool! You better tell us what happens next.....

Congrats on your loan, as others said it's just like a regular Loan and it's based on Income, it's not like getting FOOD STAMPS or other social services needs. Just wrote something about another vj asking about school financial aids.

Good luck with the house offer

*scratches head*

FHA isn't based on income. Its only limits are the sales price and loan amount.

FmHA is based on income.

You've confused me.

I agree with you but it might depends on the states.

Here in California we have CALHFA, California housing federal assistance, in conjunction with the bank, they provide Low interest Loan, but it's based on your income, some limit are set

House purchase Price!

Income Limit, some grant are based totally on income limit, I don't know what states the person is, In NY it's SONYMA, California CALHFA, so look around and you'll find lot of help out there.

Back when I bought my condo, I told told I didn't qualify because my salary wasn't low enough and the sale price wasn't low enough.

Ok. Could be a program like Nikita mentions. Which is probably a State bond program.
Generic white-bread FHA has no income limits.

HUD website this is an excellent website if you're planning on getting an FHA loan.

We got a low interest rate by using the first time home buyers program, but there were income levels.

There were 2 types of loans available to first time home buyers, in this state at least. One was where you couldn't make over maybe $28,000-30,000/year (I can't imagine how they'd pay a FL mortgage anymore though! maybe if they have a huge down payment).

The other loan had a higher limit which we just barely didn't go over. We are over it now though since Sujeet started his new job. There are some annoying consequences to taking this kind of loan though, such as, if we sell before 9 years then we have to pay a % of our profit IF we make an abnormally big profit or IF Sujeet's income skyrocketed abnormally. I guess they figure they are giving you such a low interest rate that you owe them if you make too much money on your house or if you are rich. I understand it I guess.

Too bad we are thinking of moving in 2 years.

Well...
Really I dont think this one was based on income, because initially he was planning on using both our incomes. But then, it appeared that we were going to get better rates by applying just in my name (since I had no credit history and good income), than using both mine and Rob's (cause he's credit is not so good). I have not gotten together with the mortgage guy yet, we will meet this weekend, and I will have a whole bunch of questions for him. Though, like I said, it seems pretty straightforward and closing costs arent high.

On the other hand, we made our offer, and we are waiting for the home owner to accept or make a counter offer. So we're still hanging in there. Keep your fingers crossed for us.

Is there anything that you think I should be aware of, to discuss with this guy? Any suggestions are welcomed. This is not the first time Rob's buying a home, but it is my first time ever. So I am kinda nervous, and I just want to make sure I am not making some pretty dumb mistakes.

All help is welcomed!

He will give you a Good Faith Estimate. Just make sure you understand it. It's an estimate of the closing costs you will be expected to pay on day of closing. Read it over carefully and make sure you understand what all the charges are. Don't be afraid to ask questions - it's your money and by law he is supposed to explain to you what all the fees are for. Listen to your gut if you thing some of the charges seem high - don't commit to the loan until you are satisfied you are getting a fair deal.

Also make sure you understand the terms of the loan. As Christina mentioned sometimes there are pre-payment penalties or recapture fees. These are rare - but by the same token not uncommon for first time buyer programs. Here in our state buyers get $2500 down from the state - if they sell the property before a certain period of time (I think it's 7 years) they have to pay part of that money back. In my mind, there's nothing wrong with these type of 'penalties' because generally you've gotten some benefit that you would not have gotten in the conventional market place. Just make sure you understand the program.

Good Luck! It's very exciting. I can't wait for Wes and I to own our own home - something we have chosen together.

That's the thing! It is just so amazing to have something of your own. We have been renting since I got here a year ago, and the first place was furnished (and I hated all the furniture), the place we are now felt pretty good because we had our own furniture and decorations, so it felt more ours. But now, having our own place, and being able to improve or remodel or whatever (not that the place needs to, but if we wanted), its just great...

Still we haven't heard from the home owner... but I am sure we will.

Thanks for your help, I will write down all my questions and make sure I understand all the closing costs...

Ana !!!!!!!!!!!!!

Congratulations !!!!!!!!!!!!!!!!!!!!!!!


Ana

Here are some link for more infor regarding FHA loans
What is an FHA Loan?
Home ownership rates in America continue to increase at a steady rate due in a large part to the implementation of FHA home loans more than seventy years ago. Over the years, FHA has helped Americans gain the financial independence that comes with owning a home. By creating jobs and reasonable mortgage rates for the middle class, financing military housing, and producing housing for the low income and the elderly, FHA has helped Americans become some of the best housed people in the world with over 73 million Americans currently owning their own homes. Statistics show that by 2005, home ownership rates in the US have climbed to 69 percent.

HOW IT WORKS
By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

FHA loans benefit those who would like to purchase a home but haven't been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure.

NUTS AND BOLTS
The most popular FHA home loan is the 203(. This fixed-rate loan often works well for first time home buyers because it allows individuals to finance up to 97 percent of their home loan which helps to keep down payments and closing costs at a minimum. The 203( home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.

Insurance on FHA mortgages are often rolled into the total monthly payment at 0.5 percent of the total loan amount which is roughly half of the price of mortgage insurance on a conventional loan. After five years or when the loan balance reaches 78 percent, the additional mortgage insurance is typically met and therefore drops off the total monthly payment.

GUIDELINES
It is not necessary to meet a minimum income requirement in order to qualify for a FHA loan but debt ratios specific to the state in which the home will be purchased have been put into place to prevent borrowers from getting into a home they cannot afford. This is done through a close analysis of income and monthly expenses.



http://www.fha.com/important_facts.cfm
]
HEre's the breakdown for Pennsylvania

County Name State 1-Family 2-Family 3-Family 4-Family
ADAMS PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
ALLEGHENY PENNSYLVANIA $243,200 $273,920 $332,800 $384,936
ARMSTRONG PENNSYLVANIA $243,200 $273,920 $332,800 $384,936
BEAVER PENNSYLVANIA $243,200 $273,920 $332,800 $384,936
BEDFORD PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
BERKS PENNSYLVANIA $213,750 $256,248 $309,744 $384,936
BLAIR PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
BRADFORD PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
BUCKS PENNSYLVANIA $270,750 $304,950 $370,500 $427,500
BUTLER PENNSYLVANIA $243,200 $273,920 $332,800 $384,936
CAMBRIA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
CAMERON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
CARBON PENNSYLVANIA $280,749 $349,034 $424,060 $489,300
CENTRE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
CHESTER PENNSYLVANIA $270,750 $304,950 $370,500 $427,500
CLARION PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
CLEARFIELD PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
CLINTON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
COLUMBIA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
CRAWFORD PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
CUMBERLAND PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
DAUPHIN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
DELAWARE PENNSYLVANIA $270,750 $304,950 $370,500 $427,500
ELK PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
ERIE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
FAYETTE PENNSYLVANIA $243,200 $273,920 $332,800 $384,936
FOREST PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
FRANKLIN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
FULTON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
GREENE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
HUNTINGDON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
INDIANA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
JEFFERSON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
JUNIATA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
LACKAWANNA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
LANCASTER PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
LAWRENCE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
LEBANON PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
LEHIGH PENNSYLVANIA $280,749 $349,034 $424,060 $489,300
LUZERNE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
LYCOMING PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
MCKEAN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
MERCER PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
MIFFLIN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
MONROE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
MONTGOMERY PENNSYLVANIA $270,750 $304,950 $370,500 $427,500
MONTOUR PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
NORTHAMPTON PENNSYLVANIA $280,749 $349,034 $424,060 $489,300
NORTHUMBERLAND PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
PERRY PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
PHILADELPHIA PENNSYLVANIA $270,750 $304,950 $370,500 $427,500
PIKE PENNSYLVANIA $362,790 $464,449 $561,411 $697,696
POTTER PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
SCHUYLKILL PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
SNYDER PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
SOMERSET PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
SULLIVAN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
SUSQUEHANNA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
TIOGA PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
UNION PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
VENANGO PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
WARREN PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
WASHINGTON PENNSYLVANIA $243,200 $273,920 $332,800 $384,936
WAYNE PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
WESTMORELAND PENNSYLVANIA $243,200 $273,920 $332,800 $384,936
WYOMING PENNSYLVANIA $200,160 $256,248 $309,744 $384,936
YORK PENNSYLVANIA $285,000 $321,000 $390,000 $450,000

http://www.fha.com/lending_limits.cfm

Thanks Ana!...

And thanks for the info Nikita2Charles...

I had read about this a couple of days ago..

Hiya! I know this thread is a bit old, but I also have a question about a home loan that will be in Paul's name only since he's the one with the good credit. We have an 8 hour class next week for down payment assistance, but now I'm starting to wonder if this would be considered receiving benefits from the Government? I'll have to ask before we even go to the class. Anyone ever hear of any programs like this in your area? Thanks!!!

RE: First Time Homebuyer Program







City of Henderson

Neighborhood Services Division

FIRST TIME HOME BUYER PROGRAM



Who is eligible?

The First Time Homebuyer Program was designed by the City of Henderson to assist low-moderate income families in the purchase of a home. The City of Henderson will assist with a 0% interest deferred loan not to exceed 10% for down payment only. In addition, the Program will loan up to 3.5% in closing costs and include extra financing for home repairs. The maximum loan with home repairs shall not exceed $30,000. The Program may be utilized by families who meet the following guidelines:



* Residing or currently employed within Henderson city limits for at least 1 year prior to the time an application is submitted to the City.

* Must make a minimum investment of $750 of their own funds towards the purchase of the home selected and have an additional $750 in reserves. A total of $1,500 must be present in a verifiable account (savings/checking/retirement) for at least two consecutive months.

* Must complete an approved First Time Home Buyer Education Program.

* All proposed properties must be: within Henderson City limits, at or below the FHA maximum mortgage limit of $297,400.00 purchase price (including repairs). The property selected by applicants must be owner-occupied or vacant (minimum six months prior to offer). Homes can be single family detached or attached units, condominiums or townhomes.

* Must have less than $10,000 in assets. (i.e. all bank accounts, CD's, investments, IRA's, stocks etc.)

* Income below 80% of median, adjusted for family size (see table below).



Number of persons in Household and Income Limit (As of February 11, 2005)

1

$33,100


2

$37,800


3

$42,550


4

$47,300

5

$51,050


6

$54,850


7

$58,650


8

$62,400

When is the loan repaid?

The City's First Time Home Buyer Program provides a deferred payment loan which is repaid by the applicant when the property is sold, the title transfers to another person, or the unit ceases to be the primary residence of the applicant. The loan may be repaid at any time. There are no interest charges or monthly payments. The loan is not assumable.

What do I need to do?

All applicants interested in participating in the City's First Time Home Buyer Program must first complete an approved First Time Home Buyer Education Program. To enroll in the next class, contact Housing for Nevada @ 270-0300 or Consumer Credit Counseling @ 364-0344. Upon completion of the education program, an application for assistance may be submitted to the City. Once the application has been processed and the City has verified the applicant’s eligibility, the applicant will be provided further instructions.

It is important to follow these steps in order since the City's Program requires that a determination of eligibility and a property inspection of the proposed property be completed prior to executing a purchase offer for a property. If a potential applicant and/or their realtor executes a purchase offer prior to the City's determination of eligibility and property inspection, the property will not be eligible for assistance through the City's Program.

For further information concerning the City's Program, please contact the City of Henderson Neighborhood Services Division at 267-2000.

EQUAL HOUSING OPPORTUNIT

Hmmm.
Melanie, the only way to know for sure is to ask them! Ask them if the program has been designated as a 'means tested benefit' by your state.

The fact the loan is only going to be granted to your husband is also worthy of mention in this discussion. USC's are not precluded from receiving assistance.

Just wanted to say thanks to Rebecca!

That actually helped a lot! I will ask them when I phone them on Monday.

Melanie

Always good to ask but FHA loans are not mea tested benefit. it's just a way for low income folks to get a house. As long as you meet certain financial critirea.

Can you believe I called a million numbers and NO ONE knows whether it's a "means tested benefit" or not. Every person I talked to says the same thing "What's that?" *sigh*