New Hampshire FHA Loan
If you are thinking of buying a home or if you are a first time home buyer in New Hampshire then your most feasible option will be loans offered by FHA. Before we move forward, let's take a quick look at some of the census data accumulated from the year 2000. There were 547,024 housing units in New Hampshire in 2000 as compared to 503,904 in 1990, which is an increase of 8.6%. Out of these there were 303,785 located in the urban area and 243,239 located in the rural area. The homeownership rate in New Hampshire is about 69.7% as of today and the vacancy rate including seasonal lodging stands at about 13.2%. The average household size in New Hampshire is 2.53 people and most of the houses, apartments and condos were built after 1972.
The FHA offers various loan programs and one such program is the Energy Efficient Mortgages Program (EEM) offered by the New Hampshire Mortgage lender, which will help home buyers or homeowners to save money on their utility bills. The EEM program will also enable home buyers to finance the cost of adding energy-efficiency features to their new homes as part of their New Hampshire FHA insured home purchase.
The FHA New Hampshire program seeks to reduce pollution and provide better housing for people especially those who couldn't afford a home till now. EEM is one of many New Hampshire FHA loan programs, which will insure that mortgage loans are made available to new home buyers and will thus encourage a New Hampshire mortgage lender to make mortgage credit available to borrowers who wouldn't have a chance of qualifying otherwise on who will not qualify for a conventional loan. A New Hampshire mortgage company can also use an EEM with the FHA Section 203(k) rehabilitation program too to offer more financial strength to new home buyers.
- 1. The important thing now is how a new home buyer can be eligible for an EEM. According to the eligibility criteria, all the new home-buyers need to meet the income requirements for FHA's standard Section 203(b) insurance.
- 2. The new home buyers will be eligible for this New Hampshire FHA home loan is they are capable of paying the monthly mortgage payments.
- 3. The cost of the energy improvements and an estimate of the savings have to be calculated using a home energy rating system (HERS). A cost of up to $200 can be included in the FHA mortgage for New Hampshire.
- 4. Cooperative units are not eligible for the EEM
- 5. Individual condominium units can be insured but they have to be approved by the New Hampshire FHA or the Department of Veterans Affairs first.
- 6. You can use the EEM to make energy efficient improvements in one or two unit homes only both existent and new.
- 7. These improvements will be included in a borrower's mortgage only if the total cost is less than the total dollar value of the energy saved during their useful life.
Apart from the EEM, FHA New Hampshire offers some other attractive plans for new home buyers. One of the reasons why FHA loans are attractive is because the down payment requirements are as low as 3.5% only. Of course whether you are a first time home-buyer or an existing homeowner, if you meet the FHA criteria then you can take out a FHA home loan in New Hampshire. The only stipulation that is there states that you can have only one FHA loan at a time.
Working of a FHA Loan
The FHA never as a thumb rule lends to a home buyer. As a home buyer you will have to get the FHA loan through a mortgage lender in New Hampshire. All that FHA does is that it insures that the total mortgage will be paid back to the lender if the buyer defaults. Since the risk is taken care of by FHA, it is easier for a mortgage company in New Hampshire to lend out to new home buyers with ease.
The New Hampshire FHA loan program is more flexible than any conventional loan especially in terms of past credit history. Even if you have been discharged from a bankruptcy case two years back then also you will be eligible for a FHA mortgage in New Hampshire.