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February 08, 2008



I just discovered your blog this week and I've really been getting a lot out of it. Thanks for your efforts.

I've been using the HUD search tool at: http://www.hud.gov/ll/code/llplcrit.html to look for approved lenders and I have a question.

What is the difference between Title I and Title II loans?

Thanks again,


Jeff Belonger

Thanks for the compliment. I also have information at www.zeromoneydownbook.com and www.activerain.com/blogs/jeffmortgageman ....

In regards to your question. Title 1 loans are for home improvement loans insured by HUD. http://www.hud.gov/offices/hsg/sfh/title/title-i.cfm

Title II loans is a lender that has a certain net worth that can do manufactured homes also. This gets more technical, but is totally different than what Title 1 means. thanks for your comment and interest.

Can I ask you a question? You said that you are searching for a lender, are you looking to purchase or refinance? And if so, what state do you reside in?

Thanks, jeff



I am looking for a lender as I am planning on purchasing a single family home or duplex to keep as a rental property. It will be my first renal property. As I am new at this, I am working hard to learn up front in an attempt to avoid any significant mistakes or misjudgments.

I am in Kansas, in the Kansas City metro area. I am looking in Johnson and Wyandotte counties. Additionally since Kansas City straddles the state line between Kansas and Missouri, I am looking at properties in Jackson county - especially south eastern Kansas City Missouri.




Can FHA loans be used by people wishing to acquire rental property? If so are there additional limits beyond the normal FHA qualification process? Also, is there a maximum number of FHA loans a person could qualify for when buying rental properties?


Jeff Belonger


I apologize for the delay in my response. I have been extremely busy and spend a lot of my time on my other blog site... http://activerain.com/blogs/jeffmortgageman

In any case, HUD will not allow you as an investor to buy a property as an investment property. You can refinance a property that previously had a FHA mortgage. But you can't buy an investment property. But I can still help with your normal purchases, even if an investment. Depending on your credit scores, you need to put down at least 10%.

Any questions, never hesitate to call me on my cell phone. (609) 440-5133




Is FHA an option for refinancing my personal residence? I got an ARM in 2003 (not an irresponsible one) as I originally thought I'd be selling my home but changed my mind and now would like to get a 30yr fixed. My credit scores are 746 and up among all 3 services.


Jeff Belonger


Yes, FHA is a great option. But you do have great credit scores to go conventional. It all comes down to the equity position in your home and if you would do cash-out. Many people that you would talk to would tell you to go conventional just because of your credit scores. That is so untrue and usually because they either only have conventional financing and can't do FHA, or because they have no idea about FHA.

The reason I say this is because if you are in a declining market, on conventional loans, there is a 5% reduction. Also, if you are above a 85% LTV, the monthly mortgage insurance is now higher than FHA. And at 90% on conventional, it's even higher. The MI companies are changing. You can refinance up to 97.75% on a FHA mortgage and the MI is the same and there are no hits to rates or points. On a conventional loan, you can only refinance up to 90%. And if you were doing a cash-ouy, you can only go up to 90% on a conventional loan and there would be a 3/4 pt hit for this. On FHA, you can go up to 95% with no additional hits to rate or pricing.

Hope this helps some. Jeff


I was approved for an FHA loan, but all the houses that I am looking at on the MLS list only cash/conventional. Do I have any options? Thank you.

Jeff Belonger


Yes, there are some options. Are you working with a realtor? They should be helping you with this also. There are some ways to present your offers. Also, what about the loan officer that you are working for? Doesn't this person have some ideas?

What state are you buying in? And when were you approved and when was the last time that you spoke to your loan officer. If it hasn't been this week yet and if this loan officer hasn't let you know that rates are higher, they aren't doing you any favors. Yes, since last Friday, rates have gone up drastically, over 1/2 percent in rate. That is huge. And again, if they haven't mentioned this to you, I would be leery in using them, no matter if they approved you or not.

In any case, please don't hesitate to e-mail me or call me, so I can give you some of my ideas, on how to potentially get around this.

My e-mail : jbelonger@ihmci.com And my cell phone : 609-440-5133 I can be reached after 11 am tomorrow, up until 7 pm and the same time on Monday. thanks, jeff

investment property

Your post helped improved my knowledge on the matter. It also helped me make sense of some of the issues I was having with the subject. I was really glad to come across your post today.

Thanks for your feedback!

chris polisano

ON A NEW CONSTRUCTION CONDO WITH 9 UNITS IS IT TRUE THAT 90% of project must be conventional and 10% fha


hi, have many questions. i am in the process of applying for first home mortage. applied at citi mortage. just received paper work, and not sure if conventional loan is the best for me. bank indicates that conventional is best for me and cheaper
right now. i also asked them about $8,0000 credit for first time home buyers - they said that they would have to see if i qualify for this or other programs. have not found home yet, looking in upstate ny and richmond, va.

any and all suggestions/recommendations are appreciated.

Coach Purses

Enjoy your blog very much. I have read your chest on frame article noticed you make your own forged nails from common nails. I wonder if you might tell how you do this in a future blog.

FHA Rates

If you can afford the payment, consider a 15 year fixed mortgage, which can set a realistic timetable for eventually paying off the loan, while saving thousands on interest payments, compared to a 30 year term.

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