Title insurance is among the costs of successfully closing a real estate transaction, but many people don’t understand what this is for, or why they must pay for it. First of all, realize that title insurance works differently from traditional insurance policies in a very important way.

Other types of policies may protect you from future events, and you must continue to pay the premiums for as long as you want that protection. Title insurance is (usually) a one-time purchase that actually protects you against losses arising from hazards from the past.

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Competition in the mortgage industry has resulted in a great opportunity for buyers who want a “fixer upper.” Private lenders have devised all sorts of unusual loans to put money into the hands of credit-worthy buyers. Now FHA is getting in on the action by offering a new “limited repair” loan, or the “Streamlined K.”

How does this kind of loan help buyers? Those with lower incomes but healthy credit histories can now buy less expensive homes in need of repairs, and roll the cost of those repairs into the mortgage.

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