Articles Published in: July 2016

July 5, 2016

FHA Loan Questions: No Money Down Loans

A reader got in touch with us recently to ask about an important aspect of FHA mortgage loans-the down payment. “I would be a first time buyer, 3 years full time work history, only car payment bill which is paid on time with auto pay from bank. looking for a single home, I am single with credit score of 797. However I have no down payment…would I qualify for an FHA loan?” HUD 4000.1 addresses the rules and regulations for FHA home loans and refinance loans. It includes, on page 155, a definition of what the FHA considers a down payment (the “minimum required investment”) and the “Total Required Investment” needed from the borrower. From HUD 4000.1: “Total Required Investment refers to the amount the Borrower must contribute to the | more...

July 5, 2016

FHA Loans For Military Members

By Joe Wallace

There are a variety of reasons why a military member would consider buying a home with an FHA mortgage, including the desire to own a home instead of renting in a crowded military rental market. While it’s true that VA home loans are available for military members as part of their benefits, some may choose the FHA option instead. What should a military member know about FHA mortgages and refinance loans? The first thing some borrowers need to know is that, yes, it is possible to refinance a VA mortgage into an FHA mortgage loan. FHA refinance loans permit the refinancing of non-FHA mortgages for cash-out refinancing and “non-streamline” refinance options. You do not have to use your existing lender to refinance into an FHA mortgage, instead a borrower is | more...

July 4, 2016

Happy 4th of July!

By Joe Wallace

Happy Independence Day! Our regularly scheduled posting scheduled returns tomorrow. Today, banks and markets are closed in observance of the holiday, but on Tuesday July 5th, it will be business as usual for them and for us. Have a safe, fun holiday!

July 1, 2016

Mortgage Loan Interest Rate Trends: Slightly Lower

By Joe Wallace

We’ve devoted some extra time to our coverage of mortgage loan interest rate trends this week, due in part to the lows rates have fallen to, and how rates have been affected by Brexit headlines. Ever since the “stay or go” vote in Britain, we’ve seen that issue make a significant impact on many non-Brit markets including our own. Rates plunged to three-year lows or very near to them in the wake of the “leave” win in the Brexit vote. Now, markets have had some time to adjust but there is still plenty of potential for volatility depending on developments overseas and investor reaction to them. That goes for other financial issues too, not just Brexit drama. Indeed, stateside economic data releases could also affect rates in the meantime, though | more...