Articles Published in: December 2017

December 13, 2017

FHA One-Time Close Requirements: Appraisals

FHA One-Time Close / Single-Close construction loans feature a single loan application and closing date for both the construction phase of the loan and the “permanent” portion of the loan. Like other FHA mortgages, an appraisal is required on the property to be secured by the mortgage. In general, FHA loan appraisal requirements include the following guidelines on the timing, as found in HUD 4000.1, the FHA loan handbook: “The effective date of the appraisal cannot be before the FHA case number assignment date unless the Mortgagee certifies that the appraisal was ordered for conventional lending or government-guaranteed loan purposes and was performed pursuant to FHA guidelines.” While this may not normally be an issue for construction loans given the timing of the appraisal, another portion of the same section | more...

December 12, 2017

Getting Ready For An FHA Home Loan In 2018

By Bruce Reichstein

Are you getting ready for an FHA home loan in 2018? There are some checklist items you should be thinking about in the planning stages of your FHA loan. Credit Monitoring 2017 was a very bad year for many companies because of hacker activity. Many high-profile brands, corporations, even credit reporting agencies themselves were the victims of security breaches. Do you know if your accounts have been affected? If you don’t, you may not be as ready for a home loan as you think you are. For some, it may be best to have regular credit monitoring in the months leading up to your credit application to avoid surprises. Know the contents of your credit report, dispute inaccurate data, and keep an eye on new activity. You’ll be glad you | more...

December 12, 2017

How FHA Maximum Mortgage Amounts Are Calculated

By Joe Wallace

Have you ever wondered how FHA maximum mortgage amounts are calculated? FHA loan rules in HUD 4000.1 explain how it works, starting with a borrower’s required minimum down payment and including what happens when certain add-ons to the loan are included. How much can you really borrow with an FHA mortgage? According to HUD 4000.1, the FHA loan handbook, “Mortgage limits are calculated based on the median house prices in accordance with the statute. FHA’s Single Family mortgage limits are set by Metropolitan Statistical Area and county and will be published periodically.” Those limits are published just before the start of the new year and take effect the first day of the new year. But the amount of your FHA home loan may include more than just the calculation mentioned | more...

December 11, 2017

FHA Refinance Loan Options

By Bruce Reichstein

Are you considering your FHA refinance loan options in 2018? There are several different options to choose from depending on your financial needs and goals. What do you want to do with an FHA refinance loan? Lower Your Monthly Mortgage Payments There are FHA refinance loan options that can help lower your interest rate or monthly payments, depending on circumstances. Some borrowers with non-FHA loans want to refinance into an FHA mortgage because of potentially lower interest rates. This is often done with an FHA no-cash out refinance loan option. Whether you will get lower monthly payments on an FHA no-cash out loan depends on several factors including your credit scores, the current amount you are paying on a home loan, and whether you choose to finance certain expenses associated | more...

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

December 11, 2017

FHA Home Loans In 2018

By Joe Wallace

Any potential borrower examining options for FHA home loans in 2018 should keep in mind some very important factors that may affect your choices for a new loan. Do you know what they are? FHA Mortgage Loan Limits Have Increased for 2018 The average housing market (not a high-cost or low-cost area) will feature an FHA loan limit of $453,100 for a single-unit property. That is up from 2017’s limit for the same areas of $424,100. That increase might not make a huge difference to some, but the additional borrowing power may be helpful to others. The higher FHA loan limit applies to all FHA mortgages with case numbers assigned between January 1, 2018 and December 31, 2018. Check Your Credit Scores As Early As Possible There were many headlines | more...

December 8, 2017

Higher FHA Loan Limits For 2018

By Bruce Reichstein

The FHA has announced FHA loan limits for 2018, and the new numbers mean good news for those looking to buy a home in the new year. The “national conforming loan limit” for 2018 is set at $453,100, up from last year’s limit of $424,100 (see below). The higher limit means more potential borrowing power for qualified FHA loan applicants. According to the announcement on the FHA official site, there are higher limits for 2018. The Federal Housing Administration calculates “forward mortgage limits based on the median house prices in accordance with the National Housing Act. FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county and are published periodically.” The FHA sets loan limits “at or between the low cost area and high cost | more...

December 8, 2017

FHA Revises Policy On PACE Assesments

By Joe Wallace

The FHA has revised its’ policy on home loans for properties encumbered by Property Assessed Clean Energy (PACE) obligations. According to the FHA official site, in 2016 the agency “established requirements regarding the eligibility for FHA-insured mortgages of properties encumbered with PACE obligations that permitted, under some circumstances, a continuing obligation for repayment of the PACE obligation even after foreclosure and acquisition by FHA.” But that policy has since come under review due to concerns “for increased losses to the Mutual Mortgage Insurance Fund due to the priority lien status given to such assessments in the case of default.” According to the official site, the agency “is also concerned with the lack of consumer protections associated with the origination of the PACE assessment, which are far less comprehensive than that | more...

December 7, 2017

FHA Home Loan Refinance Options in 2018 Explained

By Bruce Reichstein

FHA home loan refinance options in 2018 include a variety of terms. Are you a first-time refinance loan applicant and feeling a bit confused by all the jargon? Here is an explanation of the options you have to refinance your home loan in 2018 using an FHA refi loan. FHA Cash-Out Refinances Defined What is a cash-out refinance loan? According to the FHA loan handbook, HUD 4000.1, cash out refinancing is described as, “a refinance of any Mortgage or a withdrawal of equity where no Mortgage currently exists, in which the mortgage proceeds are not limited to specific purposes”. You read that correctly-some participating FHA lenders may approve an FHA cash-out refinance loan on a property that has no existing mortgage, for the purpose of pulling equity out of the | more...

December 7, 2017

FHA Refinance Loan Options For 2018

By Joe Wallace

FHA refinance loan options in 2018 include options for cash-out refi, FHA Streamline loans, and more. The right home loan refinance option for you depends on your financial needs and goals. What do you want to do with your FHA refinance loan? Get A Lower Interest Rate, Monthly Mortgage Payment If your goal is to reduce the amount of your mortgage payment every month, and you have an existing FHA home loan, the FHA Streamline Refinancing option is definitely for you. Streamline refinance loans are for existing FHA mortgages and generally require a lower interest rate and/or monthly payment as a condition of loan approval. Basically, there must be some type of tangible benefit for an FHA Streamline Refinance loan-the lower payment or interest rate is one of those. But | more...

December 6, 2017

FHA Construction To Permanent Loan 2018 / One-Time Close (Single-Close)

By Bruce Reichstein

FHA construction To Permanent loans in 2018 are a great option for those who want to buy a home but aren’t interested in purchasing existing construction properties. If having a home built for you sounds better than buying one that already exists, the FHA Construction-To-Permanent loan, also known as an FHA One-Time-Close loan / Single-Close loan, might be right for you. FHA Construction To Permanent Loan Requirements The basic credit qualifying guidelines for FHA One-Time Close mortgages may vary more among participating FHA lenders. You may find a minimum FICO score requirement of 620 or higher depending on the lender, and in some cases you may learn that a lender has a minimum FICO score benchmark of 660 or better and that two FICO scores may be required. Credit requirements | more...