Articles Published in: September 2018

September 13, 2018

FHA Home Loans With Less Than Two Years Of Employment

Are you looking for a home but don’t have an extensive employment history? The general rule for home loan approval is that the lender wants to see two years of work history. Depending on the nature of the loan and other factors, the two-year rule may have certain additional requirements that apply, and the lender may not be required to personally verify previous employment if tax records or pay stubs can reflect a two year employment record. In general, conventional loans require two years of work or education related to income, VA mortgage loans have a similar two year requirement. USDA loans also require the borrower to prove two years of work history. What are the specific requirements for FHA mortgages? According to HUD 4000.1, “For all Employment related Income, | more...

September 12, 2018

Five FHA Home Loan Questions To Ask Your Lender

By Bruce Reichstein

There are some important questions to ask a prospective lender when you are shopping around for a home loan. Make the most informed choice you can about selecting your lender, and remember that it pays to shop around for an FHA mortgage! #5: Will You Provide Me With An FHA Loan Estimate? The Consumer Financial Protection Bureau (CFPB.gov) advises borrowers that lenders are required to provide a loan estimate within three days of application. CFPB says the estimate should include the following: estimated interest rate monthly payment taxes and insurance total closing costs for the loan The estimate should also include how the interest rate and payments may change where applicable. Lenders should be willing to provide this estimate. #4: Are The Terms Of This FHA Loan Subject To Change? | more...

September 11, 2018

FHA Home Loans For Manufactured Housing

By Joe Wallace

FHA home loans are for a variety of different property types. Manufactured homes are one of the property types you can purchase with an FHA mortgage, but like most other home loans the home you want to buy must meet FHA standards. FHA Home Loans For Mobile Homes: Find A Participating Lender FHA mortgages for mobile homes and manufactured homes are not always available since some participating FHA lenders choose not to offer them. The nature of a given housing market, buying or selling trends, and the quality of the manufactured homes / mobile homes in the area may all contribute to a lender’s decision to offer or not offer a mobile home loan. You may need to shop around for a participating lender who can help. You can also | more...

September 10, 2018

FHA Mortgage Refinance Checklist

By Bruce Reichstein

If you are exploring your refinance loan options, FHA refi loans can help with cash out refinancing, rate-and-term refi, or even a refinance loan that lets you rehab or remodel your property. If you want a refinance loan, it’s a very good idea to assemble a checklist in the planning stages so you know where you need to focus to prepare for the new loan. There is more than one area to make checklists for including areas like your credit, your home ownership goals, and the plans you have for your refi loan. FHA Refinance Loan Checklists: Goals And Financial Plans A good checklist includes the reasons for your checklist items in the first place. Ask yourself why you want to refinance your mortgage-make a list of pros and cons | more...

September 7, 2018

FHA Home Loans, Appraisals, And Home Inspections

By Joe Wallace

FHA home loans require an appraisal in order to insure the property meets minimum FHA requirements. The appraisal also helps the lender set the loan amount based on the adjusted value of the home. Some borrowers are tempted to skip the optional home inspection process and simply go with the FHA appraisal. This is a bad idea because doing so basically results in buying a home and making a large investment without knowing the true nature of the property’s condition. There are some questions you can ask yourself to help better understand why a home inspection is needed; learning the answers to these questions can definitely change your mind about the temptation to skip a home inspection. How Does The Buyer Know If There Is A Roof Problem? Can you | more...

September 6, 2018

FHA Home Loans: Five Reasons To Buy A Home Instead Of Renting

By Bruce Reichstein

In our last blog post we discussed some reasons to purchase a home with an FHA mortgage instead of renting a property. Most of the reasons discussed in the previous post had to do with financial matters including the fact that renters gain no equity in their rental homes, and they have no ability to apply for a cash-out refinance loan based on the current value of the home. Reverse mortgages are unavailable to renters, too. But there are other reasons to buy a home and not rent. Are you thinking of an FHA mortgage to buy a home based on some of the reasons listed below? There are compelling arguments for each of the five reasons. #5: Buying A Home Means More Privacy Borrowers who own their own homes | more...

September 5, 2018

Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

By Joe Wallace

Does it make more sense to rent a home or to purchase one and make a mortgage payment rather than a rent payment? A lot depends on the property values in your chosen housing market, the cost of renting in that area versus the cost of purchasing, and the borrower’s financial goals. Are you thinking of making the switch from being a renter to becoming a home owner? Some reports claim that rents have increased as much as 88% in certain markets over time, and some renters choose to put that money into a property they own rather than dealing with the issues of being a long-term renter. Is Buying A Home With An FHA Mortgage Instead Of Renting A Good Idea? The first thing needed to answer this question | more...

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

September 4, 2018

Five Things You Should Know About FHA Refinance Loans

By Bruce Reichstein

Five things you should know about FHA refinance loans include the fact that you can find an FHA mortgage to refinance any typical home loan, you can get a refinance loan with cash out, and you can refinance a home to remove an ex-coborrower, spouse, or other persons from the mortgage. #5: FHA Refinance Loans Are Available For Both Existing FHA Mortgages And Non-FHA Mortgages You may only refinance a mortgage using an FHA refinance loan, but the types of mortgage you can refinance include FHA, VA, conventional, USDA, etc. You do not have to have an existing FHA mortgage to apply for FHA refinancing. You are required to occupy the home being refinanced with the FHA mortgage, and refinance loans for secondary residences may be limited depending on the | more...

September 3, 2018

Happy Labor Day 2018!

By Bruce Reichstein

Happy Labor Day 2018! Today we pause from our usual schedule of posting about FHA home loans, FHA/HUD news, and refinance loan advice to observe the holiday. We’ll be back with our regularly scheduled posts tomorrow. Thank you for reading, and have a safe holiday! We look forward to resuming our regular schedule tomorrow.