Articles Published in: November 2018

November 30, 2018

Buying A Home With An FHA Loan: Should You Skip The Home Appraisal?

When buying a home with an FHA mortgage, should you skip the home appraisal? Some buyers may wonder about this, especially in light of talk in late 2018 about whether the current real estate appraisal system should be kept or if appraisals should only be required of homes of a certain value or higher. According to data released by the National Association of Realtors, one big cause of home loan closing delays? Appraisal issues. The question remains; should borrowers skip the home appraisal? Borrowers Are Not Permitted To Skip The Appraisal Process FHA loans and other real estate lending require an appraisal as a mandatory part of the process. In spite of what you might see in headlines, borrowers and sellers cannot opt out. However, some borrowers may be thinking | more...

November 29, 2018

Refinance Loans, Millennials, and Remodeling

By Bruce Reichstein

Published reports about home loan trends include stats indicate that more than 85% of home buyers or home owners in the Millennial age range will be undertaking renovation, fixer-upper, or remodeling projects in the next three years. These borrowers scour social media such as Pinterest to find decor, design, and layout ideas; these borrowers don’t seem to mind spending a bit extra to add just the right features to a home. Is there an FHA mortgage loan for these people? The FHA Rehabilitation Loan If you need to buy and remodel a home, the standard FHA mortgage is not the right type of loan to ask for. Instead, ask your loan officer about an FHA 203(k) Rehabilitation mortgage, which is available to help buy and repair or remodel a home | more...

November 28, 2018

Can I Refinance With An FHA Loan?

By Joe Wallace

Need to refinance your loan with an FHA mortgage? Depending on what type of property you are refinancing, you may be eligible for an FHA refinance loan for cash out, a rehab loan refi, or even an FHA-to-FHA Streamline refinance loan with no FHA-required credit check. One of the most important factors in determining if you can refinance with an FHA loan is the reason why you wish to refinance. Those who want to get a lower interest rate on an investment property, for example, would be ineligible to apply for an FHA Single Family Refinance Loan as these loans are restricted to owner/occupiers only. Those who want to switch from a conventional home loan to an FHA mortgage loan would be permitted to apply if they are using the | more...

November 27, 2018

How Much Home Can You Afford?

By Bruce Reichstein

How much home can you afford? If you’re looking for an FHA mortgage or any other type of home loan, one important factor both you and your lender will be concerned with involves the amount of current debt you have compared to how much you would need to pay if your mortgage loan is approved. Licensed lenders and competing banks don’t have identical requirements in this area, but in general you should plan on doing two basic types of mortgage loan calculations to determine how much home you can afford to buy. FHA Home Loans And Your Debt-To-Income Ratio One type of calculation involves the percentage of your gross income that the new loan would require each month on the mortgage payments. You will need the projected amount of a | more...

November 26, 2018

One-Time Close Mortgages: VA, FHA, And USDA Part Two

By Joe Wallace

In our last blog post, we discussed how VA, USDA, and FHA One-Time Close mortgage loans differ. USDA One-Time Close construction loans have income limits and restrictions on certain property types, VA loans are similar to the FHA version except they are restriction to military members who have served a minimum amount of time in uniform (and certain qualifying military spouses). But what does the FHA One-Time Close construction loan have to offer? For starters, the FHA One-Time Close (OTC) loan is available to any financially qualified borrower who wants to build and buy a primary residence in an approved configuration. FHA loan rules require the home to be owner/occupied, not used as an investment property, and the home must conform to both FHA minimum standards once completed and the | more...

November 26, 2018

One-Time Close Mortgages: The Differences Between VA, FHA, And USDA

By Bruce Reichstein

There are several different kinds of loan options you can explore if you want a home built for you instead of purchasing an existing-construction house. The type of home loan known as an FHA One-Time Close construction loan is available to provide a single loan application and closing date for your mortgage. The VA One-Time Close loan and USDA One-Time Close construction loan have similar features but these three types of construction loan do not have identical features and they are not appropriate for all borrowers. Of the three, FHA One-Time Close loans (known as FHA OTC loans) offers construction loan options to a wider range of applicants. Why? USDA One-Time Close Construction Loans USDA One-Time Close loans allow financially qualified borrowers to apply for a single loan to build | more...

November 23, 2018

Buying A Home During The Holiday Season With An FHA Mortgage

By Joe Wallace

Are you interested in buying a home during the holiday season? Are you looking to weigh your options or are you seriously interested in making an offer? Many published reports on mortgage loan blogs are discussing this during the holiday season, but what do you need to know about house hunting options, hiring well-connected real estate agents, and deals during the December holiday shopping season? FHA Home Loans Aren’t Just Available For Pristine Homes You will read a lot of advice online this year about hiring a good real estate agent to help you narrow down your search, about pocket listings that sellers use to keep their homes from being flooded with window shoppers instead of serious buyers, etc. But one important thing to keep in mind about searching for | more...

November 22, 2018

Happy Thanksgiving 2018!

By Bruce Reichstein

Happy Thanksgiving 2018! Today we pause from our usual discussion of FHA home loans, refinance loans, FHA reverse mortgages and related topics to enjoy the holiday. Our regular schedule of posts resumes on Friday. Have a safe and fun Thanksgiving holiday and we’ll see you tomorrow!

November 21, 2018

FHA Home Loans And Your Holiday Debt

By Joe Wallace

Are you considering an FHA home loan in 2019? Even as shoppers nationwide are preparing for Black Friday, the biggest shopping day of the year, some are being tempted by credit card offers to help pay for the gift-giving in December. But if you need a home loan in 2019, Christmas shopping season should be more carefully thought out for several reasons. It’s generally advised not to open new lines of credit in the planning stages leading up to your FHA loan application. Whether you need to refinance a home loan, get a new mortgage for your dream home, or apply for fund to repair your property using an FHA 203(k) Rehabilitation loan, you will need to maintain and pay down your existing lines of credit and avoid opening new | more...

November 20, 2018

One-Time Close FHA VA USDA Construction to Permanent Financing

By Bruce Reichstein

There is a type of home loan borrowers can apply for when they want a house built for them from the ground up. These mortgages are known as One-Time Close loans and are offered by the VA, USDA, and FHA programs via a participating lender. Do you prefer to have a home built just for you rather than purchasing someone else’s property? What Are FHA Construction Loans? The FHA construction loan known as a One-Time Close (OTC) mortgage, like its’ USDA and VA counterparts, offers qualified borrowers a single mortgage for the construction project; traditionally home construction loans featured two applications, two closing dates, and two chances to have a loan application approved or denied. There is one loan for the construction itself (which must be paid for along with | more...