Articles Published in: December 2018

December 31, 2018

Buying A Home With An FHA Mortgage In 2019

Your FHA home loan options for buying a home in 2019 are as diverse as the kinds of homes on the housing market. Do you know what your home loan options in the new year are with an FHA mortgage? FHA Forward Mortgage Options In 2019 The “forward mortgage” is the kind of loan you will use to buy your dream home with. Those forward mortgage loan options are not just for typical homes in a suburban neighborhood; did you know you can use an FHA mortgage to buy a condo unit, a mobile or manufactured home, or even a duplex or multi-unit property? The FHA condo loan option requires the condo project to be approved by the FHA; your lender can discuss the procedures for adding a condo project | more...

December 30, 2018

5 Things To Remember About FHA Loans In 2019

By Joe Wallace

What do you need to know about FHA home loans in 2019? There are several issues to keep in mind whether you are refinancing your existing FHA or non-FHA mortgage or buying a new home. Be fully prepared to explore your FHA home loan options in the new year! 5. FHA Loan Limits Are Higher For The Second Year In A Row FHA loan limits go up again for the majority of housing markets in the USA in 2019-more than 3000 counties will experience higher loan limits. A smaller number, approximately 180 counties, will see no change at all but in no case will the FHA loan limit decrease. Keep these higher loan limits in mind when you are deciding what to do about your FHA loan options in 2019. | more...

December 29, 2018

FHA Loans Are Available During The Government Shutdown

By Joe Wallace

Are FHA home loans available during the government shutdown? The answer is yes in many cases, with the exception of Reverse Mortgages and Title I loans. FHA Condo loans may be affected by the government shutdown depending on whether or not the condo project was on the FHA approved list prior to the shutdown or not. The FHA and HUD official sites have notices stating that the websites will not be updated until the government reopens, and many functions of the FHA and HUD will be limited or unavailable. According to HUD.gov, there are a list of guidelines you should know during this time that will affect how FHA loans are handled. The official site states that HECM loans and Title I loans cannot be endorsed during the shutdown: “The | more...

December 28, 2018

How To Prepare For A New FHA Mortgage In 2019

By Bruce Reichstein

Want to prepare for an FHA home loan in 2019? There are some important steps to take to get ready for your journey to home ownership. Some are financial, some are credit-related, and some pertain to the rates and terms you will be offered when you are ready to find a lender. Decide On Type Of Property You Want To Buy With An FHA Mortgage Condo loans are different than existing construction mortgage loans for typical suburban homes. This is also true of mobile home loans versus typical suburban homes. For example, a mobile home cannot be manufactured before June 15, 1976 or it cannot be considered for an FHA mortgage. There is no such age restriction on typical suburban houses or similar properties. And those who wish to have | more...

December 28, 2018

Rent Spending Was Higher In 2018; Is Now The Time To Buy A Home With An FHA Mortgage?

By Joe Wallace

Published reports coming in at the end of the year suggest that renters paid $13 billion more in rent in 2018 than in the previous year. The amount of money spent on rental housing in 2018 is higher, but in spite of this some sources point to a slowdown in rent hikes, saying that a stalling of rent hikes could bring down payments closer to some potential borrowers. The ability to save more each month toward a down payment can make a big difference in the timing of a new home loan, especially an FHA mortgage that requires only 3.5% down. FHA loans, like conventional mortgages, have a down payment requirement. But FHA loan down payments can be lower and also be supplemented by down payment grants or gift funds. | more...

December 27, 2018

FHA Loans For Single Homeowners

By Joe Wallace

Data from the 2017 American Community Survey, conducted by the U.S. Census Bureau, suggests that single women homeowners own 22 percent of American homes compared to single men’s 13 percent. These stats may not mean much to the typical first-time home buyer, but it’s an interesting bit of data that could indicate a growing trend in home ownership. Single home owners in general-men or women-can benefit greatly from an FHA loan with the lower down payment requirement and more forgiving credit score minimums. It’s easy to assume you might not qualify for a home loan as a single person, but is that the reality? Single men and single women, as demographics, are not as simple as the labels imply. Some may be single parents, some may have roommates or cost-sharing | more...

December 27, 2018

FHA One-Time Close Construction Loans: Advice For First-Time Home Buyers

By Bruce Reichstein

First-time home buyers aren’t always looking for a pre-existing home. Some want to have a house built to suit according to design plans they have personally approved. The FHA One-Time Close construction loan is an excellent option for those who want to build a home instead of having to scour the housing market for just the right property. It’s good to explore FHA mortgage loan options in this area by asking a participating lender about the FHA One-Time Close (OTC) construction loan which allows a single loan application and a single closing date instead of the more traditional construction loan which features two loan applications and closing dates. One closing date is for the construction phase and there is also a second loan and closing date for the mortgage itself. | more...

December 26, 2018

Millennial First-Time Home Buyers, 20 Percent Down Payments, And FHA Mortgages

By Joe Wallace

If you make a 20 percent down payment, you save money over the lifetime of your mortgage loan, avoid private mortgage insurance (for conventional mortgages), and reap the benefits of doing these things over the long term. But millennial home buyers, especially first-time home buyers, may be unable to find the resources to make such a large down payment. If you make a 20 percent down payment, you save money over the lifetime of your mortgage loan, avoid private mortgage insurance (for conventional mortgages), and reap the benefits of doing these things over the long term. But millennial home buyers, especially first-time home buyers, may be unable to find the resources to make such a large down payment. You’ll find many internet articles and home finance blogs discussing the idea | more...

December 25, 2018

Happy Holidays 2018!

By Bruce Reichstein

Happy Holidays! We’re pausing from our usual schedule of writing about home loans, mortgage trends, FHA and HUD news, and related topics in order to celebrate the holiday season with friends and family. From all of us here, have a fun and safe holiday season! Our normal schedule resumes on Wednesday, December 26. Thank you for reading!

December 24, 2018

Winter Vacation Homes And FHA Loans: What You Need To Know

By Joe Wallace

Investing in a winter vacation home is tempting for many, especially in snow-bound states. Do borrowers have the option of purchasing a vacation home with an FHA mortgage? A look at FHA loan rules quickly reveals that one of the requirements for FHA loan approval is that the home be used as the primary residence; occupancy is a condition of loan approval for an FHA single family forward mortgage loan. But does this mean that borrowers can never use an FHA mortgage to buy a property that will become a winter vacation home? Not exactly. Borrowers who purchase a home with an FHA mortgage, use it as their primary residence, and refinance it with a conventional mortgage would be technically free (unless the conventional loan agreement states otherwise) to use | more...