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Articles Published in: 2018

FHA Home Loan

April 12, 2018

FHA One-Time Close Construction Loans: An Option You Should Consider

By Bruce Reichstein

The FHA One-Time Close / Single-Close construction loan is an option you should consider if you are interested in having a home built for you rather than purchasing an already-lived-in property. Construction loans are different than existing construction loans, and the FHA One-Time Close (OTC) / Single-Close construction loan offers a single application, a single closing date, and more peace of mind for the borrower once the loan has been approved. FHA One-Time Close / Single-Close Mortgages And FICO Score Requirements You will have higher credit requirements with an FHA One-Time Close loan due to the higher risk for the lender. Your application may require a FICO score of 620 or higher at the minimum, depending on the lender. Here’s a sample breakdown of FICO score requirements from one hypothetical | more...

 
FHA loans

April 11, 2018

FHA Loan Requirements For Multi-Unit Properties: Part Two

By Joe Wallace

In a previous blog post, we discussed the FHA loan rules for purchasing multi-unit properties. It’s true that an FHA borrower can buy a home with as many as four living units. It’s also possible to rent out the unused units in the home, but FHA loan rules do require at least one person obligated on the mortgage to occupy the home as the primary residence. FHA home loans are generally for owner/occupiers only. You are permitted to rent out the unused living units in your new home, but those units cannot be rented out for periods less than 30 days, offer hotel-style services such as food, bellboy service, etc. The rules for these issues are very clear, but what is to stop a borrower from purchasing a new home | more...

 
FHA mortgage

April 10, 2018

FHA Loan Rules On Purchasing Multi-Unit Properties

By Bruce Reichstein

Some potential FHA loan applicants are surprised to learn that they can purchase a home with as many as four living units using an FHA mortgage. For a certain percentage of FHA loan applicants, the ability to buy a four-unit property leads to thinking about becoming a landlord, renting out the units and using rental income to offset the expenses of owning the property. This has potential for some borrowers, especially those who already have experience in this area. But FHA loan rules have plenty to say about how your home may be used for such purposes. FHA loan rules in HUD 4000.1 define the acceptable uses of a home purchased with an FHA mortgage. Those uses include renting out unused living units, but with the caveat that the borrower | more...

 
New FHA Home Loan

April 9, 2018

FHA Loan Appraisal Tips

By Joe Wallace

FHA loan appraisal tips can be hard to come by if you are a first-time home buyer and aren’t even sure about the right questions to ask. Do you need to clear up any confusion over the FHA appraisal? Keep reading, you’ll learn that the appraisal process is more simple and straightforward than it may appear at first glance. FHA Appraisals Are Ordered For The Home You Wish To Purchase That may seem alike a simple and obvious fact if you have some experience with the home loan process, but some borrowers might not realize that the appraisal stage of the mortgage comes when you find a home you are serious about buying. You won’t need to know the actual fair market value of a home that you’re just “window | more...

 
Online Mortgage Calculators For First-Time Home Buyers

April 6, 2018

How Much Is My FHA Mortgage Payment?

By Bruce Reichstein

How much is my FHA mortgage payment? Many borrowers want to get an estimate to figure out how to budget for a mortgage payment, but it is easy to forget that calculating a home loan payment involves more than just doing the math on the principal and interest and the term of the loan. How much will your FHA home loan mortgage payment be? Much depends on what applies to your loan besides principal and interest. For example, you will need to learn how much property taxes are in your area, you will need to know what comparable homes are selling for in your chosen housing market, etc. What’s My Monthly FHA Mortgage Payment? HUD 4000.1, the FHA loan handbook, spells out all the things that will be included in | more...

 
Mortgages

April 5, 2018

More FHA Credit Score Questions And Answers

By Joe Wallace

In our previous blog post, we examined some common FHA loan FICO score questions and answers. Here are some more things you should know about FHA home loans, the FICO score requirements for them, and more. Is There A FICO Score Too Low To Be Approved For An FHA Loan? Lender standards will apply above and beyond FHA loan rules in this area. Technically speaking an FHA loan applicant with a FICO score of 500 or less is not eligible for an FHA-insured mortgage loan. Lender standards may be higher than this, however, and borrowers with FICO scores in the 500 range should seriously consider calling the FHA directly at their toll-free number 1-800 CALL FHA to get a referral to a local, HUD-approved housing counselor who can assist with | more...

 
FHA mortgages

April 4, 2018

FHA Loan FICO Score Questions And Answers

By Bruce Reichstein

Every new borrower has FHA home loan FICO score questions they need answers to; do you know what the minimum FHA-required FICO score is to be approved for a new home loan? Do you know what it takes to be approved for maximum financing? Keep reading, there are many answers below. What Are The FHA Loan FICO Score Requirements For Loan Approval? The minimum FHA FICO score requirements for new purchase home loans are: -580 or higher = eligible for maximum financing with a 3.5% minimum down payment -500 to 579 = eligible for an FHA mortgage loan with a 10% minimum down payment The FHA minimum FICO score requirements listed above DO NOT include applicable lender standards. You will need to speak with your participating FHA loan officer to | more...

 
FHA Options

April 3, 2018

More FHA Refinance Loan Tips

By Joe Wallace

There are many FHA refinance loan tips you should know when planning and saving for your new loan. Refinance loans guaranteed by the FHA feature fixed or adjustable rates, can offer cash back to the borrower, and also come as a no cash-out option for both FHA and non-FHA mortgages. FHA Refinance Loans Have No Down Payment, But Do Have Closing Costs You won’t make a down payment on an FHA refinance loan, but there are associated closing costs with the loan you will need to budget and save up for. The LTV for an FHA refinance loan varies depending on the type of refinancing you seek; talk to your lender about the expenses associated with your refinance loan so you can save accordingly. FHA Loans Do Not Require Private | more...

 

April 2, 2018

FHA Refinance Loan Top Five Tips

By Bruce Reichstein

There are many things you’ll need to know if you are applying for an FHA refinance loan for the first time. Do you know what your options are to refinance? If you have an existing FHA or non-FHA loan, it is possible to refinance into an FHA mortgage with a fixed or adjustable rate, with cash back to the borrower or without cash back. Your refinance loan options are more diverse than you might think. 5. Refinance Your Home Loan With Your Current Lender OR Find A New Financial Institution Refinancing into an FHA mortgage does NOT require you to stay with your current bank. Any participating lender willing to work with you can process your FHA refinance loan paperwork. You are not required to use the original lender to | more...

 
FHA Home Loan

March 29, 2018

What You Should Know About FHA Home Loan Appraisals

By Joe Wallace

What you should know about FHA home loan appraisals includes understanding the difference between one and a home inspection. You should also know that the appraisal serves as a tool for the lender to establish the fair market value of the home compared to similar ones like it in the area. The FHA appraisal is affected by state and local laws, building code, and more. FHA Appraisal Requirements For Safety And Habitability FHA loan rules for the appraisal process in HUD 4000.1 state, “As the on-site representative for the Mortgagee, the Appraiser provides preliminary verification that a Property meets the Property Acceptability Criteria, which includes HUD’s Minimum Property Requirements (MPR) and Minimum Property Standards (MPS). Minimum Property Requirements refer to general requirements that all homes insured by FHA be safe, | more...