Articles Published in: 2018

September 25, 2018

Types Of FHA Mortgages: Refinance Loans

FHA home loans come in both forward mortgages for purchasing homes but also refinance loan options. You can refinance a home with FHA cash-out loans, FHA Streamline loans, and Reverse Mortgages. The type of FHA refinance that’s right for you depends on your financial needs and goals, but there is a refinance loan option for most needs. Which one is right for you? FHA Cash-Out Refinance Loans FHA cash-out refinancing is for any mortgage, FHA or non-FHA. You do not have to have an existing FHA mortgage to apply for an FHA cash-out refinance and you do not have to use the same lender that issued your original mortgage. Cash-out refinancing requires a new appraisal and the amount of cash back to you depends on how much of your new | more...

September 24, 2018

Lower Your Monthly Mortgage Payment

By Bruce Reichstein

Do you need to lower your monthly mortgage payment? There are several FHA refinance loan options to help you do that, and depending on your financial needs and goals you may find that an FHA refinance is exactly what you need to get into that lower monthly obligation. Lower Mortgage Payments Before They Begin Some applying for an FHA home loan have the option of not financing certain up front costs such as the FHA Up-Front Mortgage Insurance Premium. Any expense you add to the loan amount potentially increases your monthly payments. One of the best things you can do when looking for a new home loan is to try to avoid adding more funds to the loan amount if you do not need to. For some, it’s already too | more...

September 24, 2018

Types of FHA Mortgages: New Purchase Loans

By Joe Wallace

Looking for the right FHA mortgage loan for you? There are many different options available if you need to buy a home with an FHA loan including mortgages that allow you to buy and repair a home at the same time, and loans that allow you to build a home from the ground up. FHA Loans: What Is A Forward Mortgage? Once you start shopping around for a home loan, you will encounter terminology related to your home purchase. Some of the most common are “forward mortgage” and “purchase loans”. These two terms basically indicate that the loan is meant to buy a home rather than refinance it or apply for an FHA Reverse Mortgage which gives cash to the borrower secured by a home that is nearly paid off | more...

September 21, 2018

FHA Refinance Loan Credit Questions And Answers

By Bruce Reichstein

FHA refinance loans have a set of guidelines for credit scores and credit history-do you know what it takes to be approved for an FHA refinance loan? There are some common questions about FHA refinance loans where credit is concerned, knowing the answers may help you a great deal. What Kind Of Credit Scores Do I Need To Be Approved For An FHA Refinance Loan? In general, FHA loan requirements include a FICO score at 500 or better for some loans, 580 and higher for maximum financing. These are FHA minimum requirements and do not reflect lender standards, which may be higher. Refinance loans with cash out will require certain FICO score ranges (lender provided) that are key to getting maximum financing. You will need to ask the lender about | more...

Rehab Refinance Loans, reverse mortgages

September 21, 2018

FHA Home Loan Credit Questions And Answers

By Joe Wallace

There are lots of questions about how the FHA home loan process works, but among the most common are on the subject of credit, and how you qualify for a home loan with your credit scores and credit history. Here are some of the most frequently asked questions about home loans and credit. What FICO Scores Are Able To Qualify For An FHA Home Loan? There are two standards; FHA loan minimum requirements and the lender’s individual FICO score rules. FHA minimums are NOT the same as your lender’s standards; the FHA FICO scores are the minimum required to be approved. FHA loan rules say borrowers with FICO scores between 500 and 579 technically qualify for an FHA mortgage, but at a higher down payment than those who qualify for | more...

September 20, 2018

What You Need To Know About FHA Loans And Income Verification

By Bruce Reichstein

What do borrowers need to know about FHA home loans and income verification requirements? The short answer is that it depends on several factors including the nature of the borrower’s job. Why is this true? Why isn’t there a standard answer? Because there are a variety of different employment types and FHA loan rules must address them. Self-employed borrowers are held to a different set of requirements because verifying that income requires a different set of procedures than for “traditional” employment. Those who work in the gig economy as contractors, 1099 workers, etc. are also in a different set of circumstances than a typical 9-5 worker, so those employees need their own procedures, too. FHA Loan Income Verification Rules For more traditional employment, the lender may require pay stubs, tax | more...

September 20, 2018

FHA Home Loans For Self-Employed People

By Joe Wallace

What does it take for a self-employed borrower to be approved for an FHA mortgage loan? The same basic rules apply, FHA mortgage loans require a minimum 500 or higher FICO score to be eligible (lender standards will be higher) and FICO scores of 580 or higher for maximum financing and the lowest down payment. But self-employed borrowers do have some additional issues to think about when coming to the FHA home loan process. How long you have been self-employed in an important factor, how the business has fared since you started it, and what the future of your income might be. FHA Loan Rules For Self-Employment Income Verification The rules that instruct the participating FHA lender are found in HUD 4000.1, and those rules include a requirement for the | more...

September 19, 2018

How Do Student Loans Affect My FHA Mortgage?

By Bruce Reichstein

How do student loans affect your FHA mortgage? Is it harder to get FHA loan approval if you have student loan debt? What if the debt is not currently due or being paid in monthly installments? FHA loan rules in HUD 4000.1 (the FHA loan handbook) address these issues. Student loan debt is in a category of its’ own thanks to rule changes a few years ago taking student loans into account during the review for credit worthiness. Student loans once upon a time were in a category called “deferred obligations” because it was possible to have a student loan debt and not be required to pay at that moment; the amount of the deferred obligation was taken into account in a certain way by the lender. But after the | more...

September 19, 2018

Sell Or Refinance With An FHA Loan?

By Joe Wallace

Which is the better option? Sell your home, or refinance your mortgage loan with an FHA refinance loan? Your financial needs and goals will determine part of the answer to this question, the nature of the housing market and how much you still owe on your mortgage loan will help inform the answer, too. FHA Refinance Loan Options For Those Considering Selling Their Property You can sell the home you’re currently in, or refinance it with an FHA cash-out refinance loan or an FHA rehab loan if you want to use FHA mortgage loan funds to repair or remodel the property. Why refinance instead of sell? Some borrowers think about selling because they want to move into a larger home. Refinancing isn’t an option for these people…or is it? The | more...

September 18, 2018

FHA Loan Rules And Investment Properties

By Bruce Reichstein

FHA home loans are generally intended for owner/occupiers; there is an occupancy requirement for the FHA single-family home loan program that basically allows loans for principal residences and denies loans for those who do not intend to occupy the home within 60 days of loan closing (unless other arrangements are made for a delayed move-in which may or may not be possible depending on the lender). HUD 4000.1 has the rules that govern occupancy and the purchase of homes considered to be investment properties. HUD 4000.1 begins by defining what it considers an investment property to be: “An Investment Property refers to a Property that is not occupied by the Borrower as a Principal or Secondary Residence.” That is fairly simple, and the rules in this section go on to | more...