Articles Published in: January 2019

January 16, 2019

Government First-Time Home Buyer Programs

Many first-time home buyers want to know if there are government programs for those who have never purchased a home before. FHA home loans often get included into this category and it’s true; FHA mortgages are good for those buying a first home. FHA loan limits have increased for two years in a row at the time of this writing, there are lower FHA FICO score requirements and lower down payment requirements for FHA loans that make them a good option to explore when shopping for your first home and your first real estate loan. But FHA mortgages are not specifically intended for first-time buyers. You do not have to be a new house hunter to apply. That said, FHA mortgages for a starter home, first home, or for a | more...

January 15, 2019

First-Time Home Buyer Advice: How To Buy Your First Home With Less Cash Up Front

By Bruce Reichstein

First-time home buyers often need to save as much cash up front on the transaction as possible. There are ways you can prepare for your FHA home loan in the planning stages that can help you buy your first home with less out-of-pocket costs. Do you know what they are? First-Time Home Buyers Should Work On Lowering Credit Card Balances Very Early Whenever Possible One very important factor in qualifying a borrower as a good credit risk when buying a first home? The amount of debt the first-time borrower carries versus the amount of monthly income. Your debt ratio is just as important as FICO scores, and the lower your debt ratio, the better off you will be when the lender goes to approve or deny the home loan application. | more...

January 14, 2019

Buying A First Home Or Second Home With An FHA Mortgage

By Joe Wallace

What should borrowers, especially first-time home buyers, know about buying a home with an FHA mortgage? First time home buyers and second-time home buyers alike have options for an FHA mortgage. The program is not restricted to those who have never owned a home before. FHA loans are also more forgiving in the credit department-FICO score requirements set by the FHA are lower than you may expect. But lower FICO scores may still feel like a big liability for the first time home buyer. You should know that your repayment history is an important factor. If you make 12 months of on-time payments on all financial obligations, you may find the lender more willing to work with a lower FICO score. That’s because it’s easy to get a lower credit | more...

January 11, 2019

On Buying A First Home With An FHA Mortgage

By Bruce Reichstein

First-time home buyers looking for a new home to buy with a mortgage loan might not know all of their options at the time they start looking, but everyone stars house hunting with their own set of assumptions-some are right, and some are not. Some assume that an FHA home loan is made specifically for first-time home buyers, but this is not true-any financially qualified borrower can apply and be approved for an FHA home loan for a mobile home, suburban home, duplex, even condos and multi-unit properties. You read that correctly, FHA home loans can help first-time home buyers purchase multi-unit homes. This is good for those anticipating family growth, and for those who are thinking about becoming landlords and getting income from the unused living units in the | more...

January 10, 2019

Buy And Fix A Home With An FHA 203(k) Rehab Loan

By Joe Wallace

An imperfect home or a property you are sure won’t pass FHA appraisal requirements is not necessarily a lost cause when it comes to FHA mortgage loan approval. You just need to select the right home loan for the property. In the case of a home that is in need of repair, you won’t use the same kind of mortgage that you would if you were interested in a turn-key home. The kind of mortgage you need for a fixer-upper is an FHA 203(k) rehabilitation loan. FHA 203(k) mortgages allow you to buy and renovate a property using a single loan. FHA rehab loans are available as both new purchase loans and refinance loans, so no matter what stage in the home ownership process you are, this option is open | more...

January 9, 2019

FHA Home Loans In 2019: Are Home Price Increases Slowing Down?

By Bruce Reichstein

A CoreLogic Home Price Insights report indicates that home prices increased by more than five percent between November 2017 to November 2018, but the same agency indicates that home prices may slow down in 2019. Could that be beneficial to a house hunter looking to purchase a new home with a mortgage loan? FHA home loan limits have increased in 2019 for the second year in a row, making for an interesting borrowing environment for the first-time home buyer or any other financially qualified loan applicant who seeks an FHA mortgage. The higher home loan limits combined with slowing home prices, with predictions of more houses available in 2019 could offer house hunters more to work with in the new year. FHA home loans are not just available for typical | more...

January 8, 2019

Buying A Home With An FHA Loan After A Short Sale

By Joe Wallace

A short sale is essentially the sale of a home that is still being paid for, where the property sells for less than the amount owed. The lienholder(s) agree to write off the remainder and forgive the deficiency. Borrowers who sell short are often taking measures to avoid foreclosure on the mortgage, but not all of the short sale transactions that happen are on mortgages that have fallen into delinquency. Short sales happen in many circumstances but one common scenario involves a homeowner who is suffering from an underwater mortgage and is trying to cut their losses. Getting An FHA Loan After A Short Sale Is it possible to buy a home with an FHA mortgage loan after a short sale? The short answer is yes. Buying a home with | more...

January 7, 2019

FHA Loans And The 2019 Government Shutdown

By Bruce Reichstein

At the time of this writing, the partial government shutdown continues and we are seeing more headlines about the services affected, including certain kinds of home loans. Specifically, home loan applicants seeking USDA mortgages are locked out of the process for the duration of the shutdown according to a variety of sources. Some potential USDA borrowers were caught in the middle of their transactions when the government shut down, and the media reports stories of those left more or less in limbo until the current situation is resolved. So what does this mean for FHA mortgage loans? FHA Mortgage Loans Are Still Available During The Government Shutdown Forward mortgages will continue to be serviced during the shutdown as previously reported here and elsewhere. But there are some important things you | more...

January 4, 2019

Renters May Spend More In 2019: Is It Time To Buy?

By Joe Wallace

Do a Google search on the phrase “2019 rent increase” and you’ll find plenty of talk about higher rents. That “higher rents in 2019” includes one article published by Wilmette Week discussing the possibility that the State of Oregon may be considering state-enforced rent control with possible yearly rental increase limits of five percent. The fact that Oregon is considering this as a state-wide measure may not reflect the state of rent increases nationwide, but it certainly is food for thought for anyone living in or near that area. Is 2019 the year to consider buying a home with a low-down payment FHA mortgage instead of submitting to yet another rent increase? Some housing finance blogs and real estate bloggers are discussing how renters in 2018 spent more than the | more...

January 3, 2019

FHA Loan Down Payment Rules For 2019

By Bruce Reichstein

FHA home loan down payment requirements are lower than other mortgages, and depending on circumstances your down payment commitment on an FHA mortgage could be even less thanks to down payment assistance programs and seller contributions to closing costs. FHA Home Loan Small Down Payments Elsewhere on the internet you will find writing about down payment requirements for purchasing a new home, discussing why borrowers are choosing one approach or another regarding the money they put down on the home. Conventional mortgages require private mortgage insurance (PMI) unless the borrower makes a higher down payment. A 20% down home loan transaction is not uncommon in cases where the borrower wants to avoid paying PMI. FHA home loan rules in HUD 4000.1 require mortgage insurance premiums, too, but borrowers looking to | more...