Articles Published in: December 2019

December 31, 2019

Apply For An FHA Loan

If you are considering any type of home loan, be sure to explore your options with FHA mortgages, refinancing, or reverse mortgages. FHA loans offer a variety of advantages over conventional mortgages including lower interest rates (based on your financial qualifications), built-in protections for the buyer, and more. FHA New Purchase Loans There are many options with an FHA mortgage for single-family homes. New purchase loans include the option to add extra funds to the loan for energy-efficient upgrades or improvements. You can also consider purchasing a fixer-upper using an FHA rehab loan where funds are made available to repair/upgrade the property to FHA minimum standards. The loans mentioned above are intended for owner-occupied residences and would be not be available for investment properties. An FHA new purchase loan or | more...

December 30, 2019

Where To Find An FHA Home Loan

By Joe Wallace

Where do you get an FHA home loan? The simplest answer is that you get one from a participating FHA lender. Not all banks or financial institutions support FHA home loans, and those that choose to do so must be vetted and approved by the government first. FHA Loans Are Offered By Participating Lenders As mentioned above, not all lenders participate in the FHA loan program–but did you know some are not permitted to participate, and some may not be certified by the FHA yet? Your search for a lender may seem daunting, but you can be matched with a participating lender online and do the initial loan screening online, too. You’ll need a variety of information including your estimated budget for the purchase, the desired term of the loan | more...

December 27, 2019

FHA Rehabilitation Loans In 2020

By Bruce Reichstein

Are you interested in buying and fixing up a home, or refinancing and remodeling your current home? These are projects are possible in 2020 thanks to the FHA Rehabilitation Loan, also known as the FHA 202(k) Rehabilitation Loan or the refinance loan version of it. The FHA has a program that allows borrowers to apply for a mortgage loan in order to improve a property. The FHA 203(k) rehab loan is intended for borrowers who want to buy or refinance the property and do repairs, but not all borrowers have big rehab projects or work that requires a huge sum of money. Two Rehab Loan Options Open To You There are two different types of 203(k) loans-the “full” version is available for larger projects including work on loan-bearing structures, but | more...

December 24, 2019

Happy Holidays 2019!

By Joe Wallace

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 Thursday, December 26, 2019. Thank you for reading!

The FHA One-Time Close Construction Loan: An Option In 2020

December 24, 2019

The One-Time Close Construction Loan: An Option In 2020

By Bruce Reichstein

FHA home loan options in 2020 don’t have to be limited to getting a home loan to purchase existing construction property; there is a way to apply for an FHA mortgage that lets you have a home built to suit from the ground up on your own land. These construction home loans, known as One-Time Close construction loans, are offered by the FHA, the VA, and even the USDA and can help even a first-time homebuyer get a house built to their specifications with a low down payment. Yes. you read that correctly. First-time home buyers are permitted to apply for the One Time Close construction loan. So are experienced homeowners. One-Time Close construction loans are good for borrowers who want a home that meets their standards, but the loan | more...

December 23, 2019

FHA Home Loan Applications In 2020

By Joe Wallace

If you are considering the purchase of a home or having a house built for you on your own land in 2020, you are thinking about making the commitment to a mortgage at a very good time. FHA loan limits have been increased for another year, the previous year has been a very good one for mortgage loan interest rates, and even those contemplating refinancing instead of buying have more to think about in 2020 than in years past. Are you ready to apply for a purchase loan, construction loan, or FHA refinance in the new year? Know The Content Of Your Credit Reports If you do not know what your credit report says about you, if you have no idea what your credit score is, be sure to give | more...

December 20, 2019

FHA Mortgages And Conventional Loans: Which Is Better?

By Bruce Reichstein

Are there real differences between FHA mortgage loans and conventional real estate loans? The short answer is yes, the first and most basic difference is that an FHA mortgage is guaranteed by the government, where a conventional loan is not. And there are many other differences. The government’s guarantee to the lender to back a certain portion of each FHA mortgage makes the loan a better risk for the financial institution offering you a line of credit. It doesn’t matter if you want to build a home on your own lot, buy a condo unit, or a mixed-use property (that’s mostly residential). There are FHA loans for all those purposes and at the same low down payment requirements that FHA mobile home loans and single-family houses have. Just because you | more...

December 19, 2019

FHA Loans And Buy-To-Let Mortgages

By Joe Wallace

What is a buy-to-let mortgage? These loans, popular in Britain and elsewhere, are basically designed for investment property buyers. They are similar in purpose (not in terms or conditions) to bank statement loans in that both are intended to help investors and small business people. FHA home loans do not include a buy-to-let loan, but those who want to be owner/occupiers can purchase a property with as many as four living units with an FHA mortgage. You can buy a multi-unit home with an FHA mortgage, live in one or more of the units, and rent out the unused units to other tenants. This is completely acceptable under the terms of the FHA Single-Family home loan program. The requirement is that you live in the property yourself. Buy-to-let loans that | more...

December 18, 2019

FHA Home Loan Appraisals: What You Should Know

By Joe Wallace

Borrowers have plenty of questions about the FHA appraisal process. After all, if the appraisal doesn’t go well, it could mean the borrower has to decide whether to walk away and find something else or deal with the issues uncovered by the appraisal. What is the real issue with FHA appraisals that confuses many borrowers? The fact that there are multiple standards that must be met and not just the ones that are set by the FHA and HUD. House hunters write us frequently to ask if a certain appraisal issue will affect their home loan. And the simple answer is that there is no easy answer to appraisal questions because of one huge variable. And that variable is what state and local building code requirements say in addition to | more...

December 17, 2019

FHA Home Loan Limits: Facts You Should Know In 2020

By Bruce Reichstein

What kind of loan do you need in the new year? Are you interested in an FHA One-Time Close construction loan to build on your own land? An FHA purchase loan for existing construction? You’ll need to know a bit about home loan limits and how they affect your transaction. The FHA and HUD announced higher loan guaranty limits for another year–2020 rates will increase in many housing markets with a small number of areas receiving no increases. Conforming Loan Limits In 2020 A conforming loan is a mortgage meeting guidelines established by Fannie Mae and Freddie Mac including a maximum dollar amount. Your FHA home loan can be at or below a certain amount established each year by county. Conforming loan limits are basically the Fannie and Freddie limits | more...