Articles Published in: 2019

June 11, 2019

FHA Home Loans: Solar And Wind Technology

Did you know that you can ask for an add-on to your FHA home loan or refinance loan to get funds for solar or wind-powered energy efficient upgrades to the home? Whether you want to add such features to your home at purchase time or refinance time is up to you but it is possible to apply for extra funds to install wind or solar power features. Some reading at this stage might assume we are talking about the FHA Energy-Efficient Mortgage add-on, but this is actually a different program. Under a section in the FHA loan rulebook, HUD 4000.1, labeled “Solar And Wind Technologies” we find the following information: “The solar and wind technologies policy allows the Mortgagee to increase the Base Loan Amount to cover the cost and | more...

June 10, 2019

FHA Cash Out Refinancing Advice

By Joe Wallace

What do home owners need to know about FHA cash-out refinancing? There are a number of questions to ask yourself before you commit. Refinancing can be a big financial help for a home owner but getting the right loan for your needs is half the battle. Ask Yourself If You Need Cash-Out Refinancing And Why A cash out refinance loan can help you thanks to the cash back on the transaction, but is cash back really what you need? If your real goal is to improve the home, for example, you can apply for a different type of refinancing that could provide more money for those improvements than a cash-out refi loan could. An FHA 203(k) rehab loan is perfect for those who need to do home improvement projects and | more...

June 7, 2019

Buying A Fixer-Upper With An FHA 203(k) Rehab Loan

By Joe Wallace

FHA 203(k) mortgages are different than a typical home loan for a new or existing construction home. These loans allow you to buy and renovate a property that would not necessarily meet FHA loan standards as-is. These loans are often called fixer-upper loans, rehab loans, etc. FHA rehab loans are available as both new purchase loans and refinance loans, you can use the loan for a property you already own or to buy a fixer-upper to begin working on. Rehab loans should not be confused with FHA Construction loans, construction-to-permanent mortgages sometimes referred to as FHA One-Time Close mortgages. The two types of loans can be similar in some respects, including the FHA minimum standards and construction requirements where the approved renovation work is concerned. And yes, the work you | more...

June 6, 2019

HUD Announces Charges In Idaho Fair Housing Case

By Joe Wallace

April was Fair Housing Month, and while HUD’s annual push to raise awareness of housing laws in the United States has come and gone, the agency prosecutes Fair Housing cases year round. One the most recent; the U.S. Department of Housing and Urban Development (HUD) announced charges of Fair Housing Act violations against the owners and manager of a rental home in Nampa, Idaho. HUD’s case alleges that a married couple was refused a rental property there because they have children. The Fair Housing Act makes it a crime to “deny or limit housing because a family has children under the age of 18, make statements that discriminate against families with children, and impose different rules, restriction and policies on them” according to the HUD announcement at HUD.gov. “Denying a | more...

June 5, 2019

5 FHA Loan Rules You Should Know

By Bruce Reichstein

There are many rules and regulations that govern FHA home loans and knowing how the system works can save you time and money when you are ready to start the journey toward home ownership. Some borrowers may ask themselves if they are ready to buy a home; if you know some or all of the areas below you may be closer than you think. FHA Home Loans Require Occupancy You cannot buy a home with an FHA single-family home loan unless at least one person obligated on the loan will use the property as their primary residence. This occupancy requirement is non-negotiable and the borrower must take possession of the home within a reasonable time after closing, usually 60 days for existing construction home. Properties that require repairs (such as | more...

June 4, 2019

FHA Home Loan Approval Myths

By Joe Wallace

There are plenty of myths about home loan approval, but for first-time home buyers looking for an FHA mortgage, some of those myths are more prevalent than others. What you don’t know about FHA home loans can hurt you-it’s best to know as much as possible going into the home loan process, which is another reason why it’s best to take your time preparing for a home loan. Rushing into the process can cost more money than taking your time. FHA Home Loan Myths: The FHA Has Separate Requirements For First-Time Home Buyers FHA home loans are open to all qualified borrowers with FICO scores in a certain range for the lowest down payment. FHA loan rules do not make any distinction between a first-time buyer and an experienced home | more...

Time Is Running Out On Exterior-Only FHA Appraisals

June 1, 2019

FHA Home Loan Tips

By Joe Wallace

FHA Mortgages: Lower Down Payment Requirements And Not Just For First-Time Home Buyers FHA loans require 3.5% of the adjusted value of the home as a down payment unless your credit does not meet the loan program requirements or lender standards. Borrowers with FICO scores of 580 or higher technically qualify for the lowest possible down payment but you will need to check lender requirements since they are not the same from one financial institution to another. FHA Mortgages: Down Payment Assistance IS Permitted You can get help from family, friends, employers, or other third parties-they can provide gift funds for the down payment. FHA loan rules say you can only get down payment help from those with no financial stake in the outcome of the transaction. ALL down payment | more...

June 1, 2019

FHA Rehab Refinance Loan Basics

By Joe Wallace

Recent headlines about mortgage loan interest rates have descriptions similar to “rates edging toward long-term lows”, which is motivating many to explore their refinance loan options. Are you a first-time home owner interested in getting a lower mortgage rate? Or are you interested in repairing or remodeling the home? Keep reading. FHA Rehab Refinance Mortgage Loans The FHA 203(k) Rehabilitation Mortgage, also known as an FHA Rehab loan, is offered as a new purchase loan AND a refinance loan. When you refinance with an FHA Rehab loan you are given funds to be used specifically for approved projects in the home. These refinance mortgages will feature interest rates that are offered based on your FICO scores, so the same lower interest rate may not be available to all applicants; those | more...

May 31, 2019

June Is National Home Ownership Month

By Joe Wallace

June is National Homeownership Month. The Department of Housing and Urban Development announce this on their official site as “a time to recognize the importance of homeownership to the U.S. economy and the benefits owning a home have on building household wealth for families”. National Housing Month is a time the agency uses to raise awareness of home ownership issues much in the same way that April is used (as Fair Housing Month) to raise awareness of federal law that protects house hunters and renters from discrimination in housing. This year, the Department of Housing and Urban Development has announced millions of dollars in funding in support of “sustainable homeownership”; the agency announced $43 million in grants intended for housing counseling organizations nationwide. “HUD-approved housing counselors can make all the | more...

May 31, 2019

HUD Announces $1.2 Million To Fight Housing Discrimination

By Joe Wallace

The Department of Housing and Urban Development has announced $1.2 in funding toward the fight against housing discrimination. The HUD official site made the announcement on May 30, 2019. The federal funding falls under the Fair Housing Initiatives Program (FHIP) to “support the efforts of 11 organizations to educate the public and housing providers about their rights and responsibilities under the Fair Housing Act.” April, which is Fair Housing Month, saw the agency award $15 million to similar types of organizations nationwide “to conduct a range of fair housing enforcement, capacity building and education and outreach” all designed to end discrimination at all stages of the housing process. The Secretary of HUD was quoted in a press release stating,”HUD’s efforts to fight housing discrimination are force multiplied by local fair | more...