Articles Published in: 2019

Refinancing a Second Home With An FHA Mortgage Loan

April 8, 2019

FHA Home Loan Questions And Answers For First-Time Borrowers

FHA home loans offer first-time home buyers an advantage with low down payment requirements, more flexible lending standards, and the ability to apply for local down payment assistance help where offered (as long as that assistance meets FHA requirements). Do you have questions about the FHA home loan process as a first-time buyer? Some of these answers below may help. What Is An FHA Forward Mortgage? The term “forward mortgage” refers to any home loan used to buy a property. It’s also sometimes known as a purchase loan. Why Are Closing Costs Due At Closing Time And Why Can’t I Finance Them Into My Home Loan? Not all closing costs must be paid in cash at closing time-the FHA Up-Front Mortgage Insurance Premium is an example of an FHA home | more...

April 5, 2019

FHA Loan Facts

By Bruce Reichstein

When you start doing research on home loans and want to learn what it takes to qualify for an FHA mortgage loan as either a first-time home buyer or as a return borrower, you will find websites with lists of loan approval requirements. Some of those FHA home loan approval requirement lists look like this: A credit score of 580 or higher for the lowest down payment A debt-to-income ratio of 43% or less 3.5% down payment 1-2 years of consistent employment history A property that meets FHA standards OR A home eligible for FHA 203k rehab loan financing You may find a caveat on lists like these stating that they are “general guidelines” and that is true. What isn’t always included in those caveats is that additional lender standards | more...

April 3, 2019

FHA Home Loan Appraisal Issues

By Bruce Reichstein

We are contacted frequently with questions related to FHA appraisals. Many first-time borrowers and experienced house hunters alike have trouble understanding the nature of the appraisal process and how it works. We are often asked if a certain appraisal condition is grounds for having the loan denied, and whether FHA home loan appraisal rules fit a unique circumstance. But whatever the question, the variable in the equation is the fact that FHA appraisal rules, which are basically minimum requirements, are not the only rules that will affect the transaction. So even if FHA appraisal requirements say that a home that has lead-based paint may be acceptable under certain conditions, state or local building code may have additional requirements. And the building code requirement in that area would have to be | more...

April 2, 2019

FHA Streamline Refinance Loan Rates

By Joe Wallace

There are lots of online lending websites discussing interest rates for mortgage loans. But what do you need to know about FHA home loan interest rates and refinancing? If you want an FHA Streamline refinance loan, you will be applying for a refi loan that generally requires the transaction to have some tangible benefit to the borrower such as a lower monthly payment or a lower interest rate. When you shop around for lenders offering the best interest rates, remember that one very important factor applies; until you enter into a mortgage rate lock commitment with the lender, today’s interest rates will not apply to your loan. In other words, until you have a commitment in writing for the interest rate, daily and weekly rate fluctuations will apply. The mortgage | more...

April 1, 2019

HUD Charges Facebook With Fair Housing Act Violations

By Bruce Reichstein

The Department of Housing and Urban Development has brought charges of Fair Housing Act violations against Facebook. HUD announced it would charge Facebook “with violating the Fair Housing Act by encouraging, enabling, and causing housing discrimination through the company’s advertising platform.” HUD’s case claims that Facebook illegally restricted “who can view housing-related ads on Facebook’s platforms and across the internet” and also that the media giant “mines extensive data about its users and then uses those data to determine which of its users view housing-related ads based, in part, on these protected characteristics” according to a press release issued by HUD. There’s more; the HUD press release also mentions a HUD claim that additionally, “Facebook combines data it collects about user attributes and behavior with data it obtains about user | more...

March 29, 2019

Five Things You Should Do Before Applying For Your First Home Loan

By Joe Wallace

First-time home buyers should be working on five areas before they apply for a mortgage loan. Are you working with a real estate agent or searching the real estate listings in your local area? Maybe you want to buy a new home in a different area than where you are living now and need to know the ins and outs of the neighborhoods there? Decide What Kind Of Home Loan You Need Having a home built from the ground up is possible with an FHA One-Time Close Construction Loan, but these loans are quite different than an FHA Condo Loan or FHA loans for a mobile home or manufactured home. Knowing the kind of loan you want in advance will help you search for the right kind of lender-some financial | more...

March 28, 2019

FHA And HUD Announce Home Loan Policy Changes

By Joe Wallace

The Department of Housing and Urban Development has announced policy updates and changes that have been added to the FHA Single Family Home Loan Program Handbook, HUD 4000.1. According to an FHA/HUD press release, these are the first changes and updates to the handbook since late 2016. “With today’s update, FHA is recommitting to the industry that it will continue to maintain and enhance the SF Handbook so that it becomes a single, comprehensive source of policy guidance for lenders and other stakeholders doing single family business with FHA” according to the press release. The updates, posted March 27, 2019, include a set of “technical changes for consistency and clarity” as well as FHA home loan program policy updates. These updates affect how the lender may handle certain issues associated | more...

March 27, 2019

FHA Home Loans For Millennials

By Joe Wallace

How young is too young to buy a home? Millennials are taking over as the largest group of home buyers in the United States, but some wonder whether they are able to qualify. What does it take to qualify for an FHA mortgage? Are There Age Restrictions On FHA Home Loans? FHA loans do require all borrowers to be of sufficient legal age to sign legally binding contracts. But aside from that, there are no real age limits for FHA mortgages with one exception. The FHA Reverse Mortgage, which lets qualified borrowers convert the equity in a home they own outright into cash, is limited to borrowers aged 62 or older. But for forward FHA mortgages to purchase a home, as long as the borrower is otherwise qualified and of | more...

March 22, 2019

FHA Home Loans For Homes Built Before 1978

By Bruce Reichstein

FHA home loans are offered for a variety of home needs including building a house from the ground up with an FHA One-Time Close construction loan, but there is also an option to use your FHA mortgage to buy an older home that is not considered new construction. In cases where the property is older than 1978, there are some additional rules regarding the potential for lead paint in the residence that all borrowers thinking about buying older property should be aware of. FHA home loan rules in HUD 4000.1 point out that any home built prior to 1978 must include disclosures to the buyer: “…the seller must disclose any information known about lead-based paint and lead-based paint hazards before selling the house, in accordance with the HUD-EPA Lead Disclosure | more...

March 21, 2019

Home Loan Credit Problems: Unresolved Borrower Debt

By Joe Wallace

What can jeopardize a home loan application? There are many factors, but delinquent and unresolved debt are two areas that first-time home buyers should be keenly aware of; these issues can derail a mortgage loan application depending on the severity and amount of the debt. We discuss debt ratios and related issues in this space all the time; the unresolved debt issue is related to debt ratios in a way (the resolution of the debt will likely add to the debt ratio in some way) but an account that is delinquent, and/or in dispute is a separate area altogether. It’s always best to apply for any major line of credit with a minimum of 12 months of on-time payments; anything less could threaten your ability to get loan approval. But | more...