Articles Published in: 2019

October 29, 2019

Reasons You May Be Denied A Home Loan

Most borrowers are worried they may be denied a home loan for one reason or another. How much is the average house hunter in danger of getting turned down for a mortgage? That depends on the kind of real estate you are looking for, your recent credit activity, and other factors. In general, you’ll find it harder to get a loan approved if one or more of the following things apply to you (see below). You Have A Recent Adverse Credit Action On Your Credit Report You risk being turned down for an FHA home loan or any other major line of credit if you were declined credit, employment or insurance recently. You Have High Credit Card Balances Credit card balances above the 50% line (halfway to your credit limit) | more...

October 28, 2019

Home Loans For Building On Your Own Land

By Bruce Reichstein

If you do not want to buy existing real estate or hire a realtor, and prefer to design your own home (or have one designed for you), a One-Time Close (OTC) construction loan is for you. These loans are named “One-Time Close” because unlike some construction loans that require two applications, two approvals, and two closing dates, One-Time Close mortgages have ONE loan for both the construction of the home and for the mortgage itself. These construction loans are available under several government-backed lending programs such FHA One-Time Close construction loans, VA Construction loans, and the USDA equivalent. VA and USDA loans have no down payment requirement, but VA mortgages are not for the general public (qualifying veterans, currently serving troops, and certain surviving spouses of military members who died | more...

October 25, 2019

Important FHA Loan Options For Almost Any Mortgage

By Joe Wallace

There are important FHA loan options you should know about that apply to practically any type of mortgage. No matter if you need a single-unit loan for a typical suburban home or you want to build a house on your own lot using an FHA One-Time Close construction loan, there are options you should consider to get the most mileage out of your loan. FHA Loan Options: Energy Efficient Add-Ons The FHA Energy Efficient Mortgage is an option you can use to add funds for approved energy-saving upgrades to the property. That much is more well-known than the fact that you can use this FHA loan option even if you are applying for an FHA Rehab loan which is already intended to provide funds to repair, renovate, or upgrade a | more...

October 24, 2019

The FHA Loan That Helps You Build On Your Own Lot

By Bruce Reichstein

The FHA One-Time Close construction loan FHA One-Time Close Loan is a mortgage that lets the borrower design and build a home on the borrower’s own land. If you would rather build a home rather than look at real estate listings for an existing construction house, the One-Time Close loan is for you. There is an FHA version of the One-Time Close construction mortgage that requires a low 3.5% down payment. There is also a version of this construction loan offered by the VA to qualifying veterans and currently serving military members. The VA One-time Close construction loan has a 0% down / zero-down option. No money down is required for a VA construction loan up to the VA loan limit. See the end of this article for more information | more...

October 23, 2019

Real Estate, Millennials, And Down Payments

By Joe Wallace

What do millennials and Gen Z’ers say about buying real estate and making down payments? A home ownership-centric website called Porch.com did a survey of roughly 1300 people and the results are quite interesting–and useful to anyone in the planning stages of buying a home. The attitudes of the age groups such as Generation Z and Millennials were of particular interest for this study. “According to our findings” the Porch.com survey page for the Generational Outlook Survey says, “over 75 percent of Gen Zers said it was ‘very important’ or ‘important’ to own a home in their lifetime”, but “only 41 percent” believe it is necessary to do that in the next decade or so. But regardless of when the home is to by purchased, more than 40% of those | more...

October 22, 2019

FHA Disaster Relief Changes

By Bruce Reichstein

In August of 2019, the FHA and HUD issued press releases and Mortgagee Letters describing changes to the FHA loss mitigation guidelines for those recovering from natural disasters in federally-declared natural disaster areas. The FHA states that the new rules affect homeowners who live or work in a “Presidentially-Declared Major Disaster Areas (PDMDAs) of Hurricanes Harvey, Irma and Maria or certain California Wildfires, Flooding, Mudflows, and Debris Flows” according to the HUD official site. Certain temporary measures the FHA and HUD passed in recent times to help improve disaster recovery in these areas are now made permanent. There are some features that have been added that streamline the application process for FHA loan relief, forbearance, and other measures. According to the HUD official site, lenders can use a recent bank | more...

October 21, 2019

FHA Mortgage Rates For The Rest Of 2019

By Joe Wallace

Those who are ready to buy a house, or build a home on their own land using an FHA construction loan are considering their options at a time when mortgages are said to be as much as $200 cheaper than this time last year (depending on the price, down payment, and other factors). Mortgage rates in general are lower now than predicted last year and the rates are, according to some market watchers, due to remain low in November 2019 if the predictions come true. There are a variety of factors affecting mortgage loan interest rates at the moment; Brexit has an effect on investor behavior that can influence mortgage rates, the tariff war with China is another variable. Add to that consumer behavior in U.S. housing markets, and the | more...

October 18, 2019

FHA Loans For Buying, Building, Or Assembling A Home

By Bruce Reichstein

Did you know that FHA home loans can help you buy an existing home as a first-time home buyer, but can also help a first-timer or experienced homeowner have a house built for them from the ground up on your own lot or a lot you purchase in connection with the mortgage. It’s also possible to have a manufactured home assembled for you on a lot you purchase or already own. These loans, especially the FHA One-Time Close mortgage for building a home from the ground up, are offered to both experienced borrowers and first time home buyers alike with no difference in the basic terms and conditions. That means that a first-time borrower is not penalized for being a first-timer; there are no elevated down payment requirements, no added | more...

October 17, 2019

Refinance Loans: Is It Time To Commit?

By Joe Wallace

Is now the right time to commit to a refinancing loan? Opinions may vary, but consumer trends seem to indicate that many of today’s home owners believe the answer is yes. The monthly Ellie Mae Origination Insight Report provides lenders and consumers with mortgage loan data and insights; the September 2019 report includes data suggesting that nearly half (49%) of the loans originated in the time range covered in the report were refinance loans. Interest rates have been at historic lows, home values have also been on the rise, and many want to consider their options while rate trends are still in a borrower-friendly mode. If you are ready to refinance, the first step for many is determining what kind of refinance loan you need. If you just want a | more...

October 16, 2019

Build On Your Own Land: The FHA One-Time Close Construction Loan

By Bruce Reichstein

The FHA One-Time Close construction loan allows a borrower to build a home from the ground up, including loan applicants who want to build on their own land with an FHA construction loan. What do borrowers need to know about the FHA One-Time Close loan? To begin, this type of FHA home loan is available to all qualified borrowers who want to build approved properties; the first-time home buyer is just as welcome to apply for an FHA construction loan as an experienced borrower. For this type of loan, the time you would spend house hunting will be spent contracting with a builder (who must be a licensed general contractor), working with floor plans, and planning the construction of the home rather than going out to search for an existing | more...