Articles Published in: 2019

September 27, 2019

Can I Refinance An Inherited Home With An FHA Cash-Out Refi Loan?

Home owners who inherit property have the opportunity to refinance that property with an FHA mortgage, and those refi options can include cash-out refinancing. But there are some rules you need to know before you start the refinance application process. FHA home loan rules generally state that a borrower should be prepared to live in the home they wish to refinance with an FHA cash-out refinance loan for as long as 12 months first. That is a general rule and not specific to inherited properties. HUD 4000.1, the FHA loan handbook for single-family home loans, instructs the lender that it’s required to document, “that the Borrower has made all payments for all their Mortgages within the month due for the previous 12 months or since the Borrower obtained the Mortgages, | more...

Five FHA Home Loan Questions To Ask Your Lender

September 26, 2019

Rising Equity And FHA Refinance Loans

By Joe Wallace

With reports of rising equity in many housing markets over the last year, it makes sense for those with mortgages to consider an FHA refinance loan. If your financial goals include being able to pull the value of your home out in cash with an FHA refi, there are options to consider alongside the cash out refi loan that could make the difference when deciding which refinance loan is right for your needs. A CoreLogic Homeowner Equity Report reveals that in the last year, home equity in some markets went up nearly five percent since the second quarter of 2018. How much is that increase worth to the home owner? Nearly $5 thousand. Overall, the amount of money homes are worth increased nationwide in the last 12 calendar months to | more...

September 25, 2019

It Pays To Shop Around For An FHA Home Loan

By Bruce Reichstein

Why does it pay to shop around for an FHA home loan? A September 2019 report by Zillow.com has some revealing insights into this. Shopping around for the right mortgage lender can be just as crucial as taking a variety of cars out for test drives when you are thinking about taking out an auto loan. You would never buy a car without taking it for a test-drive and comparing dealer prices on the same make and model so why would you apply for a home loan without comparing prices? The Zillow report says a certain range of house hunter will find a wider range of results when shopping around; those who have low credit scores will, according to Zillow, find great variations in what multiple lenders will offer the | more...

September 24, 2019

What You Need To Know About FHA Refinance Loan Options

By Joe Wallace

At the time of this writing, mortgage loan interest rates have fallen to historic lows; VA and FHA mortgage loan interest rates are at a best-execution 3.75% (offered to the most financially qualified applicants) and many homeowners may be saving thousands over the lifetime of their mortgages by refinancing into a lower interest rate. But what do you need to know about refinancing? There are several aspects to consider before you commit to a specific home loan refinance option. FHA loans offer a variety refinance loan options including the typical simple refinance (offering no cash back at closing time), cash-out refinancing, and for those who have existing FHA mortgages, the FHA-to-FHA Streamline refinance option offers a lot to a borrower with a low interest rate and a requirement that (for | more...

September 23, 2019

Mortgage Loans, Interest Rates, and Refinance Loans

By Joe Wallace

If you have been following mortgage loan interest rate trends recently, you know that FHA mortgage loan rates have been at historic lows and that last week there was a fairly significant market correction to rates. Fast forward to the end of last week and we see what some finance blogs are describing as a “correction to the correction”; FHA mortgage loan rates (best execution) were reported down from 3.5% to a best execution 3.375%. And for those who already have home loans, the temptation to refinance at the current time to take advantage of mortgage loan interest rates is strong; who wouldn’t want to save more money on their monthly payments or take equity out of the home in cash? Refinancing to make upgrades and improvements to a home | more...

September 20, 2019

What You Should Know About Mortgage Loan Interest Rates And The Fed Rate Cut

By Bruce Reichstein

The week of September 16, 2019, the Fed cut interest rates for the second time in the year; the 25 basis-point rate cut alters the Fed rate but is not a direct cut or change to mortgage loan interest rates. Interest rate decline in 2019 have pushed more home owners toward refinance loans and many wondered if the latest Fed cut would affect mortgage loan rates in a refinance-friendly directions. Fed rate cuts do not get applied directly to mortgage loan interest rates, but investor behavior following the announcement of a rate adjustment, during the adjustment itself, and the aftermath may have a definite influence on mortgage rates. So if you find yourself wondering whether the Fed rate cut will change home loan interest rates, watch the investors and their | more...

September 18, 2019

Will FHA Loans Let Me Rent Out My Home?

By Bruce Reichstein

Will FHA loan rules allow you to rent out the property you purchase with an FHA mortgage? There are many who wish to buy a home to start working as a landlord, but if you wish to do this with an FHA mortgage, there are certain restrictions you will need to know before you commit. Many home loans have specific requirements; a borrower may be permitted to buy an investment property with certain kinds of home loans (not FHA) but the trade off may be higher interest rates, more restrictive terms and conditions (depending on the lender), and penalties for early payoff of the mortgage. Being a Landlord With An FHA Home Loan With an FHA home loan, you are permitted to be a landlord as long as you occupy | more...

September 17, 2019

HUD Brings Charges Against Housing Design And Construction Companies

By Joe Wallace

The Department of Housing and Urban Development has announced charges against companies in New York, Pennsylvania and Georgia for alleged violations of the Fair Housing Act. We report about Fair Housing cases in this space to remind house hunters of their Fair Housing Act rights, but it’s not as common to report on a case that spans multiple companies and states the way this case does. HUD’s charge involves accusations of housing discrimination associated with the design and construction “of a 40-unit North 8 Condominium development in Brooklyn, New York, in accordance with the accessibility requirements of the Fair Housing Act”. Those named in the HUD Fair Housing Act charges include Toll Brothers, Inc.; Toll Land XIII Limited Partner; Lendlease (US) Construction LMB, Inc; Greenberg Farrow Architecture, Inc.; and 51 | more...

September 16, 2019

What You Should Know About FHA Home Loan Amounts

By Bruce Reichstein

Do you know what affects your FHA home loan amount? There are factors that the borrower controls such as whether to make the minimum required down payment or pay more down up front; there are also factors that are in the lender wheelhouse such as the amount of the origination fee and other closing costs. Not all of these factors automatically result in a different home loan amount. Some may be required to be paid up front in cash, others may permit financing in whole but not in part. Still, other expenses may not be required of all transactions but may apply to yours. You may find that in some housing markets, a charge or expense that is reasonable and customary may not be common in other housing markets. Some | more...

September 13, 2019

Why You Can’t Buy An Airbnb With An FHA Mortgage

By Joe Wallace

Some borrowers read our previous blog posts on what you can and cannot purchase with an FHA home loan and want to know why you can’t buy an Airbnb with an FHA mortgage. FHA loan rules in HUD 4000.1 state clearly that FHA Single-Family Mortgages are intended for primary residences and that any non-residential use of the home must be “subordinate to” the residential nature of the property. HUD 4000.1 also includes instructions to the lender about other acceptable uses of the property including various prohibitions including whether or not you can rent unused portions of your home out to other people after buying it with the FHA loan. For those who are interested in renting to another person as a long-term resident, this is NOT a problem. FHA loan | more...