Articles Published in: January 2020

January 29, 2020

HUD Announces New Policy On Service Animals

The Department of Housing and Urban Development (HUD) announced updated guidance regarding the use of service animals and emotional support animals as it relates to Fair Housing Act issues. The issue of support animals might not seem to be related to the purchase of real estate with an FHA home loan, not at first. But Fair Housing rules do affect all stages of the house-hunting process including renting a home while you are looking for one to purchase with the help of a realtor, or on your own. The HUD announcement discusses a need for reasonable accommodation in housing for those who need service animals or emotional support animals. The agency has released an “Assistance Animal Notice” designed to help all parties understand how to best comply with Fair Housing | more...

January 28, 2020

One-Time Close Construction Loan Options For Veterans

By Joe Wallace

There are reasons why some veterans don’t use their VA loan benefits to buy a house at that moment. The reasons for that, we’ll discuss below. But it is important for military members and their families to know the options they have when looking for a home to build on their own lot. There are plenty of options; which type of One-Time Close construction loan to choose from? Those who have entitlement to use for a VA mortgage loan to build a home would seem to choose to do so based on the zero down home loan option all by itself. Add the lack of a mortgage insurance requirement, and the fact that veterans who receive (or are eligible to receive) VA compensation for service-connected medical issues are exempt from | more...

January 27, 2020

Is It Safe To Buy A Home In 2020?

By Bruce Reichstein

Some borrowers are wondering if it is safe to buy a home in 2020. These people may be worried about interest rates taking a sharp move higher (they are currently very low due to issues we’ll discuss below) or about credit becoming harder to come by in the new year. But what is the reality? It’s never been a better time to be interested in real estate, especially for those interested in buying condo units or having a house built for them from the ground up using a One-Time Close construction loan. 2019 was a very interesting year for interest rates; there were times when rates behaved differently than expected, times when they went lower in spite of other pressures that could have driven rates higher instead. And it seems | more...

January 23, 2020

FHA Loan Rules You Need To Know Before House Hunting

By Bruce Reichstein

There are several things you should know about FHA home loans before you go looking for real estate to buy. You can save a LOT of time and even some money by taking extra time to consider the following issues. You Don’t Have To Buy An Existing Home FHA home loans have an option called the One-Time Close construction loan. It lets you build a home from the ground up on your own land. Don’t want to purchase existing real estate? There is an FHA home loan for that and it is offered even to first-time home buyers. The same low 3.5% minimum down payment is available to those who qualify with credit scores and other financials. You Don’t Have To Buy A Suburban Home With An FHA Mortgage Don’t | more...

January 22, 2020

Closing Day On Your FHA Home Loan

By Joe Wallace

What do you need to know about closing day for your FHA home loan? There is plenty of advice out there including the idea that you should not schedule loan closing AND moving trucks on the same day. But why? Because there are some variables that could delay your closing day, and you don’t want to get stuck juggling TWO rescheduling needs instead of just one (to say the least). Closing Day Delays Your closing day could be rescheduled for any number of reasons–there could be an issue with the title, your appraisal could come in too low, you may pay for the home inspection only to find that there are problems with the home not covered by the appraisal. Some issues are merely delays. Others could develop into a | more...

January 20, 2020

Happy Martin Luther King, Jr. Day

By Bruce Reichstein

Happy Martin Luther King, Jr. Day 2020! Banks and markets are closed today to observe the holiday and we too feel it’s very important to remember this important day. America owes a great deal to Dr. Martin Luther King, Jr. We are proud to observe this day dedicated to him and pause our regular coverage of FHA news and FHA loan topics to observe the holiday. We resume our usual schedule of posts tomorrow. Thanks for reading!

January 17, 2020

Home Loan Approval And Your Income

By Bruce Reichstein

Home loan approval means submitting your employment and income information to the lender, who must verify the information for accuracy. There are things you can do to help the process work in your favor if you know about certain nuances of the home loan approval process. Important Takeaways From This Article: Know how the lender checks your income data; Study the FHA home loan rules for employment and income, especially if you are self-employed, a commission earner, or a contractor; Know how frequent job changes may affect your loan; Shop around for a loan even if you think you’ve found a good bank; Know How The Lender Operates Some people mistakenly assume that income and employment verification are formalities; they are not. Your lender is required by law to carry | more...

January 16, 2020

Do You Need To Apply For An FHA Mortgage?

By Joe Wallace

Do you need to apply for a home loan to buy real estate in 2020? FHA mortgages feature a low minimum down payment, allow seller contributions to closing costs, and even permit down payment assistance from approved sources. What does it take to apply for an FHA mortgage? You will need proof of income, tax records, and bank statements. Borrowers also need to have a credit history of some kind, even if non-traditional. FHA loan rules allow non-traditional credit, but lender standards will be very important. FHA Loan Approval Requirements FICO scores between 500 and 579 for a 10% down payment, or FICO scores at 580 or higher for the lowest down payment of 3.5%. You will also need 24 months of employment history as a general rule, and you | more...

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

January 15, 2020

FHA Construction Loans Versus USDA Construction Loans

By Bruce Reichstein

Why would borrowers choose to build a home on their own land using an FHA One-Time Close construction loan (which requires a down payment of 3.5%, minimum) instead of a no-money-down USDA home loan? There are several reasons why an FHA mortgage might be the better choice depending on circumstances, even with a required minimum down payment. That down payment is far less than some conventional loans require. USDA Mortgage or FHA Home Loan? USDA construction loans offer an advantage to eligible borrowers thanks to their zero down payment requirement. But a USDA mortgage is need-based, and these loans (even construction loans) have a household income cap. USDA loan rules state that in some cases, borrowers who have assets higher than the USDA limit “…may be required to use a | more...

January 14, 2020

How To Get Ready For Your Home Loan

By Joe Wallace

Need to know how to get ready for an FHA home loan in 2020? There’s plenty of good advice out there, but what about from watchdog agencies like the Federal Trade Commission? Or USA.Gov? Starting early to plan your loan is the best advice, but what happens next? Reviewing your credit, saving up for your expenses for the loan, and learning your options are very important. FTC Credit Advice The FTC has a lot of consumer credit advice, some of which can apply to home loan transactions as well as other types of credit. The FTC official site warns consumers that when trying to get ready for your home loan. it’s best to review your credit reports BUT do not be taken in by third party credit repair agencies that | more...