Articles Published in: July 2020

July 15, 2020

Common Questions About FHA Home Loan Interest Rates And More

FHA home loan interest rates remain at historic lows in July 2020; FHA and other government-backed mortgages feature rates below the three percent range at press time. Some borrowers see all-time loan interest rate headlines and want to know how they can access such low rates. What do you need to know about home loan interest rates? To start, you should be aware that your credit scores play a part in determining the interest rate you may be offered by a participating FHA lender. How Important Is My Credit Score? For determining your mortgage loan interest rate? Very important. That’s one reason why there is so much advice on line about preparing your credit ahead of a mortgage loan application. Whether you want to buy, build, rehab, or refinance, start | more...

July 14, 2020

FHA Loan Limits For High-Cost and Low-Cost Areas

By Bruce Reichstein

FHA mortgages have limits established by county–the limits are not the same in all markets or in all zip codes nationwide. It is true that FHA loan limits are the same for a great many zip codes, but not all. FHA loan limits vary depending on whether the housing market in question is in a high-cost area, a low-cost area, or one that is “typical”. And the amount of the FHA loan limits have nothing to do with the borrower’s ability to qualify for a loan or for a specific amount–you can’t qualify for a higher loan limit by having a better FICO score. FHA home loan limits are set nationwide, usually once at end of the previous year–the annual limits are posted by the FHA and HUD, and go | more...

July 13, 2020

FHA and HUD Announce More Enhancements To COVID-19 Mortgage Relief

By Joe Wallace

The COVID-19 situation in America means dealing with an ever-changing environment created by coronavirus and its’ containment measures. Economic impact of the virus outbreak has forced millions of home owners to seek economic relief including mortgage loan forbearance. The First Round Of HUD Relief The FHA and HUD created an initial round of FHA mortgage loan forbearance for those experiencing a loss of income and/or having trouble making mortgage payments as a result of the pandemic. But the first announcement was followed by updates and refinements. And now there are further updates that can help borrowers keep their homes after an initial round of COVID-19 loan forbearance. FHA Mortgagee Letter 2020-22 announces improvements and the establishment of foreclosure avoidance possibilities the FHA is calling “Home Retention And Disposition options” including: | more...

July 10, 2020

FHA Cash-Out Refinance Loans: What You Need To Know Today

By Joe Wallace

Are you looking at the current low mortgage loan interest rates and wondering about your cash-out refinance loan options? If you are a homeowner looking for an FHA cash-out loan, you should know that you don’t have to have an existing FHA mortgage to refinance a loan with an FHA cash-out loan. No matter which type of home loan you are looking to refinance, there are rules and requirements you should know–some refinance loan options are better than others depending on the purpose of your loan. Rehab And Refinance For example, some borrowers want to rehab a home while refinancing it–there is a separate FHA refi loan for that purpose, though the loan proceeds from the FHA 203(k) Rehabilitation Refinance loan can only be used for approved purposes where cash-out | more...

July 9, 2020

FHA and HUD Announce Even More Home Loan Relief Options For Qualifying Home Owners

By Joe Wallace

Millions of home owners were affected by a loss of income and employment at the start of the COVID-19 outbreak in America. And there was a lot of money on the table in the form of mortgage relief and stimulus payments, but what happens when the stimulus money is gone and the borrower gets to the end of a home loan forbearance period? The FHA and HUD have announced extended relief for FHA borrowers -relief specifically designed to help those who applied for FHA loan forbearance. A press release titled, “FHA Expands Home Retention Measures For Homeowners Financially Impacted By Covid-19” announces the measures, which are meant to help home owners bring their mortgage up to date at the end of the loan forbearance period. As of July 8, 2020, | more...

July 8, 2020

Is Home Loan Pre-Approval Now Required?

By Bruce Reichstein

Borrowers planning to buy a home using an FHA home loan have a lot to contend with when planning and saving for the loan. But now, there is the added complication of the coronavirus outbreak, social distancing is the order of the day and many professions are struggling to do business while reducing risk of exposure to disease. One development some are watching–in addition to revised procedures for appraisals and other measures–there are reports of a trend of sellers requiring borrowers to prove they are serious about the purchase of a property before agreeing to show the home in person. Money Magazine reports this trend of having a pre-qualification requirement–why does this pre-approval issue matter in the age of COVID-19? Low mortgage interest rates have brought more home buyers and | more...

July 7, 2020

How FHA Home Loan Limits Are Set

By Joe Wallace

How does your lender know how much home loan to approve you for when you want to buy a home? Part of that process is learning the official FHA home loan limit in the housing market where you want to buy or build your home. The Federal Housing Administration sets FHA loan limits each year. There is a maximum FHA loan amount that is established in accordance with the National Housing Act. Five Things You Need To Know About FHA Loan Limits Five things you’ll need to remember about FHA purchase loan limits for suburban homes, condo units, having a house built for you on your own lot, etc. are: FHA mortgage loan limits vary by county; Loan limits may be exceeded if you are applying for an FHA Jumbo | more...

July 2, 2020

HUD Announces Fair Housing Grant Awards

By Bruce Reichstein

A person or family looking for a home to buy with an FHA mortgage doesn’t go into the process expecting to be treated to a violation of federal law through discriminatory practices that violate the Fair Housing Act. But many people do encounter such discrimination; the official site of the National Low Income Housing Coalition notes that in 2017 alone 2,249 Fair Housing cases were settled, with more than 400 cases involving a guilty plea from the defendant. Fair Housing Act violations prevent those in need of housing from finding reasonable, affordable homes–discrimination in the housing process is a violation of federal law but unfortunately, there are many who still experience such discrimination whether as a future renter or homeowner. Did you know that Fair Housing laws protect you at | more...

July 1, 2020

Home Loan Interest Rates Hit Historic Lows Again.

By Joe Wallace

The end of the month of June, 2020 saw mortgage loan interest rates hit another historic low–rates hit another all-time low for the fourth time in a single month. As coronavirus issues continue to affect the global economy, economic factors at home and abroad have contributed to an environment favorable for lower rates. FHA Mortgage Loan Interest Rates In June 2020 FHA mortgage rates were listed at 2.50% on the last day of June. Not all borrowers are offered rates this low–your experience will vary depending on FICO scores and credit history. Finance and banking experts have been discussing the idea that as long as coronavirus has a role in what happens to the U.S. economy, we have the potential for continued low mortgage rates. Unfortunately, there is also volatility | more...