Articles Published in: September 2020

September 9, 2020

FHA Home Loans: The Occupancy Rules (And More) You Need To Know

Can you use an FHA home loan to buy investment property you plan to rent out to others? This is a question many wonder about, and the answer is tied to the FHA loan occupancy requirements for these mortgages. FHA loan rules for all single-family home loans are described in the lender’s handbook, commonly known as HUD 4000.1. FHA loan rules include a variety of instructions for the lender that direct the financial institution on how to process and approve FHA home loans. But FHA loan rules don’t just apply to lenders and other mortgage professionals, some regulations are also written for the borrower. Did you know that FHA single-family mortgage loans are intended for owner-occupiers only? The rules listed in HUD 4000.1 are clear–the borrower must take possession of | more...

September 8, 2020

What Is An FHA Loan Down Payment?

By Bruce Reichstein

What is an FHA loan down payment? Most people in the house-hunting process are familiar or will become familiar with down payments-the money required from the borrower upfront which is paid against the principal of the loan. There’s a long-standing notion about the nature of down payments; if a borrower invests a large amount of money upfront, they have a bigger stake in making on-time payments and remaining in good standing on the mortgage loan. But that idea isn’t addressed in the FHA loan rulebook. What is discussed is the nature of the minimum required cash investment or the down payment on an FHA mortgage. All FHA loans for new purchases will require a minimum FHA loan down payment of 3.5% of the adjusted value of the home. Naturally, the | more...

September 3, 2020

HUD Announces Disaster Relief In The Wake Of Hurricane Laura

By Joe Wallace

On August 28, 2020, there was a federal major disaster declaration announced for the state of Louisiana; those living in the affected areas are eligible for federal disaster relief and other measures as announced (see below). The U.S. Department of Housing and Urban Development now offers federal disaster assistance there “to provide support to homeowners and low-income renters displaced from their homes in areas affected by Hurricane Laura.” The major disaster declaration is for the following parishes in Louisiana; Allen, Beauregard, Calcasieu, Cameron, and Jefferson Davis. The result of having these areas declared as federal disaster areas allows FHA foreclosure relief and other assistance to impacted families living in these counties to include immediate foreclosure relief in the form of a 90-day moratorium on foreclosing upon any FHA mortgage. For | more...

September 1, 2020

One-Time Close Construction Loan Mortgage Payments: What You Need To Know

By Joe Wallace

When do mortgage payments begin on a construction loan? If you are building on your own lot with a VA One-Time Close loan or an FHA OTC construction loan, you’ll want to know what you are liable for and when–and you’ll also want to know how delaying your mortgage payments until the home is complete will affect your monthly payments down the road. VA and FHA mortgage loan options include the ability to build a home on your own land using a VA One-Time Close construction loan or the FHA equivalent. One-Time Close loans allow you to build a house on your own land or purchase land in conjunction with building a home. There is a single application and approval process–these loans are potentially more streamlined and easier to manage | more...