Articles Published in: 2021

November 16, 2021

FHA Refinance Loans Versus Freddie Mac Refi Possible

FHA refinance loans are a good option for borrowers who may need a more flexible credit score requirement to apply, and for those who want to get out of an adjustable-rate mortgage into a fixed-rate home loan. But how does the FHA refinance loan program compare to the conventional Freddie Mac Refi Possible program? Some wonder if they shouldn’t consider a conventional refinance loan program like Refi Possible instead of an FHA refinance option. Should you get a Refi Possible loan instead of an FHA Streamline Refinance or an FHA Cash-Out Refinance? For some borrowers, who meet the Freddie Mac requirements for this program, the answer is yes. These are borrowers that meet the Freddie Mac income restrictions for the program (income at or below the area median income guidelines for | more...

November 12, 2021

How Long Do You Have To Be At A Job To Get An FHA Loan?

By Bruce Reichstein

How long do you have to be at one particular job to get an FHA loan? The employment issue is an important one, but some borrowers misunderstand the rules, thinking them to be more strict than they actually are. What is the reality of the FHA loan employment rules? FHA Loan Rules For Minimum Employment Standards The rules governing FHA loan employment standards are found in the FHA loan handbook, HUD 4000.1, which includes the following requirement on how the lender must verify the borrower’s employment history: “Mortgagees must not accept or use documents relating to the employment, income, assets, or credit of Borrowers that have been handled by, or transmitted from or through the equipment of unknown parties, or Interested Parties.” Furthermore, the lender “may not accept or use | more...

November 10, 2021

Get Ready For Your New Home In 2022

By Joe Wallace

Are you considering a home loan in 2022? There are many options and while the FHA home loan limits for the new year have not been announced at press time, borrowers should know the FHA loan limits for 2021 were increased over the previous year. Will that happen again in 2022? Time will tell but it’s a good idea to start thinking about your home loan as early as possible to get ready with a budget and a plan. FHA Forward Mortgage Options In 2022 The “forward mortgage” is the kind of loan you will use to buy your dream home. They are also known as “purchase loans” and simply as “home loans”. And with the FHA Single Family Home Loan program, your forward mortgage loan options are not just | more...

November 9, 2021

FHA Mobile Home Loans Get Enchancements

By Bruce Reichstein

For the first time in four decades, the Federal Housing Administration has published major new guidelines to improve the sale of manufactured homes, mobile homes, etc. In a press release on the FHA and HUD official sites, it was announced that the FHA Title One Program for purchasing mobile homes has been revised and “enhanced” with policies designed to streamline the program and help those who want to use and FHA mortgage to buy a manufactured home. These rules are updated to include FHA mortgages for mobile homes that are “titled as personal” as well as the lot where such a home would be placed. Motivation for these enhancements includes a need to make the program guidelines more understandable to both lenders and borrowers, “while providing expanded eligibility requirements for | more...

November 8, 2021

FHA Mortgage Relief Still Available For Those Affected By COVID

By Joe Wallace

If you have trouble making your monthly FHA mortgage loan payments, you are not alone. There seem to be so many borrowers struggling that the FHA and HUD have announced multiple extensions to COVD-19 mortgage forbearance policies. Indeed, there have been so many updates and extensions to FHA loan policy in this area that it’s hard to keep it all straight. What’s the most current guidance from the FHA and HUD regarding those who need FHA loan forbearance due to COVID-19 pandemic issues? On September 27, 2021, the FHA issued a Mortgagee Letter, FHA ML 21-24, which explains to lenders the current FHA policy toward such mortgage relief: “Upon Borrower request, Mortgagees must offer a COVID-19 Forbearance to any Borrower that experiences an adverse impact on their ability to make | more...

November 5, 2021

Who Can Apply For An FHA Mortgage?

By Joe Wallace

Who can apply for an FHA mortgage? Anyone can apply. Not all are accepted, obviously but there are few restrictions on who can be considered for an FHA mortgage. One of the main restrictions? Applicants with FICO scores below 500–FICO scores below that can never qualify for an FHA mortgage. Another restriction–you must be in the country legally. You do NOT have to be a citizen of the United States to qualify for an FHA mortgage loan, but you do have to provide documentation that shows your status as a resident, non-resident alien (the official term at press time) refugee, or asylum seeker. Your ability to qualify for the FHA home loan program depends on being able to show documentation of your status as a legal resident, etc. Another restriction | more...

November 4, 2021

HUD Announces New Funding To Fight Housing Discrimination

By Joe Wallace

The Department of Housing and Urban Development has announced a round of funding intended to combat housing discrimination related to COVID-19. Fair Housing Act violations are bad enough when things are “normal”, let alone during a global pandemic. A press release at the HUD official site notes the agency is funding more than 50 Fair Housing initiatives to the tune of approximately $13 million. That money comes from the pool set aside for the American Rescue Plan (ARP). The press release states the money funds a “range of fair housing enforcement and education and outreach activities related to the COVID-19 pandemic” including work to fight discrimination in communities determined to be “underserved” by such efforts. “Discriminatory policies have no place in a nation struggling to deal with the lingering effects | more...

November 3, 2021

FHA Loans: For Buying Your First Home

By Bruce Reichstein

Are you looking for your first home? The FHA home loan program offers mortgages with 3.5% down payments if you qualify with FICO scores, income, and responsible credit use. What do you need to know about what it takes to get approved for an FHA mortgage as a first-time buyer? A lot may depend on variables in your life such as how long you have been in the job market, what your current debt ratio looks like, and whether the employment you have now is stable and likely to continue into the first years of the new loan. Why do we say this? Because FHA mortgages require a minimum income history but not a minimum income. FHA loan approval depends on your credit history, your FICO scores, AND your employment. | more...

November 2, 2021

Buying A Second Home?

By Joe Wallace

There is a myth about FHA home loans you might even believe yourself. Some believe that FHA home loans, with their low 3.5% down payment, are set aside strictly for first-time homebuyers who need help via a lower down payment than many conventional loans might require. What is the reality about the notion that FHA home loans are for first-time buyers only? FHA mortgages are NOT restricted to those who have never owned a home before. They are also not restricted to low or moderate-income applicants. One reason for these prevailing myths about FHA mortgages? Likely that many state or local first-time homebuyer programs may be commonly used with government-backed mortgage programs like the USDA and FHA home loan programs. By association, some might assume that the loan is intended | more...

October 29, 2021

How To Get An FHA Mortgage Loan As A First-Time Home Buyer

By Joe Wallace

How can a first-time home buyer qualify for an FHA mortgage loan? To use an FHA mortgage you do NOT have to be a first-time buyer, but if you ARE one you may qualify for state or local down payment assistance programs in your area and it’s a good idea to explore those options if they are open to you. If you are looking for a starter home, a home to grow into, or you want to have a home built especially for you (using an FHA One-Time Close construction mortgage loan), your FHA loan options are impressive. How To Qualify For An FHA loan As A First-Time Home Buyer Plan ahead and start early for your home ownership journey. Start at least a year in advance…that’s the best advice | more...