Articles Published in: October 2024

October 29, 2024

Can Veterans Buy Land with a VA Loan?

First of all, the Department of Veterans Affairs does not allow VA lenders to offer standalone land loans utilizing a Veteran’s home loan eligibility. However, you can use the VA-insured loan program to buy land if it’s combined with the construction costs of building a new home. This loan product, known as a VA One-Time Close construction to permanent loan, allows borrowers to roll all the costs into one loan, requires $0 down payment for fully eligible Veterans, and involves just one closing. It’s a popular choice for those building Stick-Builds, modular, and manufactured homes. If you’ve dreamed of building your own home with a licensed general contractor (it cannot be yourself), the VA One-Time Close construction loan is the perfect option to make it happen—all with a $0 down | more...

October 21, 2024

Are You Ready To Apply For An FHA Mortgage?

By Joe Wallace

How do you know you are ready to apply for an FHA home loan? And by that question, we mean sending the documents to the lender ready for the approval process. Being ready to submit your financial information and other documents for loan approval means having taken certain steps along the way in the planning and saving stages of your mortgage. To apply for an FHA home loan, you’ll want the following things in the list below, and keep in mind that these are needed before you send in your application: Making an offer on a home and having it accepted is the catalyst for getting the actual application paperwork into the system, but some borrowers pre-qualify for a loan before house hunting. That causes some confusion at times because | more...

October 18, 2024

When Can I Refinance An FHA Loan?

By Bruce Reichstein

When can I refinance an FHA loan? That is a common question and one that is addressed in the FHA loan handbook, HUD 4000.1. There are rules that govern how and when you can refinance your home loan and those rules will vary depending on the type of refinance loan you seek. Most FHA home loans, including refinance loans and even reverse mortgages, require occupancy as a condition of loan approval. In the case of FHA Cash-Out Refinance loans, occupancy is necessary for at least one year before the new loan. From HUD 4000.1: “Cash-out refinance transactions are only permitted on owner-occupied Principal Residences. The Property securing the cash-out refinance must have been owned and occupied by the Borrower as their Principal Residence for the 12 months prior to the | more...

October 17, 2024

Can You Buy Land With An FHA Loan?

By Bruce Reichstein

There are several reasons why a house hunter looking for a home to purchase with a VA mortgage might want to buy a piece of land. In times when the housing market is favorably inclined towards new construction loans, some buyers might want a government insured loan for a proposed construction or new construction purchase; others might want to buy a piece of land for a manufactured home or mobile home.

October 15, 2024

FICO Score Basics First-Time Home Buyers Should Know

By Bruce Reichstein

What does a first-time home buyer need to understand about FICO scores? If you are interested in a home loan, you need to know what FICO scores are acceptable to the lender. You also need to know how FICO score ranges are viewed by lenders in terms of general creditworthiness. What makes a good credit score or credit score range, and what makes a “bad” credit score range? Investopedia says credit scores have a range between 300 and 850. What do lenders think makes a good credit score? The specific answer will depend on the lender, but as a rule of thumb consumers can count on FICO scores between 670 and 739 as being “good”. Scores above this range in the 740s to a maximum of 850 are “excellent”. What | more...

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

October 3, 2024

How Much Do I Put Down On An FHA Home Loan?

By Joe Wallace

There are persistent myths and misunderstandings about home loans. One persistent myth is that FHA mortgages are only approved for first-time home buyers. Another is that FHA loans are only for low to moderate-income borrowers. And a third–and the focus of our article–is that you have to make a 20% down payment on a home loan. What’s the reality? FHA home loans do NOT require a 20% down payment, even if you are at the lower end of the qualifying credit score range. According to FHA loan rules, the most you are required to put down on an FHA mortgage (on paper, according to the FHA) is 10%. That is for borrowers who do not have FICO scores that qualify them for 3.5% down. So why do people think you | more...

October 1, 2024

Intro To FHA Refinance Loans

By Bruce Reichstein

The Fed announced a substantial rate cut in 2024. That action has more homeowners thinking about their refinance loan options and how they can take advantage of potentially lower rates to come. Refinancing helps some borrowers save money in interest payments over the long term. It can also, depending on circumstances, help you get into a lower monthly payment. Once rates have fallen to the right levels (for some borrowers) these options get more realistic than they have been in the past two to three years. Refinancing can also result in cash back to the borrower once the original loan has been paid off and the associated closing costs dealt with. Not every refinance loan offers this, but FHA loan programs do include cash-out options. If you need to refinance | more...