Articles Published in: 2024

January 23, 2024

Planning & Saving For Your FHA Loan

House hunters need to save cash when planning to buy a house in the new year. Some things have always been on the list but have, in more recent times, become more important to consider while in planning mode. FHA Home Loan Down Payment Issues To Know The down payment issue is non-negotiable for typical FHA loans, money down is required. However, you might be surprised by your options when saving for it. You’ll need to save a MINIMUM 3.5% down payment, but in 2024, you may want to consider making a bigger down payment. It can help you save on interest rates over the loan term. There are variables, including whether or not you choose to finance closing costs, and those are factors to consider and ask the lender | more...

January 22, 2024

Getting A Better FHA Loan Interest Rate

By Joe Wallace

CBS News offers some advice to house hunters in 2024. Are you interested in buying a home with a lower interest rate? CBS has some advice for you, and as their published article reminds us, mortgage rates are falling in early 2024, but there are also ways to enhance your ability to get a lower rate. The CBS report dispenses some advice to help homeowners take advantage of existing options that can earn qualifying borrowers an even lower rate. But is the CBS advice sound? We examine their perspectives on getting a better rate on your home loan below. Shopping Around For A Lender CBS advice includes the idea that it’s best to shop around and find a lender offering the most competitive FHA loan rates and terms. Consider shopping | more...

January 19, 2024

Who Qualifies For FHA Loans?

By Joe Wallace

Whether you’re interested in building a house from the ground up on your own lot or need a mobile home or condo unit, there is an FHA home loan for you. Who qualifies for these mortgages and why? FHA Loans For First-Time Home Buyers FHA mortgages are open to first-time homebuyers without perfect credit. You can apply for an FHA home loan even with past credit mistakes. The best thing to do is review your past credit and ensure your home loan application is turned in once you have a full year of on-time payments on your credit record. First-time borrowers should know an FHA mortgage, even an FHA One-Time Close construction loan is within their reach thanks to low 3.5% down payment requirements and the ability to get down | more...

January 17, 2024

FHA Home Loan Options In 2024: Build, Buy, Or Wait?

By Joe Wallace

2024 may be the year more people think about owning a home thanks to anticipated lower mortgage rates and more homes for sale. Which option is best for you when finding a new place to live? There’s no one-size-fits-all answer, but some options are more tempting than others. Renting Options If You Aren’t Ready Yet Renting in 2024 may be an option to consider IF you are not quite ready to commit to a home. Borrowers sometimes underestimate how long it takes to get fully ready for a mortgage and if you are just now exploring your credit, lender options, and saving up for the down payment. However, some market watchers believe rental inventory may be lower this year, and there could be more competition for rental properties overall. Are | more...

January 16, 2024

The Rent Versus Buy Question In 2024

By Joe Wallace

Do you look at today’s mortgage rates, the housing market, and current economic headlines and wonder why you should consider purchasing a home in the new year? You aren’t alone. There are several economic factors at work in the American housing market. In 2024, one of those factors has to do with the difference between the cost of renting compared to owning a home. That gap has always been there in one degree or another. However, in the year 2024, that gap seems more attention-worthy. Especially for anyone struggling to decide which makes more sense, renting or owning a home. Compare The Numbers Forbes.com notes that home loan interest rates and home loan prices changed so much in the previous year that there seems to be a widening gap between | more...

January 12, 2024

FHA Loan Rules For Eligible Property Types

By Joe Wallace

FHA loan rules are found in HUD 4000.1, the FHA Single-Family Lender’s Handbook. Those rules include a list of property types you can and cannot buy with an FHA home loan. We examine the types of properties you cannot purchase with an FHA mortgage below. Knowing loan program rules is important if you’re a new house hunter. Do you need a government-backed loan like an FHA 203(b) purchase loan? Or a VA home loan? It’s true that certain restrictions and requirements for conventional home loans are different than the ones for FHA mortgages, but the gist is that house hunters need to know the rules of the home loan they want. For example, do you want to build a home using a One-Time Close construction loan? You may be limited | more...

January 10, 2024

First Time Home Buyers: Improve Your Credit With Credit Monitoring

By Bruce Reichstein

The COVID-19 pandemic created economic uncertainty for many current and future homeowners. And ever since the pandemic ended, financial troubles have continued thanks to inflation, possible recession, and other issues. Many borrowers may have experienced financial setbacks in the aftermath of the coronavirus outbreak in America. Many working to recover from financial problems discover there’s a lot of credit repair and related efforts American consumers must explore to get back on track financially. Protecting your credit is more important than ever–do you know what can hurt your FICO scores? Actively monitoring your credit is an important option–there are services that keep track of your credit report and learn about what affects your scores. It may be tempting to use free credit monitoring offers but financial advisors recommend comparing features on | more...

January 9, 2024

Remodeling Options With An FHA Loan in 2024

By Joe Wallace

The FHA 203(k) rehabilitation mortgage is a type of FHA loan you can use to buy and renovate a home, or refinance an existing mortgage and improve the property at the same time. Buy Or Refi? Do you want to buy a fixer-upper home with an FHA 203(k)? Do you need to refinance your existing mortgage and renovate? These are both possible. The options for 203(k) refinancing also include the ability to refinance a non-FHA mortgage into an FHA loan, and you also have the ability to finance certain closing costs. The FHA 203(k) purchase loan offers borrowers a chance to buy a house that would normally not pass an FHA appraisal. Under the FHA rehab loan program, you can hire builders to do renovations to bring the house up | more...

January 8, 2024

Buying Your First Home With An FHA Mortgage

By Joe Wallace

What can a new borrower expect from the home loan process? There is a learning curve to think about, especially for borrowers unfamiliar with loan terms and industry jargon. Some of these loan terms and issues may not be immediately apparent (see below), but as you learn about the home loan process, they become more easy to understand and more important to know. Here are some of the issues you need to keep in mind as you start your home buying journey. Appraisal Versus Inspection First-time home buyers soon learn, one way or the other, that lenders and other industry professionals sometimes use “appraisal” and “inspection” interchangeably. Borrowers should expect to pay for each of these. Don’t skip the inspection no matter how insistent the seller is that the appraisal | more...

January 5, 2024

Don’t Make These Home Loan Mistakes

By Bruce Reichstein

Buying a home for the first time is stressful, but there are things you can do as a first-time buyer that will help. Avoid these big mistakes when planning your mortgage. Don’t Change Jobs Before Your Mortgage Closes This advice does not apply to everyone, but it does for those contemplating changing the nature of their employment from having a boss and a traditional workplace to freelance, contract, or per-project type work. There are different FHA home loan rules for non-traditional employment, freelance jobs, commission income, etc. If you were working in a typical job at the start of the home loan application process and are tempted to switch to contract, freelance, or commission work, your job switch could hinder your mortgage loan process. Why? The income rules for those | more...