Articles by: Bruce Reichstein

August 16, 2021

Rent Or Buy?

Are you tired of paying rent, answering to landlords, and trying to maintain your living space while trying to be mindful of thin walls, sensitive neighbors, or other concerns associated with living in an apartment complex or other rental situations? One way to get closer to a decision is to use a rent vs. buy calculator or to run your own numbers using similar data. You’ll need a typical home price for the local area to calculate a mortgage payment (using principal, interest, property taxes and any applicable homeowners association fees) and compare it to how much you pay in rent, renter’s insurance, etc. You can use a rent vs. buy calculator to give yourself a good idea of how the basic numbers compare. But there are a few variables | more...

August 5, 2021

FHA Home Loans: Mistakes To Avoid When It’s Time To Close

By Bruce Reichstein

As you get closer to the day when you sign the paperwork, pay your closing costs, and take possession of your new home, there are some important mistakes to avoid. Do you know what they are? FHA home loan closing day is an important milestone; make sure you know what to expect leading up to the big day. Don’t Move The Same Day You Close Closing dates can change, circumstances may require a new closing date. If you hired movers or rented a truck on the same day that you are supposed to close the deal, you may be disappointed. Don’t Be In A Hurry Take the time to carefully read all documents you are required to sign, don’t skip the home inspection, and don’t give in to any kind | more...

July 14, 2021

How Much Will My FHA Home Loan Be?

By Bruce Reichstein

How much will my FHA home loan be? That is a question many borrowers want to know, and the answer can be more complicated than just taking the sale price of the home and doing the math. FHA home loan maximum amounts are determined by factors including the maximum FHA loan guaranty for the housing market you are buying the home in, your credit history, the amount of your down payment, and more. The final amount of your FHA mortgage loan is affected by your down payment, the FHA loan limit in your area, and other factors. FHA Home Loan Limits FHA home loan limits are not the same in all housing markets. Some parts of the country are considered low-cost areas and have a lower FHA loan guaranty limit | more...

July 7, 2021

Do You Need An FHA Loan Calculator?

By Bruce Reichstein

The short answer is, “YES”, you DO need an FHA loan calculator. But which one to use? There are multiple types of home loan calculators–they all have important functions. But many seeking FHA loans won’t need to use all of them or even most of them. You might just need a little extra information for planning and saving purposes. The FHA Loan Calculator The FHA home loan calculator uses the numbers you provide about your income, hazard insurance, mortgage insurance, property taxes, the term of your loan, and other information to help you arrive at an estimate of the monthly payments you could be making (principal and interest rate combined) and the maximum loan amount you might qualify for on a 15-year or 30-year loan (estimates only and not a | more...

July 2, 2021

Down Payment Help For Your Home Loan

By Bruce Reichstein

If you need a home loan but worry about the down payment, you may be able to take advantage of state-run or locally operated down payment assistance programs in your area. The FHA home loan program itself does not offer down payment assistance so you will need to find a local program that can help. What should you know about down payment assistance programs? For a start, these programs can be used with an FHA mortgage to purchase an owner-occupied single-family residence. In some cases you may be able to purchase a home with more than one living unit, but occupancy is a requirement both for the FHA loan program for single families as well as many down payment assistance options. For FHA loans, the minimum required 3.5% (of the | more...

June 29, 2021

Can I Assume An FHA Mortgage?

By Bruce Reichstein

Can I assume an FHA mortgage? That is a question on the minds of those looking to take over an FHA home loan from the original borrower. Loan assumptions are a bit different than a new purchase home loan application, though the borrower must be able to afford the loan in both cases. The short answer is that yes, in most cases with lender participation you may be able to assume an existing FHA home loan from the original borrower. A credit check may or may not be required (see below) depending on circumstances, and lender standards. It’s the lender’s job to determine whether or not the loan assumption will happen-FHA loan rules in HUD 4000.1 permit the assumption of an FHA mortgage, but the process requires the lender’s participation. | more...

June 25, 2021

Reasons You Might Be Denied A Mortgage

By Bruce Reichstein

There are many reasons why a mortgage underwriter might deny your home loan application. There are some very obvious, Mortgage 101 reasons that you’ll read about in most finance blogs or mortgage loan blogs. Among the most obvious answers? Low credit scores, a borrower with a history of late or missed payments for housing obligations, and homes that do not pass the appraisal process. But what about the not-so-obvious ones? Red Flags For The Lender: Recent Career Changes Could you be denied a home loan if you have recently changed jobs and the switch resulted in you earning less money or moving downward (career-wise) rather than upward? It’s possible, depending on a variety of factors. It’s also possible to be turned down for a mortgage loan if you have recently | more...

June 24, 2021

What Are The Benefits Of An FHA Loan?

By Bruce Reichstein

FHA home loans are for any financially qualified borrower. You don’t have to be a first-time homebuyer, and you don’t have to worry about income caps or household income limits when applying for an FHA mortgage. And there are plenty of other FHA loan benefits, too. Consumer Protections With AN FHA Loan One important benefit and protection for the FHA borrower is an FHA requirement for a home to be approved for an FHA mortgage, it must have a remaining economic life for the full duration of the loan term. That is important–what good is owning a home you cannot sell? The home’s condition at closing time must be such that it is suitable to re-sell at any point during the mortgage. If the home’s basic condition would not support | more...

Construction Loans For First-Time Home Buyers

June 18, 2021

Planning Your One-Time Close Construction Loan

By Bruce Reichstein

Some FHA loan applicants do not realize they have the ability to apply for a One-Time Close mortgage that lets the borrower build a home on their own lot instead of buying an existing construction home. The FHA One-Time Close (OTC) construction loan, like its’ VA construction loan counterpart, is a loan backed by the government that allows the borrower to apply for a single mortgage loan to cover both the costs of construction of a home from the ground up and the purchase of the home. This is offered as an alternative to construction loans that require two loan applications (one for construction, one for the completed home) and two closing dates. OTC Loans Have The Same Down Payment Requirements As Other FHA Loans The One-Time Close loan avoids | more...

June 16, 2021

HUD Charges Niagra Falls Landlord With Fair Housing Act Violations

By Bruce Reichstein

Housing discrimination at any stage of the process has negative effects on the entire industry. It doesn’t matter if you are trying to purchase or rent. It doesn’t matter if you are a single borrower, or seek housing on behalf of a family, everyone is entitled to fair access to housing according to federal law. Some Fair Housing rights are better understood than others. Most people understand that it is illegal for a landlord, lender, seller, or housing services provider to discriminate against you for your national origin, religion, race, family status, or other non-financial reasons. But did you know that the same is true for having or needing a service animal? Anyone denied housing for having or needing a service animal has experienced a violation of Fair Housing laws. | more...