Articles by: Bruce Reichstein

April 1, 2021

FHA Refinance Loan Advice in 2021

Are you considering applying to refinance your home loan? Which refi option is the right choice? Some people seriously consider a refinance loan without knowing all the options–some kinds of refinancing are more appropriate for some needs than for others. How to select the right loan for your needs? It’s one of the first hurdles you’ll clear when learning about refinancing. Borrower choices include cash-out refinancing, FHA Streamline refi loans, and FHA 203(k) Rehabilitation refinance loans for those who want to refinance and remodel the home at the same time. Refinancing Non-FHA Mortgages Generally speaking, FHA refinance loan rules permit an FHA-to-FHA refinance loan, but also options for non-FHA-to-FHA refinance loas. The FHA refinance loan program allows you to get out of a higher interest rate conventional mortgage into a | more...

March 30, 2021

What Can Kill An FHA Home Loan?

By Bruce Reichstein

Those who want a home loan have to prepare for the new loan application in several ways–financially, through saving up for the down payment and closing costs, and with credit prep. That can mean working on your record of on-time payments, lowering your overall debt amounts, and avoiding new credit in the meantime. When applying for any large line of credit, there are some things that can stop your loan dead in its tracks. If you want a home loan and are worried about being approved for a home loan, add these issues to your mental not-to-do checklist and make sure you know how to avoid them. Avoid New Debt Your lender pulls your credit when you apply for your home loan–most people know that. But not as many know | more...

Construction Loan Advice For New Borrowers

March 24, 2021

FHA Loan Down Payments: Some Simple Rules

By Bruce Reichstein

What do you need to know about FHA loan down payment requirements? First, in most cases, a down payment is required, and your down payment requirements are dictated in part by your credit scores. But you also need to know that your down payment could be waived if you are applying for a construction loan and have land equity to use instead. There are FHA loan rules you should know while you are still in the planning stages of an FHA purchase loan. These will help you decide what to do about saving up for a down payment and dealing with certain closing costs. Basic Down Payment Rules As stated above, FHA loan rules usually require a minimum 3.5% down payment for all single-family mortgage loan transactions. But don’t overlook | more...

March 22, 2021

FHA Loan Approval: Credit Scores Are Just One Factor

By Bruce Reichstein

Some house hunters worry that they don’t have credit scores good enough to qualify for the mortgage. But it’s easy to lose sight of the fact that FICO scores are not the single determining factor in home loan approval. There Are THREE Important Factors Some FHA loan applicants come to the process knowing that both FICO scores and your record of on-time payments are crucial for loan approval. But even this is an incomplete picture of what your lender is after when trying to approve your home loan application. By this point in our article, you are likely getting the hint that there is indeed a third factor that counts when applying for a mortgage loan, and that factor is your debt-to-income ratio. The participating FHA lender’s job is to | more...

March 16, 2021

Pre-Purchase Home Loan Advice

By Bruce Reichstein

Looking for a home loan that’s affordable and doesn’t require 20% down? The FHA loan program has something for you. Some are surprised to learn that FHA mortgages are not limited to those in financial need like certain USDA mortgages, and they are not restricted to first-time home buyers. FHA Loan Options Are Diverse You can buy much more than a typical suburban home. Options include getting a condo unit with an FHA mortgage, building a home on your own lot from the ground up using an FHA One-Time Close construction loan, or you can refinance your existing mortgage. That mortgage can be an FHA or non-FHA mortgage using an FHA loan. No matter what kind of home loan you need–a purchase loan, a rehab loan, a refi loan–there are | more...

March 9, 2021

JP Morgan Chase Settles Housing Discrimination Complaint

By Bruce Reichstein

A press release issued by the Department of Housing and Urban Development announces a Conciliation Agreement between JPMorgan Chase Bank and a homeowner who alleged her appraisal was undervalued due to racial discrimination in violation of the Fair Housing Act. Discrimination in the housing industry creates a hostile environment for all house hunters and future home owners. It becomes very difficult to find affordable housing when you have potential landlords and mortgage industry professionals trying to decide whether or not your non-financial “qualifications” are good enough for them to accept your business. The Fair Housing Act makes it illegal to discriminate against those who seek homes to rent or buy–turning away someone who needs housing for non-financial reasons. Fair Housing regulations also make it a crime to discriminate against any | more...

March 5, 2021

Questions You Should Be Asking About FHA Refinance Loans

By Bruce Reichstein

Refinancing your home loan can be a smart move for some homeowners, especially in times where rates are low. At press time, the rates in March of 2021 are rising, but FHA mortgage loan rates have up to this point still remained below the three percent line, so it’s still a good idea to consider your refinance loan options if you want a lower interest rate. Remember, rates are subject to change and in 2021. We’re going to see a LOT of rate changes if current indicators provide any clues to the future or mortgage loan interest rates. Mortgage loan interest rates last year back in 2020 hit three-year interest rate lows due to a variety of factors including hangovers from trade war woes with China, the coronavirus, and other | more...

FHA Construction Loan Rule Changes In 2021

March 2, 2021

One-Time Close Construction Loan Advice

By Bruce Reichstein

If the idea of building a home instead of buying somebody else’s property appeals to you, the One-Time Close construction loan allows you to build a home from the ground up on your own lot (or on land you buy in conjunction with the mortgage). Building a home with plans you approve has plenty of advantages, but it also requires some extra consideration. It’s not terribly complicated to anticipate some important factors associated with your construction loan but it does take some time to get the information you need to make the most informed choices possible for your new home. If you want to build a home on your own lot instead of buying an existing house, the FHA One-Time Close construction mortgage is an option you should seriously consider. | more...

February 22, 2021

Texas Home Owners Get Federal Disaster Relief

By Bruce Reichstein

Millions of homeowners in Texas were affected by severe winter weather and unprecedented freezing conditions there; On Monday, February 22, 2021 Texas residents woke up having had their state declared a federal disaster area. Those with FHA mortgages who own homes in the state of Texas are getting help from the federal government in the wake of deadly winter storms in the area affecting some half a million homeowners in the Lone Star State. President Biden has declared the state of Texas as a federal disaster area, and that means federal assistance for state and local recovery efforts. It also means Texas homeowners have access to disaster relief to help repair or replace homes damaged by the winter weather there. Do you have an FHA home loan? Contact your loan | more...

Buy or Build a House On Your Own Lot in 2020

February 17, 2021

FHA One-Time Close Construction Loan Advice: Hiring A Builder

By Bruce Reichstein

If you want to build a dream home on your own lot instead of buying somebody else’s house, the One-Time Close construction mortgage is an option you should explore. These loans require you to hire a builder (more on that below) and this is a part of the process that can be a bit intimidating for some borrowers until they learn there are some basic steps to follow that will make your hiring process a lot more hassle-free. Why Hire A Builder? Why go thru the trouble to find a qualified and reputable contractor to do the construction work for you? Why doesn’t the borrower act as their own builder or hire friends and family to pitch in? The answer is simple. For a start, most borrowers likely don’t have | more...