Articles by: Bruce Reichstein

Don't Make These Mistakes With Your One-Time Close Construction Loan

January 8, 2021

Monitoring Your Credit Ahead Of Your Rehab Loan Or One-Time Close Loan

Credit monitoring is important for any consumer but borrowers interested in building a home on their own lot using a One-Time Close (OTC) construction loan or even an FHA 203(k) Rehab loan should give serious thought about investing in credit monitoring as early as possible in the planning stages. This can be a big advantage for those seeking rehab or construction loans; participating FHA lenders may require higher FICO scores for construction loans and you’ll want every advantage in that department including knowing the contents of your credit report and the changes to it as they happen. FHA Rehab Loans allow borrowers to buy fixer-upper loans and have work done to bring them up to code and FHA standards; FHA One-Time Close (OTC) mortgage loans allow borrowers to build a | more...

December 30, 2020

Five Facts You Need To Know About FHA Loans In 2021

By Bruce Reichstein

Are you interested in buying or building a home in the new year? Be informed about several issues that may apply to you when building or buying a new home. With a little information you can become better prepared to explore your FHA home loan options in 2021 5. FHA Loan Limits Are Higher in 2021 FHA loan limits go up again for the majority of housing markets in the USA again in 2021; higher loan limits may make the difference for some trying to decide where to purchase or build as well as for what kind of property to buy. Don’t forget that FHA loan limits are higher for multi-unit properties. Those interested in building a home using an FHA One-Time Close construction mortgage should ask their lenders how | more...

December 23, 2020

Changes To FHA Home Loan Paperwork In 2021

By Bruce Reichstein

Are you looking for a house to buy in the new year? If you are new to house hunting and the home loan process in general, you won’t notice the changes coming to FHA loan paperwork in 2021, but you’ll definitely be affected by the changes. The FHA and HUD issued a press release in late 2020 announcing the publication of a revised Form HUD-92900-A, (92900-A) HUD Addendum to Uniform Residential Loan Application (URLA). The revisions change certain consent forms, remove a requirement for new construction, and modify other aspects of the home loan process for FHA mortgages. The modifications are applied to documents considered typical for the FHA home loan process. Why are they changing? The move is part of a process dictated by something the FHA and HUD | more...

Who should apply for a construction loan?

December 21, 2020

Build Your Dream Home With A One-Time Close Loan

By Bruce Reichstein

Do you own land you want to build a home on with a low down payment? Do you want to build a house from the ground up and purchase the land at the same time? There is a construction loan that can allow you to do both–the One-Time Close construction mortgage. These loans, also known as OTC mortgages or single-close mortgages, are offered as FHA mortgages (with a low 3.5% down payment requirement for any financially qualified borrower), USDA loans (need-based mortgages with income caps and other requirements) and VA construction loans with no down payment required in most cases. Some potential homeowners may be hesitant to commit to a construction loan–the process is unfamiliar to them, and to some it just seems a bit overwhelming. But getting started is | more...

December 17, 2020

FHA Condo Loan Basics You Should Know

By Bruce Reichstein

Some borrowers are surprised that you can choose an FHA condo loan; some view condo units as more of a luxury-type housing option or somehow otherwise out of their price range. But FHA home loans include a condo loan option and the FHA official site explains how it works; “Section 203 (b) of the National Housing Act provides authority to insure any mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project.” FHA home loans can be approved for condo units for up to 30-year terms (purchase or refinance) for units in an FHA-approved condominium project OR, as FHA.gov describes, “in a project that is not FHA-approved but meets the Single-Unit Approval requirements”. How does a condo | more...

Home Loans For Building On Your Own Land

December 15, 2020

What Is A Home Construction Loan?

By Bruce Reichstein

Construction loans have different names–you may read them referred to as home construction mortgages, and depending on the terms and conditions of the loan you may find them referred to as One-Time Close mortgages or Construction-To-Permanent mortgages. If you want to build a home on your own land or on land you buy in conjunction with your construction loan, you should ask your loan officer about the FHA and/or VA One-Time Close construction loan programs. These loans feature a single mortgage for the construction phase and the mortgage portion of the transaction–unlike other construction loans that require two loans, two applications, two closing dates, etc. Myths about the construction loan process include who can buy–even a first-time home buyer can be approved for a One-Time close mortgage if they qualify | more...

One Time Close Mortgage Loans: The Base Home Sales Price

December 11, 2020

One-Time Close Mortgage Loans: Which Is Right For You?

By Bruce Reichstein

A One-Time Construction loan provides a single loan for building a home from the ground up. You don’t have a construction phase loan and a mortgage loan to apply for separately when you use a One-Time Close mortgage. There are VA One-Time Close construction loans, FHA One-Time Close mortgages, and USDA versions of the same loan. Which one is right for you? USDA construction loans are need-based loans; household income limits and other requirements apply. Some borrowers will need a USDA loan while others may not qualify because the earn too much per household or because of other applicable factors. VA mortgages in general are a huge advantage–and the VA One-Time Close mortgage is no exception–because eligible and qualified borrowers are able to apply for this loan with no down | more...

Build on your own lot. Construction loan basics

December 9, 2020

Build Your Dream Home From The Ground Up With A One-Time Close Construction Loan

By Bruce Reichstein

You don’t have to buy someone else’s property if you are interested in owning your own home. You can–even as a first time home buyer–build a home from the ground up instead. The FHA One-Time Close mortgage, also available to qualifying military members as a VA construction loan, is a great choice for the right borrowers. But who should consider this type of home loan? Timing Counts FHA Construction Loans and VA One-Time Close mortgages are not good choices for those in a hurry. If you need housing quickly it is best to explore your FHA or VA mortgage loan options for existing construction. If the timing of your loan cannot be changed, you need a house NOW, and you cannot wait, there are good reasons to wait on building | more...

FHA One-Time Close Construction Mortgage Basics

December 7, 2020

Get An FHA Mortgage In 2021 To Build Your Dream Home

By Bruce Reichstein

Are you considering your home loan options for 2021? There are a variety of choices but those who do not want to buy somebody else’s house and want to build their own can turn to an FHA One-Time Close mortgage to build from the ground up. Even first-time homebuyers can qualify to do this. If you’re planning on a mortgage in 2021, there are higher FHA home loan limits available, and those who explore their options to build on their own land and choose not to have a range of other FHA home loan options you should seriously consider that can provide alternatives you might not be aware of. What are those options? House hunters can apply for an FHA mortgage to purchase a fixer-upper (using an FHA rehabilitation mortgage) | more...

December 3, 2020

Higher FHA Loan Limits In 2021

By Bruce Reichstein

The FHA and HUD have announced higher FHA forward loan limits for 2021. Most borrowers will experience a higher FHA loan limit depending on their location and other variables. Federal law requires FHA to establish forward mortgage / purchase loan floor and ceiling loan limits each year. These limits are based on the loan limit set by the Federal Housing Finance Agency for conventional mortgages owned or guaranteed by Fannie Mae and Freddie Mac. The national conforming loan limit for 2021 is $548,250. While these limits DO NOT apply until 1 January 2021, you can locate the entire list of FHA loan limits. That list includes areas at the FHA ceiling, areas between the floor and the ceiling at the FHA official site. The National Housing Act and its amendments | more...