Articles by: Bruce Reichstein

October 22, 2020

FHA Mobile Home Loans

FHA mortgages can be used to purchase or build a variety of properties and one of those property types is the mobile home. You can use an FHA mortgage to purchase mobile homes, manufactured homes, modular housing and similar types. FHA loan rules in HUD 4000.1 group these types of mortgages together under the “manufactured housing” description. Not all manufactured housing or mobile homes are eligible for an FHA mortgage. HUD 4000.1 has certain criteria that must be met for the loan to be approved. Those requirements include, but are not limited to being a single-family dwelling with at least 400 square feet of floor area; the property must have a HUD Certification Label. Alternately, instead of the label, there must be a letter of label verification issued on behalf | more...

October 20, 2020

HUD Announces New Deadlines For Coronavirus Foreclosure Avoidance Options

By Bruce Reichstein

Since the global coronavirus pandemic began affecting the United States economy, HUD has made a variety of policy changes and loss mitigation measures available to borrower struggling to make mortgage payments on FHA mortgages, refinance loans, and even reverse mortgages. In April, 2020, HUD published Mortgagee Letter 2020-06. That letter announced measures including COVID-19 related loan forbearance, plus “Standalone Partial Claims”, plus an extension of the deadline for FHA Reverse Mortgages (also known as FHA Home Equity Conversion Mortgages or HECM) for those affected by the pandemic. A few months later, HUD also announced loan forbearance options for those who needed it beyond the initial forbearance period. And now, the Department of Housing and Urban Development and the Federal Housing Administration have announced that the agencies recognize a need, “…to | more...

October 15, 2020

Who Is Eligible For An FHA Home Loan?

By Bruce Reichstein

Who is eligible for an FHA home loan? To begin, we must point out that FHA mortgages are not need-based loans, feature no income caps, and do not require you to be a first-time home buyer to apply. FHA mortgage eligibility rules are found in HUD 4000.1, including instructions for the lender pertaining to who is allowed to apply for an FHA single-family home loans. Who can apply for an FHA loan and what do the rules say about these applicants? Some of the rules about being eligible for an FHA mortgage have to do with the status of the buyer–does the borrower intend to be an owner-occupier or does the borrower want to purchase property they do not intend to use as the primary residence? FHA mortgage loans to | more...

October 12, 2020

Applying For Your Home Loan With Other Credit Applications Recent or Pending

By Bruce Reichstein

Here is a variation on a common question asked about applying for an FHA home loan. “I recently applied for financing for a vehicle. Do I still qualify for an FHA mortgage?” In general, borrowers should avoid opening new lines of credit ahead of a mortgage loan application. FHA mortgages, like other home loans, require the lender to justify the loan as a good credit risk. If a borrower is opening new lines of credit at or near the time the home loan application is turned in, it may make the lender think twice about approving the mortgage. One reason for this is that entering into other types of debt while applying for a home loan may give the impression (right or wrong) that the borrower isn’t disciplined with credit | more...

October 8, 2020

FHA Cash-Out Refinance Loan Questions And Answers

By Bruce Reichstein

Do you know what to expect when you want to refinance your mortgage in order to cash in on the value of your home? Are you wondering how much money will you get in cash at closing time? These and other questions are important–knowing the answers before you commit or at least knowing how to arrive at those answers is crucial before you commit to the refi loan. Here are some common questions about FHA Cash-Out Refinancing loan options you should know: Do FHA Cash-Out Refinance Loans Cost The Same In All Housing Markets? The short answer is no, and the reason for this is that all housing markets differ, lender standards differ, and your own personal needs and goals may affect the type of transaction you need. For those | more...

October 7, 2020

Getting Ready For Your Home Loan

By Bruce Reichstein

Are you considering your home loan options? FHA mortgage loans have more flexible credit requirements more consumer-friendly loan options, but even with more lenient credit guidelines (compared to some conventional mortgages) there are a number of areas to consider in the preparation stages of your loan. Some are already ahead of the curve when it comes to getting financially ready for a major loan application, others are really starting from ground zero. Do you know how ready you are to fill out that mortgage loan application? Having Enough Preparation Time Is Important It does cost money to buy a home–there are plenty of up-front costs including appraisals and the home inspection, etc. Financial experts advise taking at least a full year to save, budget, and even to research the new | more...

October 1, 2020

Buying A Home With An FHA Loan: What’s Allowed, What’s Not

By Bruce Reichstein

FHA mortgages are great for borrowers who want a lower down payment, no early repayment penalties, and more flexible home loan approval guidelines than some conventional counterparts. But the tradeoff comes where certain kinds of property and other loan details are concerned. If you want a home as opposed to an investment, an FHA mortgage is right for you. That includes those who want to build a home from the ground up instead of buying someone else’s property. Whether you want a traditional suburban home, a mobile home, a condominium, or even a duplex or multi-family unit, there’s an FHA mortgage for those purposes. But what about those who want to buy a house they can rent out to others, or those who want a mixed-use property that can handle | more...

September 21, 2020

Time Is Running Out On Exterior-Only FHA Appraisals

By Bruce Reichstein

In August 2020, the FHA and HUD issued an extension of their temporary exterior-only appraisal guidelines for borrowers applying for FHA mortgages and refinance loans. This measure, and others similar to it, came after the President declared a national emergency with respect to the coronavirus pandemic and, according to the FHA/HUD official site, “initiated actions to stem the threat to public health and the American economy.” On March 27, 2020, HUD published Mortgagee Letter 2020-05, authorizing “flexibilities to the re-verification of employment and Acceptable Appraisal Reporting Forms and Protocols by allowing exceptions for Exterior-Only and Desktop Appraisal inspections in certain transactions”. The original measures were issued in March of 2020 to allow FHA appraisers to perform their work on FHA mortgages without having to put themselves at risk of COVID-19 | more...

Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

September 17, 2020

Does FHA Offer Adjustable Rate Mortgages?

By Bruce Reichstein

Does FHA offer adjustable rate mortgages? When you shop around for a participating FHA lender, be sure to ask about this type of FHA loan, sometimes known as an FHA ARM. Not all participating lenders may offer an FHA adjustable rate mortgage, but for those working with a lender that does, it is important to know some basics about the mortgage and how FHA loan rules govern the adjustments in the interest rates. Borrowers who apply for an FHA ARM loan must sign a disclosure statement that outlines the terms and conditions of the mortgage. The rules that govern FHA ARM loans are found in HUD 4000.1, and those rules begin with a definition of what the FHA considers to be an ARM loan. “An Adjustable Rate Mortgage (ARM) refers | more...

September 15, 2020

Is A Property Eligible for an FHA Mortgage Loan If It Has Asbestos?

By Bruce Reichstein

Borrowers interested in purchasing older properties using an FHA insured mortgage could face several challenges depending on the nature of the property. For example, some buildings insulated or otherwise constructed with asbestos products could pose a health hazard. FHA rules include minimum property requirements for safety, which address situations like these. Is a property eligible for an FHA loan if it has asbestos in it?