Articles by: Bruce Reichstein

February 3, 2020

HUD Updates Manufactured Housing Policy

The Department of Housing and Urban Development announced a final rule on formaldehyde emissions standards for manufactured homes. These updates clarify issues related to compliance with The Toxic Substances Control Act (TSCA). HUD officials on record recently about the American affordable housing situation, label it a crisis and acknowledging that the “affordable housing crisis can’t be solved by one measure alone” though the issue of conforming with other federal guidelines addressing toxic substances is an important one. HUD updates in policy include revisiting the rules “for the installation of carbon monoxide alarms or detectors; and additional provisions for homes designed for structures attached at the site, including garages and carports” and the HUD final rule on formaldehyde emissions for manufactured homes “aligns HUD’s regulations with other federal guidelines”. HUD’s Office | more...

January 29, 2020

HUD Announces New Policy On Service Animals

By Bruce Reichstein

The Department of Housing and Urban Development (HUD) announced updated guidance regarding the use of service animals and emotional support animals as it relates to Fair Housing Act issues. The issue of support animals might not seem to be related to the purchase of real estate with an FHA home loan, not at first. But Fair Housing rules do affect all stages of the house-hunting process including renting a home while you are looking for one to purchase with the help of a realtor, or on your own. The HUD announcement discusses a need for reasonable accommodation in housing for those who need service animals or emotional support animals. The agency has released an “Assistance Animal Notice” designed to help all parties understand how to best comply with Fair Housing | more...

January 27, 2020

Is It Safe To Buy A Home In 2020?

By Bruce Reichstein

Some borrowers are wondering if it is safe to buy a home in 2020. These people may be worried about interest rates taking a sharp move higher (they are currently very low due to issues we’ll discuss below) or about credit becoming harder to come by in the new year. But what is the reality? It’s never been a better time to be interested in real estate, especially for those interested in buying condo units or having a house built for them from the ground up using a One-Time Close construction loan. 2019 was a very interesting year for interest rates; there were times when rates behaved differently than expected, times when they went lower in spite of other pressures that could have driven rates higher instead. And it seems | more...

January 23, 2020

FHA Loan Rules You Need To Know Before House Hunting

By Bruce Reichstein

There are several things you should know about FHA home loans before you go looking for real estate to buy. You can save a LOT of time and even some money by taking extra time to consider the following issues. You Don’t Have To Buy An Existing Home FHA home loans have an option called the One-Time Close construction loan. It lets you build a home from the ground up on your own land. Don’t want to purchase existing real estate? There is an FHA home loan for that and it is offered even to first-time home buyers. The same low 3.5% minimum down payment is available to those who qualify with credit scores and other financials. You Don’t Have To Buy A Suburban Home With An FHA Mortgage Don’t | more...

January 20, 2020

Happy Martin Luther King, Jr. Day

By Bruce Reichstein

Happy Martin Luther King, Jr. Day 2020! Banks and markets are closed today to observe the holiday and we too feel it’s very important to remember this important day. America owes a great deal to Dr. Martin Luther King, Jr. We are proud to observe this day dedicated to him and pause our regular coverage of FHA news and FHA loan topics to observe the holiday. We resume our usual schedule of posts tomorrow. Thanks for reading!

January 17, 2020

Home Loan Approval And Your Income

By Bruce Reichstein

Home loan approval means submitting your employment and income information to the lender, who must verify the information for accuracy. There are things you can do to help the process work in your favor if you know about certain nuances of the home loan approval process. Important Takeaways From This Article: Know how the lender checks your income data; Study the FHA home loan rules for employment and income, especially if you are self-employed, a commission earner, or a contractor; Know how frequent job changes may affect your loan; Shop around for a loan even if you think you’ve found a good bank; Know How The Lender Operates Some people mistakenly assume that income and employment verification are formalities; they are not. Your lender is required by law to carry | more...

The FHA One-Time Close Construction Loan: An Option In 2020

January 15, 2020

FHA Construction Loans Versus USDA Construction Loans

By Bruce Reichstein

Why would borrowers choose to build a home on their own land using an FHA One-Time Close construction loan (which requires a down payment of 3.5%, minimum) instead of a no-money-down USDA home loan? There are several reasons why an FHA mortgage might be the better choice depending on circumstances, even with a required minimum down payment. That down payment is far less than some conventional loans require. USDA Mortgage or FHA Home Loan? USDA construction loans offer an advantage to eligible borrowers thanks to their zero down payment requirement. But a USDA mortgage is need-based, and these loans (even construction loans) have a household income cap. USDA loan rules state that in some cases, borrowers who have assets higher than the USDA limit “…may be required to use a | more...

January 9, 2020

FHA Home Loan Options For 2020

By Bruce Reichstein

What kind of home loan do you need in 2020? You can build on your own lot with an FHA One-Time Close construction loan, you can apply for an FHA mortgage to purchase a mobile home or manufactured house, and you can even find an FHA mortgage for a fixer-upper property. These loans are not need-based, have no income caps, and feature a low down payment requirement. What kind of home loan do you need? Houses You Can Buy And Occupy Right Away Referred to in the real estate industry as an existing construction home, these properties are sold assuming they meet current appraisal and building code regulations or can be brought into compliance without a great deal of difficulty. Existing construction homes have been built for at least one | more...

January 3, 2020

FHA Cash-Out Refinance Loans: Common Questions

By Bruce Reichstein

Do you know what to expect when you want to refinance your mortgage in order to convert part of your home’s value into cash? Is there a difference between cash-out refinance loans in Illinois and California? How much money will you get in cash? These and other questions are important to answer in advance. Are FHA Cash-Out Refinance Loans The Same In All Housing Markets? No. All housing markets differ. And that’s a theme you’ll see repeated in this article; if you are applying for an FHA cash-out refi loan in an area with rapidly increasing property values, you may discover your home is worth far more than in a housing market that has experienced a plateau in those rising values. Why Does My Lender Require An Appraisal? Property values | more...

January 1, 2020

Happy New Year 2020

By Bruce Reichstein

Happy New Year 2020! We hope your holiday season has been safe and fun. We pause from our usual posts about FHA home loans to enjoy New Year’s Day 2020, and our regular posting schedule resumes on Thursday. Thanks for reading and have a great holiday.