Articles in Category: Fixed Rate Mortgage

December 23, 2020

Changes To FHA Home Loan Paperwork In 2021

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...

December 14, 2020

How To Prepare For A Home Loan In 2021

By Joe Wallace

How do you prepare for a home loan in the new year? There are a number of steps you can take to get ready. The first step for some is to contact the FHA and HUD at their toll-free number 1-800 CALL FHA to request a free referral to a HUD-approved, local housing counselor. This can help you to better understand the credit requirements of the home loan process, learn what areas to focus on to get your credit ready, etc. The first step for others isn’t to call for a referral, but rather to contact the three major credit reporting agencies to request copies of the borrower’s credit report. You’ll want to get very familiar with the contents of your credit report as early as possible. Look for a | more...

December 10, 2020

Important Questions To Ask About Your Home Loan

By Joe Wallace

If you are considering a home loan, the Federal Trade Commission has some advice for you. The FTC, a government agency charged with providing consumer protection, advice, and free credit reports (among many other things), advises house hunters that there are some important questions you should be asking when it’s time to commit to a mortgage loan. Some issues the FTC warns about are not problems for those who apply for FHA home loans to buy or refinance a home. For example, the FTC advises borrowers to ask about any applicable penalties for early payoff of the mortgage loan. And don’t forget, the early payoff of your mortgage doesn’t just happen when you pay off the note before the loan term ends. It can also happen when you refinance your | more...

December 8, 2020

FHA And HUD Explain Higher FHA Loan Limits In 2021

By Joe Wallace

On December 2, 2020, the FHA and HUD issued a press release announcing higher FHA mortgage loan limits for 2021. Those applying for FHA mortgages with FHA case numbers assigned on or after 1 January 2021 will have higher loan guaranty limits to work with than in 2020. The same thing happened last year, but higher loan limits in the new year are NOT guaranteed to happen year-to-year. But this year, it DID happen and the FHA has explained the hows and whys. Why did limits go higher for the new year? FHA is required by a federal law known as the National Housing Act, (which itself was amended by the Housing and Economic Recovery Act of 2008) to “…set Single Family forward loan limits at 115 percent of area | more...

December 2, 2020

Steps To Buying A House

By Joe Wallace

Do you know the ten steps to buying a house? Each one can be considered its own phase of your home loan journey and if you want to buy a house with an FHA mortgage, these are the steps you should anticipate: Check your credit score Calculate how much FHA mortgage you can afford Choose a real estate agent (where applicable) Get pre-approved with a participating FHA lender Start house hunting Make an offer on the house you want Schedule a home inspection Secure your financing Purchase a homeowners insurance policy Close your loan and move into your new home Note that the first steps are squarely in the planning stages of your mortgage; you should know the contents of your credit report and your FICO scores long before you | more...

November 27, 2020

FHA Fixer-Upper Loans For Smaller Home Improvement Projects

By Joe Wallace

There is a type of FHA home loan that lets you get a mortgage to simultaneously buy and repair or modify a home. These fixer-upper mortgages are known as FHA 203(k) Rehabilitation Mortgages and this is an option you can also get as an FHA refinance loan. It’s a great alternative to the standard FHA home loan. Any borrower needing to repair, upgrade, or renovate an existing home can apply for this mortgage–you can refinance an FHA or non FHA loan with the FHA 203(k). But some borrowers don’t have ambitious, large-scale work to be done and a “full” 203(k) rehab loan might not be the right loan if you don’t have a huge project to deal with. And fortunately there is a smaller version of the FHA 203(k) Rehabilitation | more...

November 26, 2020

Happy Thanksgiving 2020

By Bruce Reichstein

Happy Thanksgiving 2020! We pause from our usual schedule of writing about FHA home loans and answering reader questions to observe the November holiday. Thank you very much for reading, our regular posting schedule returns on Friday.

November 23, 2020

Bad Credit Home Loans

By Joe Wallace

You’ll find a lot of information on the internet about bad credit home loans. Lists of bad credit-friendly lenders abound, but what do you need to know about these home loans and their alternatives? The first thing to remember is that bad credit is a potential barrier to new credit for a reason–your lender is required to justify the loan and make sure you are a good credit risk. And if your credit scores and credit history show that you haven’t been as reliable about making on-time payments and meeting your credit obligations? Your lender has two options. One is to deny you the loan. This is what usually happens in cases where the lender cannot justify approving your loan due to credit issues. Each lender has their own standards | more...

November 19, 2020

FHA Loan Options

By Joe Wallace

Why choose an FHA mortgage? Why not apply for a USDA home loan or a VA mortgage? Aren’t these also government-backed loan programs? Yes, but FHA mortgages are open to any financially qualified applicant, while USDA loans are need-based mortgages for those who meet certain income requirements, and VA loans are not offered to the general public but are offered as a benefit for military service. There is nothing wrong with USDA mortgages or VA home loans. But they aren’t available for just any borrower, where FHA mortgages are offered to the general public. And what about applying for conventional mortgages? These non-government backed home loans have higher FICO score requirements in many cases, as well as higher down payment requirements in cases where the borrower’s credit scores aren’t as | more...

November 17, 2020

HUD Says November Is Fraud Awareness Month

By Joe Wallace

The Department of Housing and Urban Development is observing the month of November as Fraud Awareness month. The agency’s official site states, “During November Fraud Awareness Month, HUD is highlighting the many resources available to help combat fraud.” What kind of resources are available to borrowers and potential borrowers? One of them is a video titled, “What Does Fraud Mean To You?” The HUD official site also includes links to resources such as a global occupational fraud report. What should consumers beware of and raise the awareness of when it comes to fraud associated with mortgages and refinance loans? There are a variety of critical areas that should be paid attention to–much will depend on what stage of home ownership you are at. Are you a first-time home buyer? A | more...