Articles in Category: Fixed Rate Mortgage

September 9, 2020

FHA Home Loans: The Occupancy Rules (And More) You Need To Know

Can you use an FHA home loan to buy investment property you plan to rent out to others? This is a question many wonder about, and the answer is tied to the FHA loan occupancy requirements for these mortgages. FHA loan rules for all single-family home loans are described in the lender’s handbook, commonly known as HUD 4000.1. FHA loan rules include a variety of instructions for the lender that direct the financial institution on how to process and approve FHA home loans. But FHA loan rules don’t just apply to lenders and other mortgage professionals, some regulations are also written for the borrower. Did you know that FHA single-family mortgage loans are intended for owner-occupiers only? The rules listed in HUD 4000.1 are clear–the borrower must take possession of | more...

August 28, 2020

FHA Home Loans: How Much Income Do You Need To Qualify?

By Joe Wallace

Many future home owners want to know about the income requirements for an FHA loan–are you worried that you won’t qualify for an FHA mortgage because you don’t earn enough each month? And then there’s the opposite problem–a misconception that you can earn “too much” to qualify for an FHA mortgage as though this program had income limits. FHA loans do NOT feature income limits and this program does not require you to qualify based on financial need. FHA Loans Are For All Financially Qualified Applicants There is no minimum income requirement for an FHA mortgage, and there is no upper limit or income “ceiling”. FHA loans are not targeted for any one income bracket. FHA loans are designed with more lenient FICO score minimums in mind, but that has | more...

August 27, 2020

What Kind Of House Can I Buy With An FHA Mortgage?

By Joe Wallace

What kinds of homes can be purchased with an FHA mortgage loan? You can build a home from scratch using an FHA Construction mortgage, but may people want to buy existing property and what kinds. Eligible Property Types For FHA Mortgages FHA loan rules in HUD 4000.1 state clearly that certain kinds of property are permitted and certain kinds are not. These rules on eligible property types that can be purchased with an FHA mortgage loan are found in HUD 4000.1, and include the following guidance you should know: “FHAs programs differ from one another primarily in terms of what types of Properties and financing are eligible. Except as otherwise stated in this SF Handbook, FHAs Single Family programs are limited to one- to four-family Properties that are owner-occupied Principal | more...

August 18, 2020

Mortgage Rates Give And Take In Mid-August

By Joe Wallace

Mortgage loan interest rates have had some interesting ups and downs in August 2020, with conventional loans AND FHA mortgages staying below the three percent line, at least some of the time in the case of conventional loans. There are many factors that affect the fluctuations of FHA and conventional mortgage loan interest rates–we won’t go into all of them here. But the pandemic, politics, international trade issues, and investor reaction to all of these things and more have kept mortgage rates at unprecedented lows (no, we aren’t tired of writing that phrase just yet). But at the time of this writing on August 18, 2020, conventional rates have risen above the three percent line once more. Rates are reported at a best execution 3.12% for the most well-qualified borrowers. | more...

August 11, 2020

Why Did My Home Loan Get Denied?

By Joe Wallace

The question, “Why did the lender deny my home loan?” is a good one to contemplate. Thinking like a lender helps a great deal when you are planning and saving for a construction loan application, condo loan application, or when you want to buy a multi-unit home. Do you know why a lender might deny your application? There are several factors to ponder, no matter what kind of borrower you might be. Are you looking for a condo loan? Mobile home loan? Multi-unit house? Some of the reasons lenders deny home loan applications are fairly obvious, others are not. Review the following circumstances to see if any apply to you. This is not a comprehensive list, but it’s a great place to begin and some borrowers find at least one | more...

August 7, 2020

FHA Home Loans For First-Time Buyers: Choices To Consider

By Joe Wallace

Are you a first-time home buyer looking for the most affordable mortgage options? FHA home loans feature flexible guidelines, and those options come with lower downpayment requirements other advantages over conventional mortgages. FHA Loan Options Are Diverse There are many types of housing you can buy with an FHA mortgage–a condo unit, a house in the suburbs, even properties with up to four units the borrower can occupy while renting out the unused units. You have to occupy the property you buy, but being a landlord may be an option for some to consider. There are also FHA home loans you can use to buy a fixer-upper (the FHA 203(k) Rehabilitation mortgage) and there’s also the FHA loan program to help you build a house on your own lot with | more...

August 4, 2020

FHA Mortgage Rates Creep Lower In First Week Of August 2020

By Joe Wallace

Mortgage loan interest rates have been moving lower in 2020–so low that even seasoned market watchers are surprised by how low the rates have gone. When mortgage loan interest rates fell below the three percent zone for both conventional and government-backed mortgages like FHA loans, it was a significant moment. The 52-week average (low) for a 30-year fixed-rate jumbo loan fell as low as 3.25%, but the same 52-week average for a “normal” conventional loan (not a jumbo) was 2.86% at its lowest point in that date range. Fairly impressive, until you compare the same 52-week low to the FHA 30-year fixed-rate mortgage, with a current 52-week low of 2.30%, thanks to the numbers falling from 2.37% last week to 2.30% this week. Pretty amazing rates, and opening the month | more...

What Credit Score Is Needed For An FHA Mortgage?

July 28, 2020

Getting Ready For Your Home Loan

By Joe Wallace

Even during the global pandemic, people still need to buy and sell houses to live in. The real estate markets in America have not shut down, and even as you read this there are mortgages entering the closing stages. Are you looking for a new home to live in? If you are, it’s likely you’ve asked yourself whether your credit is ready for a major credit application; do you know what to do if your credit report needs correcting? One of the most common bits of advice in this area is that all borrowers should start preparing by getting very familiar with the contents of your credit report. But there is another step to take at the same time you’re doing that. Set Your Bills To Autopay When you review | more...

July 24, 2020

FHA Mortgage Rates Lower In June 2020

By Joe Wallace

The year 2020 has brought some incredible activity on mortgage loan interest rates; at the time of this writing FHA loan interest rates remain below three percent–in the final days of July we saw mortgage rates fall to a low of (best execution) 2.38%. That rate was reported on Thursday, July 24 2020. Lower rates have prompted many to consider refinancing, but there are plenty of first-time home buyers hoping to be offered a lower rate in the current circumstances. Buying a home can be tougher during coronavirus containment measures (lockdowns, social distancing, etc.) but for those with access to the lower rates, it pays to be safe but persistent. Multiple Factors Responsible For Lower Rates Mortgage rates have dropped and stayed low due to a variety of factors including | more...

July 23, 2020

FHA Loan Limits: Where To Find Them

By Bruce Reichstein

FHA home loans, like most government-backed mortgages except for VA loans, feature loan guaranty limits which are established by county. These are annual limits and are revised (or at least considered for revision) every year. The FHA and HUD set FHA loan limits for areas that are average-cost housing markets, but also for high-cost counties and low-cost areas. FHA loan limits vary depending on a variety of factors including the nature of the cost of local housing. States have similar FHA loan limits in most counties with an outlier here or there; other housing markets (including California and New York) may have more high-cost counties than low-cost ones. East Coast real estate markets can be notorious for this, depending on location, and the FHA loan limit rules are designed to | more...