Articles in Category: Fixed Rate Mortgage

July 30, 2018

What You Need To Know About Closing Your FHA Mortgage

What does an FHA borrower need to know about the closing date for an FHA mortgage? There are several issues to consider, especially when it comes to whether or not your transaction is occurring in a wet funding or dry funding state. Home Loan Closing Dates: The Difference Between Wet Funding And Dry Funding The terms “wet funding” and “dry funding” refer to states where requirements to close may require the loan to actually close and funds be disbursed on the closing date, and states where that does not specifically happen on the closing date. A wet funding state requires completion of the loan on the closing date or in a specified period of time after the closing date procedure. Dry funding means the paperwork for the mortgage is not | more...

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

July 23, 2018

FHA Lenders With The Lowest Mortgage Loan Interest Rates

By Bruce Reichstein

Which FHA lender offers the lowest interest rates? This is a question on the minds of all FHA borrowers, whether you are looking for an FHA new purchase loan, an FHA cash-out refinance, or even an FHA Reverse Mortgage. The answer to this question, however, is more complicated than “Lender X offers the best rates”. It Pays To Shop Around For FHA Loan Interest Rates If you need to know the lowest interest rate offered by a group of lenders, you will need to check with each participating lender. But there’s a catch-interest rates fluctuate, and can change daily. The rates you see today may not apply tomorrow, and those interest rates are listed without reference to a borrower’s credit rating and credit history. Shopping around for an interest rate | more...

July 19, 2018

What Is A Mortgage?

By Bruce Reichstein

What is a mortgage? To some that may sound like a totally obvious question, but for some first-time home buyers, the more information you get up front about the process of finding, buying, and owning a home the better. And that includes the most basic details of the process. FHA mortgages are an option for the serious home buyer who wants a lower down payment than many conventional mortgages and would like to enjoy the benefits of a government-backed mortgage. Why Do I Need A Mortgage? This is one of the most basic questions about the home buying process. Most people will apply for a mortgage to buy a home whether that’s an FHA new purchase mortgage, A VA home loan for qualifying military members, a USDA mortgage for those | more...

July 12, 2018

FHA Mortgage Loan Closing Day Tips

By Bruce Reichstein

Need some tips to help you navigate your closing date for your FHA home loan? There are some important things to do and things NOT to do on closing day. When your sale is final the seller or the real estate agent will give you the keys to your new home, but before you can get your hands on those keys, some important things must happen. Read All Home Loan Closing Documents Carefully FHA mortgage loans, like all other home loans, feature initial estimates of expenses and payments; the final numbers should be represented accurately at closing time and should not be estimates. If the numbers you were expecting don’t line up with what is in the closing documents, don’t let it go-ask for clarification. Don’t sign incomplete mortgage closing | more...

June 29, 2018

Remodel Your Home With An FHA Rehab Loan

By Joe Wallace

Are you thinking of selling your home? Need to think about increasing the value of your house before you put it on the market? Or maybe you want to remodel the home you’re planning on staying in long-term and are looking for the best return on investment or ROI for a remodeling project? FHA 203(k) Rehab loans can help you invest good money for a sound ROI on upgrades, improvements, and repairs. You can remodel your home with an FHA 203(k) rehab loan as a new purchase loan or as a refinance loan for your current mortgage. What types of remodeling projects have a good ROI and are allowed under the parameters of the FHA rehab loan program? The answer may depend on whether you apply for a standard or | more...

June 21, 2018

FHA Home Loan House Hunting Checklist

By Joe Wallace

Do you want to buy a new home? An FHA home loan, with its’ low down payment requirements for qualified borrowers is definitely an option to consider. With a low 3.5% down payment for qualified borrowers AND the ability to use approved down payment assistance and/or gift funds for potentially no money out of pocket for a down payment, FHA mortgages can have a lot of appeal. The house hunting process is an important part of any loan. When you are in the planning stages for your FHA mortgage, there are some big issues to consider before you launch into your search for the perfect home. Those issues can be covered by a checklist you can make and plan with, even house hunt with; when making your house hunting checklist, | more...

May 21, 2018

FHA Loan Rules For Investment Properties

By Joe Wallace

Admittedly, the title, “FHA Loan Rules For Investment Properties” might sound a little misleading; the FHA lender’s handbook HUD 4000.1 states clearly on page 142, “Investment Properties are not eligible for FHA insurance.” But what is the FHA definition of an investment property? The answer to that question is twofold-to understand what constitutes an investment property, we have to examine what is NOT an investment. What is the type of home loan the FHA does guarantee? FHA mortgages are primarily for owner-occupiers. At least one borrower obligated on the mortgage must live in the home as her permanent, principal residence within a reasonable time after the loan closes. In some cases, FHA loan rules make provisions for borrowers who want to use an FHA loan for a secondary residence, but | more...

May 11, 2018

Do You Need An FHA Home Loan?

By Joe Wallace

Do you need an FHA home loan? There are many mortgage loan options on the market, do you know what makes an FHA mortgage a potential advantage as a home buyer? FHA Home Loans Have More Forgiving Credit Requirements FHA mortgages have minimum FICO scores and credit history requirements that can be more forgiving than their conventional loan counterparts. Lender standards will also apply, but the FHA-proscribed minimums allow the lender greater flexibility to consider loan approval. FHA Loans Have Lower Down Payment Requirements 3.5% of the adjusted value of the property for new purchase loans on existing construction homes is quite appealing for many borrowers who can’t afford 20% down for some conventional loans. FHA One Time Close construction loans also require a 3.5% down payment for properties built | more...

March 28, 2018

More FHA Home Loan Options For New And Returning Borrowers

By Bruce Reichstein

In our last blog post we discussed some basic FHA home loan options for those who want to buy or refinance a home. More FHA loan options for new and returning borrowers alike include FHA fixed-rate and adjustable rate financing, FHA condo loans, and more. FHA Home Loan Interest Rate Options FHA home loan interest rate options are not the same at all participating lenders. Depending on both your own personal financial qualifications and lender requirements, it may be possible to apply for a fixed rate 15-year or 30-year mortgage, or for an FHA Adjustable Rate Mortgage (ARM) in the same terms. All FHA loans are generally required to amortize within the terms of the loan agreement and FHA loan rules. At the time of this writing, HUD 4000.1 states, | more...

March 1, 2018

FHA Home Loan Fact And Fiction

By Joe Wallace

FHA home loan fact and fiction; do you know what’s true and what’s not about your FHA home loan options? There are plenty of misconceptions about getting an FHA home loan including the all-time number one-the idea that FHA loans are ONLY for first-time home buyers. That is definitely NOT true. FHA loans are for any financially qualified borrower regardless of their previous home ownership status. FHA home loan fictions also include the idea that you can only purchase a typical suburban home with an FHA mortgage; this is also not true as FHA loans can be approved for mobile homes, condo units, mixed-use property that is primarily residential, town homes, and multi-unit homes. The truth about FHA home loans is that borrowers are allowed to buy “real property” with | more...