Articles in Category: Fixed Rate Mortgage

April 5, 2023

FHA Home Loans: A Variety Of Options

There are many different types of real estate available to purchase or refinance with an FHA single family home loan. Did you know that FHA loans are not limited to traditional suburban-type housing? Your options are as diverse as the kinds of real estate you might consider purchasing. For example, while an existing construction suburban home is definitely an option with FHA loans, you can also consider a new construction home. The difference between new and existing construction can be technical; new construction properties have generally been completed for a year or less and have never had an owner. So while you may not be interested in a “build-to-suit” new construction loan, you may be able to get a new construction loan for a property that is already finished but | more...

March 31, 2023

Make The Most Of Your FHA Home Loan

By Bruce Reichstein

Your home loan choices aren’t limited to the type of home loan available. The marketplace offers FHA, conventional, USDA, VA, and other options. But some of the choices in the FHA home loan program may change how you think about buying a home. Should you build instead of buy? Should you consider a fixer-upper? Or would you rather buy an existing house you can move into right away? FHA Loan Program Options It’s not a simple matter of deciding between whether to have a home constructed on your own lot by applying for an FHA One-Time Close construction loan or choosing the FHA 203(b) loan to purchase an existing-construction home. Borrowers also have the option to choose a fixer-upper home and apply for an FHA 203(k) Rehabilitation loan to pay | more...

March 24, 2023

FHA Loans Compared To Conventional Mortgages

By Bruce Reichstein

If you aren’t sure whether to apply for an FHA loan or a conventional mortgage to purchase or refinance your home, there are some comparisons you can make between FHA and conventional loans. For some, 2023 is a year to make the jump from renting to owning, and if you are thinking about your options, it’s crucial to make informed choices. Don’t pull the trigger on a new loan application without comparing the features of different types of mortgage loans, government-backed and conventional. Even if you decide not to choose an FHA mortgage in the end, making the most informed decision you can is paramount. Down Payments The mortgages with the lowest down payments are USDA loans and VA mortgages, which both feature a zero down option. Some conventional loan | more...

March 22, 2023

FHA Loan Terms Defined

By Joe Wallace

If you are new to the home loan process, there are some vocabulary terms you’ll want to know as you start to plan and save for your FHA home loan in 2023. It pays to do your homework ahead of time in a housing market like the one we’re experiencing now. Every advantage helps. As you start to research your mortgage options and talk to industry professionals, you’ll likely hear or read some technical terms that may be confusing..at first. The farther you get in the home loan process, the more these new terms will become clear and make sense. Here are some terms you will likely learn more about in the coming months. Comparables You may not experience this loan jargon in the earlier part of the home loan | more...

What You Need To Know About Your FHA Home Loan

March 20, 2023

Don’t Buy A House Without A Home Inspection

By Bruce Reichstein

Here’s a common example of a home buyer question that is asked after the purchase of a house with an FHA home loan has closed, the new owners have moved in, and suddenly discover there are serious issues with the property: “I did not get a home inspection when I purchased my house, and now there are problems. Do I have any recourse?” If what is meant by “recourse” involves some form of intervention or relief from the lender or the FHA, the general answer is no–you don’t have any avenues of recourse when buying a home if you choose not to pay for the optional but essential home inspection and choose to rely only on the FHA appraisal instead. An FHA appraisal is NOT a home inspection in spite | more...

February 27, 2023

Anticipating Closing Costs For Your New Home Loan

By Joe Wallace

Buying a home requires planning and saving. Especially for closing costs, which can include appraisal fees, the home inspection, compliance inspections, and the Up-Front Mortgage Insurance Premium. It takes time to save for these expenses, but some borrowers will pay more up front than others. That is usually due to a combination of factors, but the thing new home loan applicants need to know is that your financial needs and goals will dictate how and when you pay certain closing costs. Did you know you can finance some closing costs and have the home’s seller help you pay for others? Government-backed mortgages like FHA home loans (including FHA One-Time Close construction loans which can help even a first-time home buyer build a home from scratch) make buying or building a | more...

February 15, 2023

FHA Fixed-Rate Mortgages Versus Adjustable Rate Mortgages

By Joe Wallace

What’s the difference between a fixed-rate mortgage and an adjustable-rate home loan? In 2023, you may find advantages in both types thanks to inflation and a recovering housing market. FHA single-family home loans come in a variety of types; both fixed-rate loans and those with adjustable rates. The rules for these loans, commonly referred to as FHA ARM loans, are spelled out in HUD 4000.1, the FHA Lender’s Handbook. Fixed rate home loans backed by the FHA are essentially what their name implies; a mortgage with a rate negotiated between the borrower and lender that does not change for the entire loan term. Borrowers who later want to apply for a lower rate can apply for FHA refinancing, including options such as the FHA Streamline Refinance loan program for FHA-to-FHA | more...

February 1, 2023

FHA Home Loan Myths Explained

By Bruce Reichstein

There are plenty of myths about FHA home loans. For example, some people STILL believe the FHA home loan program is a need-based mortgage loan offered only to low-income house hunters. This is not true–any financially qualified borrower can apply for an FHA mortgage. There are no income caps or need-based requirements for FHA loan approval. But that’s just the tip of the iceberg. FHA home loans can be used to buy certain property types including condo units and mobile homes. FHA home loans can even be used to have a house built on your own land with a low 3.5% down payment. FHA Loan Myths: First-Time Home Buyers You do NOT have to be a first-time homebuyer to qualify for an FHA mortgage. You can be an experienced homeowner, | more...

January 10, 2023

Rent Or Buy? FHA Loans Can Help You Own Your Home

By Joe Wallace

Is it wiser to rent or to buy your home? For some borrowers, it makes more sense to make a mortgage payment than to commit to a monthly rental payment. These borrowers should definitely explore their FHA home loan options and compare the cost of renting to the costs of owning. FHA Loans Can Help You To Stop Paying Rent Buying your home with an FHA mortgage means no more waiting for the landlord to repair crucial areas of the home. Homeowners are free to schedule or make their own repairs or upgrades without having to wait for someone else to get around to scheduling those necessary appointments. Buying a home with an FHA mortgage means no more apartment hunting, paying application fees or security deposits, etc. FHA Mortgage Loans | more...

December 28, 2022

Buying A Home In 2023

By Joe Wallace

Are you making plans to buy a home with an FHA mortgage in the new year? Your timing might be better than you think; housing markets are cooling which may lead (over time) to lower prices, decreased demand for houses on the market, and more negotiating power for the buyer. But there are a few important questions. How long does the market improve before we see conditions begin to level off? There is no way to predict what might happen going forward, and it’s important to compare and ask lenders about what rates might do in the months leading up to your FHA loan application in 2023. It is unrealistic to expect your lender to be a fortune teller, nobody knows when home loan interest rates might recover closer to | more...