Articles in Category: FHA Loan Types

April 20, 2023

Five Things You Should Know About FHA Mortgages

Many people still have misconceptions about the FHA home loan program. They might think they “earn too much money” to be a successful applicant (not true, FHA home loans are not need-based loans) or would not qualify because they want to build a home instead of buying an existing-construction house. This is also not true; FHA loans include those for building a home instead of buying one. They are called One-Time Close construction loans, and feature the same FHA FICO score and down payment requirements as other FHA mortgage options. What are the facts about FHA home loans you need to know to make a better-informed decision about your loan choices? FHA Loan Fact: FHA Mortgages Are For Any Financially Qualified Borrower Unlike the USDA home loan program, which DOES | more...

April 17, 2023

Understanding Your FHA Home Loan Options

By Bruce Reichstein

Understanding your FHA home loan options going into the house hunting season of 2023 means knowing the different choices available to you for a mortgage. Did you know that FHA home loans are available for mobile homes, condos, and manufactured housing? There are many options for property size and type. You can buy a property up to four units large using an FHA mortgage. What Kind Of Home Do You Need? Choices matter when reviewing your home loan options. Choices that include how many units you want in your home (one to four-unit homes can be purchased with FHA mortgages) and the type of property you want; condo units, townhouses, mobile homes, manufactured housing, and even the ability to build instead of buy can be part of your decision-making process. | more...

April 14, 2023

Buying Your First Home With An FHA Mortgage

By Joe Wallace

First-time home buyers love hearing about the low down payment requirements for FHA mortgages, and the fact that FHA home loans allow you to apply for a mortgage with a government-guarantee that helps keep mortgage loan interest rates lower on these types of loans. But some other perks aren’t so obvious; did you know that with an FHA mortgage you are permitted to have your seller contribute up to six percent of the home’s price as closing costs? The seller can’t contribute to your down payment but can help with those closing costs. Your ability to use this option may be limited in housing markets where there’s a lot of competition for a small amount of housing inventory, but when there is less competition for individual houses, your ability to | more...

April 6, 2023

Buying A Home? Questions To Ask

By Joe Wallace

Are you thinking about applying for a mortgage loan? Here are some important questions you should ask yourself before starting a loan application. Preparing for the issues raised below can help you get off to a good start. Have I Saved Enough For Contingencies? There are plenty of costs some borrowers do not anticipate when planning and saving for their FHA mortgage. You should expect title transfer fees, pest inspection costs, and home inspection fees. These are all standard costs associated with buying a home. But there are also fees that are easy to forget about. Will you have to pay any property taxes at closing time? What about compliance inspection that may be needed after appraisal-required corrections are made as a condition of loan approval? How Much Negotiating Can | more...

April 5, 2023

FHA Home Loans: A Variety Of Options

By Joe Wallace

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 23, 2023

FHA Loan Down Payments

By Joe Wallace

Borrowers have many questions about FHA loan down payment rules, which can be a tricky issue for some in the beginning–do you know what is required for an FHA loan down payment? For starters, the source of your down payment funds will be scrutinized. You can’t provide a down payment from a credit card cash advance or non-collateralized loan. You cannot use payday loans for your down payment. You cannot use funds from third parties, such as friends or family, from these unapproved sources, either. Sources of down payment funds acceptable to the FHA include cash saved by the borrower, certain retirement funds, stocks or other assets that have been cashed in, certain types of gift funds from a relative may be acceptable if the funds meet FHA requirements, etc. | 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...