Articles in Category: FHA Loan Types

What Credit Score Is Needed For An FHA Mortgage?

March 15, 2023

What Are FHA Home Loan Discount Points?

If you don’t know what discount points are, you should explore them as an option to lower your mortgage loan interest rate while still in the planning and saving stages of your FHA mortgage. For new purchase loans, including FHA One-Time Close construction mortgages, FHA Condo loans, or FHA Mobile Home loans, discount points may help you save money upfront on your mortgage over the loan’s lifetime. Discount points aren’t for everyone–some borrowers prioritize reducing their upfront costs and these FHA loan applicants won’t be interested in points. Why? They represent a larger upfront and out-of-pocket expense. But for those who want to pay more upfront so they can save money down the line should consider points. What are these home loan discount points? The financial website Investopedia.com defines them | more...

Can I get an FHA home loan if I owe back taxes?

March 10, 2023

FHA Loan Fact and Fiction

By Joe Wallace

An FHA loan comes with a variety of options, including the types of property you can buy (suburban home, townhome, condo unit, manufactured home, etc.) and the types of mortgage you can apply for such as a 15-year term, 30-year term, fixed rate, adjustable rate mortgage, etc. FHA Loan Fact: Applying For An FHA Mortgage With A Participating Lender There are many participating FHA lenders waiting to help you, and while FHA loans are NOT available from a financial institution that does not participate, the number of those who do is quite high. If you need to refinance a conventional loan and your lender is not an FHA lender, you’re free to find one who does and refinance into an FHA mortgage. FHA Loan Fiction: First Time Home Buyers Only? | 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...

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

January 25, 2023

Are You Ready For An FHA Loan Application?

By Bruce Reichstein

Are you ready for an FHA mortgage loan? Buying or refinancing a home with an FHA loan takes planning and preparation, but once you’ve put the time in and gather your information, budget for expenses, and check your credit, the process will be far more understandable and accessible. Are You Ready For An FHA Mortgage Loan Application? You may be ready to fill out your FHA mortgage loan or refinance loan application if you have spent the last year reviewing your credit reports, working on reducing your debt-to-income ratio, and have made sure to have 12 months of on-time payments on ALL financial responsibilities. You are ready to apply if you know what kind of home loan you need and how it will be used. For example, are you interested | 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...

December 21, 2022

New Mortgage Rules And Your FHA Home Loan

By Joe Wallace

The Consumer Financial Protection Bureau (CFPB) has weighed in on certain mortgage lending practices with an eye on reform; in 2022 it moved to require lenders to enhance loan approval policies related to a type of mortgage known as bank statement lending. These are loans include rules that allow the lender to review the borrower’s bank statements as a source of income for the borrower. Bank statement mortgage loans are, according to the publication National Mortgage News, offered to about 100 thousand borrowers per year, worth up to $25 billion in loans. In October of 2022, CFPB revised its regulations for these mortgages. Lenders are now required by the CFPB to confirm the data on bank statements used to verify income. Specifically, the lender is required to determine that the | more...

December 12, 2022

Housing Market And Home Equity: What You Need To Know In 2023

By Joe Wallace

The mortgage industry has been coming down from the highs of summer, 2022. Fed actions to raise interest rates had an effect on the housing market (indirectly–the Fed sets the rates on federal loan funds, not mortgage loan interest rates) and as a result, conditions have started to cool to the point where mortgage rates actually dropped in December. Slowing Demand As the housing market cools, a course correction for home equity is an important factor to think about. According to certain mortgage industry sources, there are plenty of indicators that home equity is indeed starting to come back down. Lower demand and lower prices can translate into lower equity. Consider what the publication Mortgage Industry News printed about a report by CoreLogic in 2022: By the end of the | more...