Articles in Category: FHA Loan Types

December 3, 2021

What Are FHA Rehab Loans?

What are FHA rehab loans? Simply put, these are home loans you can apply for to buy or refinance a fixer-upper property. FHA rehab loans come as “standard” mortgages but there is also a special FHA rehab loan program for those who have homes located in a federally-declared disaster area. The FHA 203(k) Rehab Loan HUD 4000.1, the FHA loan handbook, describes the FHA 203(k) rehab loan as follows: The Section 203(k) Rehabilitation Mortgage Insurance Program is used to: -rehabilitate an existing one- to four-unit Structure, which will be used primarily for residential purposes; -rehabilitate such a Structure and refinance outstanding indebtedness on the Structure and the Real Property on which the Structure is located; or -purchase and rehabilitate a Structure and purchase the Real Property on which the Structure | more...

November 29, 2021

New to FHA Loans? Things You Need To Know

By Joe Wallace

What are the FHA loan basics you should know as a first-time homebuyer? The first thing you should remember is that FHA loans are not restricted to first-time buyers, but there ARE state-level down payment assistance programs and closing cost assistance programs that may be able to help you with your FHA mortgage as a first-time buyer. Those programs can help save you thousands of dollars in up-front costs on the down payment and other expenses with your loan. Remember that FHA loans permit your seller to contribute up to six percent of your closing costs as an incentive to close the deal, but any amount valued above that six percent results in a dollar-for-dollar reduction in the FHA loan amount. First-time home buyers are sometimes not aware that they | more...

November 23, 2021

Problems That Can Stop Your Mortgage Being Approved

By Joe Wallace

Do you know what can stop your home loan or result in your being denied a mortgage? There are multiple factors that can complicate the mortgage process and you should know about the ones you can control and those issues that may be beyond your ability to anticipate. What kills a home loan dead in its’ tracks? One serious issue is associated with the appraisal. To buy a home with an FHA mortgage, you need to select a property that has a remaining “economic life” that will last the entire duration of the mortgage. OR you need to buy a fixer-upper with an FHA Rehabilitation loan to simultaneously buy and renovate the property to bring it up to local building code and FHA minimum standards. But no matter which way | more...

November 22, 2021

How To Get Cash Back On An FHA Home Loan

By Joe Wallace

Do you need to know how to get cash back on an FHA home loan? If you want to purchase a home with an FHA “forward mortgage” you might be tempted to ask your lender if it’s possible to apply for more mortgage loan money than is required to complete the transaction. This question usually comes with the hope of being allowed to take the extra loan funds out in cash similar to a personal loan. Some borrowers want to know if they can do this, but that specific scenario is definitely NOT possible under FHA home loan rules. Borrowers are not permitted to get cash back in such cases (we’re discussing FHA purchase loans here and NOT FHA cash-out refinance loan options) except in the form of a refund | more...

November 10, 2021

Get Ready For Your New Home In 2022

By Joe Wallace

Are you considering a home loan in 2022? There are many options and while the FHA home loan limits for the new year have not been announced at press time, borrowers should know the FHA loan limits for 2021 were increased over the previous year. Will that happen again in 2022? Time will tell but it’s a good idea to start thinking about your home loan as early as possible to get ready with a budget and a plan. FHA Forward Mortgage Options In 2022 The “forward mortgage” is the kind of loan you will use to buy your dream home. They are also known as “purchase loans” and simply as “home loans”. And with the FHA Single Family Home Loan program, your forward mortgage loan options are not just | more...

November 5, 2021

Who Can Apply For An FHA Mortgage?

By Joe Wallace

Who can apply for an FHA mortgage? Anyone can apply. Not all are accepted, obviously but there are few restrictions on who can be considered for an FHA mortgage. One of the main restrictions? Applicants with FICO scores below 500–FICO scores below that can never qualify for an FHA mortgage. Another restriction–you must be in the country legally. You do NOT have to be a citizen of the United States to qualify for an FHA mortgage loan, but you do have to provide documentation that shows your status as a resident, non-resident alien (the official term at press time) refugee, or asylum seeker. Your ability to qualify for the FHA home loan program depends on being able to show documentation of your status as a legal resident, etc. Another restriction | more...

November 2, 2021

Buying A Second Home?

By Joe Wallace

There is a myth about FHA home loans you might even believe yourself. Some believe that FHA home loans, with their low 3.5% down payment, are set aside strictly for first-time homebuyers who need help via a lower down payment than many conventional loans might require. What is the reality about the notion that FHA home loans are for first-time buyers only? FHA mortgages are NOT restricted to those who have never owned a home before. They are also not restricted to low or moderate-income applicants. One reason for these prevailing myths about FHA mortgages? Likely that many state or local first-time homebuyer programs may be commonly used with government-backed mortgage programs like the USDA and FHA home loan programs. By association, some might assume that the loan is intended | more...

October 29, 2021

How To Get An FHA Mortgage Loan As A First-Time Home Buyer

By Joe Wallace

How can a first-time home buyer qualify for an FHA mortgage loan? To use an FHA mortgage you do NOT have to be a first-time buyer, but if you ARE one you may qualify for state or local down payment assistance programs in your area and it’s a good idea to explore those options if they are open to you. If you are looking for a starter home, a home to grow into, or you want to have a home built especially for you (using an FHA One-Time Close construction mortgage loan), your FHA loan options are impressive. How To Qualify For An FHA loan As A First-Time Home Buyer Plan ahead and start early for your home ownership journey. Start at least a year in advance…that’s the best advice | more...

October 28, 2021

FHA Loan Limits For 2022

By Bruce Reichstein

What do you need to know about FHA home loan limits in 2022? It may sound a bit early to be discussing FHA loan limits by county, but at the beginning of 2021, potential FHA borrowers were treated to the news that FHA limits would be higher for the new year, giving many a chance to get more home loan for their efforts. What do you need to know about FHA home loan limits for the coming new year? We’re just over 60 days away at press time, 2022 will be here sooner than you realize! FHA home loans feature loan guaranty limits established every year, set by county. These are annual limits and are revised or considered for revision over the year before. There are no guarantees that the | more...

October 27, 2021

How You Can Use An FHA Home Loan

By Joe Wallace

Do you need to know what you are allowed (or NOT allowed) to do with an FHA mortgage? If you want to purchase a home with an FHA loan, you can buy a fixer-upper, a typical suburban home ready to move into, or even build your home from the ground up on your own lot using an FHA One-Time Close construction mortgage. But there are some things you are not allowed to do with an FHA home loan. Let’s look at the “can” and “cannot” angles to see what’s possible with an FHA mortgage. You CAN Purchase A Multi-Unit Property With An FHA Mortgage FHA home loans are for properties with one to four units. FHA home loan limits are larger for homes bigger than a single unit. Some borrowers | more...