Articles in Category: FHA Loan Types

February 23, 2021

Buying And Repairing A Home With An FHA 203(k) Rehab Loan

Are you considering home repairs and renovation? In 2021 some are as part of disaster recovery. Other homeowners need a home repair or upgrade, or they want to purchase a fixer-upper house. Whether you want to replace your current home, or remodel it, the FHA 203(k) rehab loan can help These rehabilitation loans (which are also available as a refinance loan) are for any home owner who wants to buy or refinance a property and repair or renovate it at the same time. There is a standard version of the 203(k) purchase and refinance loan, and a limited version of both for smaller renovation projects. Some Won’t Use An FHA 203(k) But some borrowers won’t use an FHA 203(k) rehab loan. They either cannot, due to the nature of the | more...

February 15, 2021

Happy Presidents Day

By Joe Wallace

Happy Presidents’ Day 2021! Today banks and markets are closed, and we pause from our usual schedule of writing posts and giving information about FHA home loans to observe the holiday. We return with our regular content schedule tomorrow. Thank you for reading!

FHA Loan Waiting Times After Chapter 13 Bankruptcy

February 5, 2021

Can I Get An FHA Mortgage After Bankruptcy?

By Bruce Reichstein

People can and do apply for home loans, including FHA mortgages, following a bankruptcy filing. What does it take to be approved for an FHA home loan after filing bankruptcy? The key to loan approval in these cases? Time. You can’t simply apply for bankruptcy and six months later try to get a new home loan. FHA loan rules require a minimum time known as a “seasoning period” to be waited out. This seasoning period must pass before you are permitted to apply for a new FHA home loan. How does the seasoning period work? This part is confusing for some. We’ll review the specifics of FHA loan rules for each type of bankruptcy (Chapter 7 and Chapter 13) individually as there are unique rules for each. One consistent feature | more...

February 2, 2021

On Buying Real Estate Sight Unseen With An FHA Mortgage

By Joe Wallace

Would you buy a house without having personally walked through it? In the era of COVID-19, there are increased numbers of transactions where the buyer and seller negotiate the sale of a home and close the deal without the buyer ever having physically set foot on the property. This practice is known as buying a house, “sight unseen” and the housing market website Redfin.com reports that for the year 2020, almost two thirds of those who bought real estate in 2020 had not seen the property in person. What does Redfin make of “the highest share since at least 2015″, according to a Redfin-commissioned survey in November and December”. That survey consisted of more than 1,900 homebuyers across 32 major markets, “up from 32% a year earlier, and 45% in | more...

January 29, 2021

Foreclosure Relief Advice From The FDIC

By Joe Wallace

The Federal Deposit Insurance Corporation or FDIC is the federal agency that is responsible for insuring public confidence in the American financial system. The agency issues advice and warnings to consumers (among many other things) to help them avoid scams and fraud associated with lending and banking. HUD recently announced extended foreclosure relief for borrowers affected by the global coronavirus pandemic. It’s a sad fact, but true, anytime home owners need mortgage relief the scammers begin coming out of the woodwork. And that has definitely been true in the past year with COVID-19-related scams, fraud, identity theft, etc. It is true that the lowest of the low prey upon families in need during times of national crisis, but you can avoid getting scammed. Follow the FDIC’s advice on how to | more...

January 28, 2021

Low FHA Mortgage Rates In 2021

By Joe Wallace

January of 2021 brought some anticipation about what might happen with home loan interest rates. Would conditions become less volatile and more stable? Would rates start to rise along with investor certainty in the markets that influence mortgage rates? Does fear and uncertainty persist in the new year? Some professional market watchers wrote (in the early days of January 2021) that mortgage rates got started this year minus volatility (at least early)…FHA loan rates on 30-year fixed-rate mortgages are reported in January 2021 below the three percent range–so far, fairly “typical” of what people have come to expect during the pandemic. At the time of this writing, you’ll find FHA mortgage loan interest rates are reported at 2.25% for “best execution” loans which have ideal conditions including a well-qualified borrower. | more...

January 26, 2021

FHA Loans And DACA

By Joe Wallace

The FHA and HUD have made a major announcement; FHA home loans are now available for those who are not U.S. citizens but who are living in the country under the protection of a program called Deferred Action on Childhood Arrivals (DACA). In 2012, President Barack Obama issued an executive order that basically replaced DACA legislation which had failed to pass in Congress. President Donald Trump attempted to overturn DACA protections but was rebuffed by the Supreme Court. Now, those living in the USA and protected under DACA laws have the ability to apply for an FHA home loan–something that wasn’t permitted in the past. Effective January 19, 2021, the FHA, “…is permitting individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the U.S. Citizenship & Immigration | more...

January 21, 2021

Why You Should Consider A Limited 203(k) Rehab Loan

By Bruce Reichstein

Do you want to buy or refinance a fixer-upper home? The FHA 203(k) Rehabilitation loan and the FHA 203(k) Rehabilitation Refinance loan can help if you would rather buy a fixer-upper or renovate an existing home you’re living in as your primary residence. You don’t have to buy a property to use the FHA 203(k) rehab loan; you can use it to refinance your current home and get money to accomplish FHA and lender-approved improvements or other projects associated with remodeling or renovation. That said, not every borrower needs to fully refinance a home to repair or improve it. Are you thinking of smaller projects that don’t require a huge sum of money? The Limited 203(k) Rehab loan lets you accomplish smaller projects without committing to a full refinance or | more...

January 20, 2021

FHA Loan Interest Rates: January 2021

By Joe Wallace

The previous year was historic in many ways and the performance of home loan mortgage rates was no exception. They moved decisively below the three percent range and stayed there, moving higher occasionally but stubbornly resisting certain norms however temporarily. In 2021, people who write about mortgage loan interest rates note that while not directly tied to the performance of U.S.Treasuries, mortgage rates do trend together with Treasuries (typically speaking). In the opening month of the new year mortgage rates have not moved directly in tandem with the ups and downs of Treasuries, but that a correction of sorts has been predicted even before New Year’s Eve. That correction is coming–it’s safe to assume higher rates are in the future. What we don’t know is how long it will take | more...

January 19, 2021

Home Loans And Your Credit Score: The Cost Of Your Mortgage

By Joe Wallace

Did you know that credit scores affect more than the simple approval or denial of your mortgage? Your overall costs for the mortgage over the long term will depend in part on your FICO scores, as we’ll explore below. FICO Scores And Your Down Payment You have not one, but TWO FICO score standards to meet when you want to apply for a large loan such as a mortgage. The first standard is from the FHA itself (these are the FHA minimum requirements for the Single Family home loan program) and the second is your lender’s standards. Naturally these will vary from lender to lender. And your lender’s standards may or may not be higher than the FHA minimum. FHA FICO score minimums begin at 580 or better for maximum | more...