Articles in Category: FHA Loan Types

December 28, 2020

FHA Home Loan Options: Build Or Buy A Home In 2021

Do you want to own your own home in 2021? The FHA Single-Family home loan program is an excellent option for future homeowners who want to build or buy a home in the new year. What are your options for buying a house with an FHA mortgage? Those who have good credit (620 or better) and are not in a hurry to move in as soon as possible should consider applying for an FHA One-Time Close (OTC) construction loan to build a home from the ground up on your own land or on a lot you buy in conjunction with the construction loan. Another option for those who aren’t in a hurry to move in is the FHA 203(k) Rehabilitation mortgage, which is intended to help you buy a fixer-upper | more...

December 24, 2020

Happy Holidays 2020

By Joe Wallace

Happy Holidays! Thank you for reading our posts this year. We hope you have a happy and healthy holiday season. Our regular posting schedule resumes on Monday. See you then!

December 23, 2020

Changes To FHA Home Loan Paperwork In 2021

By Bruce Reichstein

Are you looking for a house to buy in the new year? If you are new to house hunting and the home loan process in general, you won’t notice the changes coming to FHA loan paperwork in 2021, but you’ll definitely be affected by the changes. The FHA and HUD issued a press release in late 2020 announcing the publication of a revised Form HUD-92900-A, (92900-A) HUD Addendum to Uniform Residential Loan Application (URLA). The revisions change certain consent forms, remove a requirement for new construction, and modify other aspects of the home loan process for FHA mortgages. The modifications are applied to documents considered typical for the FHA home loan process. Why are they changing? The move is part of a process dictated by something the FHA and HUD | more...

December 18, 2020

FHA Home Loan Rules For Second Homes, Vacation Homes

By Joe Wallace

Investing in a vacation home is tempting for many. Some borrowers don’t want a vacation home but need a second home because of changes in job requirements, family size, or other factors. Do borrowers have the option of purchasing a vacation home or a second home with an FHA mortgage? FHA loan requirements for loan approval include a rule stating that the home be used as the primary residence; occupancy is a condition of loan approval for an FHA single family forward mortgage loan. You must be plan to use the house you buy with the FHA mortgage as your main address, and in cases where there’s an increase in family size or a change in job location. But a vacation property? Not permitted under the rules in HUD 4000.1 | more...

December 17, 2020

FHA Condo Loan Basics You Should Know

By Bruce Reichstein

Some borrowers are surprised that you can choose an FHA condo loan; some view condo units as more of a luxury-type housing option or somehow otherwise out of their price range. But FHA home loans include a condo loan option and the FHA official site explains how it works; “Section 203 (b) of the National Housing Act provides authority to insure any mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project.” FHA home loans can be approved for condo units for up to 30-year terms (purchase or refinance) for units in an FHA-approved condominium project OR, as FHA.gov describes, “in a project that is not FHA-approved but meets the Single-Unit Approval requirements”. How does a condo | more...

December 14, 2020

How To Prepare For A Home Loan In 2021

By Joe Wallace

How do you prepare for a home loan in the new year? There are a number of steps you can take to get ready. The first step for some is to contact the FHA and HUD at their toll-free number 1-800 CALL FHA to request a free referral to a HUD-approved, local housing counselor. This can help you to better understand the credit requirements of the home loan process, learn what areas to focus on to get your credit ready, etc. The first step for others isn’t to call for a referral, but rather to contact the three major credit reporting agencies to request copies of the borrower’s credit report. You’ll want to get very familiar with the contents of your credit report as early as possible. Look for a | more...

December 10, 2020

Important Questions To Ask About Your Home Loan

By Joe Wallace

If you are considering a home loan, the Federal Trade Commission has some advice for you. The FTC, a government agency charged with providing consumer protection, advice, and free credit reports (among many other things), advises house hunters that there are some important questions you should be asking when it’s time to commit to a mortgage loan. Some issues the FTC warns about are not problems for those who apply for FHA home loans to buy or refinance a home. For example, the FTC advises borrowers to ask about any applicable penalties for early payoff of the mortgage loan. And don’t forget, the early payoff of your mortgage doesn’t just happen when you pay off the note before the loan term ends. It can also happen when you refinance your | more...

December 8, 2020

FHA And HUD Explain Higher FHA Loan Limits In 2021

By Joe Wallace

On December 2, 2020, the FHA and HUD issued a press release announcing higher FHA mortgage loan limits for 2021. Those applying for FHA mortgages with FHA case numbers assigned on or after 1 January 2021 will have higher loan guaranty limits to work with than in 2020. The same thing happened last year, but higher loan limits in the new year are NOT guaranteed to happen year-to-year. But this year, it DID happen and the FHA has explained the hows and whys. Why did limits go higher for the new year? FHA is required by a federal law known as the National Housing Act, (which itself was amended by the Housing and Economic Recovery Act of 2008) to “…set Single Family forward loan limits at 115 percent of area | more...

December 2, 2020

Steps To Buying A House

By Joe Wallace

Do you know the ten steps to buying a house? Each one can be considered its own phase of your home loan journey and if you want to buy a house with an FHA mortgage, these are the steps you should anticipate: Check your credit score Calculate how much FHA mortgage you can afford Choose a real estate agent (where applicable) Get pre-approved with a participating FHA lender Start house hunting Make an offer on the house you want Schedule a home inspection Secure your financing Purchase a homeowners insurance policy Close your loan and move into your new home Note that the first steps are squarely in the planning stages of your mortgage; you should know the contents of your credit report and your FICO scores long before you | more...

November 27, 2020

FHA Fixer-Upper Loans For Smaller Home Improvement Projects

By Joe Wallace

There is a type of FHA home loan that lets you get a mortgage to simultaneously buy and repair or modify a home. These fixer-upper mortgages are known as FHA 203(k) Rehabilitation Mortgages and this is an option you can also get as an FHA refinance loan. It’s a great alternative to the standard FHA home loan. Any borrower needing to repair, upgrade, or renovate an existing home can apply for this mortgage–you can refinance an FHA or non FHA loan with the FHA 203(k). But some borrowers don’t have ambitious, large-scale work to be done and a “full” 203(k) rehab loan might not be the right loan if you don’t have a huge project to deal with. And fortunately there is a smaller version of the FHA 203(k) Rehabilitation | more...