Articles in Category: FHA Loan Types

June 16, 2019

Six FHA Home Loan Tips

Know Your FHA Home Loan Limits All housing markets are subject to variations, and not all of them have the same costs or median house prices. And not all housing types are available in a given market. The home in California averaging at one price range won’t be the same as a housing market in a less expensive area. FHA home loan limits for high-cost and low-cost areas are adjusted rather than featuring an one-size-fits-all approach, and those limits are adjusted annually. You should always check the current loan limits before committing to a new home loan to see what you can expect in your chosen market. FHA Loans May Be Available With Adjustable Mortgage Rates and You Can Always Choose A Fixed Rate Loan Instead The fixed-rate FHA mortgage | more...

June 12, 2019

Should Homeowners Turn Into Real Estate Investors?

By Joe Wallace

If you are thinking about buying real estate with an FHA mortgage loan you may have run across some trends in recent times addressing the topic of ordinary home owners becoming real estate investors. Is this something that is possible with an FHA single-family mortgage loan? The first thing you need to know about buying real estate with an FHA mortgage is that FHA single-family home loans are for owner-occupiers only. The occupancy requirement is non-negotiable for a new purchase home loan guaranteed by the FHA. There is no FHA loan rule against buying a multi-unit property and renting out the unused living units. Borrowers are free to do so since you can buy a home with as many as four units with an FHA mortgage. But what you cannot | more...

June 11, 2019

FHA Home Loans: Solar And Wind Technology

By Bruce Reichstein

Did you know that you can ask for an add-on to your FHA home loan or refinance loan to get funds for solar or wind-powered energy efficient upgrades to the home? Whether you want to add such features to your home at purchase time or refinance time is up to you but it is possible to apply for extra funds to install wind or solar power features. Some reading at this stage might assume we are talking about the FHA Energy-Efficient Mortgage add-on, but this is actually a different program. Under a section in the FHA loan rulebook, HUD 4000.1, labeled “Solar And Wind Technologies” we find the following information: “The solar and wind technologies policy allows the Mortgagee to increase the Base Loan Amount to cover the cost and | more...

June 7, 2019

Buying A Fixer-Upper With An FHA 203(k) Rehab Loan

By Joe Wallace

FHA 203(k) mortgages are different than a typical home loan for a new or existing construction home. These loans allow you to buy and renovate a property that would not necessarily meet FHA loan standards as-is. These loans are often called fixer-upper loans, rehab loans, etc. FHA rehab loans are available as both new purchase loans and refinance loans, you can use the loan for a property you already own or to buy a fixer-upper to begin working on. Rehab loans should not be confused with FHA Construction loans, construction-to-permanent mortgages sometimes referred to as FHA One-Time Close mortgages. The two types of loans can be similar in some respects, including the FHA minimum standards and construction requirements where the approved renovation work is concerned. And yes, the work you | more...

June 4, 2019

FHA Home Loan Approval Myths

By Joe Wallace

There are plenty of myths about home loan approval, but for first-time home buyers looking for an FHA mortgage, some of those myths are more prevalent than others. What you don’t know about FHA home loans can hurt you-it’s best to know as much as possible going into the home loan process, which is another reason why it’s best to take your time preparing for a home loan. Rushing into the process can cost more money than taking your time. FHA Home Loan Myths: The FHA Has Separate Requirements For First-Time Home Buyers FHA home loans are open to all qualified borrowers with FICO scores in a certain range for the lowest down payment. FHA loan rules do not make any distinction between a first-time buyer and an experienced home | more...

April 30, 2019

FHA Home Loan Basics For First-Time Home Buyers

By Joe Wallace

First-time home buyers should know as much about their home loan options as possible going into the application process. FHA home loans are a good option to consider when buying your first real estate-do you know how flexible the FHA home loan program is? FHA Home Loan Basics For New Borrowers FHA home loans are intended for owner-occupiers who want to purchase a home at least one person obligated on the mortgage will occupy as the full-time residence. FHA home loans are not need-based mortgage loans, so there is no income cap or other limitations on who can apply. Some people confuse FHA home loans with USDA mortgages, which are governmnent-backed mortgages that do require income caps and are need based, unlike FHA mortgages. Who You Borrow Money From With | more...

April 24, 2019

Which FHA Home Loan Do You Need?

By Joe Wallace

First-time home buyers new to FHA home loans don’t always realize how many different FHA home loan options are available to them. You don’t have to buy a one-bedroom house in the suburbs; FHA mortgages are more flexible and offer many ways for you to find and buy a dream home. FHA Condo Loans Because of a long-time misconception held even today about FHA loans being need-based, having income caps, or intended only for low-income borrowers (none of those things actually apply to the FHA mortgage loan program) some are surprised to learn that there is such a thing as an FHA condo loan. Any qualified borrower (based on income, credit history, employment stability, and other financials) can apply for an FHA condo loan in a condominium project that meets | more...

If Your Home Was Damaged In A Federally Declared Disaster Area

April 19, 2019

The Two FHA Loan Rehab Mortgages

By Joe Wallace

There is a kind of FHA mortgage that first-time home buyers and experienced home owners alike can apply for that will allow the purchase or refinance of a piece of owner-occupied real estate and provide funds for repairs and renovations. The loan comes in two forms, as mentioned above; one for a new purchase and one to refinance an existing mortgage. The FHA 203(k) Rehabilitation Mortgage and the FHA 203(k) Refinance loan offer a range of possibilities for those who wish to buy a fixer-upper house or renovate their existing property. FHA loan rules in HUD 4000.1 describe these loans as follows: The Section 203(k) Rehabilitation Mortgage Insurance is used to: Rehabilitate an existing one- to four-unit Structure, which will be used primarily for residential purposes; Rehabilitate such a Structure | more...

Refinancing a Second Home With An FHA Mortgage Loan

April 8, 2019

FHA Home Loan Questions And Answers For First-Time Borrowers

By Joe Wallace

FHA home loans offer first-time home buyers an advantage with low down payment requirements, more flexible lending standards, and the ability to apply for local down payment assistance help where offered (as long as that assistance meets FHA requirements). Do you have questions about the FHA home loan process as a first-time buyer? Some of these answers below may help. What Is An FHA Forward Mortgage? The term “forward mortgage” refers to any home loan used to buy a property. It’s also sometimes known as a purchase loan. Why Are Closing Costs Due At Closing Time And Why Can’t I Finance Them Into My Home Loan? Not all closing costs must be paid in cash at closing time-the FHA Up-Front Mortgage Insurance Premium is an example of an FHA home | more...

April 5, 2019

FHA Loan Facts

By Bruce Reichstein

When you start doing research on home loans and want to learn what it takes to qualify for an FHA mortgage loan as either a first-time home buyer or as a return borrower, you will find websites with lists of loan approval requirements. Some of those FHA home loan approval requirement lists look like this: A credit score of 580 or higher for the lowest down payment A debt-to-income ratio of 43% or less 3.5% down payment 1-2 years of consistent employment history A property that meets FHA standards OR A home eligible for FHA 203k rehab loan financing You may find a caveat on lists like these stating that they are “general guidelines” and that is true. What isn’t always included in those caveats is that additional lender standards | more...