Articles in Category: FHA Loan Types

December 15, 2017

FHA Loan Options For 2018

Exploring your FHA loan options for 2018? Whether you are a first-time home buyer or an experienced house hunter, FHA loans have something to offer. You don’t have to be in the market for a new home, either-there are refinance loan options to help you get into a fixed rate FHA mortgage. New Purchase FHA Home Loans For First Time Borrowers While there is no FHA-sponsored special deal for first time home buyers or first time borrowers, FHA loans offer excellent options including a lower required minimum down payment-only 3.5% of the adjusted value of the home down as the minimum. FHA loans can offer more competitive interest rates depending on the lender, the borrower’s financial qualifications, and other factors. You will need to work with your lender to negotiate | more...

December 14, 2017

Can I Get Cash Back On An FHA Mortgage?

By Bruce Reichstein

Can I get cash back on an FHA mortgage? That’s what some borrowers want to know, and the answer varies depending on the type of home loan you seek. FHA Cash-Out Refinancing Loans The FHA cash-out refinance loan is an FHA refi transaction designed to permit the borrower to take cash back at closing time. The amount of cash you get back on this type of loan depends on how long you have been paying on your home loan, and the amount of any add-ons to your mortgage such as financed closing costs, etc. You aren’t allowed to borrower more than the property is worth based on FHA appraisal guidelines and LTV limits. That means you can’t use a home worth $250,000 to secure am FHA cash-out refinance loan for | more...

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

December 11, 2017

FHA Home Loans In 2018

By Joe Wallace

Any potential borrower examining options for FHA home loans in 2018 should keep in mind some very important factors that may affect your choices for a new loan. Do you know what they are? FHA Mortgage Loan Limits Have Increased for 2018 The average housing market (not a high-cost or low-cost area) will feature an FHA loan limit of $453,100 for a single-unit property. That is up from 2017’s limit for the same areas of $424,100. That increase might not make a huge difference to some, but the additional borrowing power may be helpful to others. The higher FHA loan limit applies to all FHA mortgages with case numbers assigned between January 1, 2018 and December 31, 2018. Check Your Credit Scores As Early As Possible There were many headlines | more...

December 1, 2017

Can I Get an FHA Home Loan For a Commercial Property?

By Joe Wallace

Can I get an FHA home loan for a commercial property? The answer to this question is more complicated than a simple yes or no-much depends on what local zoning laws will allow, and how “residential” the property is. FHA home loans are not just for typical suburban homes. There are a wide variety of house hunters, all looking for different types of properties to suit their needs, and there are plenty of options available aside from the suburban home. A two bedroom home in the suburbs may not be right for borrowers looking for a new home close to work in the city, or for those interested in a different type of residence than a standard house. FHA insured mortgages are available for condos, duplexes and manufactured homes. FHA | more...

November 27, 2017

FHA Loan Rules: Using Rental Income to Qualify for a Mortgage Loan

By Bruce Reichstein

What do FHA loan rules say about using rental income to qualify for an FHA home loan? Is it possible to use rental income according to the FHA loan handbook, HUD 4000.1? The short answer is that it depends on whether or not the rental income meets FHA loan minimum standards. When processing your home loan application, your participating FHA lender will request copies (never originals) of the relevant paperwork associated with your employment and income, including tax documents, W2 forms, pay stubs, etc. If your income is derived in whole or in part by rent payments, the lender will need to see documentation for that, too. FHA loan rules in HUD 4000.1 address this on page 202, starting with the definition of what is considered rental income under the | more...

Time Is Running Out On Exterior-Only FHA Appraisals

November 23, 2017

Happy Thanksgiving!

By Joe Wallace

Happy Thanksgiving! Today we pause from our usual discussion of FHA home loans, refinance loans, FHA reverse mortgages and related topics to enjoy the holiday. Our regular schedule of posts resumes on Friday. Have a safe and fun Thanksgiving holiday and we’ll see you tomorrow!

FHA One-Time Close Construction Mortgage Basics

November 22, 2017

How Do You Get A One-Time Close FHA Construction Loan?

By Bruce Reichstein

How do you get an FHA construction loan? If you want to have a new home built from the ground up (as opposed to buying an “existing construction” home that already exists), an FHA new construction loan is possible. The FHA One-Time Close / Single-Close construction loan makes it much easier with a single application and closing for the entire project. Other types of construction loans feature TWO closing dates and a more complex process. FHA One-Time Close mortgages simplify the construction loan by wrapping the entire loan process up with a single application and loan approval. Not all FHA lenders offer construction loans, so you’ll need to shop around to find the right lender for your needs. There are two basic types of FHA construction loans-a “traditional” construction loan, | more...

November 21, 2017

What Kinds Of Property Can I Buy Or Refinance With An FHA Loan?

By Bruce Reichstein

What kinds of property can I buy or refinance with an FHA loan? This is a question we’ve been examining lately, starting with the FHA requirement for homes to be used as the primary residence for at least one person obligated on the mortgage note. But there are other requirements borrowers need to know when looking for a home to buy with an FHA mortgage. Eligible Property Types For FHA Single-Family Loans HUD 4000.1 explains, “FHA’s Single Family programs are limited to one-to four-family Properties that are owner-occupied Principal Residences. FHA insures Mortgages on Real Property secured by: -detached or semi-detached dwellings -Manufactured Housing -townhouses or row houses -individual units within FHA-approved Condominium Projects” The occupancy requirements are identical for all property types. The actual date of occupancy may vary | more...

November 20, 2017

What Do I Need To Qualify For An FHA 203(h) Rehab Loan For Disaster Victims?

By Bruce Reichstein

What do I need to qualify for an FHA 203(h) rehab loan for disaster victims? Those in the hardest-hit areas may require complete replacement of a home damaged or destroyed by Hurricane Harvey, Hurricane Irma, Hurricane Maria, or California fires. But what are the basic requirements of the FHA 203(h) rehab loan? FHA 203(h) Rehab Loans Are For Those In Federally Declared Disaster Areas The basic requirement for an FHA 203(h) rehab loan is that the applicant’s property is located in a federally declared disaster area. According to HUD 40001., “The previous residence (owned or rented) must have been located in a (federally declared disaster area) and destroyed or damaged to such an extent that reconstruction or replacement is necessary. A list of the specified affected counties and cities and | more...

November 6, 2017

Why Do People Prefer FHA Loans?

By Bruce Reichstein

Why do people prefer FHA loans? It’s a question many ask, especially when comparing loan options to conventional, VA, or other non-FHA mortgages. What’s the appeal of the FHA mortgage loan? Why should first-time home buyers consider this option? FHA Loans Are Flexible FHA home loans aren’t just for one type of home, or for one type of buyer. There is no income limit for an FHA mortgage, the borrower has to be able to afford the mortgage based on the borrower’s debt-to-income ratio (how much money you have coming in compared to the amount going out each month for financial obligations). Credit ratings, employment, and other factors are also important, but the misconception that FHA mortgages are only for those who need financial help isn’t true. Any financially qualified | more...