Articles in Category: FHA Loan Types

February 24, 2017

Child Support Income and FHA Loans

A reader got in touch with us to ask a question about how a participating FHA lender will view child support payments. “My significant other and I want to apply for a house loan together. He technically still pays me child support, but it will end once we own a house together. Can we still count that as part of my income for a home loan? And/or does that effect his income for the loan at all?” There are a variety of factors that could influence the answer to this question. One is state law. Does the borrower live in a community property state? Is the couple legally married and thus subject to such laws where applicable? Does other state law govern how child support and/or alimony can be handled | more...

February 23, 2017

FHA Loan Employment Rules: A Reader Question

By Joe Wallace

A reader asked us a question in the comments section recently about FHA loan rules for employment verification. “I just got denied a FHA loan because I had a gap in employment for only 3 months. I wanted to know does having a gap for only 3 months qualify me for getting denied?” It’s important to remember that FHA loan standards found in HUD 4000.1 (the FHA single family loan rule book) are not the only standards that are recognized or enforced when the lender is processing a home loan application. FHA loan rules, state law, lender standards, and even things that are considered “customary” in the local housing market may all play a part in FHA loan approval and processing. So what’s found in HUD 4000.1 is a good | more...

February 23, 2017

Mortgage Rates: Moving Lower

By Joe Wallace

Mortgage loan interest rates have been moving downwards since our last report, but the moves have been small, and we still see a familiar range of rates. 30-year fixed rate conventional mortgages are still within a best execution range between 4.125% and 4.25%, even after the Fed made statements about future rate hikes. Our sources state that while hikes were mentioned, the information wasn’t quite what was expected and more favorable to mortgage rates (based on investor reaction to the less aggressive news from the Fed). FHA mortgage rates are also hovering in a best execution range between 3.75 and 4.25% at the time of this writing, and it’s unclear whether conditions will bring a return to a sub-four percent FHA rate or not in the short term. In fact, | more...

February 16, 2017

Mortgage Rates: Five Days Of Moving Higher

By Joe Wallace

Mortgage rates have been moving steadily higher for the last five business days; the most recent move higher on Wednesday was motivated in part by investor reaction to stronger economic data including a stronger Retail Sales report and better news associated with inflation stats. This data was part of scheduled economic data releases due out this week, and mortgage rates moved higher as they are often wont to do when there is good economic news. The move higher puts fixed rate conventional mortgage loan rates in a range with 4.375% best execution at the upper end-our sources indicate that more lenders are offering rates at or near the higher end. But the real news involves a change in FHA mortgage loan best execution rates-these numbers have been slower to change | more...

February 15, 2017

Mortgage Rates: Four Days Of Moving Higher

By Joe Wallace

In the short-term, mortgage rates have been on an upward swing. Tuesday’s rate activity had early higher moves, but with recovering later in the day, resulting in a continuation of the recent range of conventional rates but with more lenders reporting the higher part of that range. 30-year fixed rate conventional mortgages are, at the time of this writing, being reported at a best-execution range between 4.125% and 4.25%, but as mentioned above the more common rates are found at or near the upper end. FHA mortgage rates are holding at 3.75% but with the current short term upward trend, it’s not clear how long that best execution rate may persist. FHA mortgage rates tend to vary more among participating lenders than their conventional counterparts. It’s best to shop around | more...

February 13, 2017

Mortgage Rate Trends: Higher

By Joe Wallace

Mortgage loan interest rates went higher on Friday, undoing some of the gains made earlier in the week but keeping things within the range we’ve been looking at since the start of 2017. The move higher wasn’t enough to push many lenders away from their earlier offerings; affected borrowers likely saw the results of Friday’s move reflected in closing costs in some markets, where actual changes to the rate may have occurred with some lenders. 30-year fixed rate conventional mortgages were reported in a range between 4.125% and 4.25% on Friday (best execution). FHA mortgage rates remain in their 3.75% comfort zone. The ups and downs, give-and-take activity of recent weeks isn’t really enough to push FHA mortgage rates out of that zone without either a day’s worth of dramatic | more...

February 9, 2017

FHA Loans: Purchase, Rehab, Refinance

By Joe Wallace

FHA loans are a good option to consider, especially if you are looking for an alternative to the comparatively high down payment requirements of many conventional mortgages. But do you know all of your FHA mortgage options? HUD 4000.1, the FHA single family home loan rule book, describes the basic options borrowers can choose from. FHA loans are not just for new purchases-you can apply for a refinance loan, or you can apply to purchase and rehab a property you intend to live in as your primary residence. HUD 4000.1 describes your FHA loan options starting with the most typical FHA mortgage: Purchase Loans and Construction-to-Permanent Loans “The Borrower may finance the purchase of an existing one- to four-unit residence, and may also finance construction of a one- to four-unit | more...

February 9, 2017

Mortgage Rate Trends: Improving

By Joe Wallace

There are factors that directly affect mortgage loan interest rates, and there are those that work more indirectly. Economic data, breaking news, and sometimes even the overall mood of investors on a given day or in a given week could be factors in which way rates are moving. Right now, investors seem very keen on putting money into less risky avenues (such as bonds), and that is one thing that is helping rates improve this week. We’ve seen an overall downward trend in the last few business days that has resulted in 30-year fixed rate conventional mortgages creeping back towards the bottom part of the range we’ve seen rates hover in since the start of 2017. At the time of this writing, 30-year fixed rate conventional mortgages are at or | more...

February 7, 2017

Mortgage Loan Interest Rate Trends: Two-Week Lows

By Joe Wallace

Mortgage rates took a move lower on Monday to levels many have been hoping to see more of in the last two weeks. Though the move does not dramatically change mortgage loan interest rate numbers, could we be on the start of a short-term trend due to global economic uncertainty? Some of our sources seem to think that at the very least, today’s downward movement was inspired by investors seeking safer havens, with mortgage rates reaping the benefit of their investment activity. 30-year fixed rate conventional mortgages are now reported in a best-execution range between 4.125% and 4.25%. Affected borrowers may notice the changes reflected in closing costs rather than an actual rate adjustment. FHA mortgage rates continue in their best execution comfort zone at 3.75%. FHA rates often take | more...

February 6, 2017

Mortgage Rate Trends: Higher, Lower

By Joe Wallace

Last week, mortgage rate numbers basically see-sawed within the range we’ve been looking at ever since the new year began. Mortgage rates began last week lower, but moved up and down from Wednesday on due to a variety of economic data releases and investor reaction to them. The Fed also made a statement last week that negatively affected rates. The causes of the ups and downs are not directly tied to rate performance, but investor reaction to the economic developments and data of last week does affect rates. Overall, we’re seeing about the same rates at the time of this writing as we reported last week, more or less, but changes in closing costs will be apparent to borrowers affected by those changes. At the time of this writing, 30-year | more...