Articles in Category: FHA Loan Types

August 4, 2016

Facts About FHA Adjustable Rate Mortgages

If you are considering your FHA loan options, at some point you’ll likely consider your choices between mortgage loan interest rate options. Qualified borrowers can choose between a fixed-rate FHA mortgage or an adjustable rate loan. Fixed rate loans seem simple and straightforward enough. The borrower applies for a home loan at an interest rate negotiated between borrower and lender. But what about adjustable rate mortgages? These loans, often called ARM or FHA ARM loans, feature an introductory rate, and a higher rate that begins at a specified point in the course of the mortgage. According to the FHA loan rulebook, HUD 4000.1, “The Mortgagee must establish the initial interest rate and the margin. The margin must be constant for the entire term of the Mortgage.” How long does your | more...

August 3, 2016

Mortgage Loan Interest Rate Trends: Higher On Tuesday

By Joe Wallace

Mortgage loan rates pushed slightly higher on Tuesday, thanks in part to bond market activity. There are also scheduled economic data releases this week that have the power to move mortgage loan rates depending on investor reaction to the data in those reports. Market watchers aren’t optimistic that lower rates are coming in the short term, while pointing out that we are still in a range of low rates. 30-year fixed rate conventional mortgages are, at the time of this writing, in a best execution range between 3.375% and 3.5%. That’s up slightly from the a previous range that had 3.625% at the bottom end. FHA mortgage loan rates hold steady at a best execution 3.25%. FHA rates tend to vary more among participating lenders so your experience here may | more...

August 2, 2016

FHA Home Loan Questions: Mobile Home/Manufactured Home Foundations

By Joe Wallace

We have not one, but two questions in our comments section recently about mobile homes/manufactured homes. Here’s the first: “We had our modular home purged when we ref in 1997. It was required to have tie downs installed when it was refinanced. We are now selling our property and now the lender is requiring that different tie downs need to be done. Is there a clause grandfathered in any tie downs prior to 2001 excludes this update to the old tie downs?” The problem with answering this question is that lender standards, plus state/local building code would definitely apply. It’s not clear what the reader is asking when discussing the “grandfather clause”. Is that in reference to HUD 4000.1 rules governing FHA loans for manufactured homes? Or is that in | more...

August 1, 2016

Mortgage Rate Trends: Lower On Friday

By Joe Wallace

Mortgage loan interest rates fell on Friday, bringing them back down to territory closer to what we saw post-Brexit vote. Friday saw the scheduled release of Gross Domestic Product data, and investor reaction to that report sent rates back down, making three days in a row of recovery. 30-year fixed rate conventional mortgages hit a range of best execution rates on Friday, between 3.375% and 3.5%. FHA mortgage loan interest rates are holding at a best execution 3.25% at the time of this writing. FHA rates tend to vary more among participating lenders, so it’s a good idea to shop around. FHA rates sometimes take longer to catch up with changes in mortgage loan rates, but continued upward or downward trends (or a single day of major change) is enough | more...

July 28, 2016

Mortgage Rate Trends: Slightly Lower After Fed

By Joe Wallace

All eyes were on the Fed on Wednesday, with investors looking for any sign of a Fed move to hike interest rates. Some market watchers thought the Fed might drop a hint or make specific statements about what it might do in the next meeting; the Fed made no such statements. The reaction to this was mixed, some lenders repriced for the better, but not all. You may see changes in the next business day but as it stands at the time of this writing, things are (best execution) more or less where they were yesterday, with some lenders offering slightly lower rates or closing costs. 30-year fixed rate best execution interest rate numbers are at or near 3.5% at the time of this writing, with FHA mortgage rates still | more...

July 27, 2016

FHA Loan Questions: Income Verification

By Joe Wallace

A reader asks, “I threw out my pay stubs not knowing that I would be purchasing a home this soon. Is there anything else that can be used in place of pay stubs to get approved for an FHA loan?” “I provided copies of my last four pay checks, a statement from my employer showing my cumulative earnings so far this year, my original W2s from 2014 and 2015, my federal and state taxes from 2014 and 2015, and three months worth of bank statements that show the direct deposit from my employer every two weeks for those three months.” In general, you may find that tax documentation, current pay stubs, and bank statements COULD provide an acceptable substitute, depending on the lender. However, this is a situation that requires | more...

July 27, 2016

Mortgage Loan Interest Rate Trends: Highest In Four Weeks

By Joe Wallace

There have been many influences on lower mortgage rates as of late, and as the trend has shifted to a move higher, we’re seeing stateside economic data returning to a greater place of influence over rates than Brexit headlines. One good example? All eyes are turning to the Fed this week-nobody expects the Fed to make any earth-shattering pronouncements, but investor reaction to this week’s activity could well pressure rates higher depending on circumstances. In the shadow of a Fed policy announcement on Wednesday, mortgage rates pushed higher on Tuesday, putting 30-year conventional fixed rate loans more solidly in 3.5% best execution territory. FHA mortgage loan rates, at the time of this writing, are at a best execution 3.25%. As always, best execution rates assume ideal conditions. A borrowers FICO | more...

July 25, 2016

Mortgage Rate Trends: Pushing Higher

By Joe Wallace

Since our last report, mortgage loan rates have pushed forward; they moved higher on both Thursday and Friday of last week. We have several scheduled economic data releases this week and a Fed meeting that could push rates further depending on investor reaction to them. At the time of this writing, 30-year fixed rate conventional mortgages are in a best-execution range between 3.375% and 3.625% depending on the lender. 3.5% is likely more common according to our sources but your experience may vary depending on a variety of factors. FHA loan rates are still holding in the best execution 3.25% comfort zone, but if upward movement continues we may see FHA rates break out into a range with 3.25% at the bottom end initially. Best execution rates assume ideal conditions; | more...

July 19, 2016

Mortgage Rate Trends: Unchanged To Slightly Higher

By Joe Wallace

Mortgage loan interest rates were unchanged to slightly higher on Monday, though some borrowers will have noticed Monday’s changes in the form of slightly higher closing costs rather than an actual change in mortgage rates. We’re watching an overall upward trend in rates at the moment. World headlines continue to have potential to move rates, though the market hasn’t given much attention to certain issues such as the unrest in Turkey. 30-year fixed rate conventional mortgages were still at or near 3.375% best execution, depending on the lender and other factors. Some lenders are higher, some reflect the most recent moves in terms of adjusted closing costs (as mentioned above). FHA mortgage loan rates remain in their 3.25% best execution comfort zone. “Best execution” refers to the rates offered under | more...

July 15, 2016

Mortgage Rate Trends: Rising

By Joe Wallace

Mortgage loan rates have been on the rise most of the week; three out of four business days were marked by higher numbers or closing costs and with Brexit, overseas terrorism headlines, and domestic scheduled economic data releases, it’s possible we’re going to see rates creeping up over the short term next week much the way we did this week. At the time of this writing, 30-year fixed rate conventional mortgages are, best execution, reported at or near 3.375%, up this week from the previous week’s range bottoming out at 3.25%. FHA mortgage loan rates are currently holding in their 3.25% comfort zone. How long can they persist at or near these levels? Next week will be interesting to watch. (As always, best execution rates listed here assume ideal conditions; | more...