Articles in Category: FHA Loan Types

May 18, 2016

Mortgage Rate Trends: Higher Ahead of Fed Minutes

Mortgage rates took a turn higher on Tuesday, with some market watchers pointing out that investor behavior ahead of the scheduled release of Fed meeting minutes on Wednesday afternoon could be responsible for some of that upward pressure on mortgage rates. 30-year fixed rate conventional mortgage loans moved out of their previous range and into a single best-execution 3.625%. This best execution rate is still low compared to past numbers but the elimination of the previous range means conventional mortgages are a bit farther away than their FHA counter parts. Previously there was some on-paper overlap between conventional and FHA rates, though FHA mortgage loan rates tend to vary more among participating lenders. FHA mortgage loans are still in a best execution range between 3.25% and 3.5%. It may take | more...

May 16, 2016

Mortgage Rate Trends: Slightly Lower After Late Week Losses

By Joe Wallace

After last week’s move into the best rates of the year (best execution), then losing ground, mortgage rates closed out the week slightly lower. That raised hopes for some that continued improvement could come in the short term. At the time of this writing, 30-year fixed rate conventional mortgage loan rates were in a best execution range between 3.5% and 3.625%. That puts conventional rates closer to the FHA range of rates than is typically seen, though FHA mortgage loan rates do tend to vary more between participating lenders. At the time of this writing, FHA mortgage rates are in a best-execution range between 3.25% and 3.5%. FHA mortgage loan rates tend to take a bit more time to reflect gains and losses in the market as they affect mortgage | more...

May 13, 2016

FHA Loan Questions: Non-Borrowing Spouse Debt

By Joe Wallace

FHA loan rules for calculating a borrower’s debt to income ratio are found in HUD 4000.1. There’s an issue some borrowers face when applying for an FHA mortgage that involves whether or not a non-borrowing spouse’s financial data needs to be included in the debt ratio calculation. This issue affects borrowers in states that have community property laws. Such laws govern how a legally married couple’s debts and other financial affairs are viewed in the context of the legal relationship. The debts and financial obligations incurred by legally married couples in these states are often shared regardless of who actually takes out the loan, applies for the credit card, etc. So in these states, certain extra considerations are required of the lender in the home loan application process. If you | more...

May 12, 2016

FHA Appraisals and Roof Issues: A Reader Question

By Joe Wallace

A reader got in touch with us recently to ask about FHA loan rules for a home in need of certain types of repair. “If the home needs a new roof, will FHA allow a clause or let money sit in escrow for roof repairs after closing?” While the question is too general to give a specific yes or no answer to, there is at least one option that may be possible. Much depends on what the FHA appraiser recommends for that property. Does the roof need to be replaced completely? Or are there simple repairs required? Has the appraisal happened yet, or is the borrower aware of a situation with the roof that could interfere with loan approval unless repaired or corrected? An FHA appraiser will recommend corrections in | more...

May 11, 2016

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Mortgage loan interest rates have improved this week, hitting new lows that put conventional mortgages into a new range of rates (best execution) that are now, on paper at least, overlapping the current best execution FHA mortgage rate range. This development has encouraged some industry professionals to begin speculating as to whether the new lows are the “floor” of the improvements or whether new lows could be reached (however short-term they may be). Time will tell whether that speculation has any merit, but rates could easily be pushed in the opposite direction depending on circumstances. 30-year fixed rate conventional mortgages are at the time of this writing in a best-execution range between 3.5% and 3.625%. That range is close to the FHA mortgage loan best execution range, which at the | more...

May 6, 2016

FHA Loan Tools

By Joe Wallace

If you are in the planning stages of a new home loan, there are plenty of FHA loan tools you can use to help you prepare. The planning stage of your new home loan is just as important as the house hunting, home inspection, and negotiation stages. Do you have the right tools to get started? FHA Loan Limits Knowing how much loan the FHA guarantees in your area is an important part of the process. FHA loan limits are not the absolute maximum you can borrow, but getting a bigger home loan above and beyond those limits may require you to work with a loan officer to determine what you need to do to apply for a “Jumbo Loan”. Learn what the FHA loan guaranty limit for your area | more...

May 4, 2016

Mortgage Rate Trends: Back to Previous Lows

By Joe Wallace

Since our last look at mortgage loan interest rates (which were moving higher) we’ve seen stock market woes affect mortgage rates. As plenty of professionals will tell you, stocks don’t have a specific tie with mortgage rates, but investor reaction to woes of the market can and often do affect mortgage loan interest rates. So while you won’t see a reciprocal effect with stocks (better or worse stock performance directly changing mortgage loan interest rates) you may notices that under the right circumstances, the kind of behavior happening now. And that behavior is essentially, based on our sources, that stock market troubles this week are helping mortgage rates. 30-year fixed rate conventional mortgages have slid back down to 3.625% best execution, down from the range between 3.625% and 3.75%. FHA | more...

May 2, 2016

Budgeting and Planning For Your FHA Loan

By Joe Wallace

If you are planning to apply for an FHA loan soon and are still in the planning stages of that loan, there are some expenses you can anticipate and save up for. Some borrowers may be interested in financing some of the costs associated with a new loan, but paying them up front can help save money over time. Those who choose to pay these costs up front are often looking at their mortgage loan over the long term. Those who choose to finance certain expenses where permitted may be trying to save money up front. Whichever option you choose, it pays to be an informed borrower-even if you know in advance you want to finance certain expenses. FHA loans and refinance loans have different rules for what expenses can | more...

May 2, 2016

Mortgage Loan Interest Rate Trends: Improving

By Joe Wallace

Mortgage loan interest rates had started moving higher in the last ten business days–seven out of then had rates either creeping higher or holding steady after doing so. But in the last three business days, we’ve watched rates begin to move back downward, pushing 30-year fixed rate conventional mortgages back into a range of rates. Professional market watchers report that conventional rates have a higher degree of variation lately due to market volatility, but in general 30-year fixed rate conventional mortgages are at a best-execution range between 3.625% and 3.75%. FHA mortgage rates are still in a range between 3.25% and 3.5% best execution. Best execution rates aren’t available to all borrowers or from all lenders–your experience may vary depending on FICO scores, loan repayment history and other financial qualifications. | more...

April 27, 2016

Mortgage Rate Trends: Holding For Now

By Joe Wallace

We’re writing more this week on mortgage loan interest rate trends due to the upward movement and the potential for this week’s economic data releases (and scheduled Fed statement) to influence those rates. After dropping to year-long (or greater) lows, rates moved higher, but not yet into the four percent range we’ve seen in the past. At the time of this writing (ahead of the Fed statement due out on Wednesday) 3o-year fixed rate mortgages were holding at a best execution 3.75%, though some holdouts may still be offering rates a bit lower for now. FHA mortgage rates are still in a range between 3.25% and 3.5% best execution. If the Fed statement has investors reacting in ways that put upward pressure on mortgage loan rates, we could see that | more...