Articles in Category: FHA Loan Types

February 15, 2016

Mortgage Rate Trends: Higher After A Week Of Lows

Mortgage loan interest rates took a major dip last week, hitting best-execution lows of 3.5% at the height of the week’s improvements. But on Friday a “bounce” happened, pulling things back a bit. Some industry professionals feel it’s possible this move higher could be a correction or trend to come after the unusual week of lows we’ve seen, but it’s too early to tell. 30-year fixed rate conventional mortgage loans wound up at a best-execution 3.625%, which ends the week in territory that is still quite good. Some may regret if they missed out on the 3.5% best execution rate that appeared briefly last week, but these rates are still in a place we haven’t seen in a long time–some sources say these rates are reminiscent of the record lows | more...

February 12, 2016

HUD Proposes Changes To Manufactured Housing Standards

By Joe Wallace

One common question asked by some about the FHA single-family home loan program is whether an FHA mortgage can be used to purchase an RV-type mobile home or a houseboat. The answer in both cases is no because a house boat or recreational vehicle/RV motor home cannot be affixed to a permanent foundation. Therefore they cannot be sold as “real property” under the law, which makes them ineligible for an FHA mortgage. The lines between recreational vehicles and manufactured housing or mobile homes can be blurry sometimes–why do some people confuse an RV with a mobile home? Foundation issues and real property status aside, it seems to be due to the fact that some people live out of their RVs in a similar way to a mobile home–they can be | more...

February 11, 2016

FHA Loan Questions: The Importance of a Home Inspection

By Joe Wallace

What is the difference between a home inspection and an FHA appraisal of a property to be purchased with an FHA mortgage loan? The appraisal is required, but not as complete as a home inspection (which is optional but vital to being a fully informed borrower). The FHA appraisal only insures the home meets MINIMUM standards and state/local building code. The confusion over FHA appraisals and home inspections is one reason why we sometimes get reader questions like the one that came in recently asking about a roof issue: “I have a question regarding our we bought in August 2014. When we 1st bought the home we were told that the roofing was fixed and replaced 3 yrs before we bought it. Well now we have leaks and mold and | more...

February 10, 2016

Mortgage Rate Trends: Moving Even Lower

By Joe Wallace

Normally we don’t post on a near-daily basis about mortgage rate trends, but this week is different as we’re seeing rates moving lower than they have been in quite some time, and it’s unclear how long this trend could last. So we’re paying more attention to this situation until things settle down…. Mortgage rates moved even lower on Tuesday, putting many conventional mortgage best execution rates into the mid-three percent range. At the time of this writing, our sources believe that this is a short-term shift due to economic forces, pending statements from the Fed, and market activity. How long the downward movement continues remains to be seen, but some market watchers point out that when the headlines about the Fed start coming out over the next two days, it | more...

February 9, 2016

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Monday saw mortgage loan rates moving lower–some sources are labeling it the “lowest in a year”, and industry pros are urging borrowers who are undecided to lock in a mortgage rate commitment with the lender due to this move. At the time of this writing, 30-year fixed rate conventional mortgages are in a best execution range with 3.625% at the low end–more lenders are reported as offering this best execution rate than those offering the same or similar on Friday. FHA mortgage loan rates are reported at a best execution rate of 3.5% depending on the lender, but if the downward trend continues we’ll likely see this comfort zone change. It’s entirely possible that the new, lower rate won’t last long unless the downward trend persists. As always, the rates | more...

February 8, 2016

Mortgage Rate Trends: Holding Steady After Jobs Report

By Joe Wallace

Friday was a day that could have influenced rates in an important way in the short-term, but investors didn’t react much (in terms of activity that could influence mortgage rates) to the employment report issued–mortgage rates stayed where they’ve been more or less. Our sources report a few lenders may have repriced, but overall the mid-to-upper three percent best execution rates we’ve been seeing have remained through the weekend. 30-year fixed rate conventional mortgages are still being reported, best execution, between 3.625% and 3.75%. The upper number in that range is the formed “comfort zone” for FHA mortgage rates, which have dropped to a best-execution 3.5%. FHA rates tend to vary more among participating lenders, so your experience may vary based on the lender. As always, the best execution rates | more...

February 5, 2016

Why Use An FHA Loan Mortgage Calculator?

By Joe Wallace

When you are planning your home loan, there are many aspects to consider. The selling price of the home is only one of those aspect; borrowers will need to save money for closing costs, a home inspection, and make a monthly budget for the mortgage amount, plus taxes and insurance. Some of the planning phase of your FHA mortgage involve things like requesting copies of your credit reports–things with concrete numbers such as FICO scores and payment amounts. But when it comes to figuring out your mortgage payment, arriving at the actual number can be a bit tricky. That’s one reason why it’s a good idea to use an FHA mortgage calculator to help you arrive at a more accurate dollar amount for your monthly mortgage payment (projected, of course). | more...

Can I buy a manufactured home with an FHA loan?

February 4, 2016

FHA Loan Assumption Rules (Part 2)

By Joe Wallace

In a recent blog post we discussed the rules for assuming an FHA mortgage. FHA home loans are assumable in most cases with the participation and approval of the lender. HUD 4000.1 spells out the rules for all FHA single family home loan assumptions including outlining when a down payment may be required and when a credit check is necessary. For borrowers who assume an FHA mortgage with the intent of using the property as the primary residence, no down payment is usually required. Regardless of whether a down payment is required or not, one important question about loan assumptions for the “seller” of the home remains–is the original owner of the property released from liability once the FHA loan is assumed by the “buyer”? According to HUD 4000.1, “The | more...

When Is An FHA Loan Better Than A Conventional Loan?

February 3, 2016

FHA Loan Assumption Rules In HUD 4000.1

By Bruce Reichstein

FHA home loans permit the home owner to have the mortgage assumed by another person, who would become the owner of the property and financially responsible for the mortgage. FHA home loans were, long ago, considered “freely assumable” with no real participation required of the lender. Later, the FHA loan rules changed to require lender participation and approval of an FHA loan assumption. Late last year, the FHA and HUD issued HUD 4000.1, which is the definitive rule book and policy manual for the FHA single family home loan program. Many changes, updates, and restatements of FHA/HUD policies were published in HUD 4000.1, and we’ve been examining some of the most important passages in the new rule book to help borrowers, lenders, and real estate agents stay current on FHA | more...

February 3, 2016

Mortgage Rate Trends: Hitting New Lows

By Joe Wallace

In the last four business days, we’ve seen the phrase “new lows” applied to the general downward momentum of mortgage loan interest rates. Overseas economic woes are partly responsible for this downward movement–tumbling oil prices and stock market trends are helping push rates lower. Some market watchers are beginning to label this downward momentum a trend. Regardless of whether what we’re seeing now is a short-term gain before a return to later 2015 behavior or not, it has been quite some time since 30-year fixed rate conventional mortgages have strayed into the sub-3.75% zone. And that is the best execution rate some competitive lenders are quoting–3.625%. Our sources report other lenders still offering best execution rates in the 3.75% range, but if the downward movement carries on, it may not | more...