Articles Tagged With: FHA Closing Costs

April 7, 2022

What Do FHA Loan Closing Costs Include?

What do FHA loan closing costs include? There are certain fees and expenses you will need to save up for during the planning stages of your FHA home loan. They include an up-front mortgage insurance premium, home inspection, appraisal fees, and other costs that add up and you may encounter unexpected costs like a compliance inspection that would come on the heels of the appraisal where repairs or corrections are required. They are not required in all home loan cases (only when deemed necessary as a result of the appraisal), so it’s not an expense you will definitely have to pay. Remember that the less you have included in the loan amount (certain permitted closing costs may be added to the loan) the lower your mortgage payments potentially are. Closing | more...

August 5, 2021

FHA Home Loans: Mistakes To Avoid When It’s Time To Close

By Bruce Reichstein

As you get closer to the day when you sign the paperwork, pay your closing costs, and take possession of your new home, there are some important mistakes to avoid. Do you know what they are? FHA home loan closing day is an important milestone; make sure you know what to expect leading up to the big day. Don’t Move The Same Day You Close Closing dates can change, circumstances may require a new closing date. If you hired movers or rented a truck on the same day that you are supposed to close the deal, you may be disappointed. Don’t Be In A Hurry Take the time to carefully read all documents you are required to sign, don’t skip the home inspection, and don’t give in to any kind | more...

June 4, 2021

FHA Home Loan Down Payment Assistance

By Bruce Reichstein

Do you worry about making a down payment on a home loan? There are home loans that require higher down payments than others but the FHA loan program requires only 3.5% down for borrowers with qualifying FICO scores. FHA loan rules in HUD 4000.1 say: Borrowers with FICO scores at 580 or higher qualify for the lowest down payment. Borrowers with FICO scores between 500 and 579 are required to put 10% down. These are FHA guidelines, not individual lender standards. FHA home loans don’t have a zero down payment option, but FHA construction mortgages allow the borrower to use land equity as part of the down payment where applicable. But borrowers don’t always have to make the downpayment themselves thanks to down payment assistance programs that can help. Here | more...

Build on your own lot. Construction loan basics

May 1, 2020

FHA Construction Loan Facts: What You Need To Know

By Joe Wallace

There are many options available when you are searching for a house to buy. The first set of choices often involves the type of home loan you want to apply for–believe it or not there is no one-size-fits-all mortgage. If you want to purchase a condo with an FHA mortgage, for example, there is a specific loan and procedures for that. But what if you want to have a house built for you from the ground up? This is also an option, even for first-time home buyers. You can apply for a conventional one-time close construction loan, but you’ll be applying for conventional loan interest rates and terms; an FHA One-Time Close construction loan has a 3.5% down payment requirement, which is lower than you may be offered on a | more...

April 28, 2020

HUD Updates Coronavirus Home Loan Guidelines For Loan Closing

By Bruce Reichstein

The FHA and HUD have issued guidelines for mortgage loan closing procedures that may be affected by coronavirus lockdown measures, quarantine, and other issues related to the COVID-19 pandemic. Many home buyers were caught by surprise by coronavirus issues and there are many home loans that are affected. The Department of Housing and Urban Development issued initial policies in March, 2020, but updated them in mid-April to include provisions in several areas designed to help facilitate FHA home loans during the outbreak. FHA Loan Rules On Title insurance The FHA and HUD issued guidance on loan servicing issues designed to address situations in counties where recording offices are not operational during the national emergency. The FHA/HUD official site answers the following question related to such scenarios: “Will FHA accept title | more...

What Credit Score Is Needed For An FHA Mortgage?

April 24, 2020

FHA Home Loan Approval Rules And Income Verification

By Joe Wallace

Can all of your income be used to qualify for an FHA mortgage? If you need to buy a home soon, it’s important to understand home loan approval rules, especially in times of economic uncertainty. There are some forms of income that don’t qualify to be counted as “verifiable income” for the purpose of establishing the borrower as a good candidate for loan approval. There is specific criteria for the kinds of earnings you can use to qualify, and specific criteria for the types of earnings that the lender cannot count as part of your monthly predictable pay. Understanding those income rules is very important, especially now. Many Americans are receiving unemployment, government stimulus checks, and other financial resources. But not all money can be used toward your verifiable income, | more...

One-Time Close Construction Loan Options For Veterans

March 17, 2020

Your Construction Loan Options

By Bruce Reichstein

Build a home instead of buying an existing one? This is a reality and there are plenty of choices to go around; FHA One-Time Close construction loans, the VA construction loan equivalent, USDA construction loans, and even conventional mortgages to build on your own land instead of buying an existing home. These loans all have features that are different than existing construction loans. They include how long it takes for you to move in, when your mortgage payments begin, and the kinds of features your home may have. Construction loans can be a bit more complex than a new purchase loan for a house in a typical neighborhood, and some read articles like this and want to be ready to commit, but an equal number of people read this but | more...

March 9, 2020

5 Home Loan Myths You Should Know About

By Bruce Reichstein

There are many myths about FHA home loans; that you must be a first-time buyer to qualify, that you can only buy a certain kind of home with an FHA mortgage, and that FHA loans are only for economically disadvantage home buyers. None of those things are true. There are other pervasive myths about FHA mortgages you should know. #5: FHA Loans Are Only For Existing Construction Property Not True! The FHA One-Time Close Construction loan allows even first-time homebuyers the chance to apply for a loan to build a house from the ground up. Construction loans require more time and you won’t be able to move into the home until the construction phase is complete, but for those not in a hurry to move in favor getting just the | more...

December 11, 2019

Build On Your Own Lot: Construction Loan Facts

By Bruce Reichstein

If you are interested in building a home on your own lot instead of buying a house owned by someone else, the One-Time Close construction loan is an option worth considering. Facts about One-Time Close mortgages include your options–there are FHA, VA and USDA versions of the One-Time Close Construction (OTC) loan. With a VA OTC, there is an option to put 0% down, FHA construction loans feature a low down payment of 3.5% of the adjusted price of the home in most cases. Construction loans require you to work with an approved contractor so you should plan on spending some time searching for one. Construction loans are sometimes hard to come by because borrowers don’t know the right loan to ask for, or are working with a lender who | more...

November 22, 2019

FHA Loan Rules And Mortgage Closing Costs

By Bruce Reichstein

FHA home loan rules for mortgage closing costs include a requirement that down payment funds come from approved sources, but there are plenty of other guidelines for the money you’ll need to pay at closing time. There are three basic categories when it comes to your home loan closing costs, some of which are subject to change. Some costs are fixed, and some can be increased by the lender depending on whether or there is a change in circumstances that affects the borrower’s credit rating, if there is a change in the down payment, or even the type of home loan (see below). When And How Closing Costs May Change There are certain rules that allow your lender to alter your closing costs. Under the right circumstances, those costs may | more...