Articles Tagged With: FHA 203b Mortgage

August 28, 2020

FHA Home Loans: How Much Income Do You Need To Qualify?

Many future home owners want to know about the income requirements for an FHA loan–are you worried that you won’t qualify for an FHA mortgage because you don’t earn enough each month? And then there’s the opposite problem–a misconception that you can earn “too much” to qualify for an FHA mortgage as though this program had income limits. FHA loans do NOT feature income limits and this program does not require you to qualify based on financial need. FHA Loans Are For All Financially Qualified Applicants There is no minimum income requirement for an FHA mortgage, and there is no upper limit or income “ceiling”. FHA loans are not targeted for any one income bracket. FHA loans are designed with more lenient FICO score minimums in mind, but that has | more...

August 27, 2020

What Kind Of House Can I Buy With An FHA Mortgage?

By Joe Wallace

What kinds of homes can be purchased with an FHA mortgage loan? You can build a home from scratch using an FHA Construction mortgage, but may people want to buy existing property and what kinds. Eligible Property Types For FHA Mortgages FHA loan rules in HUD 4000.1 state clearly that certain kinds of property are permitted and certain kinds are not. These rules on eligible property types that can be purchased with an FHA mortgage loan are found in HUD 4000.1, and include the following guidance you should know: “FHAs programs differ from one another primarily in terms of what types of Properties and financing are eligible. Except as otherwise stated in this SF Handbook, FHAs Single Family programs are limited to one- to four-family Properties that are owner-occupied Principal | more...

August 24, 2020

FHA Loan Credit Questions: Co-Signing

By Bruce Reichstein

Here is a variation on a common question about FHA home loans: “I think my credit is fairly good but I have two cars in my name–one of which I thought I was only the co-signer. I’ve recently found a property that is fairly reasonable and my question is will my co-signing affect the loan approval decision? I do not make the payments on the second vehicle.” HUD 4000.1 has a great deal to say about credit, financial liabilities, and related issues. What does it say about this reader’s question? The general philosophy of the FHA is toward applicant credit information includes the notion that your credit history is the “most useful guide” determining things like: The loan applicant’s attitude toward credit obligations; The ability to predict a borrower’s future | more...

August 19, 2020

Changes To The Home Loan Industry

By Joe Wallace

Coronavirus has and COVID-19 containment measures have forced those in many career fields to change how business gets done–and the mortgage industry is no exception. It is clear that the economic fallout from the current crisis will be felt for years to come, and there are many who look to the amount of time it took for the nation to economically recover from the housing crisis of 2008, thinking that better long-term planning this time around might be the best approach. Mortgage Industry Changes Consumers have already experienced how Coronavirus has forced changes in procedures related to buying and selling a home. The in-person walkthrough, the open house, and the in-person appraisal are all much more rare at the time of this writing in many communities. Not all require the | more...

August 18, 2020

Mortgage Rates Give And Take In Mid-August

By Joe Wallace

Mortgage loan interest rates have had some interesting ups and downs in August 2020, with conventional loans AND FHA mortgages staying below the three percent line, at least some of the time in the case of conventional loans. There are many factors that affect the fluctuations of FHA and conventional mortgage loan interest rates–we won’t go into all of them here. But the pandemic, politics, international trade issues, and investor reaction to all of these things and more have kept mortgage rates at unprecedented lows (no, we aren’t tired of writing that phrase just yet). But at the time of this writing on August 18, 2020, conventional rates have risen above the three percent line once more. Rates are reported at a best execution 3.12% for the most well-qualified borrowers. | more...

August 17, 2020

Building A Home, Buying A Home

By Bruce Reichstein

Are you thinking about buying an existing home? Are you considering applying for a construction loan to build a house on your own lot instead? If you are trying to decide whether to build or buy, there are questions to ask before you commit to buying an existing construction property, or choose to apply for a One-Time Close mortgage to build on land you already own or purchase as part of the mortgage. What does it take to select the best option for your needs? There is an advantage to building a home from scratch–borrowers can influence the final outcome of the construction and help determine the nature of the house ahead of time. Some don’t enjoy sorting out such details, they gravitate toward the idea of looking at existing | more...

August 13, 2020

FHA Announces Changes To 203(k) Rehab Loan Rules During COVID-19

By Joe Wallace

The FHA and HUD have announced changes to the FHA 203(k) Rehabilitation Mortgage program to help borrowers affected by coronavirus issues. Some who started rehab loan construction work may have had income issues related to COVID-19; such borrowers are offered additional consideration to keep their projects moving forward to completion. The Rules As They Were Originally Written An FHA Mortgagee Letter announces the availability of an extension for borrowers who could not get their rehab loan construction projects completed on time. The original guidance in HUD 4000.1 makes provisions for this; it states that when the work is not finished in the agreed-upon time, “the Borrower may request an extension of time and must submit adequate documentation to justify the extension.” HUD 4000.1 also states that the lender normally grants | more...

August 11, 2020

Why Did My Home Loan Get Denied?

By Joe Wallace

The question, “Why did the lender deny my home loan?” is a good one to contemplate. Thinking like a lender helps a great deal when you are planning and saving for a construction loan application, condo loan application, or when you want to buy a multi-unit home. Do you know why a lender might deny your application? There are several factors to ponder, no matter what kind of borrower you might be. Are you looking for a condo loan? Mobile home loan? Multi-unit house? Some of the reasons lenders deny home loan applications are fairly obvious, others are not. Review the following circumstances to see if any apply to you. This is not a comprehensive list, but it’s a great place to begin and some borrowers find at least one | more...

August 7, 2020

FHA Home Loans For First-Time Buyers: Choices To Consider

By Joe Wallace

Are you a first-time home buyer looking for the most affordable mortgage options? FHA home loans feature flexible guidelines, and those options come with lower downpayment requirements other advantages over conventional mortgages. FHA Loan Options Are Diverse There are many types of housing you can buy with an FHA mortgage–a condo unit, a house in the suburbs, even properties with up to four units the borrower can occupy while renting out the unused units. You have to occupy the property you buy, but being a landlord may be an option for some to consider. There are also FHA home loans you can use to buy a fixer-upper (the FHA 203(k) Rehabilitation mortgage) and there’s also the FHA loan program to help you build a house on your own lot with | more...

August 3, 2020

Time Is Running Out For FHA Mortgage Loan Relief

By Bruce Reichstein

Under the CARES Act passed in 2020 to help financially stricken Americans, all government-backed mortgages had foreclosure-avoidance measures instituted to protect homeowners from losing their homes during COVID-19. Those with VA, USDA, and FHA mortgages had all foreclosure actions suspended until the end of August 2020; the CARES Act forbids lenders and loan servicers “from beginning a judicial or non-judicial foreclosure against you, or from finalizing a foreclosure judgment or sale”. That foreclosure protection started March 18, 2020 but under the current version time is running out to act–these protections expire August 31, 2020. Those who have a financial hardship due to the coronavirus pandemic, may request an FHA loan forbearance for up to 180 days and an extension for an additional 180 days is also offered. This is NOT | more...