Articles Tagged With: FHA 203b Mortgage

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

January 25, 2023

Are You Ready For An FHA Loan Application?

Are you ready for an FHA mortgage loan? Buying or refinancing a home with an FHA loan takes planning and preparation, but once you’ve put the time in and gather your information, budget for expenses, and check your credit, the process will be far more understandable and accessible. Are You Ready For An FHA Mortgage Loan Application? You may be ready to fill out your FHA mortgage loan or refinance loan application if you have spent the last year reviewing your credit reports, working on reducing your debt-to-income ratio, and have made sure to have 12 months of on-time payments on ALL financial responsibilities. You are ready to apply if you know what kind of home loan you need and how it will be used. For example, are you interested | more...

What Credit Score Is Needed For An FHA Mortgage?

December 30, 2022

Are You Ready To Buy A Home With An FHA Mortgage?

By Bruce Reichstein

Are you ready to buy a home with an FHA mortgage? There are ways to tell how close you are to being ready to start house hunting and move out of the planning stages of your new home loan. Do You Know Your FHA Loan Limit? FHA loan limits are higher in 2023, you will want to know how much higher the limit may be in your housing market compared to last year. FHA home loan limits vary depending on the housing market; some areas are more expensive than others and have a higher loan limit, while others are “average” and conform to the median FHA loan limit nationwide. Some housing markets may be less expensive than others and feature a lower FHA loan limit, but the only way to | more...

December 26, 2022

What Are The FHA Loan Rules For Investment Properties?

By Bruce Reichstein

FHA home loans have “approved property” rules found in HUD 4000.1, the FHA loan handbook for Single Family Mortgage loan transactions. These rules include a list of approved uses for FHA mortgages, approved property types, and the kinds of property which can never be purchased with an FHA single-family mortgage. First and foremost, FHA loans are intended for owner-occupiers, which means that FHA mortgages for vacation homes and other intermittent-occupancy purposes are not possible. Borrowers cannot use an FHA loan to open a bed and breakfast or to purchase a timeshare, condohotel or similar property. FHA mortgage loan rules in HUD 4000.1 also state the following, intended to prevent the use of single-family home loans for business purposes: “FHA will not insure more than one Property as a Principal Residence | more...

December 5, 2022

FHA Home Loan Tips: What To Do, What Not To Do

By Joe Wallace

If you are new to the home-buying process, there are some definite things to do and things NOT to do when preparing for your mortgage. Some of these areas may seem obvious, but you might be surprised at the number of people who don’t give themselves enough planning and saving time ahead of the home loan process. FHA Loan Tips: Start Planning Early The moment you realize you want to purchase a home using an FHA mortgage, it is time to begin looking at your finances to see how a new budget can be made. This is because buying a home (no matter what kind of loan you are using) can be an expensive process. You want to start saving immediately for the down payment, but also for the costs | more...

November 16, 2022

FHA Home Loans And Housing Counseling

By Bruce Reichstein

Even in the best of times, buying a home can be tough. It’s hard for first-time buyers to know what to expect, and in an era of rising interest rates and limited housing supply, it’s more important than ever to be a fully-informed borrower. FHA home loans are for many different kinds of borrowers. They are for experienced and first-time home buyers alike. But it’s easy to feel overwhelmed by the process if you are new to it or haven’t purchased real estate before. That is one reason why it’s a very good idea to consider talking to a HUD-approved housing counselor. Did you know you can call the FHA at their toll-free number, 1-800 CALL FHA, and request a referral to an approved housing counselor? The Department of Housing | more...

November 3, 2022

Do You Need A Co-Signer For An FHA Mortgage?

By Joe Wallace

Some house hunters are worried they may not be able to qualify for a home loan on their own and feel the need to add a co-signer. Other borrowers are buying a home with someone else (often significant others or spouses) and need to have more than one name on the mortgage. FHA home loans (yes, refi loans too) allow one borrower or multiple borrowers. The key to understanding how loan approval works for an FHA mortgage is to remember that all parties to be obligated on the mortgage loan must be able to financially qualify. FHA Borrowers And Co-Borrowers FHA loan rules instruct the lender that to be considered eligible for an FHA home loan or refinance loan, “…all occupying and non-occupying Borrowers and co-Borrowers must take title to | more...

October 19, 2022

FHA Home Loan Approval And Debt Ratios

By Joe Wallace

How is FHA home loan approval affected by your debt ratio? Your credit qualifications including FICO scores and credit history are very important factors in home loan approval, but the amount of debt you carry is also a factor. Your participating FHA lender must evaluate your monthly debt versus your monthly income to determine if you can realistically afford the mortgage. How does the lender do this? The rules governing this process are found in the FHA loan handbook, HUD 4000.1. It begins by stating that the lender is required to “determine the Borrower’s monthly liabilities by reviewing all debts listed on the credit report, Uniform Residential Loan Application (URLA), and required documentation”. The lender must review all monthly financial obligations but some things may not necessarily be included in | more...

October 14, 2022

Why You Should Not Apply For An FHA Home Loan And Other Credit At The Same Time

By Bruce Reichstein

Plenty of websites, books, and financial podcasts warn about managing your credit properly during the home loan application process. One bit of advice from many of these sites? Don’t apply for a car loan at the same time or just before a home loan. Don’t apply for any new credit during this time for best results. Why? There are several reasons, one of the most important? That your debt-to-income ratio is negatively affected by any new line of credit and a home loan lender will be required to consider that when deciding whether or not to approve your mortgage loan. The minimum payment required each month on the car loan will be factored in with the rest of your debt, and if you significantly change your debt ratio during the | more...

July 22, 2022

What Is An FHA Loan Limit?

By Bruce Reichstein

What is an FHA loan limit? The answer to this question can be found in HUD 4000.1, the FHA Single-Family Lender’s handbook, which begins by explaining: “A Mortgage that is to be insured by FHA cannot exceed the Nationwide Mortgage Limits, the nationwide area mortgage limit, or the maximum Loan-to-Value (LTV) ratio. The maximum LTV ratios vary depending upon the type of Borrower, type of transaction (purchase or refinance), program type, and stage of construction.” Furthermore, the handbook says that for most FHA loan programs the maximum mortgage is either the Nationwide Mortgage Limit for that area or “a percentage of the Adjusted Value”. The handbook breaks down how a home’s adjusted value is calculated, according to transaction. For new purchases or “forward mortgages”, the FHA Lender’s Handbook states: “For | more...

July 13, 2022

FHA Home Loans and Help With Down Payments

By Joe Wallace

First-time home buyers looking for real estate to buy with an FHA loan may be intimidated by the notion of saving up for and making any kind of down payment, let alone a percentage of the appraised value of the home. But it’s important to remember that borrowers have options with FHA mortgage loans that can help offset the down payment. Did you know that just over a quarter of all FHA loans at one time featured parental contributions toward the down payment? That information is according to the Wall Street Journal, which reports some 26% of the FHA loan transactions included financial help from parents–WSJ calls it “The Bank Of Mom And Dad” and it can be a powerful factor in buying a first home. But some first-time home | more...