Articles Tagged With: FHA 203b Mortgage

September 29, 2021

Do FHA Home Loans Have An Income Cap?

Some borrowers learn that FHA mortgage loans are government-backed and guaranteed by the FHA and HUD, which can lead to certain assumptions about the nature of a government-backed mortgage. One of the misconceptions about FHA home loans is that due to their government association have either an income limit, or are otherwise need-based. Some borrowers might be confusing the government-backed USDA loan program with the FAH loan rules. USDA loans ARE need based. However, FHA loan rules in HUD 4000.1 do not specify a maximum income and do not require a specific financial need to qualify. FHA loans do not have a low-income requirement, a household income cap, or a requirement that you be a first-time buyer. These loans are instead designed for those who want to purchase a home | more...

September 17, 2021

FHA Loans Versus Conventional Home Loans

By Bruce Reichstein

If you are planning to look at real estate listings soon or use the help of a realtor to locate a new home, here are some questions to ask yourself about your new home loan; the answers will help you decide whether to pursue an FHA mortgage, a conventional loan, etc. FHA Mortgage Versus Conventional Home Loans: Compare Down Payments Make sure you know your FICO scores in advance of comparing down payment requirements since the amount of cash you will be required to put down is affected by credit scores when those scores are below a specific cutoff. There is more than one standard for FICO scores in this area-FHA loan minimums and lender requirements. Lender standards will apply no matter whether you are applying for FHA or conventional | more...

July 14, 2021

How Much Will My FHA Home Loan Be?

By Bruce Reichstein

How much will my FHA home loan be? That is a question many borrowers want to know, and the answer can be more complicated than just taking the sale price of the home and doing the math. FHA home loan maximum amounts are determined by factors including the maximum FHA loan guaranty for the housing market you are buying the home in, your credit history, the amount of your down payment, and more. The final amount of your FHA mortgage loan is affected by your down payment, the FHA loan limit in your area, and other factors. FHA Home Loan Limits FHA home loan limits are not the same in all housing markets. Some parts of the country are considered low-cost areas and have a lower FHA loan guaranty limit | more...

June 29, 2021

Can I Assume An FHA Mortgage?

By Bruce Reichstein

Can I assume an FHA mortgage? That is a question on the minds of those looking to take over an FHA home loan from the original borrower. Loan assumptions are a bit different than a new purchase home loan application, though the borrower must be able to afford the loan in both cases. The short answer is that yes, in most cases with lender participation you may be able to assume an existing FHA home loan from the original borrower. A credit check may or may not be required (see below) depending on circumstances, and lender standards. It’s the lender’s job to determine whether or not the loan assumption will happen-FHA loan rules in HUD 4000.1 permit the assumption of an FHA mortgage, but the process requires the lender’s participation. | more...

June 15, 2021

FHA Mortgage Loan Facts

By Joe Wallace

What do you need to know about FHA home loans? Aside from dispelling the common myth that FHA mortgages are only for first-time home buyers or economically disadvantaged house hunters, there are many things you should know about the FHA loan program before you apply. FHA loans differ from other mortgages with their lower credit score requirements, low down payments, and zero penalty for early payoff of the loan. FHA home loans are for any borrower who can financially qualify and you do not need to worry about income limits or other need-based restrictions. There are some things you should know about FHA loans that are universal to all home buying experiences in America. One of those? No matter what your lender, real estate agent, or anyone else says or | more...

May 7, 2021

Can I Make A Home Loan Down Payment With Bitcoin?

By Joe Wallace

What can consumers who own Ethereum or other cryptocurrencies do with these funds? There are many platforms for buying and selling virtual currencies themselves, and more shopping options open up for Bitcoin and other crytpo all the time. Some house hunters who are invested in cryptocurrencies are wondering whether it is possible to make a down payment on a home with Bitcoin or other virtual cash. The answer to the house buying question depends on the nature of the transaction–for example, an arrangement between a seller and a buyer involving Bitcoin may be possible if all parties can agree. But what about when a lender gets involved? If you have a situation where a buyer wants to use Bitcoin or other virtual currencies to make a down payment on an | more...

April 13, 2021

Buy Your First Home With An FHA Mortgage

By Joe Wallace

Do you want to purchase your first home? Borrowers looking for a starter home often turn to the FHA loan program because of its low 3.5% down payment requirement for borrowers with qualifying FICO scores. And thanks to protections for the borrower such as no penalty for early payoff of the loan and the ability to refinance the FHA mortgage into a new FHA loan that can result in a lower mortgage rate or monthly payment when using an FHA Streamline Refinance loan. Qualify For An FHA Mortgage What do you need to qualify for an FHA loan? For best results, at least two years in the job market and FICO scores that are in the 600s or better. FHA loan rules say you can technically qualify for an FHA | more...

April 7, 2021

FHA One-Time Close Mortgages Compared To VA One-Time Close Construction Loans

By Bruce Reichstein

Lots of people are interested in building a home using a One-Time Close construction mortgage (OTC). This is a great option for military officers, career enlisted members, military retirees, and veterans who want to construct a new home rather than buying somebody else’s house. These construction loans are offered by both the VA and FHA loan programs. But which is better for those who have the option of applyinf for a VA mortgage? Who VA Loans Are For VA loans and the VA One-Time Close construction loan program are intended for veterans and currently serving military members with qualifying minimum time on duty. Surviving spouses (of military members who have died as a result of military service) may also qualify to apply for the VA loan program. FHA loans, including | more...

April 1, 2021

FHA Refinance Loan Advice in 2021

By Bruce Reichstein

Are you considering applying to refinance your home loan? Which refi option is the right choice? Some people seriously consider a refinance loan without knowing all the options–some kinds of refinancing are more appropriate for some needs than for others. How to select the right loan for your needs? It’s one of the first hurdles you’ll clear when learning about refinancing. Borrower choices include cash-out refinancing, FHA Streamline refi loans, and FHA 203(k) Rehabilitation refinance loans for those who want to refinance and remodel the home at the same time. Refinancing Non-FHA Mortgages Generally speaking, FHA refinance loan rules permit an FHA-to-FHA refinance loan, but also options for non-FHA-to-FHA refinance loas. The FHA refinance loan program allows you to get out of a higher interest rate conventional mortgage into a | more...

One Time Close Mortgage Loans: The Base Home Sales Price

March 31, 2021

One-Time Close Construction Loans: Loan Limits

By Joe Wallace

Are you a house hunter who has gotten tired of looking at other people’s dream homes? Do you want to build your home instead of buying someone else’s? The One-Time Close construction loan is a good option for this; the One-Time Close loan eliminates the need for a second loan application and approval process compared to some other types of construction loans. There is more than one type of One Time Close mortgage to choose from–you could be eligible for a One-Time Close construction mortgage in multiple programs. Do you know which one is best for you? USDA One-Time Close Construction Loans We start with the need-based construction loan program offered by the USDA. The USDA One-Time Close construction loan program was created for borrowers on restricted incomes. This construction | more...