Articles Tagged With: FHA 203b Mortgage

March 30, 2021

What Can Kill An FHA Home Loan?

Those who want a home loan have to prepare for the new loan application in several ways–financially, through saving up for the down payment and closing costs, and with credit prep. That can mean working on your record of on-time payments, lowering your overall debt amounts, and avoiding new credit in the meantime. When applying for any large line of credit, there are some things that can stop your loan dead in its tracks. If you want a home loan and are worried about being approved for a home loan, add these issues to your mental not-to-do checklist and make sure you know how to avoid them. Avoid New Debt Your lender pulls your credit when you apply for your home loan–most people know that. But not as many know | more...

FHA Construction Loan Rule Changes In 2021

March 29, 2021

VA One-Time Close Construction Loans For Veterans

By Joe Wallace

Military members and veterans alike do well to explore their One-Time Close options to build a home instead of buying an existing house. There is an FHA One-Time Close loan veterans can use, but there is also a VA One-Time Close construction loan that is more idea for military members and veterans due to the zero-down option for the VA construction loan. Veterans and currently serving military members who are on the fence as to whether they should build or buy should explore their One-Time Close options in addition to looking for existing construction. The VA One-Time Close construction loan, sometimes referred to as a single close construction loan, can provide a distinct financial advantage for military families, retirees, and those who are about to retire or separate from military | more...

March 26, 2021

HUD Announces Settlement In California Housing Discrimination Case Involving G Davi Properties

By Joe Wallace

The Department of Housing and Urban Development has announced an agreement in a Fair Housing Act discrimination case. A conciliation agreement between a California resident and rental property owners/managers G Davi Properties and Guido A. Davi II. This agreement addresses housing discrimination claims made by the resident that the housing providers denied the resident’s request for reasonable accommodate related to the use of an assistance animal. Assistance Animals Are Permitted Under The Fair Housing Act It is a violation of the Fair Housing Act for housing providers to deny such accommodations when deemed necessary to “use or enjoy” housing. A press release issued by HUD elaborates on this, stating: “The Fair Housing Act prohibits housing providers from discriminating against people with disabilities, including refusing to make reasonable accommodations in policies | more...

March 23, 2021

Preparing Your Finances For An FHA Mortgage: Debt

By Joe Wallace

The debt-to-income ratio is a calculation that your lender will use to determine the amount of your monthly financial obligations compared to the amount of income you have. The debt-to-income ratio is an important tool for the lender. The more income you have compared to outgoing payments every month the better, your lender needs to justify you as a good credit risk. So how do borrowers with a lot of debt deal with this problem? This is an important factor because if the ratio is too high yor lender can’t justify the loan. Borrowers should learn what the FHA considers to be “debt” and what things are not automatically counted as part of your debt ratio in order to view their finances the way the lender will. FHA Home Loans | more...

March 22, 2021

FHA Loan Approval: Credit Scores Are Just One Factor

By Bruce Reichstein

Some house hunters worry that they don’t have credit scores good enough to qualify for the mortgage. But it’s easy to lose sight of the fact that FICO scores are not the single determining factor in home loan approval. There Are THREE Important Factors Some FHA loan applicants come to the process knowing that both FICO scores and your record of on-time payments are crucial for loan approval. But even this is an incomplete picture of what your lender is after when trying to approve your home loan application. By this point in our article, you are likely getting the hint that there is indeed a third factor that counts when applying for a mortgage loan, and that factor is your debt-to-income ratio. The participating FHA lender’s job is to | more...

March 19, 2021

HUD Announces Settlement In Wells Fargo Housing Discrimination Case

By Joe Wallace

The Department of Housing And Urban Development has announced a settlement in a housing discrimination case involving Wells Fargo. According to a press release on the HUD official site, Wells Fargo allegedly denied a mortgage loan intended to be used on a group home for persons with disabilities. While this specific case doesn’t seem relevant in the context of an individual applying for a home loan, any form of discrimination in the housing process weakens that process for all borrowers. The HUD official site reports that HUD has approved what is called a Conciliation Agreement between Wells Fargo Bank and a customer named in the complaint. The agreement resolves that customer’s claim that Wells Fargo denied a loan application after learning the loan was intended for the group home for | more...

March 16, 2021

Pre-Purchase Home Loan Advice

By Bruce Reichstein

Looking for a home loan that’s affordable and doesn’t require 20% down? The FHA loan program has something for you. Some are surprised to learn that FHA mortgages are not limited to those in financial need like certain USDA mortgages, and they are not restricted to first-time home buyers. FHA Loan Options Are Diverse You can buy much more than a typical suburban home. Options include getting a condo unit with an FHA mortgage, building a home on your own lot from the ground up using an FHA One-Time Close construction loan, or you can refinance your existing mortgage. That mortgage can be an FHA or non-FHA mortgage using an FHA loan. No matter what kind of home loan you need–a purchase loan, a rehab loan, a refi loan–there are | more...

March 10, 2021

Get A Lower Interest Rate On Your FHA Home Loan

By Joe Wallace

First-time borrowers might not fully understand how they can get a lower interest rate on their home loans; experienced house hunters who have been through the home buying process before aren’t necessarily at an advantage in this area. No matter whether you have owned a home before or not, it’s smart to focus on what can be done to earn a competitive interest rate on a home loan, home loan refinance, etc. Want A Lower Interest Rate On Your FHA Mortgage? Check Your Credit Scores It’s possible to apply for a home loan without ever looking at your credit report. It’s also a very bad idea to do so. Why? Borrowers who are unaware of the information in their credit reports are not ready to apply for a home loan. | more...

March 9, 2021

JP Morgan Chase Settles Housing Discrimination Complaint

By Bruce Reichstein

A press release issued by the Department of Housing and Urban Development announces a Conciliation Agreement between JPMorgan Chase Bank and a homeowner who alleged her appraisal was undervalued due to racial discrimination in violation of the Fair Housing Act. Discrimination in the housing industry creates a hostile environment for all house hunters and future home owners. It becomes very difficult to find affordable housing when you have potential landlords and mortgage industry professionals trying to decide whether or not your non-financial “qualifications” are good enough for them to accept your business. The Fair Housing Act makes it illegal to discriminate against those who seek homes to rent or buy–turning away someone who needs housing for non-financial reasons. Fair Housing regulations also make it a crime to discriminate against any | more...

March 1, 2021

FHA Mortgage Loan Interest Rate Watch

By Joe Wallace

FHA 30-year fixed rate mortgages have, at press time a 52-week average of 2.25% (best execution or assuming ideal circumstances) at the lowest end and 4.0% at the highest. However, the numbers currently available–the rates for FHA 30-year fixed-rate mortgages at press time–are listed a 2.88%, a definite rise from the lowest point on the 52-week average. Reading this, some future home loan applicants are likely wondering if they should hurry up and apply for a mortgage even if they are not quite ready to do so. If you read finance blogs and mortgage industry writers, you discover that among some industry professionals, there’s a view that the economic stimulus has at least a partial role in creating conditions ripe for mortgage loan interest rates to start going up again. | more...