Articles Tagged With: FHA 203k Mortgage

Rehab Refinance Loans, reverse mortgages

November 16, 2020

Rehab Refinance Loans, Effects Of The Pandemic, And Interest Rates

At the time of this writing, FHA mortgage loan interest rates are still below the three percent line–best execution FHA mortgage loan rates for purchase loans are at 2.40%. The fact that we’re reporting on FHA loan interest rates below three percent makes some a bit more motivated to explore their refinance loan options. Some want to refinance their mortgages to get more affordable monthly mortgage payments. In the wake of COVID-19 furloughs and layoffs earlier in the year there were also falling mortgage rates AND government stimulus checks along with mortgage loan forbearance and other options for those trying to weather the economic impact of the pandemic. But not everyone wants to refinance in 2020 to save money–some need repairs to their property, others want to get out of | more...

November 13, 2020

FHA Home Loan Resources

By Joe Wallace

If you are thinking of applying for an FHA home loan or an FHA refinance loan, there are some important resources you should know about in the planning stages. These resources can help you prepare for your loan application, give you information about estimated mortgage payments, and help you located FHA loan limit information for your county. The first thing a potential home buyer should know about is the ability to contact the FHA to get a referral to a HUD-approved housing counselor who can help you understand the mortgage loan process, what it means to start preparing your credit for a home loan, and more. You can contact the FHA directly by calling 1-800 CALL FHA to request your referral. Another important resource? Online listings of FHA loan limits | more...

November 2, 2020

Will Credit Problems Affect My FHA Home Loan?

By Joe Wallace

Can past credit problems become an issue when trying to get a home loan approved? Some borrowers have less trouble than others getting their mortgage application completed and approved–why is it that some seem to sail through home loan approval and others struggle? Work On Your Credit Today Some people have had past credit issues but did a very smart thing–they made sure they had a full year or more of on-time payments on all financial obligations before applying for their mortgage loan. This tactic really works, and it’s FREE. You don’t pay a third party to “fix” your credit, you take matters into your own hands and pay on time, every time. This will have the result (over time) of raising your credit score and making you a more | more...

October 14, 2020

FHA Mortgage Loan Issues: “Identity Of Interest”

By Joe Wallace

What does it mean to have an “identity of interest” when applying for an FHA home loan? This can be an issue if the borrower has been renting the property to be purchased with an FHA mortgage from the seller prior to the home loan application. That is not the only issue addressed under the rules for identity of interest–those with family ties buying or selling to one another may also need to have an understanding of the rules in this area. What is the meaning of “identity of interest?” The FHA loan handbook, HUD 4000.1, describes identity of interest transactions as a real estate sale between two parties “with an existing Business Relationship” or between family members. The word “interest” in this case refers to the interest the seller | more...

October 6, 2020

The FHA Refinance Loan

By Joe Wallace

Mortgage loan interest rates have, at the time of this writing in October 2020, been hovering at or near historic lows, though in recent days FHA mortgage loan interest rates have moved out of the two percent range and into the three percent zone. Many watched mortgage rates dip below that three percent zone and there were plenty of home owners interested in taking advantage of those low rates to refinance their mortgages. There are many reasons to consider refinancing including saving money over the lifetime of the loan by paying a lower interest rate and/or getting into a lower monthly mortgage payment. If you are ready to commit to a refinance loan, you have multiple options to refinance out of a conventional loan or other non-FHA mortgage. You can | more...

September 3, 2020

HUD Announces Disaster Relief In The Wake Of Hurricane Laura

By Joe Wallace

On August 28, 2020, there was a federal major disaster declaration announced for the state of Louisiana; those living in the affected areas are eligible for federal disaster relief and other measures as announced (see below). The U.S. Department of Housing and Urban Development now offers federal disaster assistance there “to provide support to homeowners and low-income renters displaced from their homes in areas affected by Hurricane Laura.” The major disaster declaration is for the following parishes in Louisiana; Allen, Beauregard, Calcasieu, Cameron, and Jefferson Davis. The result of having these areas declared as federal disaster areas allows FHA foreclosure relief and other assistance to impacted families living in these counties to include immediate foreclosure relief in the form of a 90-day moratorium on foreclosing upon any FHA mortgage. For | more...

August 28, 2020

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

By Joe Wallace

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 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 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 6, 2020

Who Should Apply For A Construction Loan?

By Bruce Reichstein

Who should apply for a construction loan? There are two basic types of borrowers who should consider doing so–the house hunter who wants to build a house instead of buying someone else’s, and those who want to purchase fixer-upper homes and renovate them. The home loan for borrowers who would rather build their home on their own lot is called a One-Time Close (OTC) construction loan. It features a single loan application for both the construction of the house and the purchase of it once completed. Non-OTC construction loans may required two separate loans–one for the construction phase and one for the purchase of the completed house. This makes the process more complicated and having a single loan is definitely an advantage for the OTC version of these mortgages. OTC | more...