Articles Tagged With: FHA 203k Mortgage

March 4, 2020

Low Mortgage Rates and Refinance Options

On Tuesday, March 3, the Fed announced an emergency rate cut, and the reaction to that included mortgage loan interest rates hitting new and historic lows. The Fed does not set mortgage loan interest rates, but investor reaction to the announcement of the rate cut did affect mortgage rates, and the net effect was that FHA home loan interest rates remain (at the time of this writing) below the three percent range. And conventional mortgages are holding at the bottom of the three percent zone. These rates, plastered all over the internet, are provided assuming ideal scenarios, but even the average borrower will find the current lower mortgage rate trend to be to their advantage. New Purchase Loans And Refinance Loans Are Affected For those who are interested in refinancing? | more...

February 12, 2020

Why Buy A Home In 2020?

By Bruce Reichstein

There are many reasons why it’s smart to think about looking for a forever home in 2020; owning instead of renting, the ability to freely customize your living space, being able to apply for cash-out refinancing to convert part of your home’s value into cash, and never having to wait for a landlord to fix a problem in the home. But in 2020 there’s another reason to consider owning a home soon; a Zillow.com report indicates that 2020 is going to be a good year for home values depending on the housing market. The Zillow Home Price Expectations Survey from the 4th quarter of 2019 includes data that indicates U.S. home values may grow by 2.8% in 2020. Rising or hot-again housing markets in the new year include Austin, Texas | more...

February 6, 2020

Buy Or Rent? The Cost Gap Gets Narrower

By Bruce Reichstein

Do you want to own a home or rent one from someone else? According to a Realtor.com report from the fourth quarter of 2019, the cost gap between being a renter and a homeowner is lower, and it may be even more affordable to own your own home in smaller rural areas. Why? According to Realtor.com, “After years of escalating home prices making the cost to purchase a home more expensive than renting in many of the nation’s largest counties, rising rents, lower mortgage rates, and moderating home prices made purchasing a home in Q4 2019 more attractive compared to last year.” That report adds that in more than 80% of American’s largest counties it may still be more expensive to own instead of rent. Findings from the Realtor.com report | more...

December 27, 2019

FHA Rehabilitation Loans In 2020

By Bruce Reichstein

Are you interested in buying and fixing up a home, or refinancing and remodeling your current home? These are projects are possible in 2020 thanks to the FHA Rehabilitation Loan, also known as the FHA 202(k) Rehabilitation Loan or the refinance loan version of it. The FHA has a program that allows borrowers to apply for a mortgage loan in order to improve a property. The FHA 203(k) rehab loan is intended for borrowers who want to buy or refinance the property and do repairs, but not all borrowers have big rehab projects or work that requires a huge sum of money. Two Rehab Loan Options Open To You There are two different types of 203(k) loans-the “full” version is available for larger projects including work on loan-bearing structures, but | more...

December 19, 2019

FHA Loans And Buy-To-Let Mortgages

By Joe Wallace

What is a buy-to-let mortgage? These loans, popular in Britain and elsewhere, are basically designed for investment property buyers. They are similar in purpose (not in terms or conditions) to bank statement loans in that both are intended to help investors and small business people. FHA home loans do not include a buy-to-let loan, but those who want to be owner/occupiers can purchase a property with as many as four living units with an FHA mortgage. You can buy a multi-unit home with an FHA mortgage, live in one or more of the units, and rent out the unused units to other tenants. This is completely acceptable under the terms of the FHA Single-Family home loan program. The requirement is that you live in the property yourself. Buy-to-let loans that | more...

December 13, 2019

5 FHA Loan Facts To Remember When House Hunting

By Bruce Reichstein

There are five basic things to remember when house hunting that can help you make better choices about your loan and the home you want to purchase with it. FHA mortgages are for those who intend to own and occupy the home as their primary residence, so if you are looking to find a home to live in, keep reading! FHA Home Loans Are Available For Fixer-Uppers If you want to buy a home you are sure won’t pass an FHA appraisal, you can still buy the property using an FHA 203(k) Rehabilitation Loan instead of the FHA 203(b) loan used to buy homes that can pass the appraisal process. FHA 203(k) Rehab loans come in two sizes, one known as the Limited 203(k) for smaller projects that don’t involve | more...

October 3, 2019

FHA Home Loan Interest Rates Lower

By Bruce Reichstein

There is still time to take full advantage of the higher 2019 FHA home loan guaranty limits set at the start of the new year. If you are thinking about a mortgage or a refinance loan, 2019 may be the year for you. Recent headlines combining a trend in rising home values, more borrowing power, and changes to certain aspects of the home loan industry making it easier in certain sectors (including condo project sales) to buy and sell real estate for residential purposes. Add to that interest rates that are lower after two weeks of improvements at the time of this writing and you have the perfect circumstance for some borrowers interested in lower rates and more borrowing power. What do you need to know about the current FHA | more...

September 13, 2019

Why You Can’t Buy An Airbnb With An FHA Mortgage

By Joe Wallace

Some borrowers read our previous blog posts on what you can and cannot purchase with an FHA home loan and want to know why you can’t buy an Airbnb with an FHA mortgage. FHA loan rules in HUD 4000.1 state clearly that FHA Single-Family Mortgages are intended for primary residences and that any non-residential use of the home must be “subordinate to” the residential nature of the property. HUD 4000.1 also includes instructions to the lender about other acceptable uses of the property including various prohibitions including whether or not you can rent unused portions of your home out to other people after buying it with the FHA loan. For those who are interested in renting to another person as a long-term resident, this is NOT a problem. FHA loan | more...

August 12, 2019

Why Consider An FHA 203k Rehab Loan

By Joe Wallace

Why consider a 203k FHA Rehab Loan for buying or refinancing a property that needs repairs? For some the answer is simple. Some house hunters may be looking for a project home to customize. Others may be home owners who want to refinance to make upgrades and renovations to the home. The FHA 203k Rehab Loan and Refinance Loan option is a good one to explore. Some are tempted to make home improvements with a credit card rather than a mortgage or refinance loan; this might work for those who already own the home, but it’s important to compare the costs of financing such projects versus putting them on a credit card. Anyone who is house hunting and finds a property they like but won’t meet building code and/or minimum | more...

If Your Home Was Damaged In A Federally Declared Disaster Area

April 19, 2019

The Two FHA Loan Rehab Mortgages

By Joe Wallace

There is a kind of FHA mortgage that first-time home buyers and experienced home owners alike can apply for that will allow the purchase or refinance of a piece of owner-occupied real estate and provide funds for repairs and renovations. The loan comes in two forms, as mentioned above; one for a new purchase and one to refinance an existing mortgage. The FHA 203(k) Rehabilitation Mortgage and the FHA 203(k) Refinance loan offer a range of possibilities for those who wish to buy a fixer-upper house or renovate their existing property. FHA loan rules in HUD 4000.1 describe these loans as follows: The Section 203(k) Rehabilitation Mortgage Insurance is used to: Rehabilitate an existing one- to four-unit Structure, which will be used primarily for residential purposes; Rehabilitate such a Structure | more...