Articles Tagged With: FHA and HUD

November 27, 2018

How Much Home Can You Afford?

How much home can you afford? If you’re looking for an FHA mortgage or any other type of home loan, one important factor both you and your lender will be concerned with involves the amount of current debt you have compared to how much you would need to pay if your mortgage loan is approved. Licensed lenders and competing banks don’t have identical requirements in this area, but in general you should plan on doing two basic types of mortgage loan calculations to determine how much home you can afford to buy. FHA Home Loans And Your Debt-To-Income Ratio One type of calculation involves the percentage of your gross income that the new loan would require each month on the mortgage payments. You will need the projected amount of a | more...

November 22, 2018

Happy Thanksgiving 2018!

By Bruce Reichstein

Happy Thanksgiving 2018! Today we pause from our usual discussion of FHA home loans, refinance loans, FHA reverse mortgages and related topics to enjoy the holiday. Our regular schedule of posts resumes on Friday. Have a safe and fun Thanksgiving holiday and we’ll see you tomorrow!

November 16, 2018

Buying Real Estate With An FHA Mortgage Loan In 2019

By Bruce Reichstein

If you want to buy real estate with an FHA mortgage in 2019, there are several things you can do to get ready for a successful loan application and closing date. One of those preparations? Learning what you can and cannot buy with an FHA home loan. FHA Mortgages In 2019: Your Real Estate Options Many published reports speculate that in 2019, house prices will begin to come down and areas where the real estate environment is considered a seller’s market may begin to shift toward the borrower again. What kind of real estate inventory you have access to depends on the housing market where you want to live, but there are some things you should know about your home loan options before you decide to start looking. Namely that | more...

November 12, 2018

FHA One-Time Close Construction Mortgages For Dream Homes Part Two

By Bruce Reichstein

Why choose to build a home instead of buying an existing construction property with an FHA mortgage? Some borrowers simply don’t want the hassle of house hunting or can’t find the right existing property. In cases where an FHA borrower wants a home built for them, the FHA One-Time Close construction loan (OTC) can be a major help. In a previous blog post, we started discussing why borrowers should choose an FHA construction loan over a conventional one. There are plenty of reasons including these: Lower Down Payments As with interest rates, FICO scores and other credit qualifications will play an important role in the down payment requirement you are given with FHA OTC mortgages. In general borrowers should expect to make a minimum down payment of 3.5%, but borrowers | more...

November 7, 2018

What Is An FHA Loan?

By Bruce Reichstein

What is an FHA loan? What are they used for? These are fairly basic questions, but there is a surprising amount of confusion about certain aspects of the FHA mortgage loan program. Know these facts about FHA home loans to make the decision about buying or refinancing a home loan with an FHA mortgage. FHA Single Family Home Loans Are For House Hunters FHA loans are intended for those who wish to purchase a home using a government-backed loan that requires a lower down payment than many conventional loans. These loans cannot be applied for to be used as personal loans, though FHA cash-out refinancing is an option for borrowers who have equity built up in the home over time. FHA loans are intended for owner/occupiers, and there is an | more...

October 31, 2018

HUD Announces Charges In New Jersey Housing Discrimination Case

By Bruce Reichstein

There are many types of housing discrimination, and the Department of Housing and Urban Development actively pursues complaints of Fair Housing Act violations. The most recent was announced on the HUD official site in a press release titled, “HUD Charges New Jersey Condo Association with Discriminating Against Resident with Disabilities”. According to the press release, HUD’s allegations include charges that the condo association “only allowed the resident, who is sight and hearing impaired, to use the service door instead of the main entrance to the development or the common areas when accompanied by her assistance animal.” The press release says there are other allegations, one being that the condominium association charged the resident’s daughter a fee “because she walked her mother’s assistance animal in the development’s common areas”. It is | more...

October 29, 2018

Will I Need To Fill Out IRS Form 4506-T To Buy A Home With An FHA Loan?

By Joe Wallace

When you fill out FHA home loan paperwork to purchase a home, your lender may ask you to complete IRS Form 4506-T, Request for Transcript of Tax Return. What is the purpose of this form and how does it affect your FHA loan? What Is IRS Form 4506-T Request for Transcript of Tax Return? The official site of the Internal Revenue Service says that the purpose of this form is twofold. One use is so that a transcript may be ordered free of charge, and the other use is to give permission to a third party (in this case, your participating FHA lender) to receive the transcript instead. Why Does My FHA Lender Need My Tax Information? The lender is charged with verifying the borrower’s income and employment as part | more...

October 25, 2018

FHA Reverse Mortgage Policy Changes Explained

By Bruce Reichstein

In a recent blog post we discussed recent changes to FHA Reverse Mortgage loan policies. Here are some explanations of some of those policy changes and how they affect mortgage loan processing for FHA Home Equity Conversion Mortgages, also known as reverse mortgages. Evidence of Current Hazard Insurance FHA reverse mortgages require the lender to verify the existence of hazard insurance where required and to make sure that insurance is current, not delinquent. According to the 2018 HECM policy updates, participating FHA lenders who issue reverse mortgages are now allowed to accept alternative documentation of hazard insurance: “In lieu of a current hazard insurance declaration page, HUD will accept a document from the hazard insurance provider (i.e., hazard insurance company underwriting the property and responsible for paying a claim) on | more...

FHA Home Loans And The Biggest Credit Mistake You Can Make

October 24, 2018

Four Things To Check Before Refinancing Your Home Loan

By Joe Wallace

What do you need to check before applying for an FHA refinance loan? There are some important areas to consider in the planning stages of your new loan that include interest rates, property values, and more. FHA Refinance Loans And Interest Rates Are you in a non-FHA loan hoping to get a lower interest rate through refinancing? Do an online search and you’ll find that lending websites indicate FHA home loans feature lower rates than conventional mortgages. The rates actually offered to you are contingent on your financial qualifications and how rates are performing at the time. It is very important to shop around for the best rates available to you. In certain times when rates are much lower, it may be tempting to wait or “float” to see if | more...

October 23, 2018

FHA Announces Revisions To FHA Reverse Mortgage Policies

By Joe Wallace

The Federal Housing Administration has issued a press release with revised FHA requirements for Home Equity Conversion Mortgages. Effective immediately, when processing FHA Reverse Mortgages, also known as Home Equity Conversion Mortgages, alternative supporting documentation is permitted as an alternative to “previously required materials that, in many instances, delayed claim processing” according to the FHA official site. FHA Commissioner Brian Montgomery is quoted in the press release saying that the rule changes would help keep the FHA Reverse Mortgage program on a “more financially viable path”. Montgomery says, “Streamlining the HECM claim payment process makes us more responsive to participating lenders…” FHA’s new HECM guidelines are intended to keep lenders from being “unduly burdened when seeking claims payments when the HECM reaches 98 percent of its maximum claim amount”. It | more...