Articles Tagged With: FHA Energy Efficient Mortgage

November 1, 2017

What Kind Of House Can I Buy With An FHA Mortgage?

What kind of house can I buy with an FHA loan? Many first time home buyers want to know if FHA mortgages can be used to buy certain kinds of property including condos, duplexes, mobile homes, etc. FHA mortgage loans are flexible enough to purchase many different types of houses depending on the housing market, the lender, and local market standards. Not all FHA lenders will offer all the FHA loan types available to them, so it’s good to ask early if the property type you are interested in is an option. FHA Loans For Typical Suburban Homes The most obvious type of home loan is definitely available for purchase with an FHA mortgage. A suburban home can be existing construction, new construction, or built to suit. FHA loan requirements | more...

August 9, 2017

What Can I Add To My FHA Mortgage Loan?

By Bruce Reichstein

What can I add to my FHA mortgage loan? There’s a list of items that may be allowed to be added to your mortgage loan above and beyond the adjusted value of your property. Let’s examine what the FHA loan handbook, HUD 4000.1, has to say about adding certain costs to your home loan amount. Calculating The Maximum Mortgage Amount On Your FHA Loan To start, let’s see what HUD 4000.1 says about how the lender is expected to calculate the maximum mortgage amount. “The maximum mortgage amount that FHA will insure on a specific purchase is calculated by multiplying the appropriate LTV percentage by the Adjusted Value. In order for FHA to insure this maximum mortgage amount, the Borrower must make a Minimum Required Investment (MRI) of at least | more...

July 4, 2017

Happy Independence Day!

By Joe Wallace

Today we pause from our usual schedule of writing about all things related to FHA home loans and refinance loans. We celebrate the 4th of July holiday with you today and will return tomorrow with our regular schedule of news and information about FHA mortgage loans. Have a safe and fun holiday, and thank you for reading!

August 27, 2015

FHA Refinance Loan Choices

By Joe Wallace

When you’re thinking about refinancing an FHA mortgage loan, there are many options to consider. Should you stay with your original lender or does another lender have better terms and/or interest rates? Do you remain in your current adjustable rate mortgage or fixed-rate loan? Do you want cash back in the refinance loan transaction? All of these are important questions to ask. You don’t have to stay with the original lender you took out your first mortgage with; regardless of whether you have an existing FHA loan or a conventional mortgage or even an VA loan, refinancing into an FHA mortgage is definitely an option for you. Your original lender might be willing to offer you better terms since you’re already known at that financial institution, but it’s never safe | more...

June 10, 2014

FHA Refinance Loan Rules For Payments Before and After The New Loan

By Joe Wallace

FHA refinance loan advice includes a variety of recommendations about creditworthiness. For example, you should make sure you have 12 months of on-time payments on your credit record before you apply for a refinance loan, especially when applying for cash-out refinancing loans. But what about the timeliness of your original mortgage payments? Borrowers who have made all their payments on time and are about to refinance may wonder if, because of the timing of an FHA refinance transaction, two payments might be required in a single month. Can’t the borrower skip the final payment on the old mortgage before the new one kicks in? The rules for refinance loans found in HUD 4155.1 Chapter Three instruct the lender to make sure the borrower is current and paid up all the | more...

June 6, 2014

National Home Ownership Month

By Joe Wallace

The FHA and HUD have announced June as National Home Ownership Month, an effort to raise awareness of a variety of issues including the recent push to expand FHA loan access to under served borrowers through a special program known as HAWK, or Homeowners Armed With Knowledge. HAWK is particularly relevant to FHA borrowers because it could potentially save program participants about $10 thousand over the lifetime of an FHA home loan. HAWK is a new program under development, and according to the FHA/HUD it’s viewed as a key part of saving the American Dream of home ownership for borrowers current and future. “Under the HAWK pilot program, homebuyers who commit to housing counseling will qualify for tangible savings on their FHA-insured loans. The average buyer would save approximately $325 | more...

February 12, 2014

FHA Loan Reader Questions: Down Payments and Bankruptcy

By Joe Wallace

We’ve gotten plenty of reader questions lately on the subjects of down payments, bankruptcy, and eligibility for FHA home loans. Here’s one: “Is there any company that will finance a small condo without a down payment. Thank you” And here’s another: “My wife and I surrendered our home thru a chapter 13. The chapter 13 was a 100% repayment plan that was successfully discharged in December of 2013…We have entered into a lease option home purchase and would like a straight answer on how long of a “waiting period” we must endure before we are able to finance a home again? We also have about $80K in sweat equity against an agreed upon purchase price of $270K. What type of down payment can we expect to need?” FHA loan rules | more...

January 31, 2014

FHA Loan Occupancy Rules: A Reader Question

By Joe Wallace

A reader asks, “With a FHA Arm 5/1 or Section 251 loan, how long do I have to live in the house before I can sell it?” This may seem like a tricky question. FHA loan rules for single family home loans found in HUD 4155.1 do list occupancy requirements. According to Chapter Four: “At least one borrower must occupy the property and sign the security instrument and the mortgage note in order for the property to be considered owner-occupied. FHA security instruments require a borrower to establish bona fide occupancy in a home as the borrower’s principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year.” But that rule says nothing about the borrower’s ability to sell the property. Borrowers are | more...

January 21, 2014

FHA and HUD Issue New Foreclosure Avoidance Brochure

By Joe Wallace

The FHA and HUD have issued a new mortgagee letter explaining the replacement of a “saving your home” brochure issued in 2002. According to FHA Mortgagee Letter 14-01, the “How to Avoid Foreclosure” brochure, HUD-PA-426, has been replaced. “The new brochure is the “Save Your Home: Tips to Avoid Foreclosure” brochure, HUD-2008-5-FHA, which is to be sent with a cover letter to delinquent mortgagors pursuant to 24 CFR 203.602.” The FHA and HUD have replaced the old document and have included the following instructions to lenders when sending the new brochure, which is designed to help inform borrowers in trouble on their FHA mortgages about the options available to them. When sending the new brochure, lenders are required to send a cover letter which includes the following “informed borrower” information: | more...

January 17, 2014

FHA Minimum FICO Credit Score: A Reader Question

By Joe Wallace

A reader asks, “I have Bankruptcy discharged June 1 2011. I do not have lots of credit. Have small inheritance from mother. I Want to purchase small house in Cleveland, Georgia. I have joined Equifax (663), TransUnion (718) and Experian (638). When I access each one has a score different than the other credit reporting agency. How can I determine my creditworthiness?” FHA loan rules say that in general, when a FICO score is available, the lender is required to use it to help determine a borrower’s creditworthiness. The credit score alone doesn’t tell the whole story–there are other factors that play a part in whether or not an FHA loan is approved–but it does play an important role The instructions for the lender on how to process credit score | more...