Articles Tagged With: FHA Home Loan

January 31, 2024

How FHA Mortgages Compare To Conventional Loans

How do FHA mortgages stack up to their conventional loan counterparts? Typical down payment issues are the most obvious comparison. The FHA has a 3.5% requirement, and conventional loan requirements vary. There are some important differences to know before you choose which mortgage loan is best for your needs. FHA Loan Best Practices FHA mortgages have two sets of rules. FHA loan program guidelines but also, lender standards like all mortgages. The FHA requires its participating lenders to keep policies that benefit the borrower. One example is the loan rule requiring ZERO penalties for early payoff of the loan. Another perk? The option to refinance later with an FHA no-credit-check streamline refinance loan option. Not all borrowers may want this option (no cash out is allowed) depending on what kind | more...

January 22, 2024

Getting A Better FHA Loan Interest Rate

By Joe Wallace

CBS News offers some advice to house hunters in 2024. Are you interested in buying a home with a lower interest rate? CBS has some advice for you, and as their published article reminds us, mortgage rates are falling in early 2024, but there are also ways to enhance your ability to get a lower rate. The CBS report dispenses some advice to help homeowners take advantage of existing options that can earn qualifying borrowers an even lower rate. But is the CBS advice sound? We examine their perspectives on getting a better rate on your home loan below. Shopping Around For A Lender CBS advice includes the idea that it’s best to shop around and find a lender offering the most competitive FHA loan rates and terms. Consider shopping | more...

January 9, 2024

Remodeling Options With An FHA Loan in 2024

By Joe Wallace

The FHA 203(k) rehabilitation mortgage is a type of FHA loan you can use to buy and renovate a home, or refinance an existing mortgage and improve the property at the same time. Buy Or Refi? Do you want to buy a fixer-upper home with an FHA 203(k)? Do you need to refinance your existing mortgage and renovate? These are both possible. The options for 203(k) refinancing also include the ability to refinance a non-FHA mortgage into an FHA loan, and you also have the ability to finance certain closing costs. The FHA 203(k) purchase loan offers borrowers a chance to buy a house that would normally not pass an FHA appraisal. Under the FHA rehab loan program, you can hire builders to do renovations to bring the house up | more...

December 13, 2023

Contingency Clauses To Consider When Buying A Home

By Joe Wallace

Did you know there are ways to protect yourself from buying a home you ultimately decide you do not want? Or ways to make your purchase enforceable only if you sell your current home? You can do this using a contingency clause. These are add-on language to your sales contract specifying the buyer or seller will only proceed with the sale when certain conditions are met. At the FreddieMac official site, we learn, “Contingencies are an expected, normal part of the home buying process, providing both the buyer and the seller a legal way out of the contract if something goes awry.” Consider each of the following options below. One might be very important for your house-hunting journey. Home Sale Contingency Clause If you already own a home, consider using | more...

December 7, 2023

The 2024 Housing Market

By Joe Wallace

Real estate agencies and finance blogs get into the prediction business at the end of each year, with many publishing articles comparing their expectations for the new year with what happened in the current year. 2024 is no different. One such company, Redfin, predicts that the new year could be a great time to reconsider buying a home as the housing market enters into recovery mode. The End Of The Seller’s Market? Redfin makes a prediction for 2024 many really want to hear. “Home prices will fall because supply will rise more than demand.” The lack of supply caused the seller’s market of 2022, and more housing inventory will begin leveling the playing field, so to speak, between buyers and sellers. In a seller’s market, as the name implies, the | more...

December 5, 2023

How Long It Takes To Be Approved For A Mortgage

By Joe Wallace

Getting approved for a home loan can take a few weeks or months, depending on the borrower and the circumstances surrounding the loan. Receiving the FHA loan funds may take between four weeks and 90 days from start to finish, and there are milestones along the way, such as the appraisal process, which must be passed before loan funds can be released. Here is what you need to know about the time it takes to be approved for a mortgage. A Process With Multiple Stages Your FHA loan has more than one milestone to pass before you reach closing day and accept your keys. There’s the pre-approval stage, the appraisal, any required compliance inspections (where applicable) and getting the loan itself approved. Did you know your lender may check your | more...

November 7, 2023

FHA Announces Manufactured Housing Appraisal Updates

By Joe Wallace

If you need an FHA manufactured home loan, you may benefit from updated FHA and HUD appraisal policies announced in November 2023. The FHA published its revised manufactured housing guidelines, specifically for the appraisal of manufactured homes certified under Fannie Mae’s MH Advantage and Freddie Mac’s CHOICEHome programs. These homes and other manufactured housing now get added consideration in the appraisal process when there are less than the required amount of “certified manufactured homes available.” FHA Loan Appraisal Changes Explained When the FHA changed its policies, the new rules ordered FHA appraisers to use “the most appropriate” comparables “when there are less than two comparable sales of these certified manufactured homes available.” A “comparable” is a similar property type the FHA appraiser can review side-by-side with the property being appraised | more...

October 17, 2023

FHA Loan Down Payment Concerns

By Joe Wallace

Looking for a home to buy with an FHA mortgage? Planning and saving for the down payment or planning to have one provided for you (using approved sources ) is a big part of the early stages of your home loan process. You aren’t alone in this journey. You may qualify for help from a local down payment assistance program that meets FHA standards. You can also get down payment gift funds from friends and family. Accept a down payment gift before your closing date, and you have some steps to take before you pay the money. FHA loan rules, like many other home loan programs, have rules that govern the down payment. FHA Down Payments Are Regulated Your down payment is regulated by federal law to prevent a lender | more...

October 13, 2023

FHA Home Loan Approval And Your Income

By Joe Wallace

Some important financial issues can derail your FHA home loan application. They include missed housing payments, FICO scores that don’t meet lender standards, or a lack of time in the job market. These are all factors that can lead to a “no” from a lender. But there’s a “new” wrinkle. Insufficient income–not a new problem, obviously, as many aspire to buy a home but can’t afford it yet. But it is a trending issue in ways that make some financial pundits sit up and take notice. According to CNBC, insufficient income is a problem is a major reason why some loan applications get rejected in 2023. Rates And Mortgage Payments Higher In 2023 Home loan interest rates were flirting with the 8% range at the time of this writing, and higher rates | more...

October 3, 2023

How FHA Loans Differ From Other Government-Backed Mortgages

By Joe Wallace

There are several government-backed mortgage loan programs including FHA mortgage loans, VA loans, and USDA mortgages. What makes FHA mortgages different than VA or USDA home loans? How FHA Home Loans Work The FHA does not lend money to borrowers. Instead, it allows third party lenders who meet FHA standards to underwrite and process FHA mortgage loans, which have a percentage of the mortgage guaranteed by the government. That makes the potential losses to the lender lower should a borrower default on the mortgage. FHA home loans have lower credit score requirements, feature lower required down payments, and have borrower-friendly rules such as a requirement that there be no financial penalty for early payoff of the mortgage. FHA loans are backed by the government, making them a better deal for | more...