Articles Tagged With: FHA Home Loans

December 12, 2017

Getting Ready For An FHA Home Loan In 2018

Are you getting ready for an FHA home loan in 2018? There are some checklist items you should be thinking about in the planning stages of your FHA loan. Credit Monitoring 2017 was a very bad year for many companies because of hacker activity. Many high-profile brands, corporations, even credit reporting agencies themselves were the victims of security breaches. Do you know if your accounts have been affected? If you don’t, you may not be as ready for a home loan as you think you are. For some, it may be best to have regular credit monitoring in the months leading up to your credit application to avoid surprises. Know the contents of your credit report, dispute inaccurate data, and keep an eye on new activity. You’ll be glad you | more...

November 24, 2017

FHA Loan Questions: What Constitutes Flipping?

By Bruce Reichstein

What constitutes flipping? It is a housing market practice generally discouraged by FHA loan rules found in HUD 4000.1, but what is flipping in the eyes of the FHA and HUD? According to the FHA loan handbook: “Property Flipping refers to the purchase and subsequent resale of a Property in a short period of time.” Also found in the FHA loan handbook, this further explanation of what the FHA considers to be property flipping: “Property Flipping is indicative of a practice whereby recently acquired Property is resold for a considerable profit with an artificially inflated value.” What is the basic FHA loan guideline for a transaction that could be identified as flipping? Situations where the home has been owned for 90 days or less. Some FHA loan rules in this | more...

November 15, 2017

Do The Same FHA Loan Requirements Apply To All Borrowers? Part Two

By Bruce Reichstein

Do the same FHA loan requirements apply to all borrowers? We have been examining that question in recent posts. FHA home loan rules were written to accommodate a variety of circumstances. There’s no true “one size fits all” home loan, so there are different regulations for different situations. The basic standards apply to all, but there are situational factors where some rules apply to certain borrowers that won’t apply to others. But what does this mean? FHA FICO Score Requirements Borrowers with qualifying FICO scores are eligible for maximum financing, which would include a minimum 3.5% down payment based on the adjusted value of the property. But the rules change for those who do not have FICO scores that meet the minimum requirement. Those with FICO scores below 580 will | more...

November 15, 2017

Do The Same FHA Loan Requirements Apply to All Borrowers?

By Joe Wallace

Do the same FHA loan requirements apply to all borrowers? This is a complex question, and the answer depends greatly on whether credit issues are being discussed or whether general requirements for loan approval outside FICO scores are the topic. What’s the difference? Basically, FHA loan rules apply for all borrowers when it comes to the basic minimum requirements, standards, and verification processes for a certain type of mortgage. If you apply for a new purchase mortgage, those basic requirements will affect your transaction. But the basic requirements for an FHA reverse mortgage are not the same as those for a new purchase loan and so there are different standards for that type of loan including an age requirement. FHA reverse mortgages are only for qualified borrowers age 62 or | more...

November 14, 2017

Do First Time Home Buyers Have Different FHA Loan Requirements?

By Joe Wallace

Do first time home buyers have different FHA loan requirements? This question is tricky because it’s easy to forget that there are FHA loan requirements but lender standards, state law, and other factors will also have a say in how your home loan is handled. What follows is a discussion about FHA loan program requirements-you may find that your chosen participating lender has additional rules and procedures which also must be followed. FHA Home Loans Are Not Just For First-Time Home Buyers The FHA home loan program is not specifically designed for one type of borrower. That means that borrowers across a diverse range of home owning experience, income brackets, and careers may be eligible for an FHA mortgage, refinance loan, or reverse mortgage. The fact that you have owned | more...

November 8, 2017

FHA and HUD Announce Extended Foreclosure Relief For Hurricane Victims

By Joe Wallace

The FHA and HUD have announced extended foreclosure relief for victims of recent hurricanes. According to the FHA/HUD official site, those in federally declared disaster areas created by Hurricane Irma, Hurricane Harvey, and Hurricane Maria will have time added to the original 90-day foreclosure moratorium. According to the HUD press release, “FHA is extending this foreclosure relief in Presidentially declared counties and municipalities where the Federal Emergency Management Agency (FEMA) is operating its Individual Assistance Program.” “Under the expanded moratorium, FHA is instructing lenders and servicers to suspend all foreclosure actions against borrowers until the following dates: Hurricane Harvey – February 21, 2018 Hurricane Irma – March 9, 2018 Hurricane Maria – March 19, 2018” Who Qualifies For Extended Foreclosure Relief? According to HUD, those with FHA-insured mortgages qualify for | more...

October 26, 2017

What Are The Property Requirements For An FHA Loan?

By Bruce Reichstein

What are the property requirements for an FHA loan? There are standards listed in the FHA loan handbook, HUD 4000.1, that all buyers should know. The ability to purchase a home with an FHA mortgage is determined by your credit rating, debt to income ratio, employment, and related factors. But the ability to purchase a specific home will also include standards for the property itself; standards which must be met by the home as-is, or brought into compliance as a condition of loan approval. Basic FHA Loan Property Requirements: Location According to HUD 4000.1, the home must be located within the continental United States, its’ protectorates or territories. A home is eligible to be considered for an FHA loan if it is located in one of the following areas listed | more...

FHA One Time Close Construction Loan Option

October 23, 2017

FHA One-Time Close Construction Loan Requirements

By Bruce Reichstein

FHA One Time Close / Single Close construction loan requirements include different FICO score, escrow, and closing requirements than standard new purchase mortgages. Do you know how FHA One Time Close construction loans work? A Single Loan For The Entire Process Construction loans typically require two loans-one to purchase, and one to pay for the construction. Under the FHA One Time Close construction loan program, also known as an FHA construction-to-permanent mortgage, there is a single loan. This prevents the need for a borrower to be credit-qualified twice during the lending process. The procedure for an FHA One Time Close loan has the loan closing first, in order to pay for the land, followed by the construction phase. That means an escrow account is required in order to disburse funds | more...

October 20, 2017

How Many Times In My Life Can I Get An FHA Loan?

By Bruce Reichstein

How many times in my life can I get an FHA loan? If you are buying your first home, this is a question you might not ask until later. But it’s a good idea to know what your options are should you need to sell your first home later and begin a new house hunt. Understanding FHA Loans Knowing that FHA home loans are intended for owner-occupiers who want to use their property as their home address and primary residence helps a lot when trying to understand FHA loan rules. If you don’t plan to use the property you want to buy as your home, you won’t be able to use an FHA single-family home loan to purchase it. There are certain exceptions for government agencies and non-profit groups, but | more...

October 10, 2017

Can I Buy A Mobile Home With An FHA Mortgage?

By Joe Wallace

Can I buy a mobile home with an FHA mortgage? That’s a question on the minds of many not looking for a typical suburban house or a condo unit. FHA loan rules in HUD 4000.1, the FHA loan handbook, address the question of mobile home and manufactured housing purchases with an FHA mortgage. FHA Loans Can Be Used To Purchase A Mobile Home Or A Manufactured Home HUD 4000.1 includes instructions for the lender on processing FHA mortgage loans for mobile homes and manufactured housing. There are restrictions on the age of the mobile home; it must have been built on or after June 15, 1976 in order to qualify for an FHA mortgage loan. Additional lender standards in this area may also apply. Mobile Home Requirements To Qualify For | more...