Articles Tagged With: FHA Home Loans

September 27, 2017

What Are My FHA Loan Options For Buying A New Home?

What are my FHA loan options for buying a new home? FHA loans are attractive to many house hunters thanks to lower down payment requirements, an credit standards that can be more forgiving than some conventional mortgages. The ability to freely sell the home or allow the FHA mortgage to be assumed (with lender participation) by someone else should the need arise is also a good, consumer-friendly feature. There are a few misconceptions about FHA home loans including the requirements to qualify and types of property available to be purchased with an FHA mortgage. Fortunately, some of those misconceptions have to do with things the borrower thinks cannot be done for some reason, but are actually options in the borrower’s favor. FHA Loans: Not Just For First Time Buyers FHA | more...

September 21, 2017

Can I Get An FHA Home Loan For A Mixed-Use Property?

By Bruce Reichstein

Can I get an FHA loan for a mixed use property? Many borrowers want to know if the building they want to buy is still eligible for an FHA loan in spite of zoning issues, design, or other factors that render the home a combination of a residence and non-residential purposes. What do FHA home loan rules in HUD 4000.1 say about such transactions? To begin, the FHA defines what it deems to be “mixed use property”: “Mixed Use refers to a Property suitable for a combination of uses including any of the following: commercial, residential, retail, office or parking space. Mixed Use one- to four-unit Single Family Properties are eligible for FHA insurance” with certain restrictions in place. It’s important to note that FHA loan rules in this area | more...

September 21, 2017

Do I Need The Consent Of My Non-Borrowing Spouse To Get An FHA Mortgage?

By Joe Wallace

Do I need the consent of my non-borrowing spouse to get an FHA mortgage? That’s an important question, and the answer varies depending on the laws of your state. The rules governing this issue are found in the FHA loan handbook, HUD 4000.1. The section answering this question is short, but the implications will vary, again, depending on state law. But why? FHA home loans and other major lines of credit are often affected by state laws, including what are known as “community property laws”. If you reside in a community property state, that means that state law dictates how the debts incurred in a legal marriage are viewed legally. In community property states, spouses share the financial responsibility for all debts incurred for the duration of the legal marriage. | more...

Refinancing a Second Home With An FHA Mortgage Loan

September 7, 2017

Can I Buy A Condo Unit With An FHA Mortgage?

By Bruce Reichstein

Can I buy a condo unit with an FHA mortgage? Some people have a misconception about FHA mortgages, thinking they are intended for a certain income bracket, a certain type of home, or that it is possible to earn “too much income” to qualify for an FHA loan. None of those things are true. You cannot earn too much money to qualify, and you can explore options to buy a variety of property types up to and including condominium units. Yes, FHA condo loans are possible, but they have some unique requirements (see the section on the FHA “condo project approval” list) and certain property types may be listed as condos even if they are “detached dwellings”. The requirements for these units, sometimes known as “site condos” vary slightly from | more...

August 31, 2017

Can I Get An FHA Home Loan If I Owe Back Taxes?

By Bruce Reichstein

Can I get an FHA home loan if I owe back taxes? The answer to this question depends on more than one factor, the most important being whether or not the borrower is delinquent on the taxes owed. In general, borrowers who come to the home loan process with delinquent accounts will find it difficult to get loan approval. Borrowers should expect to come to the FHA home loan process with a minimum of 12 months of on-time payments for all financial obligations. That said, disputed accounts and/or issues connected to identity theft may have different requirements (police reports, documentation of the issues, etc.) When it comes to taxes, FHA loan rules emphasize the requirement to be in a satisfactory payment arrangement with the creditor and a minimum period of | more...

August 8, 2017

How Soon Can I Sell My Home? FHA Loan Rules Part Two

By Bruce Reichstein

How soon can I sell my home? In our previous blog post on this subject, we examined the FHA loan handbook, HUD 4000.1, and what it has to say about how quickly you can sell a property purchased with an FHA mortgage once the loan has closed. In general, FHA loan rules don’t have much to say about what the owner of record does with the property (with regard to selling it) once it has been purchased and occupied as per FHA loan requirements. The spirit of the FHA loan rules seems to be that the owner should be free to sell without restriction. But FHA loan rules do have something to say about buying a home shortly after it has been purchased from another. There are restrictions on “flipping”, | more...

August 2, 2017

Where Can I Apply For An FHA Loan?

By Bruce Reichstein

Where can I apply for an FHA loan? Borrowers who are at the start of their home loan journey might not realize that not all home loans are created equally, that not all types of mortgages are offered by lenders, or what it means to get pre-qualified for a mortgage. What you should know to start is that FHA mortgages are not the same as conventional home loans. That is why not all lenders offer FHA mortgages. The FHA home loan program has requirements which must be met in order to be an approved FHA lender. When you find a participating lender offering FHA mortgages, you should know that these lenders have taken steps to meet FHA requirements, standards, and have received plenty of guidance on what is acceptable under | more...

July 25, 2017

What Can I Improve With An FHA 203(k) Mortgage?

By Bruce Reichstein

An FHA 203(k) mortgage is basically a rehab loan, which can be used as a new purchase loan or a refinance loan for the purpose of repairing/rehabbing an eligible property. The FHA single family home loan handbook, HUD 4000.1, has a list of requirements and guidelines for FHA 203(k) loans, which includes a set of allowable improvements as well as a list of things FHA loan money cannot be used for. Let’s examine what is permitted with an FHA 203(k) loan first. Borrowers who are approved for an FHA rehab loan may use the loan for any of the following projects acceptable to the lender: – costs of construction, repairs and rehabilitation; – architectural/engineering professional fees; – the 203(k) Consultant fee subject to the limits in the 203(k) Consultant Fee | more...

July 17, 2017

What Is A One-Time Close FHA Construction Loan?

By Joe Wallace

The FHA single family loan handbook tells us that FHA home loans are for a variety of different types of purchases including existing construction, “new construction” which means a home recently built but never occupied by an owner, and “proposed construction” loans which allows the buyer to apply for a loan to fund both the construction phase and the “permanent” phase of the mortgage. How do FHA construction loans differ from new purchase loans? Aside from the obvious (new purchase loans for existing construction move faster than construction loans do thanks to the lack of a construction phase for the existing construction loan) there are some important considerations to think about when contemplating your construction loan options. Is An FHA Construction Loan Right For Me? If you need to get into | more...

July 17, 2017

Is There A One-Time Close FHA Construction Loan?

By Bruce Reichstein

Is there an FHA construction loan? Let’s look at what the FHA single family home loan handbook (HUD 4000.1) says about these transactions: “FHA offers various mortgage insurance programs which insure approved Mortgagees against losses on Mortgages. FHA-insured Mortgages may be used to purchase housing, improve housing, or refinance existing Mortgages. Purchase/Construction to Permanent The Borrower may finance the purchase of an existing one- to four-unit residence, and may also finance construction of a one- to four-unit residence through a Construction to Permanent Mortgage. Properties to be acquired through an unrecorded land contract must be treated as a purchase.” That information is found on page 130 of HUD 4000.1. But some borrowers may be confused by this, having approached a lender only to be told “we don’t do FHA construction loans” | more...