Articles Tagged With: FHA Lenders

Home Loans For Building On Your Own Land

November 8, 2019

FHA Loan Appraisal Requirements: Repairs

FHA loan rules require an appraisal of the property secured by the mortgage regardless of whether it’s an existing construction home or if you choose to build on your own land using a One-Time Close loan. Do you know what the home loan rules say about any required repairs or corrections? You may not expect an appraisal-directed repair from a new construction home. But if the FHA appraiser finds something that does not meet local building code, or if there was some kind of damage uncovered during the appraisal (these are just two examples of what could happen at appraisal time on a new construction home) those issues must be corrected. HUD 4000.1, the FHA Single-Family Home Loan Handbook, instructs the lender that in cases where the appraisal uncovers things | more...

October 16, 2019

Build On Your Own Land: The FHA One-Time Close Construction Loan

By Bruce Reichstein

The FHA One-Time Close construction loan allows a borrower to build a home from the ground up, including loan applicants who want to build on their own land with an FHA construction loan. What do borrowers need to know about the FHA One-Time Close loan? To begin, this type of FHA home loan is available to all qualified borrowers who want to build approved properties; the first-time home buyer is just as welcome to apply for an FHA construction loan as an experienced borrower. For this type of loan, the time you would spend house hunting will be spent contracting with a builder (who must be a licensed general contractor), working with floor plans, and planning the construction of the home rather than going out to search for an existing | more...

October 15, 2019

What Is Ahead For Home Loan Interest Rates?

By Joe Wallace

Last week, mortgage loan interest rates moved higher, reported as a significant increase after hitting lows not seen in some time. At one point in the earliest of October rate changes, mortgage rates went to multi-year lows, taking FHA mortgage loan interest rates below 3.50% for the most well-qualified borrowers. So what is ahead for FHA home loan interest rates? At the time of this writing, FHA rates for a 30-year fixed rate forward mortgage loan (for the most well-qualified applicants) are somewhere at or near 3.375%. Will this low-rate trend last? Is now the right time to buy or refinance a home? The answer depends on plenty of variables including your financial goals for the home–do you plan to stay in it long term or do you know you | more...

September 30, 2019

Home Buying And Your Credit: Three Simple Tricks

By Joe Wallace

Worried about your credit score? Thinking about buying a home but you don’t know if your credit is good enough to qualify? There is a LOT of home buyer advice out there, especially where improving your credit score is concerned. Work On Your Credit As Early As Possible Do you know how long it takes to dispute wrong information on your credit report? How many people share your first and last name? Do you know how possible or likely it is that someone else’s credit data might end up in your credit report? Or how likely it is that outdated information is still plaguing your credit information? If you don’t you, you are not ready to apply for a home loan yet. No borrower should apply for a mortgage loan | more...

Five FHA Home Loan Questions To Ask Your Lender

September 26, 2019

Rising Equity And FHA Refinance Loans

By Joe Wallace

With reports of rising equity in many housing markets over the last year, it makes sense for those with mortgages to consider an FHA refinance loan. If your financial goals include being able to pull the value of your home out in cash with an FHA refi, there are options to consider alongside the cash out refi loan that could make the difference when deciding which refinance loan is right for your needs. A CoreLogic Homeowner Equity Report reveals that in the last year, home equity in some markets went up nearly five percent since the second quarter of 2018. How much is that increase worth to the home owner? Nearly $5 thousand. Overall, the amount of money homes are worth increased nationwide in the last 12 calendar months to | more...

September 25, 2019

It Pays To Shop Around For An FHA Home Loan

By Bruce Reichstein

Why does it pay to shop around for an FHA home loan? A September 2019 report by Zillow.com has some revealing insights into this. Shopping around for the right mortgage lender can be just as crucial as taking a variety of cars out for test drives when you are thinking about taking out an auto loan. You would never buy a car without taking it for a test-drive and comparing dealer prices on the same make and model so why would you apply for a home loan without comparing prices? The Zillow report says a certain range of house hunter will find a wider range of results when shopping around; those who have low credit scores will, according to Zillow, find great variations in what multiple lenders will offer the | more...

September 20, 2019

What You Should Know About Mortgage Loan Interest Rates And The Fed Rate Cut

By Bruce Reichstein

The week of September 16, 2019, the Fed cut interest rates for the second time in the year; the 25 basis-point rate cut alters the Fed rate but is not a direct cut or change to mortgage loan interest rates. Interest rate decline in 2019 have pushed more home owners toward refinance loans and many wondered if the latest Fed cut would affect mortgage loan rates in a refinance-friendly directions. Fed rate cuts do not get applied directly to mortgage loan interest rates, but investor behavior following the announcement of a rate adjustment, during the adjustment itself, and the aftermath may have a definite influence on mortgage rates. So if you find yourself wondering whether the Fed rate cut will change home loan interest rates, watch the investors and their | more...

August 20, 2019

FHA Home Loans, Down Payments, And More: What You Need To Know Today

By Bruce Reichstein

First-time borrowers have many questions about the FHA home loan process including the subjects of down payments, seller contributions, and down payment assistance. Borrowers need to know that there are certain federal laws that require FHA home loans to limit the contribution of any third party with a financial stake in the outcome of the mortgage, and it’s good to know how these rules work. Seller Contributions Versus Seller Downpayment Assistance FHA loan rules state clearly that the seller of the home may not contribute funds toward the borrower’s down payment. This is expressly forbidden in the FHA loan rulebook, HUD 4000.1. However, sellers are permitted to contribute toward the borrower’s closing costs, capped at a maximum of six percent of the adjusted price of the property. Contributions in excess | more...

August 13, 2019

FHA Loan Rules For Second Residences

By Bruce Reichstein

One thing you will read often about FHA single-family home loans? They are only intended for owner-occupied residences. So why do some borrowers hear of some homeowners being approved for FHA loans for a second house? There is a provision in HUD 4000.1 that allows an FHA mortgage for a “second” primary residence, as well as a provision for what the FHA and HUD term “secondary residences” under certain conditions. The FHA loan rules say secondary residences are defined as follows: “Secondary Residence refers to a dwelling that a Borrower occupies in addition to their Principal Residence, but less than a majority of the calendar year. A Secondary Residence does not include a Vacation Home. “ FHA loan approval may be possible for a secondary residence when the following applies: | more...

August 7, 2019

Four Questions About FHA Home Loans

By Bruce Reichstein

FHA home loans, like any other mortgage loan transaction, can seem complicated at first. Especially for first-time home buyers who have never applied for a mortgage before. What questions should you ask your lender about this process before you fill out loan paperwork? FHA Home Loan Questions To Ask Your Lender: What Interest Rates Are Available To Me? FHA loan interest rates are determined by several factors, one of which being your credit score. Your lender will need to know your credit score or approximate credit score to give you an idea of the interest rates available to you, so make sure you bring that information to the lender before you ask. FHA Home Loan Questions: What’s The FHA Loan Limit For The Housing Market You Want To Buy Your | more...