Articles Tagged With: FHA Lenders

November 17, 2021

Worried About Getting Scammed During Your Home Loan Approval Process?

There are plenty of warnings about mortgage scams, mortgage-related identity theft schemes, and much more. We could go into the specifics of one or two of the more popular variations, but it’s equally important to know how to protect yourself more or less unilaterally against such threats to your privacy, your personal data, and your money. The first type of “best practices” you should adopt to protect yourself against scams of any kind? Refusing to respond to “out-of-the-blue” contacts on social media, text messages, or emails that you did not initiate. People get contacted unsolicited for legitimate reasons all the time. What we’re talking about here is third parties who write you trying to get you to click on a link, provide your account information, or perform some other act | more...

November 16, 2021

FHA Refinance Loans Versus Freddie Mac Refi Possible

By Joe Wallace

FHA refinance loans are a good option for borrowers who may need a more flexible credit score requirement to apply, and for those who want to get out of an adjustable-rate mortgage into a fixed-rate home loan. But how does the FHA refinance loan program compare to the conventional Freddie Mac Refi Possible program? Some wonder if they shouldn’t consider a conventional refinance loan program like Refi Possible instead of an FHA refinance option. Should you get a Refi Possible loan instead of an FHA Streamline Refinance or an FHA Cash-Out Refinance? For some borrowers, who meet the Freddie Mac requirements for this program, the answer is yes. These are borrowers that meet the Freddie Mac income restrictions for the program (income at or below the area median income guidelines for | more...

November 9, 2021

FHA Mobile Home Loans Get Enchancements

By Bruce Reichstein

For the first time in four decades, the Federal Housing Administration has published major new guidelines to improve the sale of manufactured homes, mobile homes, etc. In a press release on the FHA and HUD official sites, it was announced that the FHA Title One Program for purchasing mobile homes has been revised and “enhanced” with policies designed to streamline the program and help those who want to use and FHA mortgage to buy a manufactured home. These rules are updated to include FHA mortgages for mobile homes that are “titled as personal” as well as the lot where such a home would be placed. Motivation for these enhancements includes a need to make the program guidelines more understandable to both lenders and borrowers, “while providing expanded eligibility requirements for | more...

November 8, 2021

FHA Mortgage Relief Still Available For Those Affected By COVID

By Joe Wallace

If you have trouble making your monthly FHA mortgage loan payments, you are not alone. There seem to be so many borrowers struggling that the FHA and HUD have announced multiple extensions to COVD-19 mortgage forbearance policies. Indeed, there have been so many updates and extensions to FHA loan policy in this area that it’s hard to keep it all straight. What’s the most current guidance from the FHA and HUD regarding those who need FHA loan forbearance due to COVID-19 pandemic issues? On September 27, 2021, the FHA issued a Mortgagee Letter, FHA ML 21-24, which explains to lenders the current FHA policy toward such mortgage relief: “Upon Borrower request, Mortgagees must offer a COVID-19 Forbearance to any Borrower that experiences an adverse impact on their ability to make | more...

November 2, 2021

Buying A Second Home?

By Joe Wallace

There is a myth about FHA home loans you might even believe yourself. Some believe that FHA home loans, with their low 3.5% down payment, are set aside strictly for first-time homebuyers who need help via a lower down payment than many conventional loans might require. What is the reality about the notion that FHA home loans are for first-time buyers only? FHA mortgages are NOT restricted to those who have never owned a home before. They are also not restricted to low or moderate-income applicants. One reason for these prevailing myths about FHA mortgages? Likely that many state or local first-time homebuyer programs may be commonly used with government-backed mortgage programs like the USDA and FHA home loan programs. By association, some might assume that the loan is intended | more...

October 29, 2021

How To Get An FHA Mortgage Loan As A First-Time Home Buyer

By Joe Wallace

How can a first-time home buyer qualify for an FHA mortgage loan? To use an FHA mortgage you do NOT have to be a first-time buyer, but if you ARE one you may qualify for state or local down payment assistance programs in your area and it’s a good idea to explore those options if they are open to you. If you are looking for a starter home, a home to grow into, or you want to have a home built especially for you (using an FHA One-Time Close construction mortgage loan), your FHA loan options are impressive. How To Qualify For An FHA loan As A First-Time Home Buyer Plan ahead and start early for your home ownership journey. Start at least a year in advance…that’s the best advice | more...

October 27, 2021

How You Can Use An FHA Home Loan

By Joe Wallace

Do you need to know what you are allowed (or NOT allowed) to do with an FHA mortgage? If you want to purchase a home with an FHA loan, you can buy a fixer-upper, a typical suburban home ready to move into, or even build your home from the ground up on your own lot using an FHA One-Time Close construction mortgage. But there are some things you are not allowed to do with an FHA home loan. Let’s look at the “can” and “cannot” angles to see what’s possible with an FHA mortgage. You CAN Purchase A Multi-Unit Property With An FHA Mortgage FHA home loans are for properties with one to four units. FHA home loan limits are larger for homes bigger than a single unit. Some borrowers | more...

October 13, 2021

FHA Streamline Refinance Tips

By Bruce Reichstein

Are you interested in a lower interest rate on your home loan? What about a lower monthly payment? Or perhaps you are in an adjustable-rate mortgage and are looking for a way out before your next rate adjustment? These are all motivations to refinance. You’ll read plenty online about what it means to apply for an FHA Streamline refinance, but what do you need to know aside from the things EVERY home loan website talks about? Yes, FHA Streamline Refinance loans are for existing FHA borrowers only. Yes, FHA Streamlines normally require the borrower to get a tangible benefit from the loan like a lower rate, a lower monthly payment, etc. Yes, FHA Streamlines have no FHA-required credit check or appraisal requirement. And yes, the lender is free to require | more...

October 1, 2021

FHA Mortgage Relief Announced For Vermont Disaster Areas

By Bruce Reichstein

In many cases, the FHA and HUD make announcements about disaster relief after tropical storms, hurricanes, forest fires. But you don’t have to experience a Category 3 hurricane to be severely affected by weather; one excellent example of this comes with the HUD announcement of federal disaster assistance for parts of the State of Vermont that were in the path of severe storms and flooding at the end of July 2021. On September 29, 2021, there was a Presidential Major Disaster Declaration for two Vermont counties–Windham and Bennington. Thanks to that Presidential declaration, HUD has offered an automatic 90-day foreclosure moratorium for those two counties–this affects those with FHA mortgages, “commenced on the date of the Presidential major disaster declaration, and foreclosures of mortgages to Native American borrowers guaranteed under | more...

September 28, 2021

FHA And HUD Announce New Foreclosure Relief Measures For Those Recently Affected By COVID-19

By Joe Wallace

The Department of Housing and Urban Development has announced new COVID-19 relief measures for those with FHA mortgages. This news comes on the heels of a previously issued FHA Mortgagee letter, ML2021-19, “Extension of the Foreclosure-Related Eviction Moratorium and Expiration of the Foreclosure Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency” which contained the following statement: “HUD’s foreclosure moratorium is set to expire on July 31, 2021, and HUD is not extending that moratorium further”. That statement is true for many; the FHA and HUD have added more help but it is intended for those who have experienced recent financial difficulty because of COVID-19. For those who have already taken advantage of this help, the loan forbearance offered borrowers a chance to save their homes even during the prolonged | more...