Articles Tagged With: FHA Lenders

May 18, 2021

Home Loan Down Payment Assistance Programs

If you need a home loan but are not sure about being able to make your down payment, you may have help waiting for you in the form of a local home loan down payment assistance program. These are offered by a variety of entities including state housing agencies and can help first-time borrowers and those who have not owned homes before in the last three years. They may also be offered to those who don’t meet either of the criteria listed here, depending on circumstances. What do you need to know about down payment help? The first thing to know is that the terms and conditions will vary from state to state and even from agency to agency. There are no standardized offerings for down payment assistance. Some borrowers | more...

May 17, 2021

What First-Time Home Buyers Need To Know

By Bruce Reichstein

Some people aren’t sure if they are considered first-time home buyers or not, and in some cases it definitely makes a difference. Some people don’t realize they are considered first time home buyers even though they owned property in the past. It is important to know your status as a buyer as those eligible for first-time buyer status in local communities may qualify for down payment help on their FHA mortgages. What does it take to be considered a first-time home buyer? What are the advantages? There is a persistent myth about FHA home loans that fools some people from considering FHA loans as an option. But if you have owned property in the past, depending on how far back in the past that home ownership goes, you may qualify | more...

May 12, 2021

Down Payment Sources: The Rules

By Joe Wallace

Are you struggling to save enough money for a down payment for a home loan? It’s tempting to turn to quicker sources of funds for that minimum required investment, but FHA loan rules say some potential sources for down payment money cannot be used. Those prohibited sources include considering cash advances from a credit card, payday loans, and certain other sources for a larger sum of money that can be used for a down payment including down payment “gifts” that actually have an expectation of repayment. The guidelines that cover these downpayment issues are found in HUD 4000.1, also known as the FHA Lender’s Handbook. The rules? For any type of FHA loan that requires a down payment (a new purchase loan, an FHA One-Time Close construction mortgage, condo loan, | more...

Home Loans For Building On Your Own Land

May 11, 2021

Unique FHA Construction Loan Rules

By Bruce Reichstein

It can be more exciting to build a home from the ground up to your specifications than buying existing construction. Some borrowers prefer to have more say in the design of their homes and that’s where an FHA One-Time Close construction loan comes in. If you want to build a home on your own lot using a construction-to-permanent loan, also known as a One-Time Close mortgage (AKA the “single-close” construction loan), you should know that certain home loan rules are different for construction loans than for existing construction mortgages. There are some aspects of construction loans the borrower applying for an existing construction home loan won’t have to deal with, and there are specific rules for unique issues associated with building a home. For example, when applying for an FHA | more...

May 10, 2021

What You Need To Know About FHA Jumbo Loans

By Bruce Reichstein

How much home loan can you apply for successfully? The answer, depending on the housing market and other variables, might surprise you. It’s one thing to apply for a home loan that meets or is lower than the annual county limit established by the Federal Housing Finance Agency (FHFA). Those loans are easier to qualify for because they can be purchased or guaranteed by Fannie Mae and Freddie mac. They are known as conforming loans. But what about those who seek loans that are priced higher than that per-county limit? The answer itself is simple–borrowers can apply for a loan that exceeds county limits. These higher loans are called jumbo mortgages. Borrowers who qualify for them can get a home loan that’s higher than the county limit. But before you | more...

May 7, 2021

Can I Make A Home Loan Down Payment With Bitcoin?

By Joe Wallace

What can consumers who own Ethereum or other cryptocurrencies do with these funds? There are many platforms for buying and selling virtual currencies themselves, and more shopping options open up for Bitcoin and other crytpo all the time. Some house hunters who are invested in cryptocurrencies are wondering whether it is possible to make a down payment on a home with Bitcoin or other virtual cash. The answer to the house buying question depends on the nature of the transaction–for example, an arrangement between a seller and a buyer involving Bitcoin may be possible if all parties can agree. But what about when a lender gets involved? If you have a situation where a buyer wants to use Bitcoin or other virtual currencies to make a down payment on an | more...

May 5, 2021

Comparing Mortgages: Conventional 97 Loans Versus FHA Home Loans

By Joe Wallace

For low down payment requirements, the FHA mortgage is a home loan that has appealed to a vast number of people. It features a down payment of only 3.5% and has many perks such as no penalty for early payoff of the mortgage. FHA home loans are government-backed mortgages, which means lower risk for the lender. That government guarantee means your lender may offer lower FICO score requirements for FHA borrowers–one major benefit of FHA home loans for some is that lower FICO score bar plus the 3.5% down payment requirement. But it isn’t the only low-downpayment home loan option; there is a conventional home loan product called the Conventional 97 with an even lower down payment of three percent. Is this a smarter option than an FHA mortgage? | more...

Build on your own lot. Construction loan basics

May 4, 2021

First-Time Borrowers Can Build a Home Instead of Buying One

By Bruce Reichstein

Even a first-time buyer dreams about having a house built especially for them from the ground up. Some taking their house-hunting journey for the first time are surprised to learn that their options include the ability to build a home on your own lot using a One-Time Close construction loan. One-Time Close construction loans, which feature only a single loan application and a single closing date, are offered as conventional mortgages, but also as VA and FHA construction loans. What should first-time home buyers should know about construction loans before committing? Don’t worry, these things won’t discourage you from getting the loan. But knowing some issues in advance may change how you prepare for your new home loan. Down Payments When building your home on your own land, a down | more...

April 29, 2021

Fair Housing Month Ends With New Discrimination Cases

By Bruce Reichstein

Fair Housing Act laws ensure all Americans have recourse if they are illegally discriminated in the housing process. The month of April is Fair Housing Month, commemorating the passage of the Fair Housing Act and drawing attention to the ongoing need for federal enforcement of laws designed to prevent discrimination in the housing process. The 2021 Fair Housing Month observation began with a campaign–the Real People Real Results campaign–which celebrates “…the heroism of those who took a stand against housing discrimination and acknowledges the staff and fair housing partners work to prevent discriminatory harassment”. This campaign recognizes an important issue. Sometimes the only people with the power to stop future violations of the Fair Housing Act are those who were victims of discrimination. In the last days of April 2021, | more...

April 28, 2021

FHA Condo Loan Rules That Affect Your Mortgage

By Joe Wallace

Some house hunters are surprised to learn that FHA home loans are possible for condo units. There is an assumption that FHA loans are only for first-time home buyers looking for starter homes, but ANY financially qualified applicant can apply to buy a single unit home, a multi-unit property, or a condo unit. FHA condo loans are similar in many ways to other purchase loans for suburban homes, but you should know the differences in buying and owning a condo versus other property types. FHA Condo Loans And The Condo Project Approval List FHA loans have requirements for condos or condo units–these usually must be on or added to the FHA approved list. Borrowers may look for an approved condo project using a tool on the FHA official site or | more...