Articles Tagged With: FHA Loan Application

Construction Loans For First-Time Home Buyers

February 26, 2021

Home Loan Approval: Documents You Need To Get There

What’s the most important thing you can do in the planning stages of a new home loan? It really does not matter whether you might be contemplating buying a home with an FHA mortgage or building one on your own lot using an FHA Construction Loan known as the One-Time Close mortgage; there are some documents you will need to gather in the planning stages to help you get closer to loan approval. Some of these documents are no surprise–your most recent pay information is a good example. Your lender will want to see verification of your current income. What is not so obvious? The reality that your loan officer might ask you to provide details about a salary or other income information from your previous employer, especially if you | more...

February 9, 2021

FHA Home Loan Approval And Your Finances

By Joe Wallace

Do you need to buy a home with an FHA mortgage? Or refinance your existing loan? There are some financial issues to be mindful of going into a new loan application–don’t let a lack of information derail your mortgage loan process. Mortgages and refinance loans don’t have one-size-fits-all solutions; in the same way you have many housing choices there are also many different kinds of mortgage loan circumstances. When your loan application comes in, the lender has to make sure the loan will be a good credit risk. To be approved, your application requires your tax returns, bank statements, and other financial data. The lender reviews these ahead of loan approval. And some issues can create more problems for the lender than others at first. For example, what happens if | more...

February 2, 2021

On Buying Real Estate Sight Unseen With An FHA Mortgage

By Joe Wallace

Would you buy a house without having personally walked through it? In the era of COVID-19, there are increased numbers of transactions where the buyer and seller negotiate the sale of a home and close the deal without the buyer ever having physically set foot on the property. This practice is known as buying a house, “sight unseen” and the housing market website Redfin.com reports that for the year 2020, almost two thirds of those who bought real estate in 2020 had not seen the property in person. What does Redfin make of “the highest share since at least 2015″, according to a Redfin-commissioned survey in November and December”. That survey consisted of more than 1,900 homebuyers across 32 major markets, “up from 32% a year earlier, and 45% in | more...

December 10, 2020

Important Questions To Ask About Your Home Loan

By Joe Wallace

If you are considering a home loan, the Federal Trade Commission has some advice for you. The FTC, a government agency charged with providing consumer protection, advice, and free credit reports (among many other things), advises house hunters that there are some important questions you should be asking when it’s time to commit to a mortgage loan. Some issues the FTC warns about are not problems for those who apply for FHA home loans to buy or refinance a home. For example, the FTC advises borrowers to ask about any applicable penalties for early payoff of the mortgage loan. And don’t forget, the early payoff of your mortgage doesn’t just happen when you pay off the note before the loan term ends. It can also happen when you refinance your | more...

December 8, 2020

FHA And HUD Explain Higher FHA Loan Limits In 2021

By Joe Wallace

On December 2, 2020, the FHA and HUD issued a press release announcing higher FHA mortgage loan limits for 2021. Those applying for FHA mortgages with FHA case numbers assigned on or after 1 January 2021 will have higher loan guaranty limits to work with than in 2020. The same thing happened last year, but higher loan limits in the new year are NOT guaranteed to happen year-to-year. But this year, it DID happen and the FHA has explained the hows and whys. Why did limits go higher for the new year? FHA is required by a federal law known as the National Housing Act, (which itself was amended by the Housing and Economic Recovery Act of 2008) to “…set Single Family forward loan limits at 115 percent of area | more...

November 30, 2020

Common Questions About FHA Mobile Home Loans

By Bruce Reichstein

FHA home loan options include FHA mortgages for mobile homes. You can buy a mobile home, manufactured home, or modular home using an FHA mortgage and there are many common questions about this type of FHA mortgage option. What Does the FHA Define As A Manufactured Home? The FHA official site describes a mobile home (also known as a manufactured home) as a property built “to the Manufactured Home Construction and Safety Standards (HUD Code) and displays a red certification label on the exterior of each transportable section”. The FHA official site also states that manufactured homes are built “in the controlled environment of a manufacturing plant” and are transported in one or more sections on a permanent chassis. FHA loan rules state that any mobile home must be affixed | more...

Rehab Refinance Loans, reverse mortgages

November 16, 2020

Rehab Refinance Loans, Effects Of The Pandemic, And Interest Rates

By Joe Wallace

At the time of this writing, FHA mortgage loan interest rates are still below the three percent line–best execution FHA mortgage loan rates for purchase loans are at 2.40%. The fact that we’re reporting on FHA loan interest rates below three percent makes some a bit more motivated to explore their refinance loan options. Some want to refinance their mortgages to get more affordable monthly mortgage payments. In the wake of COVID-19 furloughs and layoffs earlier in the year there were also falling mortgage rates AND government stimulus checks along with mortgage loan forbearance and other options for those trying to weather the economic impact of the pandemic. But not everyone wants to refinance in 2020 to save money–some need repairs to their property, others want to get out of | more...

October 5, 2020

Can I Get A Second FHA Appraisal If I Don’t Agree With The First One?

By Joe Wallace

Can I get a second FHA appraisal if I don’t agree with the first one? This is a common question, normally asked if the appraised value of the home comes in differently than a buyer or seller expects it to. FHA loan rules don’t allow a borrower to be forced into purchasing a home where the appraised value is lower than the asking price, so it’s an issue that can definitely affect a home loan transaction depending on what the borrower wishes to do in such cases. Can I Order A Second FHA Appraisal? FHA appraisals are ordered by the lender, so the borrower cannot initiate any second appraisal requests. In any case, the lender is restricted on how and when a second appraisal may be ordered. Specific Restrictions On | more...

September 29, 2020

Gathering Your Home Loan Documents And Preparing For The Application

By Joe Wallace

Are you interested in applying for an FHA home loan this year or in early 2021? If so, it’s handy to make a checklist of the items you will need to have ready to submit to your participating FHA lender. What do you need to complete submit your FHA mortgage loan application? The lender will need a variety of information from you including documentation related to your job, your credit, and your lender will also ask you for tax records. Some balk at being asked to provide federal tax return information, but this is a requirement of doing business with your lender for a major investment. What do you need to apply for an FHA home loan? Proof of employment Proof of income Tax records (be ready to submit two | more...

September 18, 2020

FHA And HUD Announce Mortgage Loan Disaster Relief For Borrowers In Oregon

By Joe Wallace

The FHA and HUD have announced disaster relief for home owners with FHA mortgages in the recently-declared federal disaster areas there. Wildfires have destroyed massive amounts of property in the state of Orgeon and other areas in the western part of the United States; affected states have been reviewed for federal disaster declarations as a result. The U.S. Department of Housing and Urban Development has announced disaster relief for FHA borrowers for the following Oregon counties. Clackamas Douglas Jackson Klamath, Lane Lincoln Linn Marion The federal disaster declaration means HUD can offer foreclosure relief to FHA borrowers. That relief starts with foreclosure relief in the form of a 90-day moratorium on foreclosure actions on affected borrowers, and there is also help with FHA loans to repair or replace homes damaged | more...