Articles Tagged With: FHA Loan Approval

January 9, 2024

Remodeling Options With An FHA Loan in 2024

The FHA 203(k) rehabilitation mortgage is a type of FHA loan you can use to buy and renovate a home, or refinance an existing mortgage and improve the property at the same time. Buy Or Refi? Do you want to buy a fixer-upper home with an FHA 203(k)? Do you need to refinance your existing mortgage and renovate? These are both possible. The options for 203(k) refinancing also include the ability to refinance a non-FHA mortgage into an FHA loan, and you also have the ability to finance certain closing costs. The FHA 203(k) purchase loan offers borrowers a chance to buy a house that would normally not pass an FHA appraisal. Under the FHA rehab loan program, you can hire builders to do renovations to bring the house up | more...

January 5, 2024

Don’t Make These Home Loan Mistakes

By Bruce Reichstein

Buying a home for the first time is stressful, but there are things you can do as a first-time buyer that will help. Avoid these big mistakes when planning your mortgage. Don’t Change Jobs Before Your Mortgage Closes This advice does not apply to everyone, but it does for those contemplating changing the nature of their employment from having a boss and a traditional workplace to freelance, contract, or per-project type work. There are different FHA home loan rules for non-traditional employment, freelance jobs, commission income, etc. If you were working in a typical job at the start of the home loan application process and are tempted to switch to contract, freelance, or commission work, your job switch could hinder your mortgage loan process. Why? The income rules for those | more...

January 3, 2024

Buying An Older Home With An FHA Loan

By Joe Wallace

FHA home loans come with a myth or two. For example, the notion that only first-time home buyers can get an FHA loan. That is a myth. Also NOT TRUE? The idea that a house can’t be past a certain age to qualify. This myth isn’t as widespread as the first-time home buyer one, but the fact is, only SOME property types have a specific age requirement Manufactured homes have a specific age requirement other FHA loans don’t carry. An FHA-eligible mobile home or manufactured housing must be built after June 15, 1976 or it cannot be purchased with an FHA mortgage. Existing construction properties under the FHA single-family home loan program don’t have that age issue. Age or Remaining Life? The FHA lender’s handbook specifies that all houses purchased | more...

January 2, 2024

FHA Refinance Options For 2024

By Joe Wallace

Many expect home loan rates to start falling in 2024. Some potential FHA loan applicants want to know what kinds of refinance opportunities wait for them as the housing market recovery gets underway, however slowly. We explore some of the options below. FHA Refinance Loan Options You have multiple choices when it comes to FHA single-family home loan refinance options. They include FHA cash-out refinancing, FHA streamlines refinance loans, and no-cash-out FHA refinances loans. You can refinance an existing property with an FHA 203(k) rehab loan that lets you refinance and renovate simultaneously as an alternative option. Streamline Refinance Loan Option In Early 2024 Mortgage loan interest rates are too high at press time to consider using an FHA streamline refinance option. FHA streamline refi loans are for those who | more...

December 29, 2023

Home Buying Facts You Should Know

By Bruce Reichstein

Are you buying a home for the first time? Do you need answers to mortgage loan questions? You aren’t alone. We explore some important issues below. FHA Home Loans For First-Time Home Buyers Feature A Lower Down Payment Lower down payments mean more money freed up to pay closing costs and other expenses related to buying a home. But if you plan on keeping the home for a large portion of the loan term (or the entire loan term), a bigger down payment may be to your advantage. The smaller your principal loan amount, the less you will pay in interest over the lifetime of the loan. Home Loan Appraisals Should Not Be Used By The Borrower To Determine The Condition Of The Home Ask any realtor or lender what | more...

December 27, 2023

What To Ask A Lender When Shopping For A Mortgage in 2024

By Joe Wallace

First time home buyers often have plenty of questions to ask a lender. Below we examine some of the key issues to consider when you compare financial institutions. Shop Around For A Lender And The Right Loan Compare three lenders (more is better) and don’t shortchange yourself when you start the process of shopping around for the right lender. It’s better to take more time and find the right match for you. Remember, you don’t have to use your current lender even if you have other loans with them. Ask About FHA Loan Rates and Terms You want to know these long before you make offer on a house. You’ll want to get an early sense for how much your loan may cost so you can plan your loan. Ask | more...

December 22, 2023

FHA Loan Prep Versus Holiday Spending

By Joe Wallace

House hunters who want a home in the new year, have many financial issues to worry about. One seasonal issue is holiday spending, and if you overextend yourself in December it can lead to more than financial stress. Fortunately, there are things you can do to manage credit issues and keep them from being a liability at loan application time. Don’t Allow Missed Payments What makes a late or missed payment can vary depending on the creditor. Do you know the current due dates on your bills? Have you arranged to make a partial payment rather than miss the deadline if you can’t make the full payment? These are all steps that can help you get closer to a loan next year. Consider How You Pay In 2024 Paying with | more...

December 15, 2023

FHA Refinance Loans In 2024

By Bruce Reichstein

2023 was a tough year if you needed a refinance loan. Purchase loan interest rates and refinance loan rates saw the 8% range move into clear view in 2023. And that stopped some borrowers in their tracks, not wanting to refinance their home loan at a higher rate. Did it pay to hold off on a refinance in 2023? The short answer in this particular case is yes. Mortgage rates started moving lower in the final weeks of 2023, and financial pundits are hopeful that the new year will bring more recovery in mortgage rates suitable to tempt those interested in refinancing. October 2023 High Water Mark For Mortgage Rates? Rates began recovering from the October highs, recovering back down to numbers in 7% range. There are expectations of further | more...

December 12, 2023

FHA Home Loan Mistakes To Avoid

By Joe Wallace

Many people have checklists to help them shop for a home, apply for a mortgage loan, and close the deal. But is your house-hunting checklist really complete without adding a list of mistakes to avoid? Steer clear of these common errors some home buyers make, and you will save yourself time and money. FHA Loan Mistakes: Not Getting Pre-Approved For A Home Loan If you get pre-approved for a home loan, the seller of the property you decide to buy (or the real estate agent, or both) will know you are a serious buyer. Those who are in the window shopping phase of their home loan process aren’t take as seriously by a seller or RE agent, and in some cases not having pre-approval may exclude you from looking at | more...

December 8, 2023

Is The Housing Market Entering A Recovery Phase?

By Joe Wallace

After briefly approaching the 8% home loan interest rate range, sources (including real estate company Redfin and NBC.com) report December 2023 conditions might be an indication of a housing market recovery or turnaround. Both NBC and Redfin report home loan interest rates falling to just over the 7% mark after hitting 8% in October 2023. Rates had formerly not reached those highs over two decades. According to NBC News, “The interest rate on a 30-year fixed mortgage is down to 7.03%”, with mortgage applications up by roughly 15%. That after reaching major lows in the previous month. Housing Market Recovery Signs Home loan applications may rise in 2024. Consumers may feel freer to apply, based on a perception that things are improving. Another factor that could be informing higher application rates? | more...