Articles Tagged With: FHA Loan Approval

August 12, 2022

Refinancing a Conventional Loan To An FHA Mortgage

Some borrowers want to know: is it possible to refinance out of a conventional mortgage using an FHA refinance loan? It’s a smart question to ask, especially if you are interested in moving out of an adjustable-rate mortgage and into the predictability of a fixed-rate loan. FHA Refinance Loan Options FHA loan rules do permit you to refinance a conventional mortgage using an FHA cash-out refinance loan. But that’s not your only option. The FHA loan handbook, HUD 4000.1, says your options for FHA refinancing include non-FHA to FHA transactions. What kinds of refinance loan options are available? In general: Cash-out refinances to help you pull equity out of your home; No cash-out refinances for both FHA and non-FHA-insured Mortgages. These loan options include Rate and Term refinance, and FHA | more...

July 29, 2022

FHA Home Loans And Occupancy: What You Can And Cannot Do

By Joe Wallace

If you are buying an existing construction home with an FHA mortgage, or having one built for you using an FHA One-Time Close construction loan, you will notice some common requirements for these mortgages; one such requirement involves the borrower’s use of the property once the loan has closed. FHA new purchase mortgages, also known as forward mortgages, are intended for those who wish to occupy the home as their main address, or “primary residence”. Some borrowers may be confused by this requirement because they assume you can buy and rent out a home using an FHA mortgage without intending to occupy it. But the reality is that FHA mortgages actually require occupancy by at least one person obligated on the home loan, so how is it possible to purchase | more...

July 26, 2022

HUD Announces Results Of New York Fair Housing Case

By Joe Wallace

Any form of discrimination in the housing process whether buying or renting has a chilling effect on the entire housing industry. We write about Fair Housing Act cases frequently to remind house hunters of their rights under the law. One of the latest developments in this area involves the Department of Housing and Urban Development’s involvement in a Fair Housing Act case in Long Island, New York. HUD announced in July 2022 that an Administrative Law Judge delivered a decision finding Long Island landlord Alex Raimos guilty of violating the Fair Housing Act, ordering Raimos to pay some $70 thousand in penalties and damages. This Fair Housing case began because the landlord refused to rent “to a mother and her daughter because of the daughter’s cerebral palsy” according to a | more...

July 25, 2022

Article Update: What Are The FHA Loan Requirements For Wells and Septic Systems?

By Joe Wallace

In 2017, we published an article that asked an important question: what are the FHA requirements for sewer/septic systems? As we discussed back then, there are important issues to consider if the property you want to buy with an FHA mortgage can’t be hooked up to a local utility. Our 2017 article asked an important question: what are the FHA requirements for sewer/septic systems? For example, the placement of the septic tank; back then, we reported FHA loan rules required the tank to be at least 50 feet from any well on the property. In 2022, those rules have not changed. And wells must be a proscribed distance from other features of the property including: Property line: 10 feet Septic tank: 50 feet Drain field: 100 feet Septic tank drain | more...

July 20, 2022

What To Think About When Comparing FHA Lenders

By Joe Wallace

Why do we say it’s so important to choose the right lender for your FHA home loan? Because no two financial institutions are exactly alike, and you may find a lender willing to offer the type of mortgage you need at an affordable interest rate. But until you compare offers how do you know you have set your price point and target interest rate realistically? It’s not just whether the lender offers the type of FHA mortgage you need–such as an FHA condo loan or an FHA One-Time Close Construction mortgage. It’s also whether the lender is offering you a competitive interest rate. When rates trend higher, does your selected loan officer reprice the interest rates or up the closing costs instead? If you don’t know, you won’t know how | more...

July 14, 2022

HUD Announces Appraisal Update

By Joe Wallace

The Department of Housing and Urban Development official site contains an FHA Mortgagee Letter published on July 12, 2022, which announces an important update to FHA appraisal policy. FHA loan rules as published in HUD 4000.1, include a maximum age for an appraisal. If an appraisal is about to expire, FHA rules permit an extension of the appraisal validity period for 30 additional days. In some cases, an appraisal update may be permitted but that update must typically be accomplished before the original appraisal expires. Now, FHA appraisal guidelines have been revised to expand the appraisal validity period, which the FHA and HUD say will reduce “financial burdens” of getting appraisal updates. The changes are also meant to help the agency “more closely align” the FHA loan program’s initial appraisal | more...

July 13, 2022

FHA Home Loans and Help With Down Payments

By Joe Wallace

First-time home buyers looking for real estate to buy with an FHA loan may be intimidated by the notion of saving up for and making any kind of down payment, let alone a percentage of the appraised value of the home. But it’s important to remember that borrowers have options with FHA mortgage loans that can help offset the down payment. Did you know that just over a quarter of all FHA loans at one time featured parental contributions toward the down payment? That information is according to the Wall Street Journal, which reports some 26% of the FHA loan transactions included financial help from parents–WSJ calls it “The Bank Of Mom And Dad” and it can be a powerful factor in buying a first home. But some first-time home | more...

July 1, 2022

First-Time Home Buyer Tips

By Bruce Reichstein

What does a first-time home buyer need to know when searching for real estate to buy with an FHA mortgage? It’s good to make a checklist before you start and add to it along the way-there are some important things to do before you ever fill out home loan paperwork. Decide If You Are Going To Use A Real Estate Agent Whether you buy your home with an FHA mortgage or not, this is a choice that could make a difference in terms of saving time looking for just the right home. If you choose to use the services of a real estate agent, be sure to include a list of features you want in your home and features you do not want-the agent will help you narrow the field. | more...

June 30, 2022

FHA Home Equity Loans?

By Joe Wallace

Is there such a thing as an FHA home equity loan? Some borrowers want to tap into the equity built up in their home to pay bills or to make a large purchase, others may want to start home improvement projects. Conventional mortgages often come with the option of applying for a home equity loan or a home equity line of credit. What options exist for FHA borrowers? FHA home loan options don’t include a home equity line of credit or a home equity loan. You won’t find an FHA loan option that mimics these options. What FHA borrowers do have the option to apply for? FHA Cash-Out Refinancing, which allows you to take cash back at closing time if you meet the following requirements in addition to credit qualifications: | more...

June 28, 2022

What To Know About FHA Mortgage Insurance

By Joe Wallace

What do you need to know about FHA mortgage insurance? There are basically two payment plans for FHA mortgage insurance premiums; one for 11 years and one for the lifetime of the FHA loan. There is an Up Front Mortgage Insurance Premium you pay at closing time, and then there is the annual mortgage insurance premium split up over the 12 mortgage payments a year you are scheduled to make. FHA Mortgage Insurance: How Long? FHA mortgage insurance is required on most FHA loans. Streamline Refinances and certain other loans like those for homes on Native American tribal lands have a lower rate than for purchase loans and other FHA refinance options. If you pay 10% down on an FHA mortgage you may have the option of ending your FHA | more...