Articles Tagged With: FHA Loan Rules

What happens to my FHA loan in a natural disaster?

June 11, 2015

FHA Refinance Loan Facts

Are you thinking about refinancing a home loan? There are some facts about FHA refinancing loans you should know before you start shopping around for a lender. And that’s an activity more than one borrower doesn’t think about when first considering a refinance. Did you know you don’t have to stay with your original financial institution in order to refinance a mortgage? That’s our first tip about home loan refinancing: Shop Around For A Lender Your current lender may or may not offer you the most competitive refinance loan interest rates and/or terms. Do you know what other rates are offered elsewhere? You do not have to use the original lender to refinance a home loan with an FHA mortgage. You will need to find a participating FHA lender, but | more...

June 11, 2015

FHA Policy On Cancelling Monthly Mortgage Insurance Premiums

By Joe Wallace

One commonly asked question about FHA loans involves when and how a borrower can stop paying FHA Monthly Mortgage Insurance Premiums. The information we’re discussing here does not apply to Private Mortgage Insurance, which something different than FHA Mortgage Insurance Premiums. Since we’ve mentioned Private Mortgage Insurance, borrowers who have it, (called PMI for short) should know the following as published on the government website, ConsumerFinance.gov: “The Homeowners Protection Act gives you the right to request that your lender cancel PMI when you have reached the date when the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. This date should have been given to you in writing on a PMI disclosure form when you received your mortgage. If you | more...

June 10, 2015

FHA Mortgage Loan Interest Rate Trends: Slightly Lower, Then Higher

By Joe Wallace

Last Friday, mortgage rates hit their highest levels of the year in the wake of strong economic data released that day. Rates for 30-year fixed rate conventional mortgages broke the 4% zone and while there was some improvement on Monday, it wasn’t enough to push best execution rates out of the low fours and back into the upper three percent range. On Tuesday rates moved back up, but as our sources are reporting this happened without the usual reasons you might see to spur that move–there was no significant economic data or breaking news that may have acted as a catalyst for investor behavior that pushed rates higher, and so we sit in what many are describing as an unpredictable mortgage loan rate environment that could go in either direction | more...

June 9, 2015

FHA Loan Rules For Down Payments

By Joe Wallace

FHA home loans come with a maximum financing limit–a borrower is required to pay a certain percentage up front as a down payment. There is no such thing as a zero-downpayment FHA home loan, but the amount of the minimum is much lower than conventional loans in typical cases. FHA loan rules specify a minimum 3.5% down payment, but in some cases that down payment may be higher depending on circumstances. What kind of circumstances? One is a situation where the borrower’s FICO scores or other financial qualifications are borderline. FHA minimum FICO standards for maximum financing and to be eligible for the 3.5% down payment start at 580 and above. Your lender may actually have higher FICO requirements than 580 and that is permitted under FHA loan rules. Borrowers | more...

June 9, 2015

Why Refinance Your Home Loan?

By Joe Wallace

There are lots of articles and blog posts about refinancing your home loan, but many of these are technical; few of them discuss the reasons it might be a good move to consider applying for an FHA refinance loan. Consider an article written last year by a staff member at Marketwatch.com titled, “Half Of Americans Cant Afford Their House”, which discusses a serious issue among some home owners. According to the article approximately 15 percent of home owners in the United States were said to be in housing markets where the monthly mortgage loan payment ate up more than 30 percent of monthly income. 30 percent is, the article states, the maximum for rent or mortgage loan payments in terms of affordability. Exceeding that 30 percent is not recommended. Home | more...

June 6, 2015

FHA Mortgage Interest Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates have been trending higher as of late, partially due to overseas economic headlines such as the Quantitative Easing situation with the European Central Bank, but also because of local economic data–case in point, the much-anticipated jobs report that came out on Friday. The Employment Situation Report showed positive data, which can and often does have a negative effect on mortgage loan interest rates. This may seem like a contradiction in the eyes of those not used to watching the markets, but a good thing to keep in mind about mortgage loan interest rates is that when there is bad economic news, mortgage loan rates can and often do improve. When there is positive news the opposite can and often does apply. Investor reaction to Friday’s economic | more...

When Is An FHA Loan Better Than A Conventional Loan?

June 5, 2015

FHA Home Loan Refinancing: What You Should Know Before You Apply

By Joe Wallace

FHA refinancing loans give borrowers many options. Did you know that you do not need to have an existing FHA mortgage loan to take advantage of certain FHA refinance options on your loan? You can change lenders, change the nature of your loan from an adjustable rate to a fixed rate, and add energy-efficient improvements to the loan amount. FHA cash out refinance loans permit non-FHA borrowers to apply for refinance loans on conventional loans. You can refinance your existing FHA or non-FHA mortgage from a fixed rate to a new fixed rate loan, fixed rate to adjustable rate, adjustable rate to adjustable rate, etc. Cash out refinance loans always require a new appraisal, even if your current appraisal is still current. FHA loan rules say you cannot use an | more...

June 5, 2015

FHA Home Loan Rules For Foreign Nationals

By Joe Wallace

FHA home loan rules include guidance for participating lenders who are handling FHA loan applications submitted by non-U.S. citizens. Did you know that according to FHA loan rules, it is not required to be a U.S. citizen in order to apply? However, certain restrictions do apply. According to HUD 4155.1 Chapter Four, Section A, “U.S. citizenship is not required for mortgage eligibility”. However, all applicants must have a valid Social Security Numberr (SSN). That is according to the FHA/HUD official site FAQ section, which states: “For all borrowers, including US citizens, the lender is required to document a valid Social Security Number (SSN) for each borrower, co-borrower, and co-signer on the mortgage. All individuals eligible for legal employment in the US must have a SSN. Each borrower must provide the | more...

Can I buy a manufactured home with an FHA loan?

June 4, 2015

FHA Loan Credit Score Requirements: A Commonly Asked Question

By Joe Wallace

One common theme we find when fielding some questions about FHA home loans involves FICO score requirements. It’s true that FHA mortgage loan FICO score minimums are often lower than the requirements of some participating FHA lenders, but some borrowers get confused about FHA loan FICO score requirements in general–never mind what minimum number the FHA might accept versus what the lender might accept. One variation on a commonly asked FHA loan question goes something like this: “Does your actual FICO score matter as much as the details of your credit report? It sounds like the number on your FICO score isn’t that crucial compared to your credit history in the last 12 months leading up to the loan.” The idea that your FICO score itself “doesn’t count” as much | more...

June 3, 2015

Initial Steps to Your FHA Home Loan

By Joe Wallace

There are many steps to purchasing a home with an FHA mortgage loan. House hunters don’t normally begin this process by picking up the real estate listings or exploring them online; house hunting is a process that should begin at least a year in advance of buying the home with an FHA loan with financial planning. Getting Your Finances Ready For An FHA Loan Preparing for your loan application a year in advance is strongly recommended. You’ll need to check your credit scores and make sure you bring a minimum of 12 months worth of on-time payments on all your financial obligations to the application process. Doing anything less can hurt your chances for loan approval. It’s important to remember that your lender will check the amount of debt against | more...