Articles Tagged With: FHA Loans

March 5, 2025

FHA ARM Loans

There are many types of different FHA loan products. You can apply for new purchase home loans, refinance loans, and even Home Equity Conversion Mortgage loans (HECM). But even with this variety of options to choose from, did you know you can apply for purchase or refinance loans guaranteed by the FHA that have adjustable interest rates? It’s true–the FHA Single-Family Home Loan program offers both fixed-rate mortgages and adjustable rate home loans. The FHA official site has an entire page dedicated to Adjustable Rate Mortgages (also known as ARM loans). Here’s how the FHA/HUD official site defines the ARM Loan: “An ARM is an Adjustable Rate Mortgage. Unlike fixed-rate mortgages that have an interest rate that remains the same for the life of the loan, the interest rate on | more...

March 1, 2025

5 things to know about FHA Appraisals

By Joe Wallace

What do you need to know about FHA appraisals? There are plenty of details to be concerned with depending on the nature of the property you want to buy but some issues loom larger than others. FHA Appraisals Are Not Home Inspections That’s an obvious one. The FHA appraisal is meant as a tool for the lender and not the borrower. What’s not so obvious? The appraisal process does not require the appraiser to be an expert in all systems of the home. That means your roof may have problems the appraiser can’t identify, or the HVAC system might be experiencing symptoms unfamiliar to your appraiser. In some cases, the appraiser might not even set foot inside a building to be appraised. It’s not so hard to understand why you | more...

December 30, 2024

Down Payment Help For FHA Mortgages

By Bruce Reichstein

Who qualifies to get down payment assistance in order to buy a home? If you are using an FHA mortgage, your downpayment requirement is, at a minimum, 3.5%. And while that isn’t as large a down payment as you would make if you wanted to eliminate private mortgage insurance from a conventional home loan, some may struggle to come up with the money down. Buying a home can be expensive. There are inspection and appraisal fees, there may be pest control services to pay for, title searches, and more. Saving early is the key to making your down payment easier to manage in your budget. But even with saving early, extra help may be needed. That’s where down payment assistance programs can come in to help. But what does it | more...

November 27, 2024

FHA Home Loans And Your Downpayment

By Bruce Reichstein

There are good reasons to put more money down on a low-down-payment mortgage like an FHA home loan. There are also important reasons why someone might not be able to pay as much upfront on the home loan as they would like. What are the advantages and disadvantages of a larger downpayment? Are you looking to buy a new home in 2025? The biggest disadvantage for some is the basic financial outlay of cash. Financial circumstances don’t permit all buyers to pay a lot out of pocket for their home loans. In such cases, downpayment assistance programs offered by state or local agencies can help those who qualify. For those who can afford to pay more upfront? The most obvious, Home Loans 101-type advice is that a bigger downpayment lowers | more...

November 18, 2024

Buy A Condo Unit With An FHA Mortgage

By Joe Wallace

The Federal Housing Administration (FHA) offers many loan programs to make homeownership accessible and affordable for a broader range of borrowers. While the FHA 203(b) loan is a popular choice for single-family homes, the FHA also provides options for those who want to buy condominiums, mobile homes, and fixer-uppers. For condominium buyers, FHA financing is available and those funds may be approved even if the condo project is not on the FHA approved list, depending on circumstances. If you’re interested in a condo in a project that isn’t currently FHA-approved, you can work with an FHA-approved lender to see about having the project added to the approved list. In some instances, if a condominium project isn’t FHA-approved, “single-unit approval” may be possible. This allows an individual unit within the complex | more...

August 6, 2024

Credit Repair And FHA Mortgages

By Joe Wallace

Resolving outstanding debts and making timely payments can gradually boost your credit score. The Consumer Financial Protection Bureau recommends creating a budget and prioritizing debt repayment to regain financial stability. It’s also vital to monitor your credit reports aggressively at least 12 months before applying for a home loan. Knowing your rights when dealing with credit repair companies is essential. The Credit Repair Organizations Act (CROA) ensures transparency in credit repair services and prohibits deceptive practices. When it comes to home loans and your credit, lenders consider your FICO scores and review your payment history and overall credit record. It’s important to understand that FICO scores don’t necessarily reflect your entire credit story. To have a successful home loan application, maintain good payment habits for 12 months and avoid missed | more...

Rehab Refinance Loans, reverse mortgages

July 23, 2024

Pros and Cons of Refinancing Versus Reverse Mortgages

By Joe Wallace

As we age, sound financial decisions become increasingly crucial. For many seniors, leveraging home equity is a key consideration, and there are two important options to know in this area. Two FHA loan products can help you access home equity. One has an age requirement (the reverse mortgage) and one does not (refinancing.) Those two options are FHA reverse mortgages and FHA refinancing. Each option has its pros and cons, which is vital for making an informed decision. Reverse mortgages offer seniors a way to boost monthly cash flow. They eliminate required monthly payments, providing significant financial flexibility. Additionally, they offer lump-sum payouts, which can help cover home repairs, medical expenses, or other significant costs. However, reverse mortgages have drawbacks. The most notable is the gradual depletion of home equity. | more...

July 11, 2024

FHA 203(k) Rehab Loan Program Updates

By Joe Wallace

Changes are coming for those interested in remodeling a home with an FHA rehab loan. The Department of Housing and Urban Development, along with the Federal Housing Administration, have updated policies associated with the FHA 203(k) Rehabilitation Mortgage Insurance Program. These changes were implemented to modernize the program and make it a more helpful tool for individuals and families seeking affordable financing options for home renovation or rehabilitation projects. The FHA 203(k) program offers two loan variations: a “standard” 203(k) for major remodeling projects that may or may not include work on load-bearing walls. A “limited” 203(k) is available for smaller projects and for what the FHA determines to be “non-structural repairs.” Several fundamental changes have been made to aspects of the FHA 203(k) program. First, the total rehabilitation costs | more...

July 1, 2024

Comparing Home Loan Offers

By Joe Wallace

Are you planning to buy a new home? You can find the right home loan by applying a similar process you use to find the right house. In fact, shopping around for the right mortgage loan is just as important as shopping around for the right house. If you are considering an FHA mortgage to buy, renovate, or build a home, you’ll want to make the same kind of informed decisions about the lender and the loan. Comparing lenders and loans is the way to do that. But there are some tips you can follow to make that process more streamlined. Research Multiple FHA Lenders While on paper, FHA loan terms and conditions such as FICO score requirements seem to be standardized, the FHA minimum FICO score requirements are just | more...

June 25, 2024

What To Look For When House Hunting

By Joe Wallace

If you are looking for your first home, there are areas of every house you should consider including in your mental checklist of features to look at during a real estate open house or a private viewing of a sale property. What follows is not a complete list but a great place to start when looking for potential deal-breaker problems lurking in the house you want to purchase with an FHA mortgage. The Condition Of The Walls And Ceiling Homes that have been flooded or experienced significant plumbing issues could have signs of water damage in areas like the basement, stairs, and walls throughout the house. Look for stains, patches of wall that don’t quite match the others, warped wood, poorly closed doors, etc. Staining and the smell of mold | more...