Articles Tagged With: FHA Loans

February 6, 2024

Fees and Services For Your Home Loan

What do first-time home buyers need to remember about buying a home with an FHA mortgage? Many home loan services you need to get to closing day are not centralized and you may have to deal with multiple service providers. It’s good to anticipate the help you’ll need on your home loan journey. We explore some of those services below. Brokers And Agents A real estate agent can help new house hunters find a suitable home. It’s a third-party service you don’t have to use, but many choose to do so to make the process easier on them. A mortgage broker provides a service to those who need a lender. A broker can match you with a participating FHA lender willing to work with you but you are not required | more...

February 5, 2024

FHA Loan Terms: Which To Choose?

By Joe Wallace

There are important differences between FHA loans with 15-year mortgages and 30-year loan terms. Those differences include the number of years you’ll pay but also how much interest you may owe. What do you need to know about the fine points of selecting a loan term for your mortgage? The Start Of Your 15 or 30-Year Loan Term 15-year and 30-year mortgages typically start their loan terms the month you and the lender agree upon in writing. Usually, this occurs sometime after closing day. Will the actual time you pay on the loan be affected by your move-in date? In some cases, yes. If you have a construction loan, you might have to wait up to 12 months while the construction is happening. Once it’s completed and all inspections and | more...

January 29, 2024

What You Need To Know About FHA Loan Closing Costs

By Joe Wallace

How much cash to close do you need for an FHA mortgage? Many sources cite a number between 2% and 6% of the purchase price. Borrowers typically need to learn how much home is affordable early in the planning stages. Make these calculations as early as possible to help you save for both the down payment and closing costs. How Much You Can Afford To Borrow? An online mortgage calculator can help you get an idea of how much loan to apply for. Borrowers may be tempted to view that number as being flexible but that can come with a price. Beware of what some call “cost creep.” A little leeway on a service cost, a higher-than-expected expense, and over time it’s possible to find yourself moving outside your budget. | more...

January 16, 2024

The Rent Versus Buy Question In 2024

By Joe Wallace

Do you look at today’s mortgage rates, the housing market, and current economic headlines and wonder why you should consider purchasing a home in the new year? You aren’t alone. There are several economic factors at work in the American housing market. In 2024, one of those factors has to do with the difference between the cost of renting compared to owning a home. That gap has always been there in one degree or another. However, in the year 2024, that gap seems more attention-worthy. Especially for anyone struggling to decide which makes more sense, renting or owning a home. Compare The Numbers Forbes.com notes that home loan interest rates and home loan prices changed so much in the previous year that there seems to be a widening gap between | more...

January 12, 2024

FHA Loan Rules For Eligible Property Types

By Joe Wallace

FHA loan rules are found in HUD 4000.1, the FHA Single-Family Lender’s Handbook. Those rules include a list of property types you can and cannot buy with an FHA home loan. We examine the types of properties you cannot purchase with an FHA mortgage below. Knowing loan program rules is important if you’re a new house hunter. Do you need a government-backed loan like an FHA 203(b) purchase loan? Or a VA home loan? It’s true that certain restrictions and requirements for conventional home loans are different than the ones for FHA mortgages, but the gist is that house hunters need to know the rules of the home loan they want. For example, do you want to build a home using a One-Time Close construction loan? You may be limited | more...

January 9, 2024

Remodeling Options With An FHA Loan in 2024

By Joe Wallace

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 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 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 13, 2023

Contingency Clauses To Consider When Buying A Home

By Joe Wallace

Did you know there are ways to protect yourself from buying a home you ultimately decide you do not want? Or ways to make your purchase enforceable only if you sell your current home? You can do this using a contingency clause. These are add-on language to your sales contract specifying the buyer or seller will only proceed with the sale when certain conditions are met. At the FreddieMac official site, we learn, “Contingencies are an expected, normal part of the home buying process, providing both the buyer and the seller a legal way out of the contract if something goes awry.” Consider each of the following options below. One might be very important for your house-hunting journey. Home Sale Contingency Clause If you already own a home, consider using | more...