Articles Tagged With: FHA Loans

April 20, 2023

Five Things You Should Know About FHA Mortgages

Many people still have misconceptions about the FHA home loan program. They might think they “earn too much money” to be a successful applicant (not true, FHA home loans are not need-based loans) or would not qualify because they want to build a home instead of buying an existing-construction house. This is also not true; FHA loans include those for building a home instead of buying one. They are called One-Time Close construction loans, and feature the same FHA FICO score and down payment requirements as other FHA mortgage options. What are the facts about FHA home loans you need to know to make a better-informed decision about your loan choices? FHA Loan Fact: FHA Mortgages Are For Any Financially Qualified Borrower Unlike the USDA home loan program, which DOES | more...

April 5, 2023

FHA Home Loans: A Variety Of Options

By Joe Wallace

There are many different types of real estate available to purchase or refinance with an FHA single family home loan. Did you know that FHA loans are not limited to traditional suburban-type housing? Your options are as diverse as the kinds of real estate you might consider purchasing. For example, while an existing construction suburban home is definitely an option with FHA loans, you can also consider a new construction home. The difference between new and existing construction can be technical; new construction properties have generally been completed for a year or less and have never had an owner. So while you may not be interested in a “build-to-suit” new construction loan, you may be able to get a new construction loan for a property that is already finished but | more...

March 30, 2023

Buying A Home? Ask Your Seller and Lender These Questions

By Joe Wallace

If you are buying your first home, you’ll want to ask some important questions of both the seller of the house and your participating FHA lender. The lender questions should include asking about the option to buy down your interest rate with discount points, and how much your interest rate could be depending on FICO scores and credit history. You should ask the lender about options for both 15-year and 30-year mortgages even if its just to compare the rates and monthly payments. You should also ask what benefits might be available with a higher down payment and how much your lowest down payment might be based on an estimated sale price and your credit. Questions To Ask Your Seller Some people worry about haggling or even questioning a seller. | more...

March 29, 2023

Watching Your Credit Before Applying For Your Home Loan

By Joe Wallace

If you are not monitoring your credit ahead of a credit application, especially a big one like an FHA mortgage or FHA refinance loan, you likely are not ready to apply for that credit. You want to know what’s in your credit reports along with your FICO scores, and you need to review the accuracy of your credit report before the lender sees it. Some believe this can be done by pulling annual credit reports. That snapshot of your credit picture isn’t necessarily what your loan officer will be reviewing at loan application time. The lender will see the most current data available to them, and it’s not wise to leave things to chance when applying for a home loan. Credit Monitoring Can Help Credit monitoring is an important tool | more...

December 19, 2022

FHA Adds HECM Relief For Those Financially Affected By COVID

By Joe Wallace

Some homeowners might be surprised to learn about new financial relief for the financial effects of COVID-19, but the FHA and HUD made an announcement in the last month of 2022 — there are new options for those who struggle financially due to COVID. Specifically, there are new options for relief for qualifying senior citizens trying to keep their homes while struggling to make property tax payments on homes securing Home Equity Conversion Mortgage (HECM) loan payments. The issue for these homeowners? One requirement of the FHA HECM program is that the borrower stay current on all so-called property charges such as property taxes and homeowner’s association dues where applicable. In ordinary circumstances, if an FHA HECM borrower does not stay current on these charges, they face loss of the | more...

December 12, 2022

Housing Market And Home Equity: What You Need To Know In 2023

By Joe Wallace

The mortgage industry has been coming down from the highs of summer, 2022. Fed actions to raise interest rates had an effect on the housing market (indirectly–the Fed sets the rates on federal loan funds, not mortgage loan interest rates) and as a result, conditions have started to cool to the point where mortgage rates actually dropped in December. Slowing Demand As the housing market cools, a course correction for home equity is an important factor to think about. According to certain mortgage industry sources, there are plenty of indicators that home equity is indeed starting to come back down. Lower demand and lower prices can translate into lower equity. Consider what the publication Mortgage Industry News printed about a report by CoreLogic in 2022: By the end of the | more...

December 9, 2022

HUD Announces Energy-Efficient Initiatives

By Bruce Reichstein

The Department of Housing and Urban Development has announced a climate forward green housing initiatives as part of an update to the HUD program known as the Rate Reduction Initiative, or RRI. RRI supports the HUD Climate Action Plan. That plan was created to foster “climate resiliency, reduce greenhouse emissions, and pursue environmental justice in housing” according to HUD.gov. RRI relies on partnerships with public housing providers, with one stated goal (among many) of encouraging the reduction of public housing utility costs beyond what may already be required by state law, saving money, and helping the environment at the same time. The RRI plan encourages public housing agencies to negotiate special rates with utility companies, or purchase energy through a third-party broker. It also encourages arrangements between utility companies and | more...

December 7, 2022

Mandatory or Optional? FHA Home Loan Issues

By Joe Wallace

What is mandatory and what is optional when you apply for an FHA home loan? You will find a lot of advice on the internet about buying a home. You can haggle over the home sale price, for example, and negotiate things like seller concessions. But what about the not-so-obvious details? What is required and what is not? Mortgage insurance on your FHA mortgage, for example, is mandatory. To a point. All FHA forward mortgages (also known as purchase loans) require you to pay for mortgage insurance on your FHA home loan each month. That said, it may not be mandatory for the full duration of the mortgage. That may depend on how much you put down and the term of the loan you may have the option to cancel | more...

December 2, 2022

Higher FHA Loan Limits For 2023

By Bruce Reichstein

On Thursday, December 1, 2022, the Federal Housing Administration published the new FHA loan limits for 2023. There are higher loan limits for FHA forward mortgages in 2023 and also higher limits for FHA Home Equity Conversion Mortgages. Most of the country gets this loan limit increase in 2023. The higher limits come thanks to house price appreciation during the first half of 2022. Such home price changes are typically included as part of the calculations FHA makes to set the limits” each new year. A press release at HUD.gov notes these limits, “reflect steep increases in home prices throughout much of the country” according to Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon, who was quoted in the press release. Commissioner Gordon adds the higher limits, “…will | more...

November 30, 2022

Budgeting For Your Home Inspection, Appraisal, and Compliance Inspection

By Joe Wallace

When you plan to buy a home with an FHA loan you should be thinking about how much you will need to save for expenses paid upfront, such as appraisals and inspections. You may not, as a first-time home buyer, have the experience to anticipate all expenses you need to pay in the coming months. But there are typical costs you can plan and save for. Home Inspection Costs Did you know there’s no fixed price for home inspections? There are no national cost guidelines or restrictions for this service; home inspection costs will vary based on the housing market and inspections are paid for by the borrower independently of the rest of the home loan process. Home inspections may cost somewhere between $300 and $500 depending on location. Your | more...