Articles Tagged With: FHA Mortgage Loan

November 28, 2018

Can I Refinance With An FHA Loan?

Need to refinance your loan with an FHA mortgage? Depending on what type of property you are refinancing, you may be eligible for an FHA refinance loan for cash out, a rehab loan refi, or even an FHA-to-FHA Streamline refinance loan with no FHA-required credit check. One of the most important factors in determining if you can refinance with an FHA loan is the reason why you wish to refinance. Those who want to get a lower interest rate on an investment property, for example, would be ineligible to apply for an FHA Single Family Refinance Loan as these loans are restricted to owner/occupiers only. Those who want to switch from a conventional home loan to an FHA mortgage loan would be permitted to apply if they are using the | more...

July 2, 2018

Should I Consider An FHA Reverse Mortgage?

By Bruce Reichstein

Should I consider an FHA reverse mortgage? Many qualified borrowers are asking that question now in light of recent housing market stats indicating rising property values well into 2019. A Zillow.com report (through May 2018) indicates that housing is on an upward trend at the time of this writing. Home values have increased more than eight percent according to the Zillow report, and the same report says values could go up another 6.5% in the next year. Rising home values in U.S. housing markets means that borrowers applying for appraisal-required refinancing or FHA Reverse Mortgages (also known as FHA HECM loans) may discover their home is worth more than they realized. Naturally, this won’t apply in every single housing market, trends vary nationwide and your experience may vary based on | more...

June 15, 2018

HUD Settles Housing Discrimination Complaint Against San Francisco Real Estate Companies

By Bruce Reichstein

There are many types of housing discrimination; some occurs when a house hunter is searching for a home, trying to rent in the local area and encountering violations of the Fair Housing Act while trying to do so. Other types of housing discrimination can occur in the house hunting process itself. Housing discrimination may come from a variety of sources; including, in the case of a recent HUD Fair Housing settlement, real estate firms. The HUD official site announced a settlement in June in the case of two San Francisco-based real estate companies accused of Fair Housing Act violations. HUD approved “a Voluntary Compliance/Conciliation Agreement settling a complaint filed by a family whose infant has a disability against San Francisco, California-based John Stewart Company and Hunters Point East West, LP.” | more...

May 30, 2018

FHA Home Loans For Manufactured Housing Classified As Condo Projects

By Bruce Reichstein

Are there really FHA home loans for manufactured housing classified as condo projects? Believe it or not, the FHA loan rules in HUD 4000.1 state that such loans are indeed available under the FHA mortgage program in addition to FHA One-Time Close construction loans, FHA Rehab loans, and other options. How does the FHA Loan Handbook describe these mortgages? “Manufactured Housing is a Structure that is transportable in one or more sections. It may be part of a Condominium Project, provided the project meets applicable FHA requirements.” FHA loans for manufactured housing, regardless of whether it is part of a condo project or not, must meet certain requirements including size, purpose, and how the home is delivered to the borrower. Specifically, manufactured housing eligible for FHA mortgage loans must be | more...

May 21, 2018

FHA Loans, Wells, And One-Time Close Construction Loans

By Bruce Reichstein

Borrowers who apply for FHA loans may not be clear on whether or not a property served by a well instead of being connected to the local utility is eligible for an FHA mortgage. Is the presence of a well a problem for FHA loan approval? And what about FHA loan standards for FHA One-Time Close / Single-Close construction loans? HUD 4000.1 contains guidelines for these issues including the acceptability of a property served by a well instead of a water utility. Borrowers will be relieved to know that FHA mortgage rules do not automatically rule out a property just because a well is present, but that well must meet both FHA minimum requirements and any applicable health code or other local ordinances. For One-Time Close / Single-Close construction loans, | more...

May 18, 2018

Maximum Loan Amounts For FHA One-Time Close Construction Loans

By Bruce Reichstein

What is the maximum loan amount you can borrow with an FHA One-Time Close / Single-Close construction loan? The actual dollar amount is not fixed, it depends on variables including the FHA loan limits in a given housing market and whether or not the borrower is buying land in conjunction with the project. Calculating the Maximum Loan Amount For An FHA One-Time Close / Single-Close Construction Loan The FHA loan rules for One-Time Close / Single-Close loans, also known as construction-to-permanent mortgages, are found in HUD 4000.1 and include a breakdown for lenders on how to calculate the maximum mortgage loan. The loan limit takes into account the borrower’s down payment and the Loan-To-Value ratio (LTV). HUD 4000.1, page 445 instructs the lender: “The maximum mortgage amount is calculated using | more...

May 14, 2018

FHA Home Loan Approval And Your Credit Report

By Bruce Reichstein

What do potential home loan borrowers need to know about FHA loans and credit reports? There are some very simple things that some don’t realize going into the home loan process that can definitely affect your participating FHA lender’s ability to approve your mortgage. FHA Loan Credit Checks The lender is required by FHA home loan rules to pull a loan applicant’s credit reports to review credit scores, credit history, and look for overall patterns of reliable use of credit. However, some borrowers mistakenly assume that the lender will look at a credit report once, make the notes, and never go back to the credit report again. This is not necessarily the case. Your FHA lender is charged with making sure that a borrower’s credit position is stable and that | more...

May 8, 2018

VA One-Time Close Construction Loans Compared To FHA One-Time Close Loans

By Bruce Reichstein

How do VA One-Time Close / Single-Close construction loans compare to their FHA One-Time Close (OTC) / Single-Close counterparts? If you don’t know which program you qualify for, now is a good time to learn the differences and similarities. FHA And VA One-Time Close / Single-Close Construction Loans Requirements Some things will apply to both FHA and VA One-Time Close construction loans. For both types of loan, all borrowers must financially qualify, they must have minimum FICO scores as determined by both the VA/FHA and the lender, and the property must be constructed in the United States or its’ protectorates. VA One-Time Close and FHA One-Time Close loan rules both require occupancy; you may only have a home built from scratch using a VA construction loan if you intend to | more...

FHA One Time Close Construction Loan Option

May 4, 2018

FHA One-Time Close Construction Loans: Location Matters

By Bruce Reichstein

Location matters when you are applying for an FHA One-Time Close / Single-Close construction loan. These mortgages are for borrowers who don’t want to purchase an existing property but want a home built for them from the ground up, but FHA One-Time Close construction loans, (FHA OTC) do have some restrictions on where a home can be constructed. These restrictions aren’t as difficult to understand as you might think; FHA loan officers are required to insure the home as an economic and functional life that will last the duration of the mortgage. Part of that due diligence is making sure the home is capable of withstanding environmental conditions and/or not being put directly in harm’s way due to know problems. That’s one reason why the FHA loan rules for home | more...

April 25, 2018

FHA Home Loans: Facts You Should Know Before You Buy

By Bruce Reichstein

FHA loan facts you should know before you buy include a variety of concerns, one of which is an optional issue some borrowers choose not to address until it is too late. Don’t make the same mistakes as some first time home buyers-the money you save could be significant. Never Buy A Home Without A Home Inspection It’s important to point out that the headline for this section does NOT read “Never buy a home without an appraisal”. FHA appraisals are a mandatory part of the home loan process, but inspections are on the borrower to arrange, pay for, and review. Home inspections are the only way a borrower can make a truly informed purchase. Those who rely on the appraisal alone for any new purchase mortgage do so at | more...