Articles Tagged With: FHA Mortgage Loan

April 18, 2018

Switching FHA Lenders, Part 2

In our previous blog post, we discussed borrowers who need to know FHA home loan rules for switching lenders, and when a new appraisal might be permitted under such circumstances. Borrowers do have the right to change lenders, the same way they have the right to refinance a mortgage loan using the same lender or a new one. If you need an FHA One Time Close construction loan, appraisal issues are quite different. The FHA will require inspections of the finished property to insure it complies with FHA standards and state/local code, but obviously the approach to a new construction home isn’t the same as an actual appraisal to determine the fair market value of existing construction properties. But for those who need a new purchase loan on an existing | more...

January 30, 2018

Who Can Legally Sign My FHA Home Loan Documents?

By Bruce Reichstein

Who can legally sign my FHA home loan documents? That may seem like an obvious question to some, but there are circumstances where the borrower themselves may be unable to sign the paperwork to complete the loan transaction. What options do borrowers have in these situations when applying for an FHA mortgage, refinance loan, or reverse mortgage? FHA Loan Rules For Signatures: The Basics The rules covering a borrower’s legally binding signature on loan documents used to process FHA home loans can be found in HUD 4000.1, which begins by stating: “All Borrowers must sign and date the initial and final Fannie Mae Form 1003/Freddie Mac Form 65, Uniform Residential Loan Application (URLA). All Borrowers must sign and date page two of the initial form HUD-92900-A, HUD/VA Addendum to Uniform | more...

December 29, 2017

Get Ready For Your FHA Home Loan In 2018

By Bruce Reichstein

Get ready for your FHA home loan in 2018 with some simple planning, budgeting, and market research. Buying a new home-or having one built with an FHA One-Time Close construction loan-requires some advance planning and saving, but your new home is well worth the effort. How ready are you to apply for a home loan in the new year? Do Some Housing Market Research What are typical house prices in your area? How do those prices match your budget? You can use an online mortgage calculator to help you figure out how much an estimated monthly mortgage payment could be based on the price of the home, interest rate, the amount of your down payment, and other factors. Once you have your estimated monthly mortgage payment, you can decide if | more...

December 7, 2017

FHA Refinance Loan Options For 2018

By Joe Wallace

FHA refinance loan options in 2018 include options for cash-out refi, FHA Streamline loans, and more. The right home loan refinance option for you depends on your financial needs and goals. What do you want to do with your FHA refinance loan? Get A Lower Interest Rate, Monthly Mortgage Payment If your goal is to reduce the amount of your mortgage payment every month, and you have an existing FHA home loan, the FHA Streamline Refinancing option is definitely for you. Streamline refinance loans are for existing FHA mortgages and generally require a lower interest rate and/or monthly payment as a condition of loan approval. Basically, there must be some type of tangible benefit for an FHA Streamline Refinance loan-the lower payment or interest rate is one of those. But | more...

November 29, 2017

FHA Loan Rules For Loan Approval: Federal Debts and Tax Liens

By Joe Wallace

FHA loan rules for loan approval include instructions to the lender about unpaid federal debts and tax liens. Your chosen participating FHA lender is responsible for verifying your income, employment record, and your monthly financial obligations-which may include tax obligations such as a lien, or a federal debt. Unresolved taxes and federal debt can be a serious issue that will affect a home loan application. The status of such debt is one of the most important factors. According to HUD 4000.1, “Mortgagees are prohibited from processing an application for an FHA-insured Mortgage for Borrowers with delinquent federal non-tax debt, including deficiency Judgments and other debt associated with past FHA-insured Mortgages.” The FHA loan rules in this section also add that the lender is required to determine “whether the Borrower(s) have | more...

November 14, 2017

Do First Time Home Buyers Have Different FHA Loan Requirements? Part Two

By Bruce Reichstein

Do first time home buyers have different FHA loan requirements than those who have owned a home before? The short answer is no-FHA mortgages do not have different terms or requirements for different types of borrowers. First time home buyers may find that an individual lender or financial institution offers incentives for first time buyers, but these programs are not mandated or regulated by the FHA. The FHA loan FICO score minimum requirements, appraisal rules, regulations governing verification of down payment funds and other requirements are identical no matter who is applying. That is not to say that FICO scores and other financial qualifications don’t change how an FHA mortgage loan is handled-in that area borrowers will find different requirements depending on whether the borrower is deemed a good credit | more...

November 14, 2017

Do First Time Home Buyers Have Different FHA Loan Requirements?

By Joe Wallace

Do first time home buyers have different FHA loan requirements? This question is tricky because it’s easy to forget that there are FHA loan requirements but lender standards, state law, and other factors will also have a say in how your home loan is handled. What follows is a discussion about FHA loan program requirements-you may find that your chosen participating lender has additional rules and procedures which also must be followed. FHA Home Loans Are Not Just For First-Time Home Buyers The FHA home loan program is not specifically designed for one type of borrower. That means that borrowers across a diverse range of home owning experience, income brackets, and careers may be eligible for an FHA mortgage, refinance loan, or reverse mortgage. The fact that you have owned | more...

November 13, 2017

Does FHA Have A Disaster Loan Program?

By Bruce Reichstein

Does FHA have a disaster loan program? The short answer is yes, and it is quite different than a standard FHA forward mortgage. The FHA 203(h) loan is available as a new purchase mortgage or a refinance loan. In this case “new purchase” may lead some to believe you are only allowed to buy a new home with an FHA 203(h), but the reality is that you can use the 203(h) to rehab an existing damaged home, or purchase a replacement home. FHA 203(h) Disaster Loans: Unique Requirements FHA 203(h) disaster loans are only approved for those who are in federally-declared disaster areas. You cannot be approved for an FHA 203K(h) mortgage if you are not in a one of the official presidentially-declared federal disaster areas. You can check the | more...

November 10, 2017

What Is The Debt-To-Income Ratio For An FHA Loan?

By Joe Wallace

What is the debt-to- income ratio for an FHA loan? Simply put, it’s the amount of income you have compared to the amount of money you must pay each month on your financial obligations. The debt-to-income ratio (DTI) is an important part of the lender’s calculations that determine whether or not you will be approved for the mortgage loan. Debt-To-Income Ratio Calculations For FHA Loans There are two kinds of debt-to-income ratio calculations. One is made with the borrower’s current income and debts, the other is made with those factors plus the amount of the projected monthly mortgage payment. If you aren’t sure whether you can afford a mortgage loan or not, the second ration will tell you what percentage of your pay will be taken up by your monthly | more...

November 3, 2017

Are There Any Employment Documentation Rules For FHA Loans?

By Bruce Reichstein

Are there any employment documentation rules for FHA loans? Borrowers are naturally curious about how the lender must verify employment, and that curiosity may turn to concern if the borrower isn’t confident that his or her job history is enough to qualify for the FHA loan minimum requirements. What do FHA loan rules tell the lender to do when it is time to confirm your employment for FHA loan purposes? How FHA Loan Employment Verification Works The lender is required to independently verify your employment, which means getting documentation that does not come from any “interested party” associated with the loan. You may give your lender the contact information for your employer, but you cannot provide the required information the loan officer needs to move forward with the loan application. | more...