Articles Tagged With: FHA Mortgage Loan

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

June 15, 2023

FHA Loans and Interest Rates: The Interest Rate Lock

Under the rules of the FHA loan program, borrowers and lenders negotiate together on interest rates for the FHA loan. Part of those negotiations is the interest rate lock agreement. This can feel intimidating for some who aren’t used to the home-buying process, but it’s a common part of the home loan transaction. What do you need to know about FHA home loan rates and getting a rate lock commitment from your lender? The FHA does not set interest rates, and it’s also not responsible for regulating them aside from a general requirement that the rates be comparable to similar types of loans. Interest rates on mortgages and other high-value transactions are under more scrutiny in 2023 due to continued elevated mortgage rates. At the moment, it’s good to explore | more...

June 9, 2023

Should You Apply For An FHA Adjustable-Rate Mortgage?

By Joe Wallace

Borrowers considering their FHA mortgage loan options might wonder about an FHA Adjustable Rate Mortgage or FHA ARM loan option instead of an FHA fixed-rate home loan. It is a great idea to compare the features of both types of loan side-by-side to see which might make sense for you. The motivation to do this now has much to do with the interest rate environment we are still dealing with in 2023–in spite of hopes of improvement as the summer wears on. Why would an FHA ARM loan make more sense for some borrowers? Because an ARM offers a lower introductory or teaser interest rate. You may have the option to keep that rate for a full year or as long as ten years. Much will depend on the type | more...

June 8, 2023

FHA Loans And The State Of The Housing Market in 2023

By Joe Wallace

In the last 12 months, many have speculated about the state of the housing market. We all wonder about when an expected recovery might happen and how quickly we can start reaping the benefits. Before we launch into speculation about the future of FHA loan mortgage rates, it’s a good idea to discuss expectations and how to plan ahead for buying your future home. When Is It The Right Time To Buy A Home? Are you in the planning and saving stages of your home loan? If you are, there’s no reason to speed up that process. just because you expect things to improve in the next quarter of 2023. The same is true for those about to move out of the planning and saving part of the process. If | more...

May 22, 2023

Does Income Affect FHA Loan Approval

By Joe Wallace

The short answer to the question, “Does your income matter” regarding FHA loan approval? Yes, it does. But not the way some borrowers might think. Do you know the issues important to your loan officer when considering an FHA loan application? Income is an essential part of the equation based on the age, dependability, and nature of your earnings. Your income matters if you want to buy or build a home with an FHA mortgage. But there are some misconceptions about home loan approval regarding income. Do you know the difference between the facts and the fiction about home loan income requirements? FHA Home Loans: No Minimum Income FHA loan rules do not specify a minimum earning amount per day, week, month, or year. To be approved for an FHA | more...

May 18, 2023

Last Days To Apply For FHA Loan Forbearance Due To COVID-19

By Joe Wallace

There is not much time left to apply for FHA loan forbearance because of COVID-19-related financial difficulties. Last month, the FHA and HUD published a Mortgagee Letter announcing a final deadline for COVID-19-related FHA home loan forbearance. That final deadline of May 31, 2023, for both FHA purchase loans and FHA Home Equity Conversion Mortgages, also known as FHA HECMs. There is not much time left to apply for FHA loan forbearance, if you have not started an application or discussions with your lender, now is the time to get started. Contact your lender to discuss your options; this mortgage relief requires the participation of your financial institution. COVID-Related FHA Loan Relief: A Timeline On April 1, 2020, HUD announced a new program called Forbearance for Borrowers Affected by the | more...

May 8, 2023

Is It Smart To Apply For A Home Loan Now?

By Joe Wallace

Is now the right time to apply for a home loan? Some say no, and others may not have a choice but to start looking for a new place to live due to circumstances (new job, change in family size, etc.) and can’t afford to wait out the current market. What are these borrowers to do in an era of interest rate volatility? Mortgage Loan Interest Rates Aren’t Stabilizing Yet At press time, the financial blog headlines talk a lot about mortgage rate volatility. When rates are subject to change like this, it’s tough to predict how things might go week to week or day. A stable mortgage market is more predictable than what we’re experiencing now. After 2022, it’s not shocking that the market must experience a degree of | more...

May 4, 2023

Interest Rate Issues And Your FHA Mortgage

By Joe Wallace

How high can mortgage loan interest rates go? The highest mortgage rate in American history may have been recorded at a whopping 18.45%. That rate was for a 30-year fixed-rate conventional mortgage in 1981. And what about the lowest mortgage loan interest rate? That may have been the rate we saw in December 2020; 2.68% for a 30-year fixed-rate mortgage, according to Freddie Mac. What influences mortgage loan interest rates? Not the FHA or HUD; these two agencies do not set or regulate FHA home loan interest rates. But other things do affect the rates, indirectly or not: Fed actions to shore up the U.S. economy (more indirectly), investor reaction to those efforts (more directly than Fed acts), whether or not the economy is growing or shrinking, etc. Some Shouldn’t | more...

April 6, 2023

Buying A Home? Questions To Ask

By Joe Wallace

Are you thinking about applying for a mortgage loan? Here are some important questions you should ask yourself before starting a loan application. Preparing for the issues raised below can help you get off to a good start. Have I Saved Enough For Contingencies? There are plenty of costs some borrowers do not anticipate when planning and saving for their FHA mortgage. You should expect title transfer fees, pest inspection costs, and home inspection fees. These are all standard costs associated with buying a home. But there are also fees that are easy to forget about. Will you have to pay any property taxes at closing time? What about compliance inspection that may be needed after appraisal-required corrections are made as a condition of loan approval? How Much Negotiating Can | more...

March 23, 2023

FHA Loan Down Payments

By Joe Wallace

Borrowers have many questions about FHA loan down payment rules, which can be a tricky issue for some in the beginning–do you know what is required for an FHA loan down payment? For starters, the source of your down payment funds will be scrutinized. You can’t provide a down payment from a credit card cash advance or non-collateralized loan. You cannot use payday loans for your down payment. You cannot use funds from third parties, such as friends or family, from these unapproved sources, either. Sources of down payment funds acceptable to the FHA include cash saved by the borrower, certain retirement funds, stocks or other assets that have been cashed in, certain types of gift funds from a relative may be acceptable if the funds meet FHA requirements, etc. | more...

March 22, 2023

FHA Loan Terms Defined

By Joe Wallace

If you are new to the home loan process, there are some vocabulary terms you’ll want to know as you start to plan and save for your FHA home loan in 2023. It pays to do your homework ahead of time in a housing market like the one we’re experiencing now. Every advantage helps. As you start to research your mortgage options and talk to industry professionals, you’ll likely hear or read some technical terms that may be confusing..at first. The farther you get in the home loan process, the more these new terms will become clear and make sense. Here are some terms you will likely learn more about in the coming months. Comparables You may not experience this loan jargon in the earlier part of the home loan | more...