Articles Tagged With: FHA Mortgage News

July 6, 2022

VA One-Time Close Construction Loan Options for Military Veterans Expanded

Some house hunters get fed up with looking for just the right home, while others start out their home loan journey knowing in advance they want a house built for them. What options do these borrowers have? There is an FHA home loan known as the FHA One-Time Close / Single-Close construction loan that lets borrowers apply for a single loan that covers both construction costs and the mortgage itself. The FHA version of this type of construction loan requires the borrower and lender to work together to establish a plan for the project including estimated completion times, interest rates, budgets, and more. Some borrowers aren’t interested in FHA home loans since they have other options; do qualifying military veterans have a VA loan version of the FHA One Time | more...

June 29, 2021

Can I Assume An FHA Mortgage?

By Bruce Reichstein

Can I assume an FHA mortgage? That is a question on the minds of those looking to take over an FHA home loan from the original borrower. Loan assumptions are a bit different than a new purchase home loan application, though the borrower must be able to afford the loan in both cases. The short answer is that yes, in most cases with lender participation you may be able to assume an existing FHA home loan from the original borrower. A credit check may or may not be required (see below) depending on circumstances, and lender standards. It’s the lender’s job to determine whether or not the loan assumption will happen-FHA loan rules in HUD 4000.1 permit the assumption of an FHA mortgage, but the process requires the lender’s participation. | more...

July 14, 2020

FHA Loan Limits For High-Cost and Low-Cost Areas

By Bruce Reichstein

FHA mortgages have limits established by county–the limits are not the same in all markets or in all zip codes nationwide. It is true that FHA loan limits are the same for a great many zip codes, but not all. FHA loan limits vary depending on whether the housing market in question is in a high-cost area, a low-cost area, or one that is “typical”. And the amount of the FHA loan limits have nothing to do with the borrower’s ability to qualify for a loan or for a specific amount–you can’t qualify for a higher loan limit by having a better FICO score. FHA home loan limits are set nationwide, usually once at end of the previous year–the annual limits are posted by the FHA and HUD, and go | more...

October 10, 2019

New Housing Appraisal Rules? Not So Fast, FHA Loans

By Joe Wallace

If you haven’t paid attention to recent headlines in the mortgage finance sector, you may not be aware that starting October 9, 2019, some house sales priced at or below $400,000 no longer require an appraisal. That news has some house hunters and home sellers jumping for joy. At least at first. Since the mid 1990s, appraisals have not been required for each and every home sale. Homes priced at or below $250 thousand may or may not have required an appraisal (more on that below), but over time, the numbers have shown that home prices have gone up significantly since then. Hence the move to change the appraisal threshold. The FDIC, in partnership with two other government agencies issued the proposal to increase the appraisal limit, the rule was | more...

September 20, 2019

What You Should Know About Mortgage Loan Interest Rates And The Fed Rate Cut

By Bruce Reichstein

The week of September 16, 2019, the Fed cut interest rates for the second time in the year; the 25 basis-point rate cut alters the Fed rate but is not a direct cut or change to mortgage loan interest rates. Interest rate decline in 2019 have pushed more home owners toward refinance loans and many wondered if the latest Fed cut would affect mortgage loan rates in a refinance-friendly directions. Fed rate cuts do not get applied directly to mortgage loan interest rates, but investor behavior following the announcement of a rate adjustment, during the adjustment itself, and the aftermath may have a definite influence on mortgage rates. So if you find yourself wondering whether the Fed rate cut will change home loan interest rates, watch the investors and their | more...

September 12, 2019

Homes You Can And Cannot Buy With An FHA Mortgage

By Joe Wallace

What kinds of homes can you purchase using an FHA mortgage loan? It does not matter whether you are a first-time home buyer or an experienced borrower, the FHA mortgage option (as well as FHA refinance loan options) are open to any financially-qualified borrower. Homes You Can Buy With An FHA Home Loan: Condominiums The FHA condo loan program was revised in 2019 to include the approval of qualifying individual condo units in projects not on the FHA approved list. That means that it is easier to find a purchase a condo unit with an FHA mortgage. Some believe condos to be closer to the luxury side of real estate buying, but condo units are popular, especially in larger metropolitan areas. The FHA loan program allows borrowers to purchase condo | more...

September 3, 2019

HUD Announces Fair Housing Charges Against Colorado Landlords

By Bruce Reichstein

Housing discrimination can affect any stage of the house hunting process. And even when that discrimination occurs with a rental property, it can seriously affect the ability to locate and purchase a home. House hunters who need to rent during their journey to home ownership have it difficult enough with all the paperwork and preparation in the home buying process. They don’t need violations of federal law making the process harder, and sometimes the victims of such discrimination are the only ones who have the power to stop future vioations. The U.S. Department of Housing and Urban Development (HUD) has announced Fair Housing Act charges for owners and manager of a complex in Gunnison, Colorado. David B. Welch, John H.Welch, and Ruth E. Welch are all named as Respondents in | more...

April 5, 2019

FHA Loan Facts

By Bruce Reichstein

When you start doing research on home loans and want to learn what it takes to qualify for an FHA mortgage loan as either a first-time home buyer or as a return borrower, you will find websites with lists of loan approval requirements. Some of those FHA home loan approval requirement lists look like this: A credit score of 580 or higher for the lowest down payment A debt-to-income ratio of 43% or less 3.5% down payment 1-2 years of consistent employment history A property that meets FHA standards OR A home eligible for FHA 203k rehab loan financing You may find a caveat on lists like these stating that they are “general guidelines” and that is true. What isn’t always included in those caveats is that additional lender standards | more...

December 29, 2018

FHA Loans Are Available During The Government Shutdown

By Joe Wallace

Are FHA home loans available during the government shutdown? The answer is yes in many cases, with the exception of Reverse Mortgages and Title I loans. FHA Condo loans may be affected by the government shutdown depending on whether or not the condo project was on the FHA approved list prior to the shutdown or not. The FHA and HUD official sites have notices stating that the websites will not be updated until the government reopens, and many functions of the FHA and HUD will be limited or unavailable. According to HUD.gov, there are a list of guidelines you should know during this time that will affect how FHA loans are handled. The official site states that HECM loans and Title I loans cannot be endorsed during the shutdown: “The | more...

Home Buying, FHA Loans, And Mortgage Trends

December 12, 2018

Questions To Ask About Buying A Home With An FHA Mortgage

By Joe Wallace

Thinking of buying a home with a mortgage loan? FHA mortgages have options you should think seriously about-and not just for the purposes of buying the home and moving in. What Options Do I Have To Make A Lower Down Payment On My FHA Loan? This question is best answered depending on why it’s asked; are you in need of lower out-of-pocket expenses for your mortgage or do you need to know what FICO scores will let you qualify for a lower down payment? Down payment assistance programs may be available from third-party agencies in your housing market. As long as these down payment programs meet FHA standards and state law, an FHA borrower may apply for them. The FHA itself does not offer down payment assistance. Borrowers may also | more...