Articles Tagged With: FHA Mortgage

June 8, 2023

FHA Loans And The State Of The Housing Market in 2023

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...

June 5, 2023

HUD Takes Action To End Appraisal Bias

By Joe Wallace

The Department of Housing and Urban Development is acting against bias in the appraisal system. “Owning a home provides a path to the American dream. Yet, that dream has been deferred for Black and Brown people, as we have consistently had our homes under-valued,” according to HUD Secretary Marcia L. Fudge, quoted in the 1 June 2023 HUD press release on these appraisal reforms. Fudge adds, “Having your home undervalued is bigger than just a number on a page. It can be the difference between getting a loan and not – between having enough money for retirement or not.” According to Fudge, the PAVE Task Force is a project meant to focus on “taking bold action to address appraisal bias – and renewing our commitment to doing everything in our | more...

June 1, 2023

Buying Your First Home With An FHA Mortgage

By Joe Wallace

If you’re thinking about buying your very first home and you want to save money on your down payment, an FHA mortgage is an option to consider because of the minimum 3.5% down payment. FHA loans have more forgiving credit requirements than some conventional loans, and the interest rates are traditionally lower than conventional mortgages. Perks of an FHA Mortgage: Pay Off Your Home Early Without Penalty The lender cannot legally charge a penalty for an early payoff of your FHA loan. You can pay extra on your mortgage, make extra payments, refinance the loan, or sell the property to pay it off earlier than scheduled. FHA Loan FICO Score Requirements in 2023 FHA minimum FICO score requirements say you must have a FICO score of 580 or better to | more...

May 26, 2023

Is Your Credit Ready For A Mortgage?

By Joe Wallace

Do you worry about your ability to obtain or use credit because of identity theft, errors in your credit report, or coronavirus-related financial issues that still linger even after the end of the pandemic? You can protect your credit and work on your credit rating; you don’t have to sit idly by and wonder what’s happening with your FICO scores and credit report. One of the first steps for many is to use credit monitoring. This type of service offered by third parties allows you to see changes in your credit report, including activities and scores (over a period of time, not necessarily in real-time) that may affect your ability to get credit in the future. Credit monitoring is a good way to start because using such a service makes | more...

May 25, 2023

Do FHA Loan Payments Increase Over Time?

By Joe Wallace

Could the monthly amount due on an FHA mortgage increase over time? If you want a fixed-rate mortgage, that may seem like a silly question. After all, isn’t the idea behind a fixed-rate home loan to provide predictability and stability in the payments? The short answer is yes, but there are still factors that could change the total amount of mortgage-related expenses over time. Depending on circumstances, the amount you owe each month may change depending on variables such as changes in your insurance, property taxes, and homeowner’s association fees. Adjustable Rate Mortgages Your monthly mortgage payment will change if you have an Adjustable Rate Mortgage or ARM loan. An ARM loan features an introductory period with a (typically lower) “teaser” rate, but once that introductory period ends? The home | more...

May 23, 2023

FHA Loans: Existing Construction, New Construction

By Joe Wallace

Which type of property should you buy? A brand-new home, a house that has been on the market for some time, or a house you propose to build from the ground up using an FHA One-Time Close construction loan? This is a question raised by a Yahoo! Finance article from May 20, 2023. That article observed that in the current mortgage market, some borrowers may be getting good deals by purchasing recently built homes; homes that have never been owner by another person. “While the average mortgage rate remains stuck above 6%, buyers of new homes are getting a much better deal,with borrowers buying homes far below the mortgage rate reported at the time this article was written; 6.5%. According to that article published by Yahoo! Finance, house hunters looking | 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 16, 2023

FHA Home Loan Numbers You Need To Know

By Joe Wallace

What numbers do you need to know when researching your options for an FHA mortgage? The amount of your down payment, mortgage insurance, and how much your seller may contribute toward your closing costs are all important to know in your new mortgage’s planning and saving stages. FHA Loan Numbers: Down Payments FHA loan rules say if you come to the application process with FICO scores at 580 or above you can make the lowest down payment; 3.5% of the price of the home. FHA loan rules say those with FICO scores between 500 and 579 must put down 10%. As you can see, it pays to work on your credit well before your loan application. FHA Loan Numbers: Appraisal Fees There is no set national price for appraisal fees, | 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...