Articles Tagged With: FHA Mortgage

September 27, 2021

Buying A Condo With An FHA Mortgage

Are you interested in buying a condo unit with an FHA home loan? It’s an option some borrowers don’t realize they have–some make assumptions about the FHA home loan program and the availability of loans for condo units. But the fact is that an FHA mortgage can be used to purchase a condo the same as any suburban home though there are some considerations to remember when making this type of purchase. FHA condo loans feature the same basic qualifying terms as other FHA mortgages for mobile homes, suburban homes, etc. This type of FHA mortgage is, like all other FHA mortgages, open to first-time buyers AND those who have owned a home before (even in the last three years). You will be approved for the FHA condo loan based | more...

September 24, 2021

Home Loans After Chapter 13 Bankruptcy

By Joe Wallace

Those looking for home loans in the wake of a Chapter 13 bankruptcy often get conflicting messages about when, how, and even whether they can apply. Circumstances and causes of bankruptcy may vary, but borrowers often ask the same kinds of questions about what their options are after the proceedings are done. A typical version of such questions may go like this: “I had a bankruptcy that was discharged and I was told I needed to wait two years before I can apply for an FHA loan. But other sources say I have to wait longer. What is the reality? How long do I have to wait to apply?” What follows is advice about how long you might have to wait but keep in mind that the clock starts ticking | more...

September 23, 2021

Bad Credit And FHA Home Loan Options

By Joe Wallace

The term “bad credit” tends to feel a bit stigmatizing. Borrowers who have had past difficulty with credit have it hard enough trying to recover from the stigma of their previous credit issues without being confronted by those problems every time they want to start working on their credit. Is there such a thing as a bad credit FHA loan that can help people become homeowners and get a fresh start with credit? Technically the answer is, “it depends”, which isn’t very reassuring. But the truth of the matter is, there are FHA standards that technically make the concept of a bad credit mortgage a reality. After all, on paper FHA loan rules state that a borrower with FICO scores in the 500 range could still technically qualify for an | more...

September 22, 2021

Buying A Home: Your Down Payment

By Bruce Reichstein

What are the rules for FHA loan down payments? Some first-time homebuyers looking for a first home don’t realize you can’t just make the down payment by providing a check to your lender. There are strict rules about down payments–they must come from approved sources, they must be accompanied by any supporting documentation showing where the money comes from, etc. You, the borrower, are allowed to apply for a home loan and make a down payment on the house you make an offer on, but when you make that down payment you must document the sourcing of the money. As in, where did it come from? A cashed-in investment? That’s permitted under FHA loan rules. Did your down payment money come from a pink slip loan or a credit card | more...

September 15, 2021

How To Avoid A Mortgage Closing Scam

By Joe Wallace

The government’s consumer watchdog agency, the Consumer Financial Protection Bureau (CFPB), has a page dedicated to warning house hunters about home loan closing scams. According to CFPB documents,FBI warnings about home scams include attempts to “phish” your personal information with the purpose of tricking a potential borrower into diverting the payment of closing costs and down payment to a destination that is NOT your lender. In a single year alone, these mortgage closing scams cost almost one billion dollars. Want to know how you can keep this from happening to you? Scammers trying to pull these types of phishing attacks target people in the mortgage industry–they find legitimate email addresses and “spoof” them, making the email appear to be from a real address. But the email is full of hacking | more...

September 14, 2021

What’s In Your Mortgage?

By Joe Wallace

If you are new to the home buying process and are still house hunting, chances are good you might not be thinking about the ups and downs of your monthly mortgage payment. Some find it difficult to wade through home loan paperwork–there is a lot of print and fine print to digest in the best of times. What should you expect from your monthly mortgage bill and what do you do if you find errors or other issues on your monthly statements long after the loan has closed? The Consumer Financial Protection Bureau or CFPB advises consumers to carefully review their monthly mortgage statement. You will want to review the following sections for accuracy each month and to make sure there are no surprises: Customer service contact information the lender/servicer | more...

September 13, 2021

Home Loan And Home Ownership Tools From HUD

By Joe Wallace

Are you a first-time home buyer trying to get good advice on how to prepare for a home loan? Are you interested in an FHA Reverse Mortgage, but not sure about where to find approved housing counseling for an FHA Home Equity Conversion Mortgage (HECM)? Or perhaps you are a current homeowner with an FHA mortgage trying to avoid foreclosure? In every case, the FHA and HUD have housing counseling resources you can use to make more informed decisions about purchasing, refinancing, or saving your home. Did you know that the HUD official site has a page dedicated to housing counseling resources? You can find it at their official site: The HUD Office of Housing Counseling As the official site reminds, “HUD sponsor housing counseling agencies throughout the country that | more...

September 10, 2021

Your FHA Mortgage And Natural Disasters In 2021

By Bruce Reichstein

In the early days of the month of September, the FHA and HUD have made a number of announcements regarding disaster relief for portions of the country that have experienced fires, floods, and hurricanes. The agencies have, from the start of September to September 10, 2021, issued no fewer than seven announcements related to disaster relief. The first of those, dated September 1, 2021, includes the following related to disaster relief measures for those who are in presidentially declared federal disaster areas: Foreclosure relief – There is an automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages beginning on the date of the major disaster declaration; Call the FHA Resource Center at 1-800-304-9320 for assistance FHA Rehab Loans — FHA Section 203(h) Rehabilitation Loans for disaster victims | more...

September 7, 2021

HUD Charges Florida Condo Owner’s Association With Fair Housing Act Violations

By Joe Wallace

There are many different forms of housing discrimination and such violations of federal law can happen at any stage of the housing process. That means you can find examples of violations of the Fair Housing Act in many other places besides the rental application process, the home loan application process, or even the refinance loan system. Did you know that housing discrimination cases are also found in areas such as the decisions of homeowner’s associations? That’s an area that doesn’t get discussed much in home loan circles, but violations of the Fair Housing Act have disastrous effects for those who seek housing. One good example of this is found in a September 2021 press release at the Department of Housing and Urban Development’s official site announcing charges against a condo | more...

September 2, 2021

Advice For Homeowners Affected By Natural Disasters in 2021

By Joe Wallace

American homeowners have been hard hit by natural disasters in 2021; everything from forest fires to hurricanes and tropical storms have beset homeowners on both coasts and in many places in-between. Add to that the complications of the COVID-19 pandemic and you get a lot of financial hardship for those who have had to evacuate, and for those who have experienced lost or damaged homes and property. The FHA and HUD have specific disaster-relief policies for those affected by natural disasters; if you have been affected by a storm, fire, or any other type of natural disaster it’s vital to contact your participating lender immediately to discuss your home loan options during the recovery phase. FHA loan rules for those affected by natural disasters may include limited foreclosure moratorium procedures | more...