Articles Tagged With: FHA Mortgage

June 11, 2021

FHA Mobile Home Loans: What You Need To Know

FHA home loans are available for a variety of things including mobile homes, manufactured homes, and modular housing. What do you need to know about mobile home loans offered under the FHA program? Mobile Home Loans Are Specific The home you purchase with any FHA mortgage must be classifiable as real property, which means it must be taxable as real estate regardless of whether or not it is actually taxed in your state. Real estate refers to properties that have a permanent foundation. FHA loans for mobile homes are under the Title 1 program. Mobile homes that will not be permanently affixed to a permanent foundation that meets FHA standards cannot be approved for an FHA home loan. FHA Mobile Home Loans For Lot And Home Yes, FHA mortgages can | more...

June 8, 2021

What To Do If You Need Down Payment Assistance

By Bruce Reichstein

Some borrowers worry that they can’t save up enough money for their home loan down payment. Fortunately, many states feature programs that can help these borrowers who may otherwise qualify for an affordable home loan but struggle with their down payment requirement. If you are considering an FHA mortgage but need down payment help, there are programs offered by state and local agencies that may be able to help you soften the economic blow of that 3.5% down payment requirement imposed by the FHA. Not all down payment assistance meets FHA loan guidelines–you’ll need to make sure that whatever the source of your down payment assistance, you meet the sourcing requirements for the money. That means having a clear paper trail from the person providing your down payment assistance. Your | more...

June 4, 2021

FHA Home Loan Down Payment Assistance

By Bruce Reichstein

Do you worry about making a down payment on a home loan? There are home loans that require higher down payments than others but the FHA loan program requires only 3.5% down for borrowers with qualifying FICO scores. FHA loan rules in HUD 4000.1 say: Borrowers with FICO scores at 580 or higher qualify for the lowest down payment. Borrowers with FICO scores between 500 and 579 are required to put 10% down. These are FHA guidelines, not individual lender standards. FHA home loans don’t have a zero down payment option, but FHA construction mortgages allow the borrower to use land equity as part of the down payment where applicable. But borrowers don’t always have to make the downpayment themselves thanks to down payment assistance programs that can help. Here | more...

June 3, 2021

Choosing The Right Home Loan

By Bruce Reichstein

Are you considering the purchase of a home? Among the options, you need to consider? The right kind of home loan for the right type of borrower. There are many loan programs out there with a variety of government-backed mortgages to choose from including USDA, FHA, and VA. There are also Fannie Mae and Freddie Mac loans. When exploring those home loan options, some borrowers want the lowest upfront costs possible, which makes sense when a borrower has other goals for that money, and making a down payment would hurt those plans. Some borrowers may need that money at another point, and seek out down payment assistance in the form of grants, loans, etc. One type of home loan that features a low down payment of 3% and allows down | more...

May 24, 2021

Credit Building For First-Time Home Buyers

By Joe Wallace

Are you interested in buying your first home but aren’t sure how to improve or build up your credit to give yourself a better shot at home loan approval? FHA mortgages have more lenient credit approval requirements than conventional mortgages but even those applying for FHA mortgages need to ensure their credit scores are in an acceptable range for the most affordable home loan possible. In some cases it is a good idea to consider applying for smaller credit first. This may be in the form of store credit cards or similr lines of credit. But what should a new borrower know about doing so? Building credit takes time and patience–it is unrealistic to expect results in a few weeks or even a few months. If you have never applied | more...

Home Loans For Building On Your Own Land

May 11, 2021

Unique FHA Construction Loan Rules

By Bruce Reichstein

It can be more exciting to build a home from the ground up to your specifications than buying existing construction. Some borrowers prefer to have more say in the design of their homes and that’s where an FHA One-Time Close construction loan comes in. If you want to build a home on your own lot using a construction-to-permanent loan, also known as a One-Time Close mortgage (AKA the “single-close” construction loan), you should know that certain home loan rules are different for construction loans than for existing construction mortgages. There are some aspects of construction loans the borrower applying for an existing construction home loan won’t have to deal with, and there are specific rules for unique issues associated with building a home. For example, when applying for an FHA | more...

May 10, 2021

What You Need To Know About FHA Jumbo Loans

By Bruce Reichstein

How much home loan can you apply for successfully? The answer, depending on the housing market and other variables, might surprise you. It’s one thing to apply for a home loan that meets or is lower than the annual county limit established by the Federal Housing Finance Agency (FHFA). Those loans are easier to qualify for because they can be purchased or guaranteed by Fannie Mae and Freddie mac. They are known as conforming loans. But what about those who seek loans that are priced higher than that per-county limit? The answer itself is simple–borrowers can apply for a loan that exceeds county limits. These higher loans are called jumbo mortgages. Borrowers who qualify for them can get a home loan that’s higher than the county limit. But before you | more...

May 7, 2021

Can I Make A Home Loan Down Payment With Bitcoin?

By Joe Wallace

What can consumers who own Ethereum or other cryptocurrencies do with these funds? There are many platforms for buying and selling virtual currencies themselves, and more shopping options open up for Bitcoin and other crytpo all the time. Some house hunters who are invested in cryptocurrencies are wondering whether it is possible to make a down payment on a home with Bitcoin or other virtual cash. The answer to the house buying question depends on the nature of the transaction–for example, an arrangement between a seller and a buyer involving Bitcoin may be possible if all parties can agree. But what about when a lender gets involved? If you have a situation where a buyer wants to use Bitcoin or other virtual currencies to make a down payment on an | more...

April 29, 2021

Fair Housing Month Ends With New Discrimination Cases

By Bruce Reichstein

Fair Housing Act laws ensure all Americans have recourse if they are illegally discriminated in the housing process. The month of April is Fair Housing Month, commemorating the passage of the Fair Housing Act and drawing attention to the ongoing need for federal enforcement of laws designed to prevent discrimination in the housing process. The 2021 Fair Housing Month observation began with a campaign–the Real People Real Results campaign–which celebrates “…the heroism of those who took a stand against housing discrimination and acknowledges the staff and fair housing partners work to prevent discriminatory harassment”. This campaign recognizes an important issue. Sometimes the only people with the power to stop future violations of the Fair Housing Act are those who were victims of discrimination. In the last days of April 2021, | more...

April 23, 2021

The FHA Home Loan Myth

By Joe Wallace

There is a prevailing myth about FHA home loans that persists to this very day–the idea that FHA mortgages are ONLY for first-time home buyers and/or the economically disadvantaged. FHA home loans are thought to be exclusively for these borrowers, but that is definitely NOT TRUE. FHA home loans are for any financially qualified borrower with FICO scores over 500 (the FHA minimum, not your lender’s minimum standard). Some confuse the FHA loan program with the USDA Single-Family home loan program, which DOES have income limits and is aimed at borrowers who are in financial need. USDA mortgages have a no money down option for qualifying borrowers but the homes purchased with these mortgages must be in USDA-approved areas and feature household income caps. FHA mortgages, on the other hand, | more...