Articles Tagged With: FHA Mortgage

January 5, 2021

FHA And HUD Announce Streamlined Loan Paperwork

The FHA and HUD have in the last year made efforts to streamline and revise aspects of the Single Family Home Loan program to increase the security of the program and make certain certification issues easier for participating lenders. HUD.gov announced it had finalized a revised loan-level certification form which is required as part of the FHA Single Family home loan process. Lenders must submit this form to the FHA for each home loan. What is the revised form? HUD Form 92900-A, Addendum to Uniform Residential Loan Application, this form is an FHA requirement and must contain signatures from the underwriter or “other lender representatives”, along with the signature of the loan applicant. The revised HUD Form 92900-A may be used by lenders immediately. It is required for all transactions | more...

December 17, 2020

FHA Condo Loan Basics You Should Know

By Bruce Reichstein

Some borrowers are surprised that you can choose an FHA condo loan; some view condo units as more of a luxury-type housing option or somehow otherwise out of their price range. But FHA home loans include a condo loan option and the FHA official site explains how it works; “Section 203 (b) of the National Housing Act provides authority to insure any mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project.” FHA home loans can be approved for condo units for up to 30-year terms (purchase or refinance) for units in an FHA-approved condominium project OR, as FHA.gov describes, “in a project that is not FHA-approved but meets the Single-Unit Approval requirements”. How does a condo | more...

December 16, 2020

FHA Construction Loan Rule Changes In 2021

By Joe Wallace

The FHA One-Time Close construction loan, also known as a construction-to-permanent mortgage or simply as a home construction loan, is an option for home buyers who want to build a home from the ground up. There are USDA versions of this type of loan (with income caps and other need-based restrictions), there’s a VA One-Time Close loan for qualifying military personnel, and there is also the FHA One-Time Close construction loan which features a low 3.5% down payment the same as all other FHA purchase loan options. The FHA and HUD have announced changes to the FHA One-Time Close program in 2021. These changes will formalize certain elements of the program, and change others as we’ll see below. HUD has changed its maximum financing policy and other requirements for New | more...

Build on your own lot. Construction loan basics

December 9, 2020

Build Your Dream Home From The Ground Up With A One-Time Close Construction Loan

By Bruce Reichstein

You don’t have to buy someone else’s property if you are interested in owning your own home. You can–even as a first time home buyer–build a home from the ground up instead. The FHA One-Time Close mortgage, also available to qualifying military members as a VA construction loan, is a great choice for the right borrowers. But who should consider this type of home loan? Timing Counts FHA Construction Loans and VA One-Time Close mortgages are not good choices for those in a hurry. If you need housing quickly it is best to explore your FHA or VA mortgage loan options for existing construction. If the timing of your loan cannot be changed, you need a house NOW, and you cannot wait, there are good reasons to wait on building | more...

December 4, 2020

2021 FHA Home Equity Conversion Mortgage Loan Limits

By Joe Wallace

The Department of Housing and Urban Development has published FHA loan limits for the FHA Home Equity Conversion Mortgage (HECM) loan program for 2021. Home Equity Conversion Mortgages, also known as FHA Reverse Mortgages, are offered to financially qualified borrowers age 62 or older who either own their homes outright or are very close to doing so. FHA HECM loans feature no monthly payments; the borrower receives cash from the loan based on terms negotiated with the participating lender; the loan is normally due when the borrower dies or sells the home. The loan may also be declared due in full if the borrower quits using the property secured by the HECM loan as their primary address. Borrowers are required to use escrow to pay property taxes and must follow | more...

November 30, 2020

Common Questions About FHA Mobile Home Loans

By Bruce Reichstein

FHA home loan options include FHA mortgages for mobile homes. You can buy a mobile home, manufactured home, or modular home using an FHA mortgage and there are many common questions about this type of FHA mortgage option. What Does the FHA Define As A Manufactured Home? The FHA official site describes a mobile home (also known as a manufactured home) as a property built “to the Manufactured Home Construction and Safety Standards (HUD Code) and displays a red certification label on the exterior of each transportable section”. The FHA official site also states that manufactured homes are built “in the controlled environment of a manufacturing plant” and are transported in one or more sections on a permanent chassis. FHA loan rules state that any mobile home must be affixed | more...

October 28, 2020

Why Did My Mortgage Payment Increase?

By Joe Wallace

Some borrowers discover their monthly mortgage payment has gone up and wonder why. Regardless of whether your home loan is an FHA mortgage, a VA home loan, or a conventional mortgage, there are reasons why you might have experienced an increase in your monthly mortgage payment amount. If you see changes in your mortgage payment that you don’t recognize or understand, the first thing you should do is to reach out to your loan servicer to get more information. Don’t simply accept the change if you don’t understand why it happened; consumer advocacy groups such as the government’s Consumer Financial Protection Bureau remind home owners that sometimes a change in your mortgage payment could be a simple mistake by the lender and one that could be immediately addressed with a | more...

September 15, 2020

Is A Property Eligible for an FHA Mortgage Loan If It Has Asbestos?

By Bruce Reichstein

Borrowers interested in purchasing older properties using an FHA insured mortgage could face several challenges depending on the nature of the property. For example, some buildings insulated or otherwise constructed with asbestos products could pose a health hazard. FHA rules include minimum property requirements for safety, which address situations like these. Is a property eligible for an FHA loan if it has asbestos in it?

FHA One-Time Close Construction Mortgage Basics

July 19, 2020

FHA One-Time Close Construction Loan Rules

By Bruce Reichstein

What do borrowers need to know about FHA One-Time Close construction loans? There are two very important areas to keep in mind. One involves the lender’s specific requirements to qualify for this single-close construction loan, and the other involves FHA loan rules. The two are not always identical and this is something to be aware of when going into the loan application process. FHA One-Time Close mortgages are different than existing construction loans because the home must be designed, built, and paid for from the ground up and there are varying time frames under which this will be done. Purchasing an existing construction home means getting to move in much more quickly, but the trade-off is that you are purchasing someone else’s home rather than having one built especially for | more...

May 20, 2020

Mortgage Relief Scams To Avoid

By Joe Wallace

In an age where millions of Americans have applied for coronavirus-related mortgage relief, there are also con artists at work trying to steal money they haven’t earned from people who cannot afford to lose what money they have. What should you be aware of to avoid being conned while seeking home loan relief or foreclosure avoidance? Beware Mortgage Relief Scammers Some scammers just make random phone calls, hoping to strike gold. Others are far more careful and methodical. In those cases, mortgage relief scams often rely on a con artist viewing public records of homes that may be in the pre-foreclosure process, targeting these owners and hoping to take advantage. One of the hallmarks of a mortgage relief scam? The scammer comes in with promises to save the home outright, | more...