Articles Tagged With: FHA One-Time Close Construction Loan

February 13, 2020

Get A Better Home Loan Deal By Asking One Question

Some people are born negotiators, and they don’t mind telling the rest of the world about it. But more people seem to feel uncomfortable with the idea even when it’s in their best interest to do so. Are you trying to buy a home? If so, you’ve already committed to spending a lot of money to make this important investment. Why pay MORE if you don’t have to? Negotiating the details of your home loan can save you money and get you a better deal. Does it have to be uncomfortable and awkward? No. Actually, you can negotiate quite successfully by asking one simple question, but that question needs a bit of homework to ask properly. What’s the secret to negotiating a loan? What is that one question? before we | more...

February 12, 2020

Why Buy A Home In 2020?

By Bruce Reichstein

There are many reasons why it’s smart to think about looking for a forever home in 2020; owning instead of renting, the ability to freely customize your living space, being able to apply for cash-out refinancing to convert part of your home’s value into cash, and never having to wait for a landlord to fix a problem in the home. But in 2020 there’s another reason to consider owning a home soon; a Zillow.com report indicates that 2020 is going to be a good year for home values depending on the housing market. The Zillow Home Price Expectations Survey from the 4th quarter of 2019 includes data that indicates U.S. home values may grow by 2.8% in 2020. Rising or hot-again housing markets in the new year include Austin, Texas | more...

February 5, 2020

What Affects The Cost Of Your Home Loan

By Joe Wallace

Shopping around, haggling over terms, and negotiating your home loan are not unusual practices, but some are not comfortable with trying them. Want an advantage in the home loan process? Learn how to do some low-key bargaining as it can save you money and time over the long haul with your home loan. Negotiating with the seller, for example, could get you extra money (provided by the seller) toward closing costs; up to six percent of the sale price of the home! But haggling isn’t the only factor that can affect the cost of your home loan. The Wuhan virus, discussed in the news as a coronavirus or a “coronavirus outbreak”, affected mortgage loan interest rates and sent them to the lowest levels we’ve seen in some time. The virus, | more...

One Time Close Mortgage Loans: The Base Home Sales Price

February 4, 2020

Myths About One-Time Close Construction Loans

By Bruce Reichstein

You can build a house from the ground up using a One-Time Close construction loan; many borrowers want to take advantage of these types of loans as the government-backed versions of the One-Time Close construction loan feature very low down payment requirements and the same financial qualification rules as other VA or FHA mortgages. One Time Close Myth: I Can’t Afford To Build A Home Instead Of Buying One It’s easy to assume that building a home will cost you more money than buying an existing construction property. But what kind of home do you need? Are you building a house to start a family in? Or are you building a home that you want to retire in? The overall cost of your project will depend on details like these, | more...

January 28, 2020

One-Time Close Construction Loan Options For Veterans

By Joe Wallace

There are reasons why some veterans don’t use their VA loan benefits to buy a house at that moment. The reasons for that, we’ll discuss below. But it is important for military members and their families to know the options they have when looking for a home to build on their own lot. There are plenty of options; which type of One-Time Close construction loan to choose from? Those who have entitlement to use for a VA mortgage loan to build a home would seem to choose to do so based on the zero down home loan option all by itself. Add the lack of a mortgage insurance requirement, and the fact that veterans who receive (or are eligible to receive) VA compensation for service-connected medical issues are exempt from | more...

January 27, 2020

Is It Safe To Buy A Home In 2020?

By Bruce Reichstein

Some borrowers are wondering if it is safe to buy a home in 2020. These people may be worried about interest rates taking a sharp move higher (they are currently very low due to issues we’ll discuss below) or about credit becoming harder to come by in the new year. But what is the reality? It’s never been a better time to be interested in real estate, especially for those interested in buying condo units or having a house built for them from the ground up using a One-Time Close construction loan. 2019 was a very interesting year for interest rates; there were times when rates behaved differently than expected, times when they went lower in spite of other pressures that could have driven rates higher instead. And it seems | more...

January 23, 2020

FHA Loan Rules You Need To Know Before House Hunting

By Bruce Reichstein

There are several things you should know about FHA home loans before you go looking for real estate to buy. You can save a LOT of time and even some money by taking extra time to consider the following issues. You Don’t Have To Buy An Existing Home FHA home loans have an option called the One-Time Close construction loan. It lets you build a home from the ground up on your own land. Don’t want to purchase existing real estate? There is an FHA home loan for that and it is offered even to first-time home buyers. The same low 3.5% minimum down payment is available to those who qualify with credit scores and other financials. You Don’t Have To Buy A Suburban Home With An FHA Mortgage Don’t | more...

January 16, 2020

Do You Need To Apply For An FHA Mortgage?

By Joe Wallace

Do you need to apply for a home loan to buy real estate in 2020? FHA mortgages feature a low minimum down payment, allow seller contributions to closing costs, and even permit down payment assistance from approved sources. What does it take to apply for an FHA mortgage? You will need proof of income, tax records, and bank statements. Borrowers also need to have a credit history of some kind, even if non-traditional. FHA loan rules allow non-traditional credit, but lender standards will be very important. FHA Loan Approval Requirements FICO scores between 500 and 579 for a 10% down payment, or FICO scores at 580 or higher for the lowest down payment of 3.5%. You will also need 24 months of employment history as a general rule, and you | more...

The FHA One-Time Close Construction Loan: An Option In 2020

January 15, 2020

FHA Construction Loans Versus USDA Construction Loans

By Bruce Reichstein

Why would borrowers choose to build a home on their own land using an FHA One-Time Close construction loan (which requires a down payment of 3.5%, minimum) instead of a no-money-down USDA home loan? There are several reasons why an FHA mortgage might be the better choice depending on circumstances, even with a required minimum down payment. That down payment is far less than some conventional loans require. USDA Mortgage or FHA Home Loan? USDA construction loans offer an advantage to eligible borrowers thanks to their zero down payment requirement. But a USDA mortgage is need-based, and these loans (even construction loans) have a household income cap. USDA loan rules state that in some cases, borrowers who have assets higher than the USDA limit “…may be required to use a | more...

January 9, 2020

FHA Home Loan Options For 2020

By Bruce Reichstein

What kind of home loan do you need in 2020? You can build on your own lot with an FHA One-Time Close construction loan, you can apply for an FHA mortgage to purchase a mobile home or manufactured house, and you can even find an FHA mortgage for a fixer-upper property. These loans are not need-based, have no income caps, and feature a low down payment requirement. What kind of home loan do you need? Houses You Can Buy And Occupy Right Away Referred to in the real estate industry as an existing construction home, these properties are sold assuming they meet current appraisal and building code regulations or can be brought into compliance without a great deal of difficulty. Existing construction homes have been built for at least one | more...