Articles Tagged With: FHA

One Time Close Mortgage Loans: The Base Home Sales Price

February 4, 2020

Myths About One-Time Close Construction Loans

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...

February 3, 2020

HUD Updates Manufactured Housing Policy

By Bruce Reichstein

The Department of Housing and Urban Development announced a final rule on formaldehyde emissions standards for manufactured homes. These updates clarify issues related to compliance with The Toxic Substances Control Act (TSCA). HUD officials on record recently about the American affordable housing situation, label it a crisis and acknowledging that the “affordable housing crisis can’t be solved by one measure alone” though the issue of conforming with other federal guidelines addressing toxic substances is an important one. HUD updates in policy include revisiting the rules “for the installation of carbon monoxide alarms or detectors; and additional provisions for homes designed for structures attached at the site, including garages and carports” and the HUD final rule on formaldehyde emissions for manufactured homes “aligns HUD’s regulations with other federal guidelines”. HUD’s Office | more...

January 29, 2020

HUD Announces New Policy On Service Animals

By Bruce Reichstein

The Department of Housing and Urban Development (HUD) announced updated guidance regarding the use of service animals and emotional support animals as it relates to Fair Housing Act issues. The issue of support animals might not seem to be related to the purchase of real estate with an FHA home loan, not at first. But Fair Housing rules do affect all stages of the house-hunting process including renting a home while you are looking for one to purchase with the help of a realtor, or on your own. The HUD announcement discusses a need for reasonable accommodation in housing for those who need service animals or emotional support animals. The agency has released an “Assistance Animal Notice” designed to help all parties understand how to best comply with Fair Housing | more...

January 20, 2020

Happy Martin Luther King, Jr. Day

By Bruce Reichstein

Happy Martin Luther King, Jr. Day 2020! Banks and markets are closed today to observe the holiday and we too feel it’s very important to remember this important day. America owes a great deal to Dr. Martin Luther King, Jr. We are proud to observe this day dedicated to him and pause our regular coverage of FHA news and FHA loan topics to observe the holiday. We resume our usual schedule of posts tomorrow. Thanks for reading!

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 2, 2020

How To Buy A Home In 2020

By Joe Wallace

Need to know how to buy a home in 2020? Making a plan to become a home owner includes budgeting, research, and even sharpening your negotiating skills. Are you ready to start your home loan journey? Shopping Around For A Home AND A Home Loan FHA mortgages allow first-time borrowers and experienced home owners alike to apply for a loan to buy or build a property. But you don’t have to limit your search to one kind of home OR one kind of FHA mortgage. For example, you could apply for an FHA Condo loan to purchase a condominium unit, or you could buy a mobile home or townhouse. FHA mortgage loans allow you to buy properties with as many as four living units, and that could be any number | more...

December 31, 2019

Apply For An FHA Loan

By Joe Wallace

If you are considering any type of home loan, be sure to explore your options with FHA mortgages, refinancing, or reverse mortgages. FHA loans offer a variety of advantages over conventional mortgages including lower interest rates (based on your financial qualifications), built-in protections for the buyer, and more. FHA New Purchase Loans There are many options with an FHA mortgage for single-family homes. New purchase loans include the option to add extra funds to the loan for energy-efficient upgrades or improvements. You can also consider purchasing a fixer-upper using an FHA rehab loan where funds are made available to repair/upgrade the property to FHA minimum standards. The loans mentioned above are intended for owner-occupied residences and would be not be available for investment properties. An FHA new purchase loan or | more...

December 19, 2019

FHA Loans And Buy-To-Let Mortgages

By Joe Wallace

What is a buy-to-let mortgage? These loans, popular in Britain and elsewhere, are basically designed for investment property buyers. They are similar in purpose (not in terms or conditions) to bank statement loans in that both are intended to help investors and small business people. FHA home loans do not include a buy-to-let loan, but those who want to be owner/occupiers can purchase a property with as many as four living units with an FHA mortgage. You can buy a multi-unit home with an FHA mortgage, live in one or more of the units, and rent out the unused units to other tenants. This is completely acceptable under the terms of the FHA Single-Family home loan program. The requirement is that you live in the property yourself. Buy-to-let loans that | more...

December 18, 2019

FHA Home Loan Appraisals: What You Should Know

By Joe Wallace

Borrowers have plenty of questions about the FHA appraisal process. After all, if the appraisal doesn’t go well, it could mean the borrower has to decide whether to walk away and find something else or deal with the issues uncovered by the appraisal. What is the real issue with FHA appraisals that confuses many borrowers? The fact that there are multiple standards that must be met and not just the ones that are set by the FHA and HUD. House hunters write us frequently to ask if a certain appraisal issue will affect their home loan. And the simple answer is that there is no easy answer to appraisal questions because of one huge variable. And that variable is what state and local building code requirements say in addition to | more...

December 16, 2019

What You Need To Get Ready For A Home Loan Application

By Joe Wallace

What do you need to get ready for a home loan application? Some things are practical and common-sense moves such as deciding in advance what kind of property you want to buy, while others are more about aesthetics such as the kind of neighborhood you want to live in, choosing urban or rural areas, etc. Why take this extra time? For a start, knowing what kind of property you want can require some serious thinking. The range of styles available alone may seem intimidating to some. In 2019, some of the most popular and most widely-searched for home styles included Farmhouse style, Colonial house style, Cape Cod house style, Spanish style house, and Art Deco style. Starting early can help you weed out the ones you might like versus those | more...