Articles Tagged With: FHA

June 23, 2019

Can I Buy Investment Real Estate With An FHA Mortgage?

This is a question on the minds of many and the issue definitely has some nuances. The FHA lender’s handbook HUD 4000.1 states “Investment Properties are not eligible for FHA insurance.” But what is the FHA definition of an investment property and how flexible are these guidelines? To understand what constitutes an investment property, we have to examine what the FHA considers as an acceptable purchase and what is considered an investment property. FHA mortgages are intended for owner-occupiers. At least one borrower obligated on the mortgage must live in the home as the principal residence. FHA loan rules require this to happen “within a reasonable time” after the loan closes and that time is often considered 60 days unless other arrangements are made. FHA loan rules do permit, if | more...

June 21, 2019

FHA Home Loan Mortgage Rates

By Joe Wallace

Just as we headed into 2019, the FHA and HUD announced higher FHA loan guaranty limits for the new year, giving most counties a boost in the dollar amount the FHA would back for an FHA mortgage loan. Now, as we read headlines from reputable sources including Marketwatch, about home loan interest rates, it seems like now is a very good time to be a first-time home buyer or a repeat borrower looking to purchase or refinance residential property with an FHA mortgage. One recent Marketwatch article about home loan interest rates includes the blurb. “Rates for home loans were mixed, but stayed near recent lows, even as bond market moves suggest another big step down lies ahead. “ That is according to Andrea Riquier’s June 20th article titled, “Mortgage | more...

June 16, 2019

Six FHA Home Loan Tips

By Joe Wallace

Know Your FHA Home Loan Limits All housing markets are subject to variations, and not all of them have the same costs or median house prices. And not all housing types are available in a given market. The home in California averaging at one price range won’t be the same as a housing market in a less expensive area. FHA home loan limits for high-cost and low-cost areas are adjusted rather than featuring an one-size-fits-all approach, and those limits are adjusted annually. You should always check the current loan limits before committing to a new home loan to see what you can expect in your chosen market. FHA Loans May Be Available With Adjustable Mortgage Rates and You Can Always Choose A Fixed Rate Loan Instead The fixed-rate FHA mortgage | more...

June 12, 2019

Should Homeowners Turn Into Real Estate Investors?

By Joe Wallace

If you are thinking about buying real estate with an FHA mortgage loan you may have run across some trends in recent times addressing the topic of ordinary home owners becoming real estate investors. Is this something that is possible with an FHA single-family mortgage loan? The first thing you need to know about buying real estate with an FHA mortgage is that FHA single-family home loans are for owner-occupiers only. The occupancy requirement is non-negotiable for a new purchase home loan guaranteed by the FHA. There is no FHA loan rule against buying a multi-unit property and renting out the unused living units. Borrowers are free to do so since you can buy a home with as many as four units with an FHA mortgage. But what you cannot | more...

June 5, 2019

5 FHA Loan Rules You Should Know

By Bruce Reichstein

There are many rules and regulations that govern FHA home loans and knowing how the system works can save you time and money when you are ready to start the journey toward home ownership. Some borrowers may ask themselves if they are ready to buy a home; if you know some or all of the areas below you may be closer than you think. FHA Home Loans Require Occupancy You cannot buy a home with an FHA single-family home loan unless at least one person obligated on the loan will use the property as their primary residence. This occupancy requirement is non-negotiable and the borrower must take possession of the home within a reasonable time after closing, usually 60 days for existing construction home. Properties that require repairs (such as | more...

Time Is Running Out On Exterior-Only FHA Appraisals

June 1, 2019

FHA Home Loan Tips

By Joe Wallace

FHA Mortgages: Lower Down Payment Requirements And Not Just For First-Time Home Buyers FHA loans require 3.5% of the adjusted value of the home as a down payment unless your credit does not meet the loan program requirements or lender standards. Borrowers with FICO scores of 580 or higher technically qualify for the lowest possible down payment but you will need to check lender requirements since they are not the same from one financial institution to another. FHA Mortgages: Down Payment Assistance IS Permitted You can get help from family, friends, employers, or other third parties-they can provide gift funds for the down payment. FHA loan rules say you can only get down payment help from those with no financial stake in the outcome of the transaction. ALL down payment | more...

May 31, 2019

June Is National Home Ownership Month

By Joe Wallace

June is National Homeownership Month. The Department of Housing and Urban Development announce this on their official site as “a time to recognize the importance of homeownership to the U.S. economy and the benefits owning a home have on building household wealth for families”. National Housing Month is a time the agency uses to raise awareness of home ownership issues much in the same way that April is used (as Fair Housing Month) to raise awareness of federal law that protects house hunters and renters from discrimination in housing. This year, the Department of Housing and Urban Development has announced millions of dollars in funding in support of “sustainable homeownership”; the agency announced $43 million in grants intended for housing counseling organizations nationwide. “HUD-approved housing counselors can make all the | more...

May 29, 2019

FHA Refinance Loans: Questions To Ask

By Joe Wallace

Are you ready for a refinance loan? Maybe you seek a lower interest rate, or maybe you want to get cash back on the transaction? Whatever your motivation for applying for an FHA refinance loan, there are some important questions to ask yourself-the answers will help determine your readiness for the new loan. Have I Checked My credit Score and History Lately? All consumers are entitled to a free credit report, which you should review long before attempting a mortgage refinance. If you find any evidence of identity theft, outdated or erroneous information, you will need time to contest that problem. Contesting your credit report could involve (in the case of identity theft and related issues) filing police reports, working with investigators, etc. Do not waste your time paying for | more...

May 23, 2019

Home Values Dropping: FHA Loan Rules You Should Know

By Joe Wallace

Real estate values could be entering a new phase if some real estate blogs are to be believed; a Zillow.com report notes that median home values declined a bit in the spring of 2019. A different online real estate publication notes, “Though values didn’t drop year-over-year, their growth rate to (sic) lag behind 2018’s number.” That information does not necessarily help or hurt a house hunter looking for an FHA mortgage and a home to buy at the moment, but there are some important FHA loan rules to remember that WILL help you in cases where property values or house prices are in a state of decline. Where are values going lower according to Zillow? How about San Francisco? Pittsburgh? Others named include Seattle, Los Angeles, and San Diego. You | more...

May 20, 2019

FHA One-Time Close Construction Mortgage Basics

By Joe Wallace

FHA home loan options are not limited to existing construction housing. FHA borrowers, including first-time home buyers, have the option to apply for a FHA One-Time Close Construction loan. This allows any borrower who financially qualifies to have a home built for them from the ground up. FHA One-Time Close loans have some basic requirements; some of these are FHA loan program rules, but others are unique to an individual lender. For example, FHA One-Time Close mortgages, also known as FHA OTC loans, technically allow a borrower to build a home with more than one unit. But many lenders may restrict these mortgages to single-unit properties. Or they may not permit the financing of certain closing costs, require higher FICO scores, etc. Much depends on the rules of the specific | more...