Articles Tagged With: FHA

April 10, 2019

FHA Loans After Bankruptcy

Yes, it is possible to get a home loan following a bankruptcy with an FHA mortgage loan. Some borrowers, including first-time home buyers, assume that after a Chapter 7 or Chapter 13 bankruptcy filing that it is impossible to get a new home loan. Others assume you must wait seven years or longer to apply for a new home loan. What’s the reality? Chapter 7 and Chapter 13 Bankruptcy The most important thing about getting a new loan after bankruptcy is when you apply, and following that the most important issues include whether or not your bankruptcy has been discharged or not. FHA home loans are possible but only after the bankruptcy has been discharged, not after they have been initially filed. The FHA Home Loan Seasoning Period After a | more...

Refinancing a Second Home With An FHA Mortgage Loan

April 8, 2019

FHA Home Loan Questions And Answers For First-Time Borrowers

By Joe Wallace

FHA home loans offer first-time home buyers an advantage with low down payment requirements, more flexible lending standards, and the ability to apply for local down payment assistance help where offered (as long as that assistance meets FHA requirements). Do you have questions about the FHA home loan process as a first-time buyer? Some of these answers below may help. What Is An FHA Forward Mortgage? The term “forward mortgage” refers to any home loan used to buy a property. It’s also sometimes known as a purchase loan. Why Are Closing Costs Due At Closing Time And Why Can’t I Finance Them Into My Home Loan? Not all closing costs must be paid in cash at closing time-the FHA Up-Front Mortgage Insurance Premium is an example of an FHA home | more...

April 1, 2019

HUD Charges Facebook With Fair Housing Act Violations

By Bruce Reichstein

The Department of Housing and Urban Development has brought charges of Fair Housing Act violations against Facebook. HUD announced it would charge Facebook “with violating the Fair Housing Act by encouraging, enabling, and causing housing discrimination through the company’s advertising platform.” HUD’s case claims that Facebook illegally restricted “who can view housing-related ads on Facebook’s platforms and across the internet” and also that the media giant “mines extensive data about its users and then uses those data to determine which of its users view housing-related ads based, in part, on these protected characteristics” according to a press release issued by HUD. There’s more; the HUD press release also mentions a HUD claim that additionally, “Facebook combines data it collects about user attributes and behavior with data it obtains about user | more...

March 28, 2019

FHA And HUD Announce Home Loan Policy Changes

By Joe Wallace

The Department of Housing and Urban Development has announced policy updates and changes that have been added to the FHA Single Family Home Loan Program Handbook, HUD 4000.1. According to an FHA/HUD press release, these are the first changes and updates to the handbook since late 2016. “With today’s update, FHA is recommitting to the industry that it will continue to maintain and enhance the SF Handbook so that it becomes a single, comprehensive source of policy guidance for lenders and other stakeholders doing single family business with FHA” according to the press release. The updates, posted March 27, 2019, include a set of “technical changes for consistency and clarity” as well as FHA home loan program policy updates. These updates affect how the lender may handle certain issues associated | more...

March 27, 2019

FHA Home Loans For Millennials

By Joe Wallace

How young is too young to buy a home? Millennials are taking over as the largest group of home buyers in the United States, but some wonder whether they are able to qualify. What does it take to qualify for an FHA mortgage? Are There Age Restrictions On FHA Home Loans? FHA loans do require all borrowers to be of sufficient legal age to sign legally binding contracts. But aside from that, there are no real age limits for FHA mortgages with one exception. The FHA Reverse Mortgage, which lets qualified borrowers convert the equity in a home they own outright into cash, is limited to borrowers aged 62 or older. But for forward FHA mortgages to purchase a home, as long as the borrower is otherwise qualified and of | more...

March 21, 2019

Home Loan Credit Problems: Unresolved Borrower Debt

By Joe Wallace

What can jeopardize a home loan application? There are many factors, but delinquent and unresolved debt are two areas that first-time home buyers should be keenly aware of; these issues can derail a mortgage loan application depending on the severity and amount of the debt. We discuss debt ratios and related issues in this space all the time; the unresolved debt issue is related to debt ratios in a way (the resolution of the debt will likely add to the debt ratio in some way) but an account that is delinquent, and/or in dispute is a separate area altogether. It’s always best to apply for any major line of credit with a minimum of 12 months of on-time payments; anything less could threaten your ability to get loan approval. But | more...

March 20, 2019

Home Loan Rules You Should Know

By Bruce Reichstein

What home loan rules should you know ahead of your mortgage loan application? There are several that you should keep in mind when planning and applying for your new home loan. FHA Loans Are Issued By Participating Lenders A lender must meet FHA standards, conform to the FHA loan program rules, and generally be recognized by the FHA as being permitted to issue FHA-guaranteed mortgage loans. But not all lenders choose to participate in the FHA home loan program so you may need to shop around for a lender. Shopping around is a good thing, but some feel that one lender is as good as another. When it’s time to compare interest rates and mortgage loan terms, you may find that to be untrue. But not all lenders choose to | more...

March 18, 2019

What You Need To Know About FHA Condo Loans

By Joe Wallace

Buying a condo with an FHA mortgage loan is an option many borrowers might be interested in but sometimes assumptions about the FHA home loan program might cloud the issue. Here are some things you should know about FHA mortgages for condo purchases. FHA Condo Loans For First-Time Home Buyers FHA condo loans are open to first-time buyers and experienced home owners alike. You will be approved for the FHA condo loan based on your financial qualifications rather than whether or not you have owned property before. FHA Condo Loans Have Certain Advantages The down payment requirements for FHA home loans do not change based on the type of property you purchase, so you are still required to financially qualify but your down payment requirement does not get adjusted because | more...

March 15, 2019

FHA Home Loan Approval Rules You Should Know

By Bruce Reichstein

If you are a first-time home buyer or have never used an FHA home loan before, there are some rules about FHA mortgages you should know before getting started. FHA Home Loan Approval Depends On More Than Your Credit Score It’s easy to fixate on credit scores and they are a major part of what your lender will use to determine a borrower’s creditworthiness. But it’s not the only criteria. Your income, employment, and credit habits will all be examined at home loan application time. FHA loan rules specifically require the lender to verify two years of employment, and that employment does not have to be with the same company. The rules also require your lender to determine that your income is likely to continue. But this is possible even | more...

March 14, 2019

Buying Real Estate With An FHA Mortgage

By Joe Wallace

Buying real estate with an FHA mortgage is easier when you know what is allowed and what is not. The mortgage loan process can be complex at times due to federal law, state and local requirements, lender standards, and the nature of the mortgage you seek. But there are some simple answers to real estate buying questions that can help you use an FHA loan to your best advantage. Can I Buy A Multi-Unit Property With An FHA Mortgage Loan? Yes. FHA home loans are for one-to-four unit properties and you can purchase a townhouse, duplex, mixed-zoning property that meets FHA guidelines, and many other types of homes. Do I HAVE To Be A First-Time Borrower Or First Time Home Buyer To Qualify For An FHA Mortgage? No. Can I | more...