Articles Tagged With: FHA

September 12, 2018

Five FHA Home Loan Questions To Ask Your Lender

There are some important questions to ask a prospective lender when you are shopping around for a home loan. Make the most informed choice you can about selecting your lender, and remember that it pays to shop around for an FHA mortgage! #5: Will You Provide Me With An FHA Loan Estimate? The Consumer Financial Protection Bureau (CFPB.gov) advises borrowers that lenders are required to provide a loan estimate within three days of application. CFPB says the estimate should include the following: estimated interest rate monthly payment taxes and insurance total closing costs for the loan The estimate should also include how the interest rate and payments may change where applicable. Lenders should be willing to provide this estimate. #4: Are The Terms Of This FHA Loan Subject To Change? | more...

September 5, 2018

Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

By Joe Wallace

Does it make more sense to rent a home or to purchase one and make a mortgage payment rather than a rent payment? A lot depends on the property values in your chosen housing market, the cost of renting in that area versus the cost of purchasing, and the borrower’s financial goals. Are you thinking of making the switch from being a renter to becoming a home owner? Some reports claim that rents have increased as much as 88% in certain markets over time, and some renters choose to put that money into a property they own rather than dealing with the issues of being a long-term renter. Is Buying A Home With An FHA Mortgage Instead Of Renting A Good Idea? The first thing needed to answer this question | more...

September 3, 2018

Happy Labor Day 2018!

By Bruce Reichstein

Happy Labor Day 2018! Today we pause from our usual schedule of posting about FHA home loans, FHA/HUD news, and refinance loan advice to observe the holiday. We’ll be back with our regularly scheduled posts tomorrow. Thank you for reading, and have a safe holiday! We look forward to resuming our regular schedule tomorrow.

August 20, 2018

Five Questions People Ask About FHA Home Loans

By Bruce Reichstein

Got questions about FHA home loans? Here are five questions people typically ask about FHA mortgages and the answers according to the FHA loan rules found in HUD 4000.1. Remember that additional lender standards may apply and these answers are based on FHA loan guidelines and not additional lender requirements. Do FHA Home Loans Offer A No Down Payment Option? FHA mortgage loans do not come with zero money down or no money down options but FHA loan rules do allow borrowers to accept properly documented gift funds for down payments from relatives, friends, or employers. You can’t use a credit card cash advance to make the down payment, nor can your down payment gift fund provider. Ask your lender how to help properly document the source and nature of | more...

August 17, 2018

FHA Loans After Chapter 13 Bankruptcy

By Bruce Reichstein

FHA home loans are more forgiving where a borrower’s credit is concerned; while participating lender standards are also an important part of the loan approval process, the FHA loan program rules in HUD 4000.1 allow borrowers with lower credit scores and past credit issues a chance at loan approval. This is even true in the case of Chapter 13 bankruptcy. Some assume that filing for bankruptcy means that a new home loan is quite out of reach, but FHA loan rules say otherwise. Chapter 13 bankruptcy is described by some as a “wage earner’s plan” for repayment of debts to creditors. Installment payments may be made over a period of years. This type of bankruptcy may feature a cap on the amount of debt that can be addressed under the | more...

August 6, 2018

Can I Make My FHA Home Loan Down Payment In Cash?

By Joe Wallace

Some borrowers want to know if they can make their FHA home loan down payment in cash. The FHA loan down payment rules that govern single family home loan down payment sources are found in HUD 4000.1. They have specific requirements for the source of all down payment funds for an FHA mortgage. It does not matter whether you are applying for an FHA rehab loan, an FHA new purchase mortgage for existing construction, or whether you want an FHA mortgage to construct a home to suit your needs; a minimum down payment is required above and beyond all other closing costs and expenses related to the mortgage. FHA loan rules state that the lender must verify all down payment funds and make sure they come from approved sources. FHA | more...

August 1, 2018

FHA Home Loan Options You Should Know About

By Joe Wallace

Do you know all your FHA home loan options? There are important choices to make that can affect your monthly payments, the amount of down payment money you bring to the transaction, and even whether your home loan is a fixed rate mortgage or an adjustable rate loan. FHA Home Loan Options: Down Payment Assistance The FHA loan program itself does not offer down payment assistance, but permits contributions of gift funds and down payment help that meets FHA loan rules. Third parties such as government agencies or charitable organizations may be able to help with your down payment if you meet the program’s requirements. Gift funds can come from a relative or other third party but all funds for down payment must be carefully documented and verified by the | more...

July 4, 2018

Happy 4th of July 2018!

By Bruce Reichstein

Today we pause from our regular posts on FHA home loans, FHA refinance loans, and FHA Reverse Mortgages to observe the 4th of July Independence Day holiday. Thank you very much for reading, have a safe holiday and we will resume our regular posting schedule on Thursday July 5th. Thank you for reading!

June 25, 2018

Am I Required To Use Water Utilities For The Home I Buy With An FHA Mortgage?

By Bruce Reichstein

Not all properties are created exactly alike. Some are hooked up to the local utility company for drinking water and septic, while others may rely on wells or other sources. FHA borrowers considering the purchase of a property served by a well often worry that the home won’t meet FHA minimum standards. What do FHA loan rules say about home loan approval for a property served by a well and/or a water purification system? For a start, FHA loan rules do not automatically deny FHA loan approval for properties that have a well or a water purification system rather than being served by a local utility company. That said, HUD 4000.1, the FHA loan handbook, does require that properties purchased with an FHA loan use local water utility systems “wherever | more...

What Credit Score Is Needed For An FHA Mortgage?

June 13, 2018

FHA Home Loans With Non-Occupying Co-Borrowers

By Bruce Reichstein

Do FHA home loans have rules for transactions with non-occupying co-borrower? The short answer is yes, there are considerations for FHA mortgage loans that feature one or more borrowers who will occupy the property, but also a borrower who will not. These rules are found in HUD 4000.1 and include requirements for the basic transaction-at least one borrower MUST occupy the home to be purchased with an FHA mortgage as a condition of loan approval. This is normally supposed to happen within 60 days of loan closing according to FHA loan rules. Lender standards may also apply. FHA loan rules have some basic requirements for co-borrowers who will not occupy the home, including the following from HUD 4000.1: “To be eligible, all occupying and non-occupying Borrowers and co-Borrowers must take | more...