Articles Tagged With: FHA

December 28, 2017

FHA Rehab Loans and Appraisal Requirements

FHA rehab loans have different appraisal requirements than FHA “forward” mortgages used to simply purchase an existing-construction property. Because the borrower is applying for a home loan to buy property that (likely) does not meet FHA minimum standards or state/local building code, the lender is required to determine both the existing condition of the home and the “after completion” version of it. What do FHA loan rules say about the appraisal process for this type of home loan transaction? Today we’re examining the rules for the FHA 203(k) rehab loan. We’ll cover rehab loan rules for properties in federally declared disaster areas in a separate blog post. FHA Appraisal Rules For 203(k) Rehab Loans As mentioned above, FHA loan handbook (HUD 4000.1) requires the lender to determine the value the | more...

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

December 26, 2017

What You Should Know About FHA Loan Down Payments

By Joe Wallace

What you should know about FHA loan down payments includes understanding the lender’s requirements for verifying the source of your down payment funds, and the fact that your down payment is not affected by other home loan fees or expenses. What do these things mean? The FHA Loan handbook, HUD 4000.1, has the answers. FHA Home Loan Down Payment Basic Requirements HUD 4000.1 tells the lender that the lowest possible down payment is 3.5% of the adjusted value of the property. This does not apply for HUD-owned “repo” homes also known as HUD REO properties. The rules for these homes includes the possibility of a $100 down payment (lender standards may also apply). The down payment is a condition of loan approval; the only FHA home loan “forward mortgage” for | more...

December 22, 2017

Happy Holidays!

By Bruce Reichstein

Happy Holidays! We’re pausing from our usual schedule of writing about home loans, mortgage trends, FHA and HUD news, and related topics in order to celebrate the holiday season with friends and family. From all of us here, have a fun and safe holiday season! Our normal schedule resumes on Tuesday, December 26. Thank you for reading!

December 22, 2017

Get Ready For An FHA Mortgage Loan

By Joe Wallace

Do you want to get ready for an FHA home loan in the new year? There are several things you can do now to prepare for your new mortgage loan application and get closer to home loan approval. Know Your Price Range For Buying A New Home Getting ready for an FHA mortgage in the new year means budgeting and saving up for home loan expenses including the FHA loan minimum required down payment. If you don’t know your approximate price range for purchasing a new home, saving up for your down payment may be harder-FHA loan rules state that the minimum amount down is 3.5% of the adjusted value of the property. Knowing your price range can help you determine how much to budget for your down payment. But | more...

December 19, 2017

FHA Cash-Out Refinance Loan Rules

By Bruce Reichstein

FHA cash-out refinance loan rules include instructions to the lender that these refinance loan transactions can be used for both existing FHA loans and non-FHA transactions including conventional loans, VA mortgages, etc. There are some rules specific to FHA cash-out refi loans you should know about before applying. FHA Cash-Out Refinance Loan Payment History Requirement HUD 4000.1, the FHA loan handbook, states that the lender is required to document a cash-out refinance loan applicant’s payment history on the old mortgage loan. “The Mortgagee must document that the Borrower has made all payments for all their Mortgages within the month due for the previous 12 months or since the Borrower obtained the Mortgages, whichever is less. Additionally, the payments for all Mortgages secured by the subject Property must have been paid | more...

December 19, 2017

FHA-To-FHA Refinance Loan Rules

By Joe Wallace

FHA refinance loan rules include a set of general requirements that may vary depending on whether the mortgage is a non-FHA to FHA refi or an FHA-to-FHA refinance loan. Today we’ll examine some general rules for FHA-to-FHA refinance loan transactions. Who Can Refinance An Existing FHA Mortgage? FHA loan rules in HUD 4000.1 state that at least one borrower obligated on the FHA-to-FHA refinance transaction must hold the title to the property. This must be true before the FHA issues a case number for the mortgage loan. Refinancing A Manufactured Home With An FHA Mortgage HUD 4000.1 instructs the lender, “For a transaction involving a Manufactured Home to be considered a refinance, the Manufactured Home must have been permanently erected on a site for more than twelve months prior to | more...

December 18, 2017

What Should I Know About FHA Home Loans?

By Bruce Reichstein

What should I know about FHA home loans? The first thing to remember is that your options with an FHA mortgage include new purchase loans, reverse mortgages, refinance loans, and rehab loans. You can do a lot more than just buy a house as a first-time home loan applicant. FHA Home Loans Are Not Just For First-Time Buyers The most common misconception about FHA home loans is that they are ONLY for first-time buyers. This is not true. No matter how many times you have borrower money to buy a home before, if you are interested in purchasing a primary residence, the FHA home loan is an option for you. FHA Loans Include Mobile Home Loans and FHA One-Time Close Construction Loans The list of FHA home loan options include | more...

December 15, 2017

FHA Loan Options For 2018

By Bruce Reichstein

Exploring your FHA loan options for 2018? Whether you are a first-time home buyer or an experienced house hunter, FHA loans have something to offer. You don’t have to be in the market for a new home, either-there are refinance loan options to help you get into a fixed rate FHA mortgage. New Purchase FHA Home Loans For First Time Borrowers While there is no FHA-sponsored special deal for first time home buyers or first time borrowers, FHA loans offer excellent options including a lower required minimum down payment-only 3.5% of the adjusted value of the home down as the minimum. FHA loans can offer more competitive interest rates depending on the lender, the borrower’s financial qualifications, and other factors. You will need to work with your lender to negotiate | more...

December 12, 2017

Getting Ready For An FHA Home Loan In 2018

By Bruce Reichstein

Are you getting ready for an FHA home loan in 2018? There are some checklist items you should be thinking about in the planning stages of your FHA loan. Credit Monitoring 2017 was a very bad year for many companies because of hacker activity. Many high-profile brands, corporations, even credit reporting agencies themselves were the victims of security breaches. Do you know if your accounts have been affected? If you don’t, you may not be as ready for a home loan as you think you are. For some, it may be best to have regular credit monitoring in the months leading up to your credit application to avoid surprises. Know the contents of your credit report, dispute inaccurate data, and keep an eye on new activity. You’ll be glad you | more...

December 8, 2017

Higher FHA Loan Limits For 2018

By Bruce Reichstein

The FHA has announced FHA loan limits for 2018, and the new numbers mean good news for those looking to buy a home in the new year. The “national conforming loan limit” for 2018 is set at $453,100, up from last year’s limit of $424,100 (see below). The higher limit means more potential borrowing power for qualified FHA loan applicants. According to the announcement on the FHA official site, there are higher limits for 2018. The Federal Housing Administration calculates “forward mortgage limits based on the median house prices in accordance with the National Housing Act. FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county and are published periodically.” The FHA sets loan limits “at or between the low cost area and high cost | more...