Articles Tagged With: FHA

December 8, 2017

FHA Revises Policy On PACE Assesments

The FHA has revised its’ policy on home loans for properties encumbered by Property Assessed Clean Energy (PACE) obligations. According to the FHA official site, in 2016 the agency “established requirements regarding the eligibility for FHA-insured mortgages of properties encumbered with PACE obligations that permitted, under some circumstances, a continuing obligation for repayment of the PACE obligation even after foreclosure and acquisition by FHA.” But that policy has since come under review due to concerns “for increased losses to the Mutual Mortgage Insurance Fund due to the priority lien status given to such assessments in the case of default.” According to the official site, the agency “is also concerned with the lack of consumer protections associated with the origination of the PACE assessment, which are far less comprehensive than that | more...

December 7, 2017

FHA Home Loan Refinance Options in 2018 Explained

By Bruce Reichstein

FHA home loan refinance options in 2018 include a variety of terms. Are you a first-time refinance loan applicant and feeling a bit confused by all the jargon? Here is an explanation of the options you have to refinance your home loan in 2018 using an FHA refi loan. FHA Cash-Out Refinances Defined What is a cash-out refinance loan? According to the FHA loan handbook, HUD 4000.1, cash out refinancing is described as, “a refinance of any Mortgage or a withdrawal of equity where no Mortgage currently exists, in which the mortgage proceeds are not limited to specific purposes”. You read that correctly-some participating FHA lenders may approve an FHA cash-out refinance loan on a property that has no existing mortgage, for the purpose of pulling equity out of the | more...

December 7, 2017

FHA Refinance Loan Options For 2018

By Joe Wallace

FHA refinance loan options in 2018 include options for cash-out refi, FHA Streamline loans, and more. The right home loan refinance option for you depends on your financial needs and goals. What do you want to do with your FHA refinance loan? Get A Lower Interest Rate, Monthly Mortgage Payment If your goal is to reduce the amount of your mortgage payment every month, and you have an existing FHA home loan, the FHA Streamline Refinancing option is definitely for you. Streamline refinance loans are for existing FHA mortgages and generally require a lower interest rate and/or monthly payment as a condition of loan approval. Basically, there must be some type of tangible benefit for an FHA Streamline Refinance loan-the lower payment or interest rate is one of those. But | more...

December 6, 2017

FHA Construction To Permanent Loan 2018 / One-Time Close (Single-Close)

By Bruce Reichstein

FHA construction To Permanent loans in 2018 are a great option for those who want to buy a home but aren’t interested in purchasing existing construction properties. If having a home built for you sounds better than buying one that already exists, the FHA Construction-To-Permanent loan, also known as an FHA One-Time-Close loan / Single-Close loan, might be right for you. FHA Construction To Permanent Loan Requirements The basic credit qualifying guidelines for FHA One-Time Close mortgages may vary more among participating FHA lenders. You may find a minimum FICO score requirement of 620 or higher depending on the lender, and in some cases you may learn that a lender has a minimum FICO score benchmark of 660 or better and that two FICO scores may be required. Credit requirements | more...

December 5, 2017

FHA Loan Questions: Credit, Bank Statements, and Overdrafts

By Bruce Reichstein

Here is a variation on a common question about FHA home loan requirements: “How many months of bank statements are required to show the underwriters in relevance to the month we are closing on the house? Also if there are NSF/overdrafts on our account three to six months prior to our closing month, will that hurt our chances of getting the loan?” To answer these questions properly we need to do some detective work in the FHA loan rule book. Let’s start with the age of the documents needed for a home loan. The rules that govern FHA home loans says all documents must be, in general, no older than 120 days. The lender’s standards may apply in such cases-will the lender require more bank statements in order to review | more...

November 27, 2017

FHA Loan Waiting Times After Chapter 13 Bankruptcy

By Joe Wallace

We are often asked about FHA loan rules governing home loans for those with a bankruptcy on their credit reports. These types of questions vary, but often feature a common theme: “I had a bankruptcy discharged in July 2014. How long do I have to wait to purchase another home with 10% down payment with a credit score of 590?” After a bankruptcy is discharged, rebuilding good credit is one of the most crucial issues related to this question. A borrower must work hard, post-bankruptcy, to establish the best credit possible in order to qualify for a new home loan. You may find that participating FHA lenders are willing to work with borrowers with credit scores starting at around 620 or higher. That FICO score of 620 is not listed | more...

Time Is Running Out On Exterior-Only FHA Appraisals

November 23, 2017

Happy Thanksgiving!

By Joe Wallace

Happy Thanksgiving! Today we pause from our usual discussion of FHA home loans, refinance loans, FHA reverse mortgages and related topics to enjoy the holiday. Our regular schedule of posts resumes on Friday. Have a safe and fun Thanksgiving holiday and we’ll see you tomorrow!

November 21, 2017

What Kinds Of Property Can I Buy Or Refinance With An FHA Loan?

By Bruce Reichstein

What kinds of property can I buy or refinance with an FHA loan? This is a question we’ve been examining lately, starting with the FHA requirement for homes to be used as the primary residence for at least one person obligated on the mortgage note. But there are other requirements borrowers need to know when looking for a home to buy with an FHA mortgage. Eligible Property Types For FHA Single-Family Loans HUD 4000.1 explains, “FHA’s Single Family programs are limited to one-to four-family Properties that are owner-occupied Principal Residences. FHA insures Mortgages on Real Property secured by: -detached or semi-detached dwellings -Manufactured Housing -townhouses or row houses -individual units within FHA-approved Condominium Projects” The occupancy requirements are identical for all property types. The actual date of occupancy may vary | more...

November 20, 2017

What Do I Need To Qualify For An FHA 203(h) Rehab Loan For Disaster Victims?

By Bruce Reichstein

What do I need to qualify for an FHA 203(h) rehab loan for disaster victims? Those in the hardest-hit areas may require complete replacement of a home damaged or destroyed by Hurricane Harvey, Hurricane Irma, Hurricane Maria, or California fires. But what are the basic requirements of the FHA 203(h) rehab loan? FHA 203(h) Rehab Loans Are For Those In Federally Declared Disaster Areas The basic requirement for an FHA 203(h) rehab loan is that the applicant’s property is located in a federally declared disaster area. According to HUD 40001., “The previous residence (owned or rented) must have been located in a (federally declared disaster area) and destroyed or damaged to such an extent that reconstruction or replacement is necessary. A list of the specified affected counties and cities and | more...

November 17, 2017

How Much Is My FHA Home Loan Down Payment?

By Bruce Reichstein

What is my FHA home loan down payment? It’s an important question to ask as early as possible in the home loan planning process. You will need to save up for an FHA loan down payment and there are a few variables that will factor in when it comes time to calculate that down payment. Do you know what they are? FHA Home Loan Down Payments Are Not A Fixed Amount The dollar amount of the required FHA loan down payment is not standardized for all home loans. Borrowers should know that the down payment is calculated based on several factors including the adjusted value of the property, credit scores, and lender standards. FHA Home Loan Down Payments Have A Minimum Requirement The lowest down payment a borrower is legally | more...