Articles Tagged With: FHA

August 8, 2022

What To Ask About FHA Refinance Loans

Getting ready to refinance? Even if you are considering using the same lender that you got your mortgage from originally, there are some important questions to ask your loan officer about the refinance transaction. Do you know how much your loan will cost? Do you understand the differences between a simple refinance, an FHA Streamline refi loan, and other types of mortgages? Find out more today and get ready to find the best deal for your needs. FHA Refinance Loan Questions: How Much Will My Loan Cost? In the earliest stages of the refinance loan process, don’t expect to get exact figures, but do ask your loan officer for estimates based on the typical set of costs for the refinance loan you need. You may not be charged identical costs | more...

August 3, 2022

Appraisal Rules For FHA Loans: Basements & Crawlspaces

By Joe Wallace

When reviewing your closing checklist or simply trying to plan for all the expenses of your FHA home loan, the appraisal and the optional (but vital) home inspection are two of the expenses you’ll need to save for. The appraisal is required as a condition of loan approval, the inspection is optional but borrowers cannot make a truly informed decision about a home without the inspection. When it comes to FHA appraisal requirements, the rules are designed only to insure the property meets MINIMUM FHA standards. The appraisal is never to be taken as a message from the FHA that the home is free of defects or problems-only an home inspection can tell you what the true condition of the property might be. FHA minimum standards for appraisals include requirements | more...

August 1, 2022

Article Update: FHA Appraisal Rules On Peeling Paint

By Joe Wallace

In 2019 we wrote an article discussing a common reader question about FHA home loans. Can the presence of peeling paint be enough to cause a problem in the FHA appraisal process? In our original article, we noted that this can be a major issue for homes built before the lead paint ban which took effect in the 1970s. In some situations, borrowers want to know why the appraiser reviewed the home and required a correction of a peeling paint issue as a condition of loan approval. The age of the home plays a big part in that decision to require a correction. If the house was built before 1978, that peeling paint is NOT just a cosmetic issue. FHA home loan rules since our original article in 2019 still | more...

July 28, 2022

Article Update: Do Townhouses Qualify For FHA Loans?

By Joe Wallace

Back in 2018, we published an article about the FHA home loan rules for townhouses. Do they qualify for FHA home loans? One source defines a townhouse as: “…multi-floor homes that share one- to two walls with adjacent properties” but which feature separate entrances for each property. What do the FHA home loan rules say about purchasing townhomes with an FHA mortgage? FHA Loan Rules For Property Eligibility The FHA Single Family Home Loan rule book, HUD 4000.1, has seen some important changes since we wrote the original article in 2018 but in 2022 it still says the following property types may be purchased with an FHA mortgage: -detached or semi-detached dwellings -Manufactured Housing -townhouses or row houses -individual units within FHA-approved Condominium Projects As you can see from the | more...

July 22, 2022

What Is An FHA Loan Limit?

By Bruce Reichstein

What is an FHA loan limit? The answer to this question can be found in HUD 4000.1, the FHA Single-Family Lender’s handbook, which begins by explaining: “A Mortgage that is to be insured by FHA cannot exceed the Nationwide Mortgage Limits, the nationwide area mortgage limit, or the maximum Loan-to-Value (LTV) ratio. The maximum LTV ratios vary depending upon the type of Borrower, type of transaction (purchase or refinance), program type, and stage of construction.” Furthermore, the handbook says that for most FHA loan programs the maximum mortgage is either the Nationwide Mortgage Limit for that area or “a percentage of the Adjusted Value”. The handbook breaks down how a home’s adjusted value is calculated, according to transaction. For new purchases or “forward mortgages”, the FHA Lender’s Handbook states: “For | more...

July 6, 2022

Will My FHA Home Loan Application Be Approved?

By Joe Wallace

Will my FHA home loan be approved? That is a common question for some borrowers who worry that their credit isn’t good enough for a home loan, and for borrowers who may have adverse credit information in their credit history. There is no single answer to this question since much depends on the borrower’s credit history, their patterns of credit use, debt ratios, and other factors. But in general there are some areas you can review to determine whether or not an FHA home loan is in your future. Will My Home Loan Be Approved? Occupancy Matters If you seek an FHA mortgage for a house that you (or at least one borrower obligated on the mortgage) do not intend to occupy as your primary residence, you will not be | more...

July 1, 2022

First-Time Home Buyer Tips

By Bruce Reichstein

What does a first-time home buyer need to know when searching for real estate to buy with an FHA mortgage? It’s good to make a checklist before you start and add to it along the way-there are some important things to do before you ever fill out home loan paperwork. Decide If You Are Going To Use A Real Estate Agent Whether you buy your home with an FHA mortgage or not, this is a choice that could make a difference in terms of saving time looking for just the right home. If you choose to use the services of a real estate agent, be sure to include a list of features you want in your home and features you do not want-the agent will help you narrow the field. | more...

June 29, 2022

Finding The Best FHA Lender

By Joe Wallace

Which bank has the best FHA loan options? Experienced borrowers know the answer to this question already; the best FHA lender is the one willing to work with your FICO scores, the type of home loan you need, and offers you the right rates. But if you are asking the question, “Which bank has the best home loan?” you want answers that are more specific. How do you find a lender who can help? If you are searching online, you might try looking for the specific type of home loan you seek. Are you looking for an FHA One-Time Close construction loan? Searching with that specific phrase will help. But it can also pay to search more specifically than that; try looking for “FHA Construction Loans in Texas” in Google. | more...

June 17, 2022

Who Sets FHA Loan Interest Rates?

By Joe Wallace

Who sets FHA loan interest rates? The answer to that question involves several factors-many potential FHA borrowers asking this question really want to know more than who the regulatory body is for FHA loan interest rates-they also want to know how rates are affected by other factors such as FICO scores and credit history. So who DOES set FHA mortgage loan interest rates? The Fed sets monetary policy for the United States including the current interest rate. But when the Fed sets this rate, it is NOT directly changing mortgage rates. Investor reaction to the Fed’s rate adjustments DOES affect home loan interest rates. Fed action doesn’t directly change interest rates and consumers should know that the Department of Housing and Urban Development doesn’t try to control these rates, either. | more...

May 20, 2022

What You Need To Know About FHA Home Loan Interest Rates

By Joe Wallace

What should you know about home loan interest rates? As the home loan market begins to see higher rates than in the last few years, you’ll want to understand some of the aspects of interest rates and how they affect the cost of your mortgage long-term. There are many home loan blogs that discuss the fluctuations of mortgage rates and talk about mortgage rates as they move higher and lower. Some lenders and bloggers discuss mortgage rates as though the ones mentioned apply to anyone who wants a home loan. But is this true? The rates you see advertised on the internet are usually posted as “best execution” interest rates which means that “ideal conditions” are assumed, or that the rates are applied assuming certain conditions including certain FICO score | more...