Articles Tagged With: First-time Home Buyer

March 28, 2022

HUD Announces Wisconsin Fair Housing Case

The Fair Housing Act makes it illegal to discriminate against those who seek housing. Illegal discrimination includes sexual harassment, inappropriate questions about religion or orientation, family status, and much more. In spite of there being a federal law on the books that makes it a crime to discriminate at any stage of the housing process, some landlords, lenders, property owners, and property managers still insist on behavior that amounts to violations of this federal law. And all such violations bring a chilling effect to the entire industry including mortgage lending and real estate purchasing. One of the latest unfortunate examples of what we mean? The United States Department of Housing and Urban Development has announced Fair Housing charges against Leaf Property Investment, LLC, in Milwaukee, Wisconsin. Owner Sam Leaf and | more...

March 23, 2022

HUD Announces New Fair Housing Initiative

By Bruce Reichstein

The Department of Housing and Urban Development has announced a major effort aimed at reducing violations of the Fair Housing Act in the home loan appraisal process. The agency has submitted a PAVE action plan to President Biden. PAVE is also known as the Interagency Task Force on Property Appraisal and Valuation Equity. This plan is designed to help end what the FHA and HUD describe as “racial bias in the home lending and appraisal process” and is considered by the designers to be one of the most ambitious Fair Housing reforms in this part of the housing industry. PAVE is a multi-agency cooperative effort and includes cabinet-level leadership as well as independent entities. According to the HUD press release, the PAVE task force was announced on June 1, 2021, | more...

March 21, 2022

FHA Refinance Loan Q&A

By Joe Wallace

Thinking about a refinance loan but not sure where to start? There are some common questions about refinancing your home loan, we provide some answers to them below from cash-out refinancing to rehabilitation loans. When Can I Refinance My FHA Mortgage? That may depend on the type of refinancing you seek. You can get an FHA Cash-Out Refinance loan once you have owned and occupied the property for 12 months. For FHA Rate-And-Term Refinances, you can own the home for less than 12 months but the loan-to-value ratio will be lower than if you apply after having owned and occupied the home for more than 12 months. FHA Streamline Refinance options require you to own the home for at least six months. Can I Refinance A Non-FHA Mortgage Into An | more...

March 16, 2022

Building Credit Before Your FHA Home Loan

By Joe Wallace

If you want to buy a home, especially if you are shopping for a house for the very first time, you may need to build credit in the year or more leading up to your application. First-time homebuyers who do not have a long credit history do well to consider building credit, which is not quite the same thing as repairing credit. That said, the procedures for building and repairing are often similar. One important thing to remember; you don’t need a credit card to build credit. Some credit reporting agencies give you the option of having recurring payments (such as cell phones, utilities, etc.) added to your credit report. These recurring payments can help establish a pattern of reliable payments, and you will need to make arrangements with each | more...

March 7, 2022

Answers To New House Hunter Questions

By Bruce Reichstein

What does it take to qualify for an FHA mortgage? That’s among the most common questions asked about FHA home loans. What is the answer? There are a variety of factors that go into your loan officer’s decision to approve or deny a home loan. Those factors include the number and amount of your monthly financial obligations, your FICO scores, how well you use the credit you have, and other variables. What credit score do you need to qualify? On paper, FHA loan rules say those with FICO scores in the 580 or above range qualify for the lowest down payment possible for an FHA mortgage (3.5%). Lender standards may require a higher FICO score range. Not all borrowers have the same kind of FICO scores. Some may have thin | more...

March 4, 2022

FHA Home Loan Options For New Borrowers

By Joe Wallace

FHA home loan options for new borrowers and first-time homebuyers vary. There’s a misconception that FHA mortgages are only for first-time borrowers, and another misconception is that FHA loans somehow favor first-time borrowers with better rates, terms, or other factors. But the truth is that FHA mortgages are NOT just for first-time homebuyers. You can be approved for an FHA mortgage without being subject to income caps or restrictions. Need-based requirements do not apply for FHA loan approval. And there’s another truth-the FHA loan program itself does not offer more favorable terms for first-time applicants than for anyone else. All applicants who are financially qualified can apply for an FHA loan or refinance loan. That leads to some confusion among borrowers who see lenders offering first-time buyer incentives. The fact | more...

March 3, 2022

What Can I Buy With An FHA Loan?

By Joe Wallace

What is possible with an FHA home loan? If you don’t know all your options, you might be surprised to learn you can use an FHA mortgage to buy a house with as many as four living units, manufactured home or modular home, and even a condominium unit. There are some things you cannot use an FHA mortgage to buy, we’ll examine some housing types below: Suburban Houses, Duplexes, And Townhomes FHA loans can be used to buy a one-to-four unit property in a typical neighborhood that is primarily residential and a house where you plan to live as your home address. A duplex or townhome is eligible for an FHA mortgage if the property meets minimum standards, the same as a single-bedroom home or a condo. Repo Homes And | more...

March 2, 2022

FHA Refinance Loan Terms You Should Know

By Joe Wallace

If you have never applied for a refinance loan and are considering an FHA refinance, you may be unfamiliar with certain industry jargon and loan terms that will come up in the course of your loan application and during the approval process. This article isn’t about what it takes to be approved for an FHA refinance loan, but it will make some aspects of the process a bit less mysterious. Rate And Term Refinance This is a type of FHA refinance option that features no cash back to the borrower, and uses all loan proceeds to pay off the original loan and cover closing costs. These loans can be used to refinance FHA or non-FHA mortgages. FHA Simple Refinance Like the Rate And Term, this refi option is meant as | more...

February 28, 2022

Are You Preparing For An FHA Mortgage?

By Joe Wallace

Getting your credit ready for a home loan application is one of the most important steps in the mortgage planning process. Do you know how to get your credit prepared before the lender pulls your reports and reviews your FICO scores? The first key to doing this right is time. Give yourself at least a year to save and plan for your mortgage. This also gives you enough time to work on your credit and lower the amount of monthly debt you carry. Lowering the balances on your credit cards not only improves your debt ratio, it also potentially enhances your credit card utilization ratio, too. A year of on-time, every time payments for all financial obligations is strongly recommended. This is the most basic credit repair advice you’ll find | more...

Five FHA Home Loan Questions To Ask Your Lender

February 24, 2022

FHA Home Loan Issues For Veterans

By Joe Wallace

Veterans interested in buying a home have many choices including a VA home loan, but also FHA loans that function in much the same way as their VA counterparts. While it is true that VA loans require no down payment in most cases but FHA home loans always require one in most cases, some veterans explore their FHA loan options just the same. Some want existing construction loans, others want a One Time Close mortgage to build a suitable home from the ground up. One Time Close mortgages are available in both VA and FHA versions, so military and veteran borrowers have options with either type of mortgage. But some military members and veterans may enter the service after already having purchased a home, or after having assumed an FHA | more...