Articles Tagged With: First-time Home Buyer

October 8, 2021

Important Issues About Buying A Home With An FHA Loan

What are your concerns about buying a home with an FHA home loan? For some, it’s about how much the loan will cost month-to-month, while for others the issue of the loan’s long-term cost can be a worry. If you aren’t sure how the FHA home loan program works, you’ll definitely want to read on. What You Can Buy With An FHA Mortgage In general, FHA home loans are for owner/occupiers who want to buy a home to use as their primary residence. You can buy a property with as many as four units as long as it meets FHA minimum standards and you are financially qualified for the mortgage loan. FHA loan applicants may apply for any type of FHA loan offered by a participating lender including mobile home | more...

September 29, 2021

Do FHA Home Loans Have An Income Cap?

By Joe Wallace

Some borrowers learn that FHA mortgage loans are government-backed and guaranteed by the FHA and HUD, which can lead to certain assumptions about the nature of a government-backed mortgage. One of the misconceptions about FHA home loans is that due to their government association have either an income limit, or are otherwise need-based. Some borrowers might be confusing the government-backed USDA loan program with the FAH loan rules. USDA loans ARE need based. However, FHA loan rules in HUD 4000.1 do not specify a maximum income and do not require a specific financial need to qualify. FHA loans do not have a low-income requirement, a household income cap, or a requirement that you be a first-time buyer. These loans are instead designed for those who want to purchase a home | more...

September 20, 2021

HUD Announces Fair Housing Discrimination Case In Missouri

By Joe Wallace

If you have ever experienced discrimination while looking for a place to rent or buy as your primary residence, the Department of Housing and Urban Development wants to hear from you. Know your Fair Housing rights–you might not know when you’ll need to use them. The U.S. Department of Housing and Urban Development announced it is bringing charges of housing discrimination against conservators of the Felder Peter King Estate of Ward Protectee, the Estate, and the owners and property manager of duplex and triplex apartments in St. Charles, Missouri. The charges involve alleged housing discrimination “for allegedly refusing to rent an apartment to a prospective tenant because he has two children” Fair Housing Act laws do not permit landlords to deny applicants housing on the basis of family status including | more...

September 17, 2021

FHA Loans Versus Conventional Home Loans

By Bruce Reichstein

If you are planning to look at real estate listings soon or use the help of a realtor to locate a new home, here are some questions to ask yourself about your new home loan; the answers will help you decide whether to pursue an FHA mortgage, a conventional loan, etc. FHA Mortgage Versus Conventional Home Loans: Compare Down Payments Make sure you know your FICO scores in advance of comparing down payment requirements since the amount of cash you will be required to put down is affected by credit scores when those scores are below a specific cutoff. There is more than one standard for FICO scores in this area-FHA loan minimums and lender requirements. Lender standards will apply no matter whether you are applying for FHA or conventional | more...

September 14, 2021

What’s In Your Mortgage?

By Joe Wallace

If you are new to the home buying process and are still house hunting, chances are good you might not be thinking about the ups and downs of your monthly mortgage payment. Some find it difficult to wade through home loan paperwork–there is a lot of print and fine print to digest in the best of times. What should you expect from your monthly mortgage bill and what do you do if you find errors or other issues on your monthly statements long after the loan has closed? The Consumer Financial Protection Bureau or CFPB advises consumers to carefully review their monthly mortgage statement. You will want to review the following sections for accuracy each month and to make sure there are no surprises: Customer service contact information the lender/servicer | more...

September 9, 2021

Do You Have An FHA Adjustable Rate Mortgage?

By Bruce Reichstein

Do you have an FHA adjustable-rate mortgage, also known as an FHA ARM loan? Is your introductory rate about to expire? It may be a very good idea to explore your refinance options to avoid the higher interest rate. Borrowers with adjustable-rate home loans rightfully get a bit nervous when the end of their introductory interest rate period, also known as a “teaser rate” period is about to and the first adjustment to the ARM loan’s interest rate becomes due. Borrowers can negotiate an introductory rate that lasts as little as one year and as many as 10 years with the lender, but eventually, that initial rate will end and the first adjustment will come due. If you have an FHA ARM loan you may be eligible for either a | more...

August 24, 2021

What One Credit Reporting Agency Says To Do About Your Credit Scores

By Joe Wallace

Your credit report and credit score are important factors in home loan approval. So what advice do the credit reporting agencies like Equifax, Experian, and TransUnion say you should do when planning to apply for a home loan? Knowing what credit score advice these three agencies offer is important–it’s good to think like a lender when applying for a large line of credit, and it is even better to think like the credit reporting agency in terms of what to do to prepare your credit ahead of your loan. What does Experian say about getting your credit ready for a home loan? Their official site reminds consumers that credit scores are a very important aspect of home loan approval. But those scores do NOT tell the entire story. Experian reminds | more...

August 20, 2021

Buying Your First Home

By Joe Wallace

What kinds of questions should you ask before you make an offer to buy your first home? There are many areas to think about when getting ready to make a big financial commitment like a mortgage. Is Your Financial House In Order? Can you realistically afford the home you are buying? The answer to this question goes further than whether you have enough money after your other monthly expenses to pay your mortgage. For example, having the ability to save for your upfront expenses (down payment and closing costs) is important. But what happens AFTER those fees and expenses are taken care of? It is a good idea to include saving some cash reserves above and beyond your cash to close–having some extra funds to help out in case times | more...

August 12, 2021

What To Do When Morgage Rates Are Rising

By Joe Wallace

What do you need to know when mortgage rates start to climb? That depends greatly on whether you are interested in buying, refinancing, or even building a home from the ground up. Why? Because there are situational concerns that may affect your decision-making depending on what kind of home loan you need. Mortgage rates go higher for a variety of reasons. Borrowers should know that typically, what’s good for the economy can mean upward pressure on mortgage rates. Conversely, bad news for the economy can mean good news for mortgage loan interest rates. So what’s a borrower to do? If you seek an FHA refinance loan to get out of an adjustable-rate mortgage, your course of action might be as simple as comparing the rates your lender could offer you | more...

August 5, 2021

FHA Home Loans: Mistakes To Avoid When It’s Time To Close

By Bruce Reichstein

As you get closer to the day when you sign the paperwork, pay your closing costs, and take possession of your new home, there are some important mistakes to avoid. Do you know what they are? FHA home loan closing day is an important milestone; make sure you know what to expect leading up to the big day. Don’t Move The Same Day You Close Closing dates can change, circumstances may require a new closing date. If you hired movers or rented a truck on the same day that you are supposed to close the deal, you may be disappointed. Don’t Be In A Hurry Take the time to carefully read all documents you are required to sign, don’t skip the home inspection, and don’t give in to any kind | more...