Articles Tagged With: First-time Home Buyer

June 9, 2021

Have You Checked Your Credit Score Lately?

When was the last time you checked your credit score? If you are thinking about applying for ANY line of credit (but especially home loans) you will want to be looking at your credit reports on a regular basis. There are good reasons to monitor your credit and keep track of updates to your report. What kind of reasons? Human error, for one. If your credit report has mistakes like an outdated home address, incorrect spellings of your name or addresses, or other problems those errors could make trouble for you later on. But errors aren’t the only issue to keep an eye on. Credit scores help determine your interest rate on a home loan, and they also help determine what size of down payment you may be required to | more...

June 8, 2021

What To Do If You Need Down Payment Assistance

By Bruce Reichstein

Some borrowers worry that they can’t save up enough money for their home loan down payment. Fortunately, many states feature programs that can help these borrowers who may otherwise qualify for an affordable home loan but struggle with their down payment requirement. If you are considering an FHA mortgage but need down payment help, there are programs offered by state and local agencies that may be able to help you soften the economic blow of that 3.5% down payment requirement imposed by the FHA. Not all down payment assistance meets FHA loan guidelines–you’ll need to make sure that whatever the source of your down payment assistance, you meet the sourcing requirements for the money. That means having a clear paper trail from the person providing your down payment assistance. Your | more...

June 2, 2021

HUD Revises FHA Loan Citizenship Rules

By Bruce Reichstein

The Department of Housing and Urban Development has issued a press release which announces important changes to the way participating FHA lenders process home loan applications completed by those who are in the United States but are not American citizens. The policies changed are those that allow a lender to approve FHA home loans for those in the United States under the Deferred Action for Childhood Arrivals (DACA) program. In 2012, the Department of Homeland Security issued a policy for those who entered the United States as minors, and who meet “certain additional guidelines” — these applicants are eligible to request “deferred action from prosecution for removal” from the United States for two years, subject to renewal. This technically makes those eligible under DACA to work legally in the United | more...

June 1, 2021

HUD Announces Resolution To Fair Housing Act Case In California

By Bruce Reichstein

There are plenty of headlines related to violations of the Fair Housing Act. We report on Fair Housing violations partly to remind borrowers to know their rights, but also to encourage anyone who has been the victim of violation of federal Fair Housing laws to report them to HUD. Discrimination in the housing process creates undue burdens on all house hunters. It does not matter what kind of housing you seek, whether or not you are in the house hunting phase or the home loan application phase, etc. Even in cases where the violations occur in relation to rental properties, discrimination hurts the entire industry. In a 2021 Fair Housing discrimination case, HUD has announced a Conciliation/Voluntary Compliance Agreement with Cascade Village Apartments II in Sacramento, California. This agreement includes | more...

Build on your own lot. Construction loan basics

May 27, 2021

Construction Loan Options: Comparing One-Time Close Loans

By Bruce Reichstein

Do you dream of building a home? There are affordable options for those who want to build on their own lot or buy land in conjunction with a One-Time Close (OTC) construction loan. One-Time Close mortgages feature a single loan application and a single closing date. Compare that to construction loans that make you apply and get approved twice–once for the construction costs and once for the purchase of the property. Your construction loan options include VA, FHA, and USDA mortgages. One type of loan might be more suitable to certain borrowers than others, but fortunately, there are multiple choices you can make to get the right loan for you. FHA One-Time Close Construction Loans The FHA One-Time Close mortgage is a good choice for those who want more flexible | more...

May 26, 2021

FHA Home Loan Mortgage Rates

By Bruce Reichstein

First-time borrowers sometimes ask, what is an FHA home loan mortgage rate? The FHA loan rate is the interest rate you’ll negotiate with the lender on a 15-year or 30-year FHA mortgage. There are some facts you should know about FHA loan rates that will make understanding them much easier. FHA Loan Rates: They Vary By Lender Technically speaking, the mortgage loan interest rate on your loan is something determined by the loan officer, based on current market rates and other factors. Who gets the most competitive FHA loan rates? Those who meet FICO score standards and the lender’s other financial qualifications. But rates, being negotiable, can be bought down using discount points–an option you and the participating FHA lender should discuss as early as possible. Buying discount points makes | more...

May 24, 2021

Credit Building For First-Time Home Buyers

By Joe Wallace

Are you interested in buying your first home but aren’t sure how to improve or build up your credit to give yourself a better shot at home loan approval? FHA mortgages have more lenient credit approval requirements than conventional mortgages but even those applying for FHA mortgages need to ensure their credit scores are in an acceptable range for the most affordable home loan possible. In some cases it is a good idea to consider applying for smaller credit first. This may be in the form of store credit cards or similr lines of credit. But what should a new borrower know about doing so? Building credit takes time and patience–it is unrealistic to expect results in a few weeks or even a few months. If you have never applied | more...

May 20, 2021

Mortgage Insurance And Homeowner’s Insurance

By Joe Wallace

No matter what kind of home loan you apply for, you will have issues related to mortgage insurance to brush up on. Are you a first-time homebuyer? Do you have experience buying a home? In either case, there are things to remember. Some new to buying a home assume (mistakenly) that some kinds of insurance are universal. Then there are those who confuse mortgage insurance with homeowner’s insurance. This is not an unusual mistake to make, but it can cost you. What do you need to know about insurance issues? The first thing involves who is protected under the insurance plan. Mortgage Insurance Premiums (MIP) If you want to avoid paying for mortgage insurance on a conventional loan, you are generally required to put a whopping 20% down. When it | more...

May 19, 2021

FHA Loan Rules To Build Or Buy A Home

By Joe Wallace

Are you interested in applying for a home loan to build or buy a house of your own? FHA mortgage loan options allow a wide variety of choices when it comes to a first home. And you do not have to be purchasing your first house to use an FHA mortgage–as long as you are buying a home you want to live in as your main address and financially qualify, an FHA home loan may be for you. The range of those FHA loan options may surprise you. Did you know a first-time homebuyer has the option to purchase a condo unit using an FHA mortgage? The condo project may be on or added to an FHA-approved list but starting in 2021 it is also possible to have a loan | more...

May 18, 2021

Home Loan Down Payment Assistance Programs

By Joe Wallace

If you need a home loan but are not sure about being able to make your down payment, you may have help waiting for you in the form of a local home loan down payment assistance program. These are offered by a variety of entities including state housing agencies and can help first-time borrowers and those who have not owned homes before in the last three years. They may also be offered to those who don’t meet either of the criteria listed here, depending on circumstances. What do you need to know about down payment help? The first thing to know is that the terms and conditions will vary from state to state and even from agency to agency. There are no standardized offerings for down payment assistance. Some borrowers | more...