Articles Tagged With: First-time Home Buyer

November 19, 2020

FHA Loan Options

Why choose an FHA mortgage? Why not apply for a USDA home loan or a VA mortgage? Aren’t these also government-backed loan programs? Yes, but FHA mortgages are open to any financially qualified applicant, while USDA loans are need-based mortgages for those who meet certain income requirements, and VA loans are not offered to the general public but are offered as a benefit for military service. There is nothing wrong with USDA mortgages or VA home loans. But they aren’t available for just any borrower, where FHA mortgages are offered to the general public. And what about applying for conventional mortgages? These non-government backed home loans have higher FICO score requirements in many cases, as well as higher down payment requirements in cases where the borrower’s credit scores aren’t as | more...

November 18, 2020

Getting A Mortgage With A Low Credit Score

By Bruce Reichstein

Lots of potential home owners want to know if it is possible to get a mortgage with a low credit score. The answer to this kind of question may surprise you, but much depends on both FHA loan rules AND participating lender standards. What do you need to know to get started looking for a home loan with a low credit score? Start Working On Your Credit Today What some borrowers don’t understand is that there are things you can do in the planning stages of your home loan journey to improve credit scores and they are steps you do not have to pay someone else to do for you. One of the first of these is to pull your credit report from the three major credit reporting agencies Equifax, | more...

November 17, 2020

HUD Says November Is Fraud Awareness Month

By Joe Wallace

The Department of Housing and Urban Development is observing the month of November as Fraud Awareness month. The agency’s official site states, “During November Fraud Awareness Month, HUD is highlighting the many resources available to help combat fraud.” What kind of resources are available to borrowers and potential borrowers? One of them is a video titled, “What Does Fraud Mean To You?” The HUD official site also includes links to resources such as a global occupational fraud report. What should consumers beware of and raise the awareness of when it comes to fraud associated with mortgages and refinance loans? There are a variety of critical areas that should be paid attention to–much will depend on what stage of home ownership you are at. Are you a first-time home buyer? A | more...

Rehab Refinance Loans, reverse mortgages

November 16, 2020

Rehab Refinance Loans, Effects Of The Pandemic, And Interest Rates

By Joe Wallace

At the time of this writing, FHA mortgage loan interest rates are still below the three percent line–best execution FHA mortgage loan rates for purchase loans are at 2.40%. The fact that we’re reporting on FHA loan interest rates below three percent makes some a bit more motivated to explore their refinance loan options. Some want to refinance their mortgages to get more affordable monthly mortgage payments. In the wake of COVID-19 furloughs and layoffs earlier in the year there were also falling mortgage rates AND government stimulus checks along with mortgage loan forbearance and other options for those trying to weather the economic impact of the pandemic. But not everyone wants to refinance in 2020 to save money–some need repairs to their property, others want to get out of | more...

November 13, 2020

FHA Home Loan Resources

By Joe Wallace

If you are thinking of applying for an FHA home loan or an FHA refinance loan, there are some important resources you should know about in the planning stages. These resources can help you prepare for your loan application, give you information about estimated mortgage payments, and help you located FHA loan limit information for your county. The first thing a potential home buyer should know about is the ability to contact the FHA to get a referral to a HUD-approved housing counselor who can help you understand the mortgage loan process, what it means to start preparing your credit for a home loan, and more. You can contact the FHA directly by calling 1-800 CALL FHA to request your referral. Another important resource? Online listings of FHA loan limits | more...

November 12, 2020

Reasons To Refinance

By Joe Wallace

There are good reasons to refinance your mortgage, and there are reasons that aren’t advisable. What do you want to accomplish with your refinance loan? Borrowers looking for cash out might list that as the primary reason but what you plan to do with that cash could be just as important as the home loan itself. There are many reasons to consider refinancing your home loan with an FHA refi loan. One is to get into a lower interest rate–whether you have an existing FHA mortgage or a non-FHA loan, you can refinance into an FHA loan with the goal of getting a lower rate. It’s a very good idea to let your participating FHA lender know the specific reason you want to apply for refinancing. If getting a lower | more...

November 10, 2020

Information You Need To Pre-Qualify Or Get Pre-Approved For A Mortgage

By Joe Wallace

When you go to explore your home loan options, there are two steps you’ll take to get things started and moving forward. One is getting pre-qualified for the loan using some basic (but important) information about your income, credit history, and other variables. The other step is to get pre-approved, which is a more involved process that requires more information building on what you previously submitted in the pre-qualification process. What kind of information does a potential borrower need for these applications? It helps to think like a lender when dealing with questions like these; your loan officer needs information to establish your employment and income history, your patterns of credit use, the size of the loan you need, etc. For pre-qualifying, which is something you can do in your | more...

November 9, 2020

FHA Home Loan Income Rules You Should Know

By Bruce Reichstein

FHA loans, like all mortgage loans, have rules governing the borrower’s income. Your lender is required to verify your income to make sure it is stable and reliable. The lender is also required to ensure you have a minimum amount of job experience; a year or less is not enough for your total amount of time in the job market. What do you need to know about FHA loan income rules? There are a few important factors. For example, if you have been working a job where you are paid a salary and you are switched to commission income, your lender will require a minimum amount of time earning the new type of income (commissions) before it may be counted to qualify for the new loan. There are also rules | more...

November 6, 2020

Can I Get An FHA Loan More Than Once?

By Joe Wallace

One common question about FHA home loans goes something like this: “I bought a home with an FHA mortgage–can I get an FHA loan more than once?” The question is one of many that indicate a series of persistent myths about FHA mortgages. Those myths include the mistaken belief that FHA loans are only for economically disadvantaged people, or that there are restrictions on FHA mortgages that include income caps or that there must be a demonstration of need to be approved for an FHA mortgage. This might be due to confusion about government-backed loans in general. For example, certain USDA mortgage loans DO require a demonstration of need, income caps per household, and other features that clearly indicate that those USDA loans ARE for those who qualify as low | more...

November 5, 2020

Mortgage Loan Interest Rate Trends

By Joe Wallace

FHA mortgage loan rates have had a wild ride in 2020, and that is likely not over headed into the November and December holiday seasons. The 52-week average for government-backed mortgage loan interest rates has a bottom at 2.25%, which is significant since mortgage loan rates had, until this year, rarely seen territory below the three percent range. And the upper end of the 52-week average at the time of this writing is four percent–that should give you a good idea of how rates have fluctuated in the last 12 months. There is still plenty of uncertainty over which way rates might trend into the new year after the election season, continued issues with COVID-19, etc. At the time of this writing, the best-execution FHA mortgage rates (assuming ideal conditions) | more...