Articles Tagged With: First-time Home Buyer

September 23, 2020

Getting Ready For An FHA Home Loan Refinance

Are you interested in a lower mortgage payment or interest rate on your home loan? Are you looking to convert the equity you’ve built up in your home into cash? There are plenty of reasons to consider refinancing–do you need out of an adjustable-rate mortgage (ARM) and into a fixed-rate loan? All of these options are open to financially qualified borrowers who apply for an FHA refinance loan and you do NOT have to be a first-time homebuyer or first-time homeowner to be approved for an FHA refinance loan. Many of the same steps you took for your original home loan application are applicable when you begin planning to refinance your mortgage; you should pull your credit reports are early as possible in the planning stages. Many consumers find it | more...

September 21, 2020

Time Is Running Out On Exterior-Only FHA Appraisals

By Bruce Reichstein

In August 2020, the FHA and HUD issued an extension of their temporary exterior-only appraisal guidelines for borrowers applying for FHA mortgages and refinance loans. This measure, and others similar to it, came after the President declared a national emergency with respect to the coronavirus pandemic and, according to the FHA/HUD official site, “initiated actions to stem the threat to public health and the American economy.” On March 27, 2020, HUD published Mortgagee Letter 2020-05, authorizing “flexibilities to the re-verification of employment and Acceptable Appraisal Reporting Forms and Protocols by allowing exceptions for Exterior-Only and Desktop Appraisal inspections in certain transactions”. The original measures were issued in March of 2020 to allow FHA appraisers to perform their work on FHA mortgages without having to put themselves at risk of COVID-19 | more...

September 18, 2020

FHA And HUD Announce Mortgage Loan Disaster Relief For Borrowers In Oregon

By Joe Wallace

The FHA and HUD have announced disaster relief for home owners with FHA mortgages in the recently-declared federal disaster areas there. Wildfires have destroyed massive amounts of property in the state of Orgeon and other areas in the western part of the United States; affected states have been reviewed for federal disaster declarations as a result. The U.S. Department of Housing and Urban Development has announced disaster relief for FHA borrowers for the following Oregon counties. Clackamas Douglas Jackson Klamath, Lane Lincoln Linn Marion The federal disaster declaration means HUD can offer foreclosure relief to FHA borrowers. That relief starts with foreclosure relief in the form of a 90-day moratorium on foreclosure actions on affected borrowers, and there is also help with FHA loans to repair or replace homes damaged | more...

Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

September 17, 2020

Does FHA Offer Adjustable Rate Mortgages?

By Bruce Reichstein

Does FHA offer adjustable rate mortgages? When you shop around for a participating FHA lender, be sure to ask about this type of FHA loan, sometimes known as an FHA ARM. Not all participating lenders may offer an FHA adjustable rate mortgage, but for those working with a lender that does, it is important to know some basics about the mortgage and how FHA loan rules govern the adjustments in the interest rates. Borrowers who apply for an FHA ARM loan must sign a disclosure statement that outlines the terms and conditions of the mortgage. The rules that govern FHA ARM loans are found in HUD 4000.1, and those rules begin with a definition of what the FHA considers to be an ARM loan. “An Adjustable Rate Mortgage (ARM) refers | more...

September 16, 2020

New FHA Home Loan Guidelines Announced

By Joe Wallace

The FHA and HUD have written permanent new COVID-19-related loan approval guidelines for those who need to apply for an FHA mortgage but come to the home loan application process with a previous mortgage forbearance. Ever since the coronavirus emergency came to the United States, the FHA and HUD have offered borrowers mortgage relief, and now that relief and measures similar to it won’t be a liability for those who need to apply for a new FHA mortgage. Other forms of coronavirus relief have been temporary but not this time. The new rules announced by the FHA are announced as a permanent modification to FHA loan rules that instruct the lender on how to approve new mortgage loan applications for borrowers who have applied for home loan forbearance in the | more...

September 14, 2020

FHA Refinance Loan Tips

By Joe Wallace

During the COVID-19 pandemic, many borrowers took advantage of foreclosure moratoriums and other financial relief measures to save their homes from going into mortgage default. Other borrowers may choose to explore their refinancing options to get a lower interest rate or other advantages that can help them financially over the long term. If you are thinking about a refinance loan, there are some tips you should know that can help you make the most informed choice about refinancing. Remember that there are many different options if you want to refinance a home loan. Cash-out refinancing is one option, borrowers can also select no cash-out versions and a borrower with an existing FHA mortgage may find a benefit using something called the FHA Streamline Refinance, which has no FHA-required appraisal or | more...

September 9, 2020

FHA Home Loans: The Occupancy Rules (And More) You Need To Know

By Joe Wallace

Can you use an FHA home loan to buy investment property you plan to rent out to others? This is a question many wonder about, and the answer is tied to the FHA loan occupancy requirements for these mortgages. FHA loan rules for all single-family home loans are described in the lender’s handbook, commonly known as HUD 4000.1. FHA loan rules include a variety of instructions for the lender that direct the financial institution on how to process and approve FHA home loans. But FHA loan rules don’t just apply to lenders and other mortgage professionals, some regulations are also written for the borrower. Did you know that FHA single-family mortgage loans are intended for owner-occupiers only? The rules listed in HUD 4000.1 are clear–the borrower must take possession of | more...

September 3, 2020

HUD Announces Disaster Relief In The Wake Of Hurricane Laura

By Joe Wallace

On August 28, 2020, there was a federal major disaster declaration announced for the state of Louisiana; those living in the affected areas are eligible for federal disaster relief and other measures as announced (see below). The U.S. Department of Housing and Urban Development now offers federal disaster assistance there “to provide support to homeowners and low-income renters displaced from their homes in areas affected by Hurricane Laura.” The major disaster declaration is for the following parishes in Louisiana; Allen, Beauregard, Calcasieu, Cameron, and Jefferson Davis. The result of having these areas declared as federal disaster areas allows FHA foreclosure relief and other assistance to impacted families living in these counties to include immediate foreclosure relief in the form of a 90-day moratorium on foreclosing upon any FHA mortgage. For | more...

September 1, 2020

One-Time Close Construction Loan Mortgage Payments: What You Need To Know

By Joe Wallace

When do mortgage payments begin on a construction loan? If you are building on your own lot with a VA One-Time Close loan or an FHA OTC construction loan, you’ll want to know what you are liable for and when–and you’ll also want to know how delaying your mortgage payments until the home is complete will affect your monthly payments down the road. VA and FHA mortgage loan options include the ability to build a home on your own land using a VA One-Time Close construction loan or the FHA equivalent. One-Time Close loans allow you to build a house on your own land or purchase land in conjunction with building a home. There is a single application and approval process–these loans are potentially more streamlined and easier to manage | more...

August 31, 2020

HUD Extends COVID-19 Foreclosure Moratorium For A Third Time

By Bruce Reichstein

The FHA and HUD have announced a third extension of the coronavirus foreclosure and eviction moratorium announced earlier this year to help homeowners affected by the global COVID-19 pandemic outbreak. This extension is extended until the end of 2020 and is intended to help those with FHA mortgages “focus on financial recovery”. The original measures were passed as part of the Coronavirus Relief and Economic Security Act, also known as the CARES Act. According to a press release issued by the FHA and HUD, “This extension provides an additional four months of housing security to homeowners, as they will not fear losing their homes as they work to recover financially from the adverse impacts of the pandemic. “ HUD officials went on the record about this extension stating that, “…homeownership | more...