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Articles Tagged With: FHA Mortgage Loan

FHA Loan Basics In 2024

Are you new to FHA loans? Do you feel the list of requirements is a bit overwhelming? You are not alone. Many first-time home buyers experience these feelings as they get to know the home loan landscape. The good news is that your confusion will end the more you learn about how home loans work. Here is some clarity on some common FHA loan basics that some newcomers find confusing in the early days of mortgage planning. FHA Loan Approval Basics Looking at finance blogs, you will find a variety of FHA home loan requirement lists. Here is an example of one, published by NerdWallet. There are important nuances to understand about the list above. before you proceed. Let’s review each section of this list. To start, it is true | more...

 
FHA loans

Before You Apply For An Adjustable-Rate Mortgage

Are you worried about FHA loan interest rates? If you have decided to explore your home loan options with an FHA adjustable rate mortgage, here are some important details to know while still planning and saving up for the loan. FHA ARM Loans Differ From Conventional ARM Loans An FHAS adjustable-rate mortgage isn’t necessarily the same as a conventional equivalent. Your conventional lender’s occupancy guidelines will vary. Does yours have a requirement that the property securing the ARM loan serves as your home address? FHA ARM loans definitely require this as a condition of loan approval.  Occupancy is key in that at least one borrower obligated on the FHA loan must live in the home being refinanced or purchased with an ARM. FHA loan rules on occupancy extend to nearly | more...

 
FHA Loans

Who Needs Homeowner Insurance?

FHA loans, VA mortgages, and similar government-backed home loans don’t force the borrower to select specific types of homeowner insurance to protect your investment but that does not mean it’s not necessary. Mortgage insurance protects the lender. If the borrower defaults on the FHA home loan, mortgage insurance minimizes the loss for the bank. Home insurance, on the other hand, is a tool for the borrower. It protects your investment by insuring your home and its contents depending on the wording of your specific policy.  First And Foremost Paying for both insurance types may make you feel there is protection for all circumstances. But not all types of damage are covered by your insurer. Did you know that flood insurance is completely separate from insurance for water damage? Some borrowers | more...

 
FHA loans

Before You Close Your FHA Home Loan

Once your FHA loan application is approved by your loan officer, is your FHA loan really “bulletproof” until closing day? Some believe that it is, but this is not true, there are many things that could wind up stopping a home loan before closing day. For example, your seller may change their mind and decide not to sell. The house might appraise for a lower amount than the seller asks for, and the borrower ultimately chooses to back out of the deal. There are too many scenarios to count. A home that is damaged or destroyed before the closing day is just one variable. While that may sound extreme, that’s a problem that happens often enough to require provisions in FHA loan regulations to guide borrowers and lenders through. Don’t | more...

 
FHA and HUD

FHA Loan Costs: Questions Answered

Some borrowers don’t realize they are permitted to finance certain costs into an FHA home loan. This can help save money out of pocket in the earliest stages of the loan, making it easier to afford the basic initial costs of buying property. Adding more to your home loan can make your monthly payments higher, but for some, that may sound like a good trade-off for saving money upfront on the transaction. Some borrowers feel any addition to their baseline monthly payment needs justification and want to avoid adding to the loan wherever possible. Choose any FHA loan add-ons carefully. Be sure to ask the lender about each addition to your mortgage. How will it increase your monthly payment? Can I Finance FHA Required Mortgage Insurance? Yes, but with caveats. | more...

 
FHA home loan

What To Know About FHA Condo Loans

Do you need to learn how to buy a condo unit? Do you want to buy one with an FHA mortgage? The first thing to know is that FHA loan rules say condo units purchased with an FHA mortgage must either be on or added to the FHA approval list. There are exceptions for condos not on the FHA list, and these may be handled on a case-by-case basis. Always ask the participating FHA lender about this issue as early as you can. How FHA Condo Loans Work Condo loans are unique because the buyer is not the legal owner of the entire structure of the building their condo unit is located in. A condo is only a single unit in a bigger shared occupancy agreement.  You also join a | more...

 
FHA Home Loan

FHA Loan Terms: Which To Choose?

There are important differences between FHA loans with 15-year mortgages and 30-year loan terms. Those differences include the number of years you’ll pay but also how much interest you may owe. What do you need to know about the fine points of selecting a loan term for your mortgage? The Start Of Your 15 or 30-Year Loan Term 15-year and 30-year mortgages typically start their loan terms the month you and the lender agree upon in writing. Usually, this occurs sometime after closing day.  Will the actual time you pay on the loan be affected by your move-in date? In some cases, yes. If you have a construction loan, you might have to wait up to 12 months while the construction is happening. Once it’s completed and all inspections and | more...

 
credit reports

What You Should Know About FHA Loans And Lender Standards

What you should know about FHA home loans and lender standards includes the basic concept that FHA loan minimums are not the only rules that affect your home loan transaction, whether it’s a one-time close construction loan, a reverse mortgage, or even a cash-out refinance. FHA loan rules are not designed to address all possible scenarios when dealing with a home loan application. FHA loan rulebooks do not include the state/municipal guidelines and requirements for every housing market. FHA mortgage loan rules in HUD 4000.1 provide some leeway and flexibility for the lender to interpret the rules in light of lender requirements, as long as those requirements are per federal law and FHA guidelines. Then there’s state law, local building code requirements, and local ordinances that must be satisfied. FHA | more...

 
First time home buyer FHA loan

Home Loan Applications Rising In Early 2024

Are you considering buying a new home with an FHA loan? Current market trends point to growing interest in existing construction purchases. And that is in spite of a bit of mortgage loan interest rate changes pushing rates higher (in the short term.) That move higher has not discouraged many from their overall impression of a housing market in recovery, however slow the progress may be. Business Insider reports that, at press time, “30-year mortgage rates have averaged around 6.32%,” according to Zillow. The report also notes that the rates are “a bit below” the December interest rate averages, “and more than a full percentage point down from when they peaked in October 2023.” As housing market and home loan interest rate conditions improve, demand for existing construction homes may | more...

 
FHA loans

Planning & Saving For Your FHA Loan

House hunters need to save cash when planning to buy a house in the new year. Some things have always been on the list but have, in more recent times, become more important to consider while in planning mode.  FHA Home Loan Down Payment Issues To Know The down payment issue is non-negotiable for typical FHA loans, money down is required. However, you might be surprised by your options when saving for it.  You’ll need to save a MINIMUM 3.5% down payment, but in 2024, you may want to consider making a bigger down payment. It can help you save on interest rates over the loan term. There are variables, including whether or not you choose to finance closing costs, and those are factors to consider and ask the lender | more...