September 22, 2017

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Articles Published in: May 2017

FHA Adjustable Rate Mortgage Rules: Rates, Term, and Adjustments

Some potential FHA borrowers might be surprised to learn that an FHA adjustable rate mortgage (FHA ARM) is an option to consider, but for those with specific financial needs and goals, an FHA ARM loan might be a very good idea. FHA adjustable rate mortgages have specific controls over how much and when an interest rate change may occur, but there are other rules that also affect this type of FHA mortgage. All the rules for FHA ARM loans are found in HUD 4000.1, the FHA Single Family Loan Handbook. It says that the initial rate and margin are established by the lender, and that the margin must be constant over the entire term of the mortgage. Furthermore, “The interest rate must remain constant for an initial period of 1, | more...

 

After The FHA Loan Closes: FHA Loan Reader Questions

A reader got in touch recently to ask an FHA loan question about the disposition of the property once the loan has closed. “After receiving the loan, are there any regulations on putting two other mobile homes on the property? They will not be on a permanent foundation. We are currently buying 15 acres of land in Texas.” FHA loan rules are clear about the status of a mobile or manufactured home that is purchased with an FHA mortgage loan-all such property types must meet FHA minimum standards and be affixed to a permanent foundation as a condition of loan approval. However, the FHA Single Family Loan Handbook, HUD 4000.1, does not address the condition of add-ons, improvements, or other modifications that happen after the loan has closed. A borrower | more...

 
Do Section 8 Housing Vouchers Count For FHA Loans?

FHA Adjustable Rate Mortgages in 2017

Are you looking for an FHA adjustable rate mortgage in 2017? FHA single family home loans come in a variety of types including fixed-rate loans and FHA adjustable rate mortgages. The rules for these loans, commonly referred to as FHA ARM loans, are spelled out in HUD 4000.1, the FHA loan handbook. FHA adjustable rate loans can be different than their conventional counterparts, starting with certain restrictions on how often the interest rate may change. Before we dive into that issue, let’s examine how HUD 4000.1 defines the FHA ARM loan: “An Adjustable Rate Mortgage (ARM) refers to a Mortgage in which the interest rate can change annually based on an index plus a margin.” Your loan officer is required to provide a disclosure form, which must be signed, that | more...

 
Who can apply for an FHA mortgage?

FHA Loans and Your Credit

Lots of people want to know what credit issues will affect the approval of FHA loans. The shortest answer is that it’s a combination of FICO scores, your repayment habits on all financial obligations (not just credit cards or revolving debt), and the amount of debt you pay on each month versus how much income you have. But there are some hard numbers to look at, too. FHA minimum requirements for credit include FICO score requirements for maximum financing. If your FICO scores are 580 or above you technically qualify for maximum financing, which means only a 3.5% down payment. But FHA FICO minimums are not the only FICO score requirements you’ll need to meet. Credit requirements at your chosen lender can be, and often are, higher. You may find | more...

 
FHA loans

Happy Memorial Day 2017!

Happy Memorial Day! We pause today from our usual posts about FHA home loans, refinance loans, and related topics to recognize the sacrifices made by our women and men in uniform. Thank you to all who have served-from those who have gone before to those who are about to enter their first year in uniform in service to our country. We return with our regularly scheduled posts on Tuesday. Thank you for reading, and have a safe and happy Memorial Day 2017.

 

Qualifying For An FHA Cash-Out Refinance Loan

Qualifying for an FHA cash-out refinance loan is much the same as qualifying for an FHA “forward mortgage” or typical new purchase loan. Since this type of refinancing involves money back to the borrower, the lender is required to run a new credit check and the usual credit requirements will apply even for those who are repeat customers for a particular lender. Credit Activity When you are preparing for your FHA cash out refinance loan, you’ll need to observe the same rules about credit that you did when you applied for your original mortgage. That means avoiding new credit card applications and other types of credit leading up to your refi loan paperwork. Why? Every time you apply for new credit, a “hard inquiry” is listed on your credit report. | more...

 

FHA Refinance Loan Basics You Should Know

If you have an existing home loan, you may be qualified to apply to refinance that loan with an FHA mortgage. This option can help you get cash out based on the value of your home, or it can help you get into lower mortgage payments depending on the type of loan you are eligible for. Which FHA refinance loan is right for you? FHA Cash-Out Refinancing Cash-out loans are for qualified borrowers with FHA or non-FHA mortgages. Cash out refinancing allows borrowers to get cash back when there is money left over after paying off the original mortgage, plus any applicable fees. Cash-out refinance loans guaranteed by the FHA require both a new credit check and appraisal. The new appraisal is required in order to determine the current market | more...

 
What Is An FHA Loan Limit?

FHA Home Loans: What You Need To Qualify

Qualifying for an FHA mortgage is a lot like qualifying for any other major line of credit. FHA home loans are open to all financially qualified borrowers; no applicant is turned away by an FHA lender for “earning too much” and no applicant is denied the chance to apply because they don’t fit into a specific category of wage earner. The amount of income you earn only matters as related to your ability to afford the loan. The FHA loan program is not aimed specifically at one type of income group or another. Credit Qualifying For An FHA Loan Qualifying for an FHA loan means having a FICO score acceptable to both the FHA and your lender. FHA FICO score standards start at 580 and above for maximum financing (minus | more...

 
How much can I borrow with an FHA refinance loan?

Basics Of An FHA Home Loan

Are you interested in an FHA mortgage? If you’ve never applied for an FHA home loan before, there are some basics you should know that will help you make the right choices for the property you wish to purchase. Who Is An FHA Home Loan For? The FHA single-family home loan program is available to all financially qualified borrowers looking to buy property that meets FHA standards. FHA loans are for owner-occupiers looking to purchase a home to live in as their primary residence. There is a residency requirement for FHA mortgages, and FHA single family home loans are not intended for investment properties. You can purchase a home with as many as four units, and the borrower is free to rent out the unused units of the property as | more...

 

Getting Ready For An FHA Mortgage Loan

Getting ready for an FHA mortgage loan doesn’t just mean checking your credit report and FICO scores, saving up money for a down payment, and reducing your debt-to-income ratio. It also means making important choices about your home and mortgage needs. Some of these choices may need to be made early in the preparation stage, others may come later depending on the type of home you decide to buy. Are you ready for an FHA mortgage loan? Type Of Home Believe it or not, the nature of the property you buy with your FHA mortgage loan could affect the type of home loan you apply for. A typical suburban home isn’t the same as a mobile home or a condo. The loans for a condo or manufactured home have different | more...