September 22, 2017

Vimeo Channel YouTube Channel

Articles Published in: September 2017

Can I Get An FHA Loan For A Mixed-Use Property?

Can I Get An FHA Home Loan For A Mixed-Use Property?

Can I get an FHA loan for a mixed use property? Many borrowers want to know if the building they want to buy is still eligible for an FHA loan in spite of zoning issues, design, or other factors that render the home a combination of a residence and non-residential purposes. What do FHA home loan rules in HUD 4000.1 say about such transactions? To begin, the FHA defines what it deems to be “mixed use property”: “Mixed Use refers to a Property suitable for a combination of uses including any of the following: commercial, residential, retail, office or parking space. Mixed Use one- to four-unit Single Family Properties are eligible for FHA insurance” with certain restrictions in place. It’s important to note that FHA loan rules in this area | more...

 
Do I need the consent of my non-borrowing spouse to get an FHA loan?

Do I Need The Consent Of My Non-Borrowing Spouse To Get An FHA Mortgage?

Do I need the consent of my non-borrowing spouse to get an FHA mortgage? That’s an important question, and the answer varies depending on the laws of your state. The rules governing this issue are found in the FHA loan handbook, HUD 4000.1. The section answering this question is short, but the implications will vary, again, depending on state law. But why? FHA home loans and other major lines of credit are often affected by state laws, including what are known as “community property laws”. If you reside in a community property state, that means that state law dictates how the debts incurred in a legal marriage are viewed legally. In community property states, spouses share the financial responsibility for all debts incurred for the duration of the legal marriage. | more...

 
How do FHA mortgage loan-to-value limits work?

How Do FHA Mortgage Loan-To-Value Limits Work?

How do FHA mortgage loan-to-value limits work? The loan-to-value (LTV) limit is an indicator of how much of a down payment you’ll be required to make on the FHA mortgage loan. There’s no such thing as a no-money-down FHA mortgage for new purchases, so the LTV is an important detail in your loan transaction. The rules covering FHA LTV ratios are found in HUD 4000.1, the FHA loan handbook. There we learn the following by way of introduction to the FHA requirements in this area: “The determination of the maximum LTV percentage available is influenced by…the particular mortgage insurance program (See Programs and Products); and the transaction type. The Mortgagee must apply the lowest applicable LTV percentage as determined under the requirements in this section.” Your LTV limits are determined, | more...

 
Can I buy a manufactured home with an FHA loan?

Can I Buy A Manufactured Home With An FHA Mortgage?

Can I buy a manufactured home with an FHA loan? That is a question on the minds of many who are interested in purchasing a mobile home or manufactured home. What are the FHA loan rules for these properties? For starters, It IS possible to buy a mobile home or manufactured home using an FHA mortgage. Not all participating FHA lenders offer these loans (that’s up to the discretion of the lender) so you will need to find a lender who offers this type of FHA mortgage. Secondly, the homes themselves must meet FHA loan standards and other requirements in order to qualify for the mortgage. What are the FHA loan rules for mobile and manufactured home loans? One of the most basic areas addressed in the FHA loan handbook | more...

 
FHA One Time Close Construction Loans: How They Work

FHA One-Time Close Construction Loans: How They Work

How do FHA One-Time Close construction loans work? These FHA mortgages are for borrowers who want to have a home built for them from the ground up rather than looking for an existing home to purchase and move into right away. Many participating FHA lenders offer these loans for “stick built” homes, which are homes built on-site (as opposed to a manufactured home which is delivered pre-built in sections and assembled). What are the rules for this type of FHA construction loan? From the FHA/HUD official site, we learn that a One-Time Close loan is also known as a “construction to permanent” loan. “A construction to permanent mortgage combines the features of a construction loan (a short-term interim loan for financing the cost of construction) and the traditional long-term permanent | more...

 
HUD announces disaster relief

HUD Announces Disaster Relief For Virgin Islands, Georgia

The Department of Housing and Urban Development (HUD) has announced disaster relief for parts of Georgia and the U.S. Virgin Islands. As more parts of the United States and its’ protectorates are affected by hurricanes and tropical storms, many of those areas are being declared federal disaster areas and as such become eligible for certain aid from HUD, FEMA, and other agencies. The disaster declaration for St. Thomas and St. John islands, plus Camden, Chatham, and Glynn counties in Georgia mean that the FHA “activates a mortgagee letter making a variety of insured loan programs available for disaster victims and putting into play use of special loan servicing and underwriting requirements” according to the FHA/HUD official site. What options are available in these areas? According to HUD, those directly affected | more...

 
Can I Add Energy-Efficient Upgrades To An FHA One-Time Close Construction Loan?

Can I Add Energy-Efficient Upgrades To An FHA One-Time Close Construction Loan?

Can I add energy-efficient upgrades to an FHA One-Time Close Construction Loan? FHA loan rules governing the FHA Energy Efficient Mortgage add-on to other loans such as an FHA One-Time Close new construction loan are found in HUD 4000.1. There we learn the following on page 400: “The Energy Efficient Mortgage (EEM) program allows the Mortgagee to offer financing for cost-effective energy efficient improvements to an existing Property at the time of purchase or refinancing, or for upgrades above the established residential building code for New Construction.” We know from that reading of FHA loan rules that new construction loans (including One-Time Close mortgages) do qualify for FHA EEMs, which allow the borrower additional funds for an “energy package” defined as: “…the set of improvements agreed to by the Borrower | more...

 
What Is A New Construction FHA Home Loan Compared To Existing Construction Loans?

What Is A New Construction FHA Home Loan Compared To Existing Construction Loans?

What is an FHA new construction loan compared to existing construction loans? Essentially the difference involves whether the home has been occupied or not since the time it was completed. FHA loan rules governing how such properties are classified can be found in HUD 4000.1, the FHA Loan Handbook. Existing Construction Existing construction loans are for structures that have been occupied at least once since the time they were completed. Such properties may be very new, others may be very old. “Existing Construction” loan procedures are less complex than for New Construction loans because the permits, escrows, inspections and other aspects of building a home have already been satisfied before the borrower comes along to buy the property. New Construction This type of property has never been occupied by an | more...

 
Am I ready to apply for an FHA mortgage?

Am I Ready To Apply For An FHA Mortgage?

Am I ready to apply for an FHA mortgage? There’s a set of questions you should ask yourself that can help gauge your readiness to apply for a home loan. Some of them are obvious questions, some aren’t so obvious. All of them deserve some thinking time before you begin filling out application data. Have I Requested Copies Of My Credit Report? If you don’t know what is on your credit report, or if it’s been more than six months since you last reviewed your credit, it is best to wait to fill out a home loan application until you know what your lender will see. Identity theft is a major issue, and now more than ever a borrower should be fully informed as to the contents of those credit | more...

 
What you should know about FHA 203(h) Loans For Disaster Victims

What You Should Know About FHA 203(h) Loans For Disaster Victims

After Hurricane Irma and Hurricane Harvey, the Department of Housing and Urban Development has been issuing press releases as more federal disaster areas are declared in affected counties. When the government names such disaster areas, they become eligible for a variety of relief measures including FHA 203(h) loans for disaster victims. During this particular set of disasters, there’s been a trend( in news media and among those affected by the hurricanes) to refer to those who have experienced them as “survivors” rather than “victims”. While that is acknowledged and respected here, the wording used in official FHA/HUD guidance such as the FHA Single Family Home Loan Handbook (HUD 4000.1) is “victims” and for accuracy’s sake that’s how we’ll reference the materials when quoting from and discussing these references. What You | more...