January 19, 2018

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Articles Published in: January 2018

How to use an FHA home loan

How To Use An FHA Home Loan

Do you need to know how to use an FHA home loan? There are many things you can do with an FHA mortgage, or an FHA refinance loan. Some of your options include buying a home with more than one living unit, refinancing an existing loan to do rehab or repair work, and including energy-efficient upgrades into your new mortgage. Use An FHA Home Loan To Buy Your First Home FHA home loans are not specifically targeted at one type of buyer, but first time home buyers enjoy the lower down payment requirements and more lenient FHA credit requirements. First time home buyers may learn early that the FHA home loan program isn’t strictly for first homes, but that the participating lender has some kind of first-time buyer incentive. This | more...

 
How To Get Cash Back On An FHA Home Loan

How To Get Cash Back On An FHA Home Loan

Do you need to know how to get cash back on an FHA home loan? Some borrowers ask if it is possible to apply for more mortgage loan money than is required to complete the transaction with the intent of taking that excess in cash like a personal loan. Is this possible? That specific scenario is definitely NOT possible under FHA home loan rules. Borrowers are not permitted to get cash back in such cases except in the form of a refund for money paid up front for items that were later included in the mortgage loan. In some cases a refund might come from an unexpected source, but those payments are still considered a refund and not “excess cash back”. A good example of this? When a borrower refinances | more...

 
FHA-to-FHA Refinance Loan Rules

FHA-To-FHA Refinance Loan Rules

Do you know the loan rules for FHA-to-FHA refinance loans? There are many reasons why a borrower with an existing FHA mortgage could need or want to refinance. Some are interested in taking a portion of their home’ s equity in cash, others want lower monthly payments. Let’s examine the rules of FHA-to-FHA refinance transactions. How the FHA Defines Refinancing The rules governing FHA-to-FHA refinancing are found in a section of HUD 4000.1, the FHA loan handbook. It defines FHA refinance loans as follows: “A Refinance Transaction is used to pay off the existing debt or to withdraw equity from the Property with the proceeds of a new Mortgage for a Borrower with legal title to the subject Property.” There are a variety of FHA loan options when you are | more...

 
Who Can Apply For An FHA Mortgage? Part Two

Who Can Apply For An FHA Mortgage? Part Two

Who Can Apply For An FHA Mortgage? In our previous blog post we addressed some common misconceptions about FHA mortgages, but there is a long list of FHA home loan uses including refinancing, fixer-upper loans, and much more. Who can apply for an FHA home loan? You may find your own needs represented somewhere in this list of approved FHA loan uses. FHA Loans Are For Owner/Occupiers You can apply to buy a property up to four units, and act as a landlord to rent out the units you won’t be living in; FHA loans have an occupancy requirement so you cannot buy a home with an FHA mortgage unless at least one person obligated on the loan will live there as the primary residence. FHA Loans Are For U.S. | more...

 
Who can apply for an FHA mortgage?

Who Can Apply For An FHA Mortgage?

Who can apply for an FHA mortgage? The answers may surprise you; there are misconceptions about FHA home loans that many have to this day, including who is eligible to apply and when. Do you know if you are eligible to apply for an FHA loan or refinance loan? FHA Home Loans Are For All Income Brackets There is no such thing as earning too much money to qualify for an FHA home loan. Some mistakenly believe that there is a maximum income for FHA home loans that excludes people who “earn too much”. This is not true. There is no maximum income limit for an FHA home loan. You will be required to furnish bank statements, pay stubs (electronic or otherwise), and tax documentation to establish your income, but | more...

 
What Is The Interest Rate For FHA Refinance Loans?

What Is The Interest Rate For FHA Refinance Loans?

What is the interest rate for FHA refinance loans? This is an important question since your interest rate will affect the overall cost of your refi loan over time, and it’s good to know how rates work before you apply for a new home loan. FHA mortgage loan and refinance loan interest rates have a variety of factors that affect how they are determined for your loan. There is no single determining factor that allows a lender to give a single rate to all applicants-your interest rate is determined based on application data, market forces, and other factors. Does The FHA Set Interest Rates On FHA Refinance Loans? The FHA and HUD do not set or regulate FHA mortgage loan and refinance loan interest rates, except to require that the | more...

 
Are FHA Refinance Loans Only For FHA Mortgages?

Are FHA Refinance Loans Only For FHA Mortgages?

Are FHA refinance loans only used to refinance existing FHA mortgages? The answer might surprise you, and we should begin by dispelling a long-time myth about FHA home loans and FHA refinance loans in the process. FHA Refinance Loans Are Open To All Financially Qualified Borrowers FHA loans have no income limit, and are not specifically targeted at one type of borrower. There is an impression that only first-time borrowers or first-time refinance loan applicants will be considered for FHA loan approval, but this is NOT TRUE. FHA loans require a minimum FICO score, have no income minimum or maximum, and have more generally lenient application requirements than many conventional mortgages. You cannot earn “too much” to be considered for an FHA mortgage. Your income is measured against your monthly | more...

 
FHA loans

Happy Martin Luther King, Jr. Day!

Happy Martin Luther King, Jr. Day! Banks and markets are closed today to observe the holiday and we too feel it’s very important to remember this important day. America owes a great deal to Dr. Martin Luther King, Jr. and we are proud to observe this day dedicated to him. We pause are regular coverage of FHA news and answering reader questions about FHA home loans to observe the holiday. We resume our usual schedule of posts tomorrow. Thanks for reading!

 
Can Disaster Relief Grants Be Used As Money To Close An FHA Loan?

Can Disaster Relief Grants Be Used As Money To Close An FHA Loan?

Can disaster relief grants be used as money to close an FHA mortgage loan? In the wake of the many natural disasters in 2017, many home owners in Texas, California, Puerto Rico, and other affected areas want to know what their options are to recover, rehab, repair, or replace their homes. FHA loan rules require the lender to verify the source of all funds used as a down payment on FHA mortgage loans; down payment money (also known as a Minimum Required Investment or MRI) cannot come from unsecured loans, gifts with an expectation of repayment, or other unapproved sources. The FHA loan handbook, HUD 4000.1, have rules for down payments that are sourced in whole or in part by disaster relief grants. But what does the FHA consider to | more...

 
FHA condo loans and site condominiums

FHA Condo Loans And Site Condominiums

FHA condo loans are available for both condo units and site condominiums. But what’s the difference? Many are surprised to learn that an FHA home loan is available for condo units, but are sometimes disappointed that the FHA condo loan requirements include being on or added to an FHA-approved condo project list. Borrowers must work with their participating FHA lenders to have condo projects not on that list added to it, but the requirements are different depending on whether you’re looking at a condo unit or a property classified as a “site condominium”. What’s the difference? FHA loan rules in HUD 4000.1 require a condo project to be added to the FHA approved list if it is not already when the borrower chooses to buy.  FHA loan rules were created | more...