November 22, 2018
Happy Thanksgiving 2018! Today we pause from our usual discussion of FHA home loans, refinance loans, FHA reverse mortgages and related topics to enjoy the holiday. Our regular schedule of posts resumes on Friday. Have a safe and fun Thanksgiving holiday and we’ll see you tomorrow!
November 21, 2018
Are you considering an FHA home loan in 2019? Even as shoppers nationwide are preparing for Black Friday, the biggest shopping day of the year, some are being tempted by credit card offers to help pay for the gift-giving in December. But if you need a home loan in 2019, Christmas shopping season should be more carefully thought out for several reasons. It’s generally advised not to open new lines of credit in the planning stages leading up to your FHA loan application. Whether you need to refinance a home loan, get a new mortgage for your dream home, or apply for fund to repair your property using an FHA 203(k) Rehabilitation loan, you will need to maintain and pay down your existing lines of credit and avoid opening new | more...
November 20, 2018
There is a type of home loan borrowers can apply for when they want a house built for them from the ground up. These mortgages are known as One-Time Close loans and are offered by the VA, USDA, and FHA programs via a participating lender. Do you prefer to have a home built just for you rather than purchasing someone else’s property? What Are FHA Construction Loans? The FHA construction loan known as a One-Time Close (OTC) mortgage, like its’ USDA and VA counterparts, offers qualified borrowers a single mortgage for the construction project; traditionally home construction loans featured two applications, two closing dates, and two chances to have a loan application approved or denied. There is one loan for the construction itself (which must be paid for along with | more...
November 19, 2018
While it should be pointed out that FHA mortgage loans are not restricted to those who have never owned a home before, it’s also good to note that FHA mortgages are an excellent choice for first time buyers since they won’t be required to buy homes with 20% down. Low- and no-downpayment mortgages are obviously an advantage to the first time home buyer; how does an FHA mortgage help these borrowers? Verify Your FHA Loan Eligibility All mortgage loans have eligibility standards; FHA, Fannie Mae and Freddie Mac, rural housing loans guaranteed by the USDA or even the 100% loans offered to qualifying veterans (VA loans) guaranteed by the Department of Veterans Affairs all have financial eligibility requirements. And all of these loans have minimum program guidelines that may or | more...
November 16, 2018
If you want to buy real estate with an FHA mortgage in 2019, there are several things you can do to get ready for a successful loan application and closing date. One of those preparations? Learning what you can and cannot buy with an FHA home loan. FHA Mortgages In 2019: Your Real Estate Options Many published reports speculate that in 2019, house prices will begin to come down and areas where the real estate environment is considered a seller’s market may begin to shift toward the borrower again. What kind of real estate inventory you have access to depends on the housing market where you want to live, but there are some things you should know about your home loan options before you decide to start looking. Namely that | more...
November 15, 2018
Thinking about getting pre-qualified or pre-approved for a mortgage loan? FHA mortgages generally require a lower down payment and have more forgiving terms for loan approval, but the amount of money you put down isn’t just guided by your financial qualifications (see below), it also depends on your financial goals. A National Association of Realtors report from 2017 indicates that a large number of people put down less money than you might think to purchase their dream home. Some of the zero-money-down transactions are likely either VA loans (available for qualified veterans and dependent on serving a minimum amount of time in uniform) or USDA loans which also have a zero down payment option. But in some cases you may actually wish to make a larger down payment. Why? In | more...
November 14, 2018
Are you looking for a home loan? Do you want to buy a home with a mortgage loan in 2019? The FHA Single-Family Home Loan program offers a wide variety of options for qualifying borrowers, but some future home owners make the wrong assumptions about FHA mortgages. How much do you know about this important home loan option? FHA Home Loans Are For Any Financially Qualified Borrower Regardless Of Past Home Ownership If you have applied for a home loan in the past, owned a home before, or are a current home owner, you are not excluded from consideration for an FHA mortgage under the rules of the FHA program. This is true of all FHA mortgages including One-Time Close construction loans, FHA condo loans, and FHA mortgages for multi-unit | more...
November 13, 2018
What are your FHA home loan options in 2019? Those looking to start house hunting in the new year should know about FHA loan guaranty limits and how those limits can change from year to year. This is a very important detail of the home loan process you should know before starting the search for your dream home. FHA loans have limits that are set periodically and can change from year to year. For many years, the basic limit did not change, and in high or low-cost areas the limits are naturally different but the amount of those respectively higher or lower limits don’t always change. However, in 2018 FHA loan limits did change, and borrowers found they had increased limits according to FHA Mortgagee Letter 2017-16. The national limit | more...
November 12, 2018
Why choose to build a home instead of buying an existing construction property with an FHA mortgage? Some borrowers simply don’t want the hassle of house hunting or can’t find the right existing property. In cases where an FHA borrower wants a home built for them, the FHA One-Time Close construction loan (OTC) can be a major help. In a previous blog post, we started discussing why borrowers should choose an FHA construction loan over a conventional one. There are plenty of reasons including these: Lower Down Payments As with interest rates, FICO scores and other credit qualifications will play an important role in the down payment requirement you are given with FHA OTC mortgages. In general borrowers should expect to make a minimum down payment of 3.5%, but borrowers | more...
November 12, 2018
FHA One-Time Close construction loans, also known as construction-to-permanent mortgages, are a way that borrowers who need a lower down payment and more flexible loan approval guidelines can apply for a home loan that allows the property to be built from scratch. One-Time Close loans, which are sometimes referred to as FHA OTC mortgages, require the borrower to qualify only once for both the construction portion and the mortgage loan. This type of FHA mortgage may vary more among participating lenders because of certain features of the loan including the type of property that can be built, and the loan approval process as it relates to getting construction permits for the project. Some Options Are Available With Some Lenders But Not Others: Shop Around! Your participating lender may not offer | more...