Articles Published in: 2018

November 12, 2018

Happy Veterans Day 2018!

Happy Veterans Day! Many banks will be closed to observe this federal holiday, bond markets are closed, and we pause in our usual routine of answering questions about FHA home loans to honor our nation’s vets. Thank a veteran for her service, and remember the sacrifices all our troops have made no matter where in the world they may be stationed. To all current and former members of the U.S. military, THANK YOU for your service! Our regular posting schedule resumes tomorrow.

November 9, 2018

FHA Mortgage Loan, Dropping Home Prices, And Your Appraisal

By Joe Wallace

You may read articles discussing home prices moving lower on real estate blogs or lending websites; when house prices move from one part of a cycle to another there is sometimes confusion related to the valuation of a home. Why would an FHA borrower looking at a house in a neighborhood or housing market with prices trending in one direction get back an FHA appraisal indicating that the home the buyer wants isn’t valued in the same way? Higher or lower, why does one home get valued “as expected” when another one does not? There are a set of variables at work in the appraisal process that include not only the age/condition of the home, but also how other houses stack up against the one you want to purchase with | more...

November 7, 2018

What Is An FHA Loan?

By Bruce Reichstein

What is an FHA loan? What are they used for? These are fairly basic questions, but there is a surprising amount of confusion about certain aspects of the FHA mortgage loan program. Know these facts about FHA home loans to make the decision about buying or refinancing a home loan with an FHA mortgage. FHA Single Family Home Loans Are For House Hunters FHA loans are intended for those who wish to purchase a home using a government-backed loan that requires a lower down payment than many conventional loans. These loans cannot be applied for to be used as personal loans, though FHA cash-out refinancing is an option for borrowers who have equity built up in the home over time. FHA loans are intended for owner/occupiers, and there is an | more...

November 6, 2018

FHA Loan Approval And Your Credit Scores

By Joe Wallace

What do you need to know about FHA loan approval and your credit scores? There are some important factors that can help you in the planning stages for your new mortgage loan. Don’t go into the mortgage application process without being armed with this information-you’ll be glad you know before you sign. FHA Minimum FICO Scores And Your FHA Lender FHA minimum FICO score requirements are not necessarily the same as your lender’s requirements. FHA Loan rules establish a minimum for credit scores (580 or higher for maximum financing) but your lender may require higher scores. An average is between 640 and 700, with scores between 640 and 680 being common requirements for the lowest down payment. FICO Score Requirements May Vary Depending On The Type Of FHA Loan Your | more...

November 5, 2018

How Do I Know If I Qualify For An FHA Mortgage?

By Bruce Reichstein

How do you know if you qualify for an FHA mortgage? There are several minimum requirements you should know, but keep in mind that we are not discussing an individual lender’s standards (which will vary depending on the lender) but the FHA Single Family Home Loan program’s basic rules. When you talk terms with a participating FHA lender, you can discuss what additional requirements may apply with that financial institution. The Basics FHA home loans are for financially qualified borrowers regardless of their status as first time buyers or experienced home owners. There is no minimum or maximum income dollar amount specified for FHA home loan approval. Borrowers may be eligible even if they have a bankruptcy or foreclosure in their history as long as good credit has been re-established | more...

November 2, 2018

Five Reasons Lenders May Deny Your Home Loan Application

By Joe Wallace

There are many reasons why a home loan application might be denied. If you seek an FHA home loan, credit requirements and other rules may be more forgiving of past credit mistakes, but lender standards and other factors do mean the borrower is held to certain minimums for FICO scores, debt ratios, and other financial qualifications. #5: FHA Loan Rules Require A Minimum FICO Score Requirement If your FICO scores are below 500, FHA loan rules say you are not eligible for an FHA mortgage loan. But that 500 minimum score is the FHA requirement, NOT the lender’s. Your participating lender’s requirements may be higher than 500 as a minimum, and meeting the bare minimum can result in a higher down payment. FHA FICO score requirements for the lowest down | more...

November 1, 2018

Get Out Of An Adjustable Rate Mortgage With An FHA Refinance Loan

By Bruce Reichstein

Are you currently paying on an Adjustable Rate Mortgage (ARM) and concerned about your next interest rate hike? It’s possible to end the uncertainty about your mortgage payments and how the next interest rate increase will affect them by refinancing into a fixed-rate FHA mortgage loan. FHA Refinance Loans Are Available As Fixed Rate Loans You can refinance an existing FHA mortgage or a non-FHA loan such as a VA mortgage, conventional loan, etc. FHA loans are designed to help borrowers get into affordable mortgages using your current income and FICO scores to qualify. If you have an FHA adjustable rate mortgage, you can refinance to an FHA fixed-rate loan using the FHA Streamline Refinance loan program. The main feature of the FHA Streamline refi is that it generally requires | more...

October 31, 2018

Mistakes To Avoid When Buying A Home With Your FHA Loan

By Joe Wallace

There are common problems associated with home loans that can be easily avoided no matter if you are using an FHA mortgage, FHA refinance, or any other kind of home loan. Do you know how to make your home loan experience as efficient and hassle-free as possible? FHA Loan Pre-Approval: Don’t Search For A Home Without It When you are serious about the house hunt, and are ready to commit financially to the home you find that seems to be “the one”, the seller will take you far more seriously as a buyer if you approach with pre-approval in hand. Sure, you can make an offer without being preapproved for a home loan, but rest assured that other potential buyers WILL talk to the seller having taken the time to | more...

October 31, 2018

HUD Announces Charges In New Jersey Housing Discrimination Case

By Bruce Reichstein

There are many types of housing discrimination, and the Department of Housing and Urban Development actively pursues complaints of Fair Housing Act violations. The most recent was announced on the HUD official site in a press release titled, “HUD Charges New Jersey Condo Association with Discriminating Against Resident with Disabilities”. According to the press release, HUD’s allegations include charges that the condo association “only allowed the resident, who is sight and hearing impaired, to use the service door instead of the main entrance to the development or the common areas when accompanied by her assistance animal.” The press release says there are other allegations, one being that the condominium association charged the resident’s daughter a fee “because she walked her mother’s assistance animal in the development’s common areas”. It is | more...

October 30, 2018

What You Can And Cannot Do With An FHA Home Loan

By Joe Wallace

What are borrowers allowed to do with an FHA home loan? What is not allowed? Knowing your options before you apply is an important part of the process since all FHA home loan products are not made for the same purposes. You Can Use An FHA Mortgage To Buy A Mobile Home Or Condo There are FHA purchase loans available for mobile homes that meed FHA loan standards, and also mortgages to purchase condo units. FHA home loans allow these purchases as long as the mobile home is affixed to a permanent foundation and is transported directly to the site from the dealer or manufacturer. FHA condo loans are allowed when the condo unit is on or added to the FHA approved condo project list, the condo meets FHA minimum | more...