March 23, 2019

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Articles Published in: 2019

FHA Home Loans For Homes Built Before 1978

FHA Home Loans For Homes Built Before 1978

FHA home loans are offered for a variety of home needs including building a house from the ground up with an FHA One-Time Close construction loan, but there is also an option to use your FHA mortgage to buy an older home that is not considered new construction. In cases where the property is older than 1978, there are some additional rules regarding the potential for lead paint in the residence that all borrowers thinking about buying older property should be aware of. FHA home loan rules in HUD 4000.1 point out that any home built prior to 1978 must include disclosures to the buyer: “…the seller must disclose any information known about lead-based paint and lead-based paint hazards before selling the house, in accordance with the HUD-EPA Lead Disclosure | more...

 
Home Loan Credit Problems: Unresolved Borrower Debt

Home Loan Credit Problems: Unresolved Borrower Debt

What can jeopardize a home loan application? There are many factors, but delinquent and unresolved debt are two areas that first-time home buyers should be keenly aware of; these issues can derail a mortgage loan application depending on the severity and amount of the debt. We discuss debt ratios and related issues in this space all the time; the unresolved debt issue is related to debt ratios in a way (the resolution of the debt will likely add to the debt ratio in some way) but an account that is delinquent, and/or in dispute is a separate area altogether. It’s always best to apply for any major line of credit with a minimum of 12 months of on-time payments; anything less could threaten your ability to get loan approval. But | more...

 
Home Loan Rules You Should Know

Home Loan Rules You Should Know

What home loan rules should you know ahead of your mortgage loan application? There are several that you should keep in mind when planning and applying for your new home loan. FHA Loans Are Issued By Participating Lenders A lender must meet FHA standards, conform to the FHA loan program rules, and generally be recognized by the FHA as being permitted to issue FHA-guaranteed mortgage loans. But not all lenders choose to participate in the FHA home loan program so you may need to shop around for a lender. Shopping around is a good thing, but some feel that one lender is as good as another. When it’s time to compare interest rates and mortgage loan terms, you may find that to be untrue. But not all lenders choose to | more...

 
FHA Home Loan Approval And Undisclosed Debt

FHA Home Loan Approval And Undisclosed Debt

Some first-time home buyers are tempted to leave information off of credit applications, hoping that the lender won’t find out or that the omitted information will get lost in the details of the loan. But this is not a good strategy; FHA home loan rules in HUD 4000.1 anticipate such issues and there are instructions to the lender accordingly. Leaving out crucial information including certain debts may jeopardize FHA home loan approval. FHA Loan Rules For Undisclosed Debt In a situation where the borrower fails to disclose debts and the lender discovers them by other means, HUD 4000.1 instructs the loan officer as follows for undisclosed debt that does not involve another mortgage: “When a debt or obligation (other than a Mortgage) not listed on the mortgage application and/or credit | more...

 
How Do I Refinance My Home Loan?

How Do I Refinance My Home Loan?

Are you planning to buy your first home and wondering about your refinance loan options later down the line? Do you already own a home you need to refinance? There is good news for you; refinancing with an FHA mortgage can help you get into a lower mortgage payment, get out of an adjustable rate mortgage, or even renovate your house. What does it take to refinance a home loan with an FHA mortgage? Choose The Refinance Loan You Need There are several FHA refinance loan options. If you need to remodel or repair your home at the same time you refinance, you can apply for an FHA 203(k) rehab loan that provides funds for approved upgrades and improvements. But the FHA rehab refinance loan (which is also available as | more...

 
What You Need To Know About FHA Condo Loans

What You Need To Know About FHA Condo Loans

Buying a condo with an FHA mortgage loan is an option many borrowers might be interested in but sometimes assumptions about the FHA home loan program might cloud the issue. Here are some things you should know about FHA mortgages for condo purchases. FHA Condo Loans For First-Time Home Buyers FHA condo loans are open to first-time buyers and experienced home owners alike. You will be approved for the FHA condo loan based on your financial qualifications rather than whether or not you have owned property before. FHA Condo Loans Have Certain Advantages The down payment requirements for FHA home loans do not change based on the type of property you purchase, so you are still required to financially qualify but your down payment requirement does not get adjusted because | more...

 
FHA Home Loan Approval Rules You Should Know

FHA Home Loan Approval Rules You Should Know

If you are a first-time home buyer or have never used an FHA home loan before, there are some rules about FHA mortgages you should know before getting started. FHA Home Loan Approval Depends On More Than Your Credit Score It’s easy to fixate on credit scores and they are a major part of what your lender will use to determine a borrower’s creditworthiness. But it’s not the only criteria. Your income, employment, and credit habits will all be examined at home loan application time. FHA loan rules specifically require the lender to verify two years of employment, and that employment does not have to be with the same company. The rules also require your lender to determine that your income is likely to continue. But this is possible even | more...

 
How To Get A Lower Home Loan Interest Rate

How To Get A Lower Home Loan Interest Rate

Home loan interest rates are a tricky issue, and if you are working with a real estate agent to find your first home, knowing as much as you can about rates going into the home loan application process is a very good idea. How can you get a lower rate when shopping for a home? There are some strategies to consider but many of them involve starting as early as possible in the planning stages. Getting A Lower FHA Home Loan Interest Rate By Shopping Around As you would never buy a used car from the first person you meet selling one, it’s important to shop around for a home loan lender offering the most competitive interest rates and terms. If you are a first-time home buyer, shop around for | more...

 
The Flexible FHA Home Loan

The Flexible FHA Home Loan

First-time home buyers don’t have to put 20% down when shopping for real estate they want to live in as their primary residence. The FHA home loan allows a low 3.5% down and this type of home loan has been described as having loose underwriting standards. Those standards include the FHA minimum credit score of 580 or higher for maximum financing and the lowest down payment, and technically borrowers with FICO scores above 500 are also eligible though with a higher down payment. Lender standards will apply above and beyond these minimums. FHA home loans allow borrowers with lower credit and higher debt ratios to qualify for first-time home buyer loans using compensating factors; a higher down payment, a substantial amount of cash reserves, or other, lender-defined compensating factors. And | more...

 
Why You Could Buy A First Home With An FHA Mortgage

Why You Could Buy A First Home With An FHA Mortgage

First-time home buyers may not realize the full value of some FHA home loan features, but once you’ve had a bit of experience with real estate and related issues, the FHA loan features that look good to you will do so for important reasons. FHA home loans have several strengths for those looking for a first home. Do you know what they are? FHA mortgages allow down payment gifts from approved sources. Your family, friends, co-workers, or agencies with no financial stake in the outcome of the transaction may provide genuine gifts of down payment money. The seller of the real estate you want to buy can not contribute toward your down payment. But you CAN negotiate with the seller to get up to six percent of the home’s sale | more...