October 16, 2019

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Articles Published in: April 2019

The Confusion Over Closing Costs Versus Down Payment

What You Need To Know About FHA Home Loan Interest Rates

What does a new borrower need to know about home loan interest rates? There are many home loan blogs that discuss the fluctuations of mortgage rates and talk about those moves higher and lower. Some discuss the rates as though the ones mentioned could be offered to all applicants. Why isn’t this true? The rates you see advertised on the internet are usually posted as “best execution” interest rates which means that “ideal conditions” are assumed. What are those ideal conditions? An incredibly well-qualified borrower with high FICO scores, low debt ratios, and no credit issues. That means that the actual interest rate you are offered will vary from what you see posted online, and that the rate will depend on your FICO scores and other financial qualifications. But what | more...

 
FHA Home Loans: A Q&A

FHA Home Loan Basics For First-Time Home Buyers

First-time home buyers should know as much about their home loan options as possible going into the application process. FHA home loans are a good option to consider when buying your first real estate-do you know how flexible the FHA home loan program is? FHA Home Loan Basics For New Borrowers FHA home loans are intended for owner-occupiers who want to purchase a home at least one person obligated on the mortgage will occupy as the full-time residence. FHA home loans are not need-based mortgage loans, so there is no income cap or other limitations on who can apply. Some people confuse FHA home loans with USDA mortgages, which are governmnent-backed mortgages that do require income caps and are need based, unlike FHA mortgages. Who You Borrow Money From With | more...

 
FHA Home Loan Rules For Refinance Loans

Can I Use An FHA Loan To Buy A Single Family Rental Home?

Some FHA borrowers want to purchase a first home, while others are looking for real estate they can purchase in addition to an existing property. But still others are wondering if they can use an FHA mortgage loan to become a landlord by purchasing real estate they intend to rent out to others. Does the FHA home loan program allow a borrower to apply for a mortgage loan to buy a home intended as a rental? The short answer is that it depends greatly on two factors-the size of the home and whether the borrower intends to live in that property full-time. Borrowers applying for FHA mortgages are allowed to purchase real estate with one to four units. The borrower is free to rent out the unused units in the | more...

 
HUD Announces Expanded Disaster Relief Options

HUD Announces Changes To Down Payment Assistance Rules

The Department of Housing and Urban Development and the FHA have issued a Mortgagee Letter announcing changes to the rules for down payment assistance. FHA loan program rules permit the borrower to get assistance with the minimum required down payment-this assistance can come in the form of gift funds from family or friends, money from employers, or even down payment assistance programs. Government entities are permitted to provide such down payment help, too. In all cases, the down payment assistance must meet FHA loan requirements. Gifts cannot be loans in disguise; there must be no expectation of repayment of a gift of down payment funds. And now, thanks to revisions to the rules governing these issues in HUD 4000.1, government entities must meet certain requirements when providing down payment funds. | more...

 
HUD Announces Important Change To FHA Cash-Out Refinance Loan Program

HUD Announces Settlement In San Diego Fair Housing Case

April is Fair Housing Month, a time when the FHA and HUD raise awareness of Fair Housing Act issues and how violations of Fair Housing laws can make it difficult for house hunters of all kinds to find and keep a home. The month of April is not the only time when HUD publicizes its’ Fair Housing cases, but it is a time to pay more attention to these cases and their implications. The latest involves a settlement between HUD and a San Diego-based property management company that had a dispute with a rental tenant. According to a press release on the HUD official site. The Department of Housing and Urban Development announced “a fair housing agreement between a San Diego-area property management company and a family with a child | more...

 
What You Should Know About FHA Home Loan Amounts

FHA Loan Down Payment And Closing Costs

The FHA home loan program has been described in other publications as being “the mortgage program first-time home buyers love”, but many people worry about closing costs and down payment requirements. How do you pay for FHA home loan closing costs and the down payment? The key is to first understand what these expenses are. FHA Home Loan Origination Fees and Other Closing Costs FHA home loans, like many other mortgage loan products, permit the lender to charge a loan origination fee. These fees will vary from lender to lender and it’s best to contact the lender directly to learn how much the origination fee might be. There may be other closing costs in addition to the ones mentioned below including expenses related to hazard insurance, compliance inspections, flood zone | more...

 
5 Uses For An FHA Mortgage Loan

Which FHA Home Loan Do You Need?

First-time home buyers new to FHA home loans don’t always realize how many different FHA home loan options are available to them. You don’t have to buy a one-bedroom house in the suburbs; FHA mortgages are more flexible and offer many ways for you to find and buy a dream home. FHA Condo Loans Because of a long-time misconception held even today about FHA loans being need-based, having income caps, or intended only for low-income borrowers (none of those things actually apply to the FHA mortgage loan program) some are surprised to learn that there is such a thing as an FHA condo loan. Any qualified borrower (based on income, credit history, employment stability, and other financials) can apply for an FHA condo loan in a condominium project that meets | more...

 
Why You Can't Buy An Airbnb With An FHA Mortgage

Myths About FHA Refinance Loans

There are plenty of misconceptions about refinancing real estate. If you have a house you want to refinance, it’s good to learn what you can and cannot do with an FHA refinance loan before you start shopping around for a lender. And you WILL want to shop around. FHA Refinance Loan Myths: You Have To Keep Your Original Lender You are free to refinance you home with another lender offering more competitive terms, rates, or perks for borrowing with that financial institution. FHA Refi Loan Myths: You Have To Refinance Into A Fixed-Rate Mortgage Borrowers can choose an FHA Adjustable Rate Mortgage (ARM) at refinance time if the lender offers such a loan. Not all participating lenders will, which is another reason to shop around for the right lender for | more...

 
HUD Brings Fair Housing Act Charges Against New York Landlord

HUD Announces Settlement In Maine Housing Discrimination Case

April is Fair Housing Month, and while housing discrimination headlines are nothing new, April’s are especially relevant. Discrimination at any stage in the housing process can seriously interfere with those planning to buy a home, and sometimes the only line of defense against further violations of the Fair Housing Act is having the victims report the illegal activity. The Department of Housing and Urban Development has announced a settlement in a housing discrimination case in Maine. A press release on the HUD official site announces that “Page Realty, LLC, the owner of a Manchester, Maine, rental property, and its rental agent, Ramona Venskus, will pay $18,000 under a HUD Consent Order resolving allegations that they denied housing to families with children”. The Fair Housing Act, a federal law, prohibits housing | more...

 
Lower Home Prices And FHA Mortgages

Lower Home Prices And FHA Mortgages

House prices in 2019 seem to be “at risk” to go lower according to some industry reports. If you are researching home prices (especially for those in housing markets on the West Coast) you may read about these issues being higher than usual for a variety of reasons. How Do Declining Home prices Affect FHA Home Loans? If the value or asking price of a neighborhood is in decline, it may affect certain options you have to negotiate with the seller. Your seller may or may not be willing to negotiate on items like the allowable six-percent-of-the-sale-price contributions toward closing costs the seller can make. Sellers may agree to pay this six percent as an incentive for the borrower to purchase the real estate. But if prices are going down | more...