June 16, 2019

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Articles Published in: June 2019

FHA Rehab Refinance Loan Basics

FHA Rehab Refinance Loan Basics

Recent headlines about mortgage loan interest rates have descriptions similar to “rates edging toward long-term lows”, which is motivating many to explore their refinance loan options. Are you a first-time home owner interested in getting a lower mortgage rate? Or are you interested in repairing or remodeling the home? Keep reading. FHA Rehab Refinance Mortgage Loans The FHA 203(k) Rehabilitation Mortgage, also known as an FHA Rehab loan, is offered as a new purchase loan AND a refinance loan. When you refinance with an FHA Rehab loan you are given funds to be used specifically for approved projects in the home. These refinance mortgages will feature interest rates that are offered based on your FICO scores, so the same lower interest rate may not be available to all applicants; those | more...

 
FHA Refinance Rules

FHA Refinance Rules

Mortgage loan interest rates have hit long-term lows according to recent headlines and that is driving more people to consider refinancing their mortgages to take advantage of those rates. There are FHA home loan refinance rules you need to know going into the refi process that will help you get closer to loan approval-do you know what they are? FHA Refinance Loan Rules: No Cash Back Unless You Apply For Cash-Out Refinancing Like new purchase home loans, unless you specifically apply for an FHA cash-out refinance loan, you won’t be permitted to take cash back on the transaction except in the form of refunds. FHA rehab loans that provide money for improvements to the home must be used in specific ways and cannot simply provide funds for the borrower that | more...

 
Should Homeowners Turn Into Real Estate Investors?

Should Homeowners Turn Into Real Estate Investors?

If you are thinking about buying real estate with an FHA mortgage loan you may have run across some trends in recent times addressing the topic of ordinary home owners becoming real estate investors. Is this something that is possible with an FHA single-family mortgage loan? The first thing you need to know about buying real estate with an FHA mortgage is that FHA single-family home loans are for owner-occupiers only. The occupancy requirement is non-negotiable for a new purchase home loan guaranteed by the FHA. There is no FHA loan rule against buying a multi-unit property and renting out the unused living units. Borrowers are free to do so since you can buy a home with as many as four units with an FHA mortgage. But what you cannot | more...

 
FHA Home Loans: Solar And Wind Technology

FHA Home Loans: Solar And Wind Technology

Did you know that you can ask for an add-on to your FHA home loan or refinance loan to get funds for solar or wind-powered energy efficient upgrades to the home? Whether you want to add such features to your home at purchase time or refinance time is up to you but it is possible to apply for extra funds to install wind or solar power features. Some reading at this stage might assume we are talking about the FHA Energy-Efficient Mortgage add-on, but this is actually a different program. Under a section in the FHA loan rulebook, HUD 4000.1, labeled “Solar And Wind Technologies” we find the following information: “The solar and wind technologies policy allows the Mortgagee to increase the Base Loan Amount to cover the cost and | more...

 
FHA Cash Out Refinancing Advice

FHA Cash Out Refinancing Advice

What do home owners need to know about FHA cash-out refinancing? There are a number of questions to ask yourself before you commit. Refinancing can be a big financial help for a home owner but getting the right loan for your needs is half the battle. Ask Yourself If You Need Cash-Out Refinancing And Why A cash out refinance loan can help you thanks to the cash back on the transaction, but is cash back really what you need? If your real goal is to improve the home, for example, you can apply for a different type of refinancing that could provide more money for those improvements than a cash-out refi loan could. An FHA 203(k) rehab loan is perfect for those who need to do home improvement projects and | more...

 
Don't Make These Home Loan Mistakes

Don’t Make These Home Loan Mistakes

Buying a home for the first time is stressful, but there are things you can do as a first-time buyer that will help. Avoid these big mistakes when planning your mortgage. Don’t Change Jobs Before Your Mortgage Closes This advice does not apply to everyone, but it does for those who are contemplating changing the nature of their employment from having a boss and a traditional workplace to a freelance, contract, or per-project type work. There are different FHA home loan rules for non-traditional employment, freelance jobs, commission income, etc. If you were working in a typical job at the start of the home loan application process and are tempted to switch to contract, freelance, or commission work, your job switch could hinder your mortgage loan process since the income | more...

 
HUD Announces Charges In Idaho Fair Housing Case

HUD Announces Charges In Idaho Fair Housing Case

April was Fair Housing Month, and while HUD’s annual push to raise awareness of housing laws in the United States has come and gone, the agency prosecutes Fair Housing cases year round. One the most recent; the U.S. Department of Housing and Urban Development (HUD) announced charges of Fair Housing Act violations against the owners and manager of a rental home in Nampa, Idaho. HUD’s case alleges that a married couple was refused a rental property there because they have children. The Fair Housing Act makes it a crime to “deny or limit housing because a family has children under the age of 18, make statements that discriminate against families with children, and impose different rules, restriction and policies on them” according to the HUD announcement at HUD.gov. “Denying a | more...

 
5 FHA Loan Rules You Should Know

5 FHA Loan Rules You Should Know

There are many rules and regulations that govern FHA home loans and knowing how the system works can save you time and money when you are ready to start the journey toward home ownership. Some borrowers may ask themselves if they are ready to buy a home; if you know some or all of the areas below you may be closer than you think. FHA Home Loans Require Occupancy You cannot buy a home with an FHA single-family home loan unless at least one person obligated on the loan will use the property as their primary residence. This occupancy requirement is non-negotiable and the borrower must take possession of the home within a reasonable time after closing, usually 60 days for existing construction home. Properties that require repairs (such as | more...

 
FHA Home Loan Approval And Your Employment History

FHA Home Loan Approval Myths

There are plenty of myths about home loan approval, but for first-time home buyers looking for an FHA mortgage, some of those myths are more prevalent than others. What you don’t know about FHA home loans can hurt you-it’s best to know as much as possible going into the home loan process, which is another reason why it’s best to take your time preparing for a home loan. Rushing into the process can cost more money than taking your time. FHA Home Loan Myths: The FHA Has Separate Requirements For First-Time Home Buyers FHA home loans are open to all qualified borrowers with FICO scores in a certain range for the lowest down payment. FHA loan rules do not make any distinction between a first-time buyer and an experienced home | more...

 
FHA First-Time Home Buyer Loans

FHA First Time Home Buyer Loans

How can the FHA home loan program help first-time home buyers? Some perks of an FHA mortgage are central to the home loan program itself, while others may be offered by lenders as an incentive to use that financial institution for your FHA home loan. FHA Home Loans For First-Time Buyers: Low Down Payments The FHA home loan program requires only 3.5% minimum for borrowers with qualifying FICO scores. FHA loan requirements say FICO scores as low as 580 can technically qualify for the lowest down payment, but you will need to check with a participating lender to see what standards may apply above the FHA minimums. Those with credit scores lower than 580 may still technically qualify for an FHA mortgage loan but at a higher down payment. FHA | more...