October 16, 2019

Vimeo Channel YouTube Channel

Articles Published in: October 2019

Build on your own land FHA One Time Close Construction Loan

Build On Your Own Land: The FHA One-Time Close Construction Loan

The FHA One-Time Close construction loan allows a borrower to build a home from the ground up, including loan applicants who want to build on their own land with an FHA construction loan. What do borrowers need to know about the FHA One-Time Close loan? To begin, this type of FHA home loan is available to all qualified borrowers who want to build approved properties; the first-time home buyer is just as welcome to apply for an FHA construction loan as an experienced borrower. For this type of loan, the time you would spend house hunting will be spent contracting with a builder (who must be a licensed general contractor), working with floor plans, and planning the construction of the home rather than going out to search for an existing | more...

 
What Is Ahead For Home Loan Interest Rates?

What Is Ahead For Home Loan Interest Rates?

Last week, mortgage loan interest rates moved higher, reported as a significant increase after hitting lows not seen in some time. At one point in the earliest of October rate changes, mortgage rates went to multi-year lows, taking FHA mortgage loan interest rates below 3.50% for the most well-qualified borrowers. So what is ahead for FHA home loan interest rates? At the time of this writing, FHA rates for a 30-year fixed rate forward mortgage loan (for the most well-qualified applicants) are somewhere at or near 3.375%. Will this low-rate trend last? Is now the right time to buy or refinance a home? The answer depends on plenty of variables including your financial goals for the home–do you plan to stay in it long term or do you know you | more...

 
Happy Columbus Day 2019

Happy Columbus Day 2019

Today we pause from our posts about FHA home loans, FHA refinance loans, and related topics, to enjoy the three day weekend some observe as Indigenous Peoples’ Day, traditionally observed in the United States as Columbus Day. We’ll return to our usual posting schedule tomorrow (Tuesday October 14, 2019) but in the meantime, if you too are celebrating a three-day weekend, have a safe and pleasant one and thank you for reading!

 
Home Loan Advice: Top Reasons For Failed Loan Applications In 2018

Home Loan Advice: Top Reasons For Failed Loan Applications In 2018

– Did you know that a Realtor.com survey reveals that as few as 40% of all potential home buyers apply for their mortgage loan with confidence? As many as 60% of the home buyers in 2018 feared they would not be able to qualify for a mortgage loan. Another survey, issued in September of 2019 by the company CoreLogic, states that high debt and low credit scores were the leading causes of mortgage denials last year. In 2018 alone there were more than two hundred and sixty million loan applications for single-family housing. Those applications were for one-to-four unit properties, as well as a portion of the applications going toward manufactured housing. The CoreLogic report suggests an overall loan application denial rate of just under 25%. And of that 25%, | more...

 
FHA Home loan appraisal rules

New Housing Appraisal Rules? Not So Fast, FHA Loans

If you haven’t paid attention to recent headlines in the mortgage finance sector, you may not be aware that starting October 9, 2019, some house sales priced at or below $400,000 no longer require an appraisal. That news has some house hunters and home sellers jumping for joy. At least at first. Since the mid 1990s, appraisals have not been required for each and every home sale. Homes priced at or below $250 thousand may or may not have required an appraisal (more on that below), but over time, the numbers have shown that home prices have gone up significantly since then. Hence the move to change the appraisal threshold. The FDIC, in partnership with two other government agencies issued the proposal to increase the appraisal limit, the rule was | more...

 
Home Loan Credit Advice From Credit Bureaus

Home Loan Credit Advice From Credit Bureaus

We discuss FHA home loan credit issues here frequently, but our advice is only one source. What do the three major credit reporting agencies have to say about credit issues related to mortgage loans? Equifax, Experian, and TransUnion all have official sites with advice for consumers who want a fair and honest mortgage loan. Let’s examine some of the advice for potential home loan applicants. Mortgage Loan Credit Advice From Equifax The credit reporting agency Equifax has some advice for borrowers, including a very useful tip about how to do damage control on your credit report if a situation beyond your control resulted in late or missed payments. According to the Equifax official site, in such cases, “Consider adding a consumer statement to your credit reports.” Did you know you | more...

 
FHA Refinance Options

FHA Refinance Options And Low Interest Rates

At the time of this writing, some market watchers are noting that mortgage rates have moved lower each week for three consecutive weeks. That puts FHA mortgage loan interest rates for purchase loans at a best-execution 3.375% for the most financially qualified borrowers. And while many fully anticipate a slowdown or correction in rates any time now, the refinance loan trends lately show many are willing to take full advantage of a time when home prices are on the rise and mortgage rates are falling. And who can blame a home owner for being tempted to cash in with a refinance loan to get into that lower rate, to pull rising value out of the home in cash, or repair and renovate a property? FHA refinance loan options are available | more...

 
Three Questions To Ask About FHA Refinance Loans

Three Questions To Ask About FHA Refinance Loans

Getting ready to refinance? Even if you are considering using the same lender that you got your mortgage from originally, there are some important questions to ask your loan officer about the refinance transaction. Do you know how much your loan will cost? Do you understand the differences between a simple refinance, an FHA Streamline refi loan, and other types of mortgages? Find out more today and get ready to find the best deal for your needs. FHA Refinance Loan Questions: How Much Will My Loan Cost? In the earliest stages of the refinance loan process, don’t expect to get exact figures, but do ask your loan officer for estimates based on the typical set of costs for the refinance loan you need. You may not be charged identical costs | more...

 
FHA Home Loan Rules For Mixed-Use Properties

FHA Home Loan Rules For Mixed-Use Properties

FHA Single-Family home loans are designed for those who want to be owner-occupiers. Those looking for affordable housing often turn to FHA mortgages to buy condos, mobile homes, town houses, and typical suburban houses. But there is also the potential to purchase mixed-use properties with an FHA mortgage as long as those homes meet FHA standards, lender requirements, local zoning, and local building code requirements. What are the rules for buying a mixed-use property? To start, the nature of the real estate must be primarily residential in nature. The non-residential use of the home cannot detract from its’ use or status as a dwelling. The FHA Single Family home loan handbook, HUD 4000.1, starts in this area by formally defining what it considered to be a mixed-use property and the | more...

 
FHA Home Loan Interest Rates Lower

FHA Home Loan Interest Rates Lower

There is still time to take full advantage of the higher 2019 FHA home loan guaranty limits set at the start of the new year. If you are thinking about a mortgage or a refinance loan, 2019 may be the year for you. Recent headlines combining a trend in rising home values, more borrowing power, and changes to certain aspects of the home loan industry making it easier in certain sectors (including condo project sales) to buy and sell real estate for residential purposes. Add to that interest rates that are lower after two weeks of improvements at the time of this writing and you have the perfect circumstance for some borrowers interested in lower rates and more borrowing power. What do you need to know about the current FHA | more...