Articles Published in: March 2020

One-Time Close Construction Loan Options For Veterans

March 17, 2020

Your Construction Loan Options

Build a home instead of buying an existing one? This is a reality and there are plenty of choices to go around; FHA One-Time Close construction loans, the VA construction loan equivalent, USDA construction loans, and even conventional mortgages to build on your own land instead of buying an existing home. These loans all have features that are different than existing construction loans. They include how long it takes for you to move in, when your mortgage payments begin, and the kinds of features your home may have. Construction loans can be a bit more complex than a new purchase loan for a house in a typical neighborhood, and some read articles like this and want to be ready to commit, but an equal number of people read this but | more...

Build on your own lot. Construction loan basics

March 16, 2020

Is It Safe To Apply For A One-Time Close Mortgage During The Coronavirus?

By Joe Wallace

Is it safe to apply for a One-Time Close construction loan during the coronavirus outbreak? Construction loans are offered for those who wish to apply for a home loan but don’t want to purchase existing construction. These loans are available for FHA borrowers, VA borrowers, even USDA applicants who meet program requirements may be approved. But what do you need to know about Construction loans during a time of national crisis such as the coronavirus? You May Need To Allow For Additional Processing Time Permitting and other official paperwork may be slow to be processed or approved depending on the government agency, demand, and local rules that may be in effect during a quarantine period, “stop movement”, or related restrictions aimed at slowing the spread of contagion. Don’t assume you | more...

March 13, 2020

Repair Your Credit Before Your Home Loan

By Joe Wallace

Interested in applying for an FHA mortgage or a refinance loan? It’s not as easy as finding a lender and applying; you will need plenty of time to save for the expenses of the loan including the down payment and closing costs. But you also need more time in another way; taking a preliminary step as early as possible in your loan process can make the difference between loan approval and rejection. What is that preliminary step? Reviewing your credit report for errors and identity theft evidence. It’s also about working on raising your FICO scores based on the results of your credit report review. All Americans are entitled to a free copy of their credit report once per year, so there is no cost to obtain one. You can | more...

March 12, 2020

Mortgage Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates dipped to incredible lows, with FHA mortgage rates falling below three percent last week. However, this week mortgage loan interest rates are moving upwards due to multiple factors having to do with bond markets, mortgage-backed securities, etc. What does the average borrower need to know? Last week we discussed the possibility that rates could move higher at any time. That discussion is now playing itself out with FHA mortgage loan interest rates now back above the three percent zone at a reported 3.25% best-scenario rate assuming an ideal borrower with outstanding FICO scores and other financial qualifications. Those who were ready to make an interest rate lock commitment with their lender but instead decided to “float” rather than lock in a mortgage loan interest rate definitely | more...

March 11, 2020

Refinance Loan Applications Spike In March 2020

By Bruce Reichstein

The week ending March 6, 2020 saw a surge in refinance loan applications and many home loan blogs and market watch websites are talking about the current rush into refinancing as something not seen in roughly eleven years. Low mortgage rates have dominated real estate headlines thanks to investor reactions to coronavirus news and many people are taking the time to look into refinancing their mortgages to save money over the long term. What do you need to know about refinancing your home loan in an extremely volatile interest rate environment? Are You Ready To Refinance? If you have worked on your credit, know your FICO scores and what your lender may find in your credit report and you are willing to commit to the loan, it’s best to do | more...

March 10, 2020

Is It Safe To Go House Hunting During The Coronavirus Outbreak?

By Joe Wallace

Is the housing market is in “disarray” in the wake of the coronavirus? Some think so, sharing stories of lenders refusing new loans, mortgage rates moving contrary to their traditional patterns in the presence of influences that normally tend to put upward or downward pressure on those rates, etc. And then there’s the coronavirus itself, bringing cancellations, disrupted travel plans, and slow sales due to reduced demand. But even with all this, house hunting and real estate sales continue. But what can a home loan applicant do when they are afraid of catching coronavirus (however justified those fears may or may not be) or even just the garden-variety flu? Technology provides the answer for some in the form of the virtual real estate tour. Virtual tours can take the form | more...

March 9, 2020

5 Home Loan Myths You Should Know About

By Bruce Reichstein

There are many myths about FHA home loans; that you must be a first-time buyer to qualify, that you can only buy a certain kind of home with an FHA mortgage, and that FHA loans are only for economically disadvantage home buyers. None of those things are true. There are other pervasive myths about FHA mortgages you should know. #5: FHA Loans Are Only For Existing Construction Property Not True! The FHA One-Time Close Construction loan allows even first-time homebuyers the chance to apply for a loan to build a house from the ground up. Construction loans require more time and you won’t be able to move into the home until the construction phase is complete, but for those not in a hurry to move in favor getting just the | more...

March 6, 2020

FHA Refinance Loans: Are You Ready?

By Bruce Reichstein

Mortgage rates have fallen incredibly low in the earliest weeks of 2020, and many are calling their lenders asking about options to refinance. There are many choices when it’s time to refinance; getting the right FHA refinance loan for you depends on needs and goals for the home. How Long Do You Plan To Own The Home? The basic decision to refinance can often be informed by your goals for the house securing the mortgage. Are you planning to stay in the home long-term? That will affect the type of refinance loan you might investigate as well as the basic nature of the loan as a fixed-rate mortgage or an adjustable-rate loan. Adjustable rate loans are good for borrowers who have a strategy for how to deal with the loan | more...

March 5, 2020

HUD Announces Settlement In California Fair Housing Sexual Harassment Case

By Joe Wallace

Some renters and house hunters are not aware that sexual harassment from someone at any stage of the housing process can be considered a violation of federal law. Did you know that the Fair Housing Act forbids landlords and others involved in the housing industry from sexually harassing those in search of housing (bought or rented)? A recent settlement announced by the Department of Housing and Urban Development highlights this issue. According to HUD, the agency recently approved a conciliation agreement, “requiring Ronoel Romero, Blanca Romero, and Mario Prudencio, the owners and manager of a Bakersfield, California, apartment complex, to pay $14,500 to several female residents”. The required payment is part of the settlement. Fair Housing Act laws forbid housing providers from sexually harassing tenants. The prohibition includes “creating a | more...

FHA Mortgage Rates and Refinance Options

March 4, 2020

Low Mortgage Rates and Refinance Options

By Bruce Reichstein

On Tuesday, March 3, the Fed announced an emergency rate cut, and the reaction to that included mortgage loan interest rates hitting new and historic lows. The Fed does not set mortgage loan interest rates, but investor reaction to the announcement of the rate cut did affect mortgage rates, and the net effect was that FHA home loan interest rates remain (at the time of this writing) below the three percent range. And conventional mortgages are holding at the bottom of the three percent zone. These rates, plastered all over the internet, are provided assuming ideal scenarios, but even the average borrower will find the current lower mortgage rate trend to be to their advantage. New Purchase Loans And Refinance Loans Are Affected For those who are interested in refinancing? | more...