June 2, 2020

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Articles Published in: April 2020

FHA One Time Close Construction Loan Option

The FHA One-Time Close Mortgage Option

Borrowers looking at their FHA home loan options don’t have to feel limited to purchasing an existing construction property; there is a way to apply for an FHA mortgage that lets you have a home built to suit from the ground up. These FHA new construction home loans are referred to as Construction-To-Permanent mortgages or, more recently, FHA One-Time Close construction loans. One-Time Close construction loans are good for borrowers who want a home that is just right, and are not in a hurry to get into their new home. The trade-off for having just the right property built for you is the time it will take from planning to move-in. The process will take more time, but it is definitely worth it to those who choose this type of | more...

 
Home loans and your credit scores

Home Loans And Your Credit Scores

What can borrowers expect from an American economy trying to recover from coronavirus lockdown measures? Before trying to predict the future, it’s important to examine the present.  Mortgage market watchers and financial experts point to the fact that roughly seven percent of American mortgages are in forbearance at the time of this writing, and demand is changing where certain riskier types of home loans are offered. Some experts are watching mortgage rates falling overall, but are quick to point out that those with FICO scores below the 700 range are experiencing more costly loans; some find it harder to qualify and some find it tough to get certain types of home loan such as cash-out refinance loans according to our sources. What does all this mean for a borrower who | more...

 
What Affects Your Credit Most As A Home Loan Applicant?

Protect Your Credit With Free Weekly Credit Reports Until 2021

COVID-19 has created an economic situation that has forced millions into unemployment, and literally millions of home loans are now in forbearance. Those who act to protect their home loans early have the most options, but even for those late to the process, catching up on home loan payments, cutting back on new credit use, and other measures can help soften the economic blow in the long run. Coronavirus outbreak containment measures, while absolutely necessary, have put a massive strain on the economy. Now, more than ever, knowing your credit report is essential, especially if you have plans to buy a home in the near to mid-term future. Credit will likely be harder to come by in the coming months. borrowers who understand the importance of this will be pulling | more...

 
HUD Updates Coronavirus Home Loan Guidelines For Loan Closing

HUD Updates Coronavirus Home Loan Guidelines For Loan Closing

The FHA and HUD have issued guidelines for mortgage loan closing procedures that may be affected by coronavirus lockdown measures, quarantine, and other issues related to the COVID-19 pandemic. Many home buyers were caught by surprise by coronavirus issues and there are many home loans that are affected. The Department of Housing and Urban Development issued initial policies in March, 2020, but updated them in mid-April to include provisions in several areas designed to help facilitate FHA home loans during the outbreak. FHA Loan Rules On Title insurance The FHA and HUD issued guidance on loan servicing issues designed to address situations in counties where recording offices are not operational during the national emergency. The FHA/HUD official site answers the following question related to such scenarios: “Will FHA accept title | more...

 
Mortgage Relief Scams To Avoid

Save Money On Your FHA Mortgage With Streamline Refinancing

How can refinancing your FHA mortgage help save you money? Not every refinance loan can lower your interest rate or your monthly mortgage payments, but the FHA Streamline Refinance loan is designed to provide some benefit to the borrower, which can include a lower payment. How does it work? Streamline Refinance loans have no FHA-required appraisal, and no FHA-required credit check. That is a very important factor to consider as cash-out refinancing always requires both, and most other refinance loans will too. Features of the FHA Streamline Refinance loan include the following: Streamline loans refinance existing FHA mortgages; FHA Streamline Refinance loans allow an add-on called the FHA Energy-Efficient Mortgage which provides extra loan funds for approved energy-saving improvements to the home; Streamline loans normally must result in a tangible | more...

 
What you need to do before you apply for a mortgage

FHA Home Loan Approval Rules And Income Verification

Can all of your income be used to qualify for an FHA mortgage? If you need to buy a home soon, it’s important to understand home loan approval rules, especially in times of economic uncertainty. There are some forms of income that don’t qualify to be counted as “verifiable income” for the purpose of establishing the borrower as a good candidate for loan approval. There is specific criteria for the kinds of earnings you can use to qualify, and specific criteria for the types of earnings that the lender cannot count as part of your monthly predictable pay. Understanding those income rules is very important, especially now. Many Americans are receiving unemployment, government stimulus checks, and other financial resources. But not all money can be used toward your verifiable income, | more...

 
FHA down payment rules

FHA Loan Down Payments: What You Need To Know Today

When the time is right to explore your FHA home loan options, there are some things you need to know about down payments that can help you better prepare for the loan process. FHA home loans have strict rules about the source of your down payment funds and you will be required to document those sources no matter where your down payment money is sourced from. Here are the basic rules for FHA down payments: A down payment is required 100% of the time for new purchase FHA loans; Your down payment amount may be affected by your credit scores; You will be required to pay a minimum of 3.5% if your credit score meets FHA and lender standards; all others will be required to pay a minimum 10% down. | more...

 
Credit Requirements For Your FHA Home Loan In 2020

Mortgage Scams During COVID-19: Borrower Beware!

The Federal Trade Commission warns mortgage borrowers to beware of scams that prey upon homeowners in trouble during the coronavirus outbreak. The FTC Chairman, Joe Simons, was quoted in an FTC press release advising borrowers about the FTC’s role in prosecuting scam artists taking advantage of Americans who have been affected by COVID-19. “The FTC is ready to assist businesses that may seek guidance about compliance obligations on consumer protection issues during this unprecedented time,” Simons said in the press release. If you have been contacted by a third party about coronavirus financial relief and suspect a scam artist at work, report coronavirus-related scams at ftc.gov/complaint. What should consumers do to protect themselves from coronavirus mortgage scams? The first step is simply to recognize that if you have not initiated | more...

 
How to protect your credit

How To Protect Your Credit

Do you know how to protect your credit score during the COVID-19 outbreak? Millions of Americans have suffered economic setbacks as a result of containment measures designed to stop the spread of the virus, and many of them were already struggling with credit issues prior to the outbreak. How can you protect your credit going forward? The first step is to know what your credit report says and to actively monitor your credit. In some cases, credit problems wind up being the result of factors beyond the consumer including: Inaccurate credit report data Outdated credit information that needs to be removed Evidence of identity theft Credit report information that is accurate, but for someone else with the same name Any of these issues can hurt your credit, and they take | more...

 
HUD Housing Discrimination Policy During COVID-19

HUD Housing Discrimination Policy During COVID-19

The FHA and HUD celebrate Fair Housing Month during April each year, and in the year 2020, coronavirus pandemic concerns raise some Fair Housing issues to new importance. The Department of Housing and Urban Development has issued official policy on housing discrimination related to COVID-19. The agency issued a press release, reminding tenants, landlords, house hunters, and all others involved in the housing industry, “…viruses do not target specific racial or ethnic groups. Be aware that the Fair Housing Act and other federal laws prohibit the eviction, turning away or harassment of a person in housing because they are profiled, on the basis of race, national origin or other protected class, to be associated with COVID-19.” That is a very important issue to consider. Not everyone is able to shelter | more...