May 24, 2020

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Articles Published in: May 2020

Home loan approval and debt

Home Loan Approval And The Amount of Your Debt

Do you need to consider your home loan options? FHA mortgages offer much for both first-time buyers and repeat borrowers. Your choices include new purchase loans, One-Time Close construction loans, reverse mortgages, cash-out FHA refinance loans, and Streamline refinance options when you’re ready to consider a refi loan. No matter what kind of loan you need, for best results you should set aside some time in the early stages of your loan planning; review the last 12 months of credit and loan repayment history and have a good look at your debt-to-income ratio. It is vitally important to do this before the lender does. The Amount Of Debt You Carry Matters The debt to income ratio or DTI for short is one of the most important factors in the lender’s | more...

 
Home Loan Prep: Credit Issues

Home Loan Preparation: Credit Issues

Are you worried about your credit? Do you need to do to prepare for a mortgage loan application? There are avenues that can help you get ready for a home loan including advice and assistance with credit questions. We’ll examine your options in this area below, but first it is important to review some of the most common credit problems that stand in a borrower’s way. Home loan and refinance loan approval is not impossible, but for some borrowers it’s necessary to take some extra time to work on credit issues. Here are some credit concerns you should pay attention to so you can raise your credit score: Late And Missed Payments This area is one of the main reasons consumers are denied any kind of loan. Late and missed | more...

 
Mortgage Relief Scams To Avoid

Mortgage Relief Scams To Avoid

In an age where millions of Americans have applied for coronavirus-related mortgage relief, there are also con artists at work trying to steal money they haven’t earned from people who cannot afford to lose what money they have. What should you be aware of to avoid being conned while seeking home loan relief or foreclosure avoidance? Beware Mortgage Relief Scammers Some scammers just make random phone calls, hoping to strike gold. Others are far more careful and methodical. In those cases, mortgage relief scams often rely on a con artist viewing public records of homes that may be in the pre-foreclosure process, targeting these owners and hoping to take advantage.  One of the hallmarks of a mortgage relief scam? The scammer comes in with promises to save the home outright, | more...

 
Credit Requirements For Your FHA Home Loan In 2020

Credit Requirements For Your FHA Home Loan In 2020

What do you need to know about credit requirements for an FHA mortgage? There are plenty of those who have no choice but to seek housing even in the worst of times; what should you know about credit requirements for a mortgage in the age of coronavirus? Borrowers Should Work On Their FICO Scores Earlier You can raise your credit scores by paying all bills on time, every time. You can also raise your credit scores by lowering your credit card balances below the 50% mark (30% is ideal), and by not applying for new credit on top of the credit you are already paying down. Start working on your credit as far ahead of time as you can; knowing the contents of your credit report is a GREAT start. | more...

 
Five tips about FHA loan interest rates

Five Tips About FHA Mortgage Loan Interest Rates

FHA mortgages feature lower interest rates than conventional mortgages thanks to being backed by the U.S. government. Those who qualify for the lowest down payment save money over the lifetime of their mortgages thanks to the lower rates, but how do you qualify for the lowest rate possible for your specific purchase? Here are some important tips about mortgage loan interest rates you should know in the planning stages of your new home loan. Credit Scores And Interest Rates Are Connected That statement does not pertain to the overall interest rate offered to all borrowers. Your lender will offer you a mortgage loan rate based on that current going rate, but affected by your credit scores and other financial information. The best advice for borrowers who are worried that their | more...

 
FHA Extends Coronavirus Policies

FHA Extends Coronavirus Policies

The Federal Housing Administration has issued a press release announcing an extension to coronavirus-related mortgage relief for American borrowers with FHA home loans. One major feature of that extension? More time on the FHA eviction and foreclosure moratorium issued on FHA mortgages. That moratorium now lasts until June 30, 2020. This applies to homeowners with “FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages” according to the HUD official site. Until these measures expire, FHA lenders are directed to: Halt all new foreclosure actions; Suspend all foreclosure actions currently in process, excluding legally vacant or abandoned properties; Cease all evictions from FHA-insured Single Family properties; This excludes actions “to evict occupants of legally vacant or abandoned properties”. Also extended? The length of time for FHA’s temporary policies | more...

 
FHA Appraisal Rules You Should Know Today

FHA Appraisal Rules You Should Know Today

The FHA appraisal is a requirement of the home loan process; it is designed to help establish current market value of a property based on the latest property values, the overall condition of the home and property, etc. An appraisal is NOT the same as the separate, borrower-funded home inspection. Appraisals are nowhere near as in-depth as inspections and the results of the appraisal should not be mistaken for a home inspection. Appraisals are required for all forward mortgages. Recent changes to appraisal rules in 2020 in response to social distancing required by the COVID-19 novel coronavirus pandemic make the process operate differently than before temporarily. In March of 2020, the FHA and HUD issued a Mortgagee Letter announcing situational changes to the appraisal requirements that included the ability to | more...

 
Mortgage Relief Scams To Avoid

FHA Home Loan Down Payments: Do You Need Help?

If you want to apply for an FHA condo loan, an FHA mobile home loan, or even an FHA construction loan, you will need to anticipate the down payment requirements for these mortgages. At the very minimum, all FHA borrowers must put 3.5% down, with a higher down payment required for those with lower FICO scores. One of the first questions many readers will be asking at this point is likely, “What FICO scores require the higher down payment?” That question is one reason why you’re reading this article right now; there are issues that can affect your down payment requirements. It’s not safe to assume that you can simply pay what the FHA loan program rules require–lender standards, state law, and other variables can come into play. One variable | more...

 
Construction Loans For First-Time Home Buyers

Building A Home As A New Borrower

At press time, many portions of the United States are considering some kind of return to business as usual in the wake of lockdowns and coronavirus containment measures.  For better or worse, some portions of the country are opening more than others and this will likely include real estate markets and house hunting as progress is made. And that means some first-time home buyers will be exploring their options soon. Did you know that even as a first time borrower, you may be eligible for a One-Time Close construction loan that allows the borrower to build a home on their own lot rather than buying someone else’s property? One-Time close loans are available for VA borrowers, FHA loan applicants, even USDA borrowers. These loans do require some additional legwork and | more...

 
Buying a House In the Era of COVID-19

Buying A House In The Era Of COVID-19

Who buys a house during a global pandemic? The answer to that question may surprise you at first, but a quick look at the official site for the Department of Housing and Urban Development and it’s clear that there’s a demand, and with good reason. Some Americans not only consider buying or renting a new home during COVID-19, but some actually have no choice but to seek new housing. This could be due to any number of factors including illegal evictions, loss of income, job changes that require relocation, natural disasters, changes in family size, changes in marital status, many reasons. And those people create a demand that must be met, even during a national emergency. Granted, not all home loans during this time are out of necessity, but the | more...