September 21, 2021

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Articles Published in: June 2021

FHA Fixed-Rate Mortgages Versus Adjustable Rate Mortgages

The End Of National Homeownership Month

The month of June is National Homeownership Month, and now that the month is over, the FHA and HUD are reminding potential FHA borrowers about government initiatives to encourage homeownership, prevent discrimination, and enable first-time homebuyers to consider purchasing a new house. The HUD official site announced at the end of June that there are more initiatives coming to improve free access to housing and further prosecute violations of the Fair Housing Act. According to a press release on HUD.gov, this process began in the first days of the Biden Administration with the newly-sworn-in President of the United States issuing a memorandum to the Department of Housing and Urban Development “to address discrimination in our housing market”. Since those earliest days, HUD has issued a proposed rule “on countering housing | more...

 
Why did my mortgage payment increase

Can I Assume An FHA Mortgage?

Can I assume an FHA mortgage? That is a question on the minds of those looking to take over an FHA home loan from the original borrower. Loan assumptions are a bit different than a new purchase home loan application, though the borrower must be able to afford the loan in both cases. The short answer is that yes, in most cases with lender participation you may be able to assume an existing FHA home loan from the original borrower. A credit check may or may not be required (see below) depending on circumstances, and lender standards. It’s the lender’s job to determine whether or not the loan assumption will happen-FHA loan rules in HUD 4000.1 permit the assumption of an FHA mortgage, but the process requires the lender’s participation. | more...

 
HUD Advice For Saving Your Home During The Coronavirus

Start Getting Ready For Your FHA Home Loan

FHA home loan resources abound–you should know about using online mortgage calculators, pre-qualification for a home loan, and the availability of free credit reports to help you in the research and planning stages of your new home loan or refinance loan. Let’s start with those free credit reports–the Consumer Financial Protection Bureau (CFPB), reminds home loan applicants that they are entitled to “a free credit report every 12 months from each of the three major consumer reporting companies (Equifax, Experian and TransUnion)” according to the CFPB official site. Getting your credit report from all three agencies is an excellent way to begin your planning stage of the loan. Get your credit reports a year in advance of your loan application and remember to keep monitoring your credit afterward. This gives | more...

 
Buying A Home With A Lower Credit Score

Reasons You Might Be Denied A Mortgage

There are many reasons why a mortgage underwriter might deny your home loan application. There are some very obvious, Mortgage 101 reasons that you’ll read about in most finance blogs or mortgage loan blogs.  Among the most obvious answers? Low credit scores, a borrower with a history of late or missed payments for housing obligations, and homes that do not pass the appraisal process. But what about the not-so-obvious ones? Red Flags For The Lender: Recent Career Changes Could you be denied a home loan if you have recently changed jobs and the switch resulted in you earning less money or moving downward (career-wise) rather than upward?  It’s possible, depending on a variety of factors. It’s also possible to be turned down for a mortgage loan if you have recently | more...

 
Is Your Credit Report Hurting Your Chances At Loan Approval?

What Are The Benefits Of An FHA Loan?

FHA home loans are for any financially qualified borrower. You don’t have to be a first-time homebuyer, and you don’t have to worry about income caps or household income limits when applying for an FHA mortgage. And there are plenty of other FHA loan benefits, too. Consumer Protections With AN FHA Loan One important benefit and protection for the FHA borrower is an FHA requirement for a home to be approved for an FHA mortgage, it must have a remaining economic life for the full duration of the loan term. That is important–what good is owning a home you cannot sell? The home’s condition at closing time must be such that it is suitable to re-sell at any point during the mortgage. If the home’s basic condition would not support | more...

 
Cash out refinancing

FHA Loan Rates: Three Tips

What do you need to know about FHA loan rates? The interest rate on your mortgage is an important variable you’ll want to think about early in your planning stages. If you don’t run the numbers on how much your mortgage will cost over the lifetime of the loan, you’re at a serious disadvantage when it comes to planning. Calculating the cost of the loan itself is not the same as calculating your monthly mortgage payment. You’ll want to know the fees and expenses you need to pay up front, but you’ll also want to know how much your loan costs you when the interest rate is applied. How much does your loan cost you each year? Each decade? What is the total cost of the loan once it has | more...

 
FHA Refi loans

Home Renovation With An FHA Loan

There are two kinds of home renovation projects; the ones you plan and the unexpected renovation you may need to do if there is a sudden problem in the home after purchasing it. An unexpected home renovation can be caused by many things that were not a factor at the time your home inspection was done; a water pipe can burst, a stove can prematurely stop working, or storm damage could cause a leak in your roof. Repair experts and contractors will be quick to point out that even a home that passes an inspection can develop such problems through no fault of the builder or seller. An unexpected home repair situation isn’t uncommon for home owners, so what’s a borrower to do when the need arises? You can fund | more...

 
Should I Buy A Condo With An FHA Home Loan?

FHA Mortgage Or USDA Home Loan: Which Is Best For You?

What makes FHA mortgages different than USDA home loans for the same kind of property? Both FHA and USDA mortgages are offered for single-family homes and you can apply for a 30-year fixed rate mortgage under both programs with lower interest rates and more flexible credit requirements than some conventional loans. What makes FHA and USDA mortgages so different?  One important factor is who qualifies for each kind of loan. USDA mortgages are intended specifically for low to moderate income borrowers who are looking for affordable housing. USDA mortgages feature price limits and household income limits that will affect the borrower’s overall loan eligibility. FHA mortgages do not feature such restrictions and are for any financially qualified borrower regardless of the upper limit of their household income. USDA loans feature | more...

 
HUD

Changes To FHA Home Loan Policy: Student Loan Debt

The Department of Housing and Urban Development official site has published a press release announcing an important revision to FHA Single-Family home loan guidelines in HUD 4000.1 concerning how a participating FHA lender should consider student loan debt as part of the loan approval process. Before the publication of HUD 4000.1, the FHA Single-Family Loan program handbook, FHA loan rules “did not address how Mortgagees should calculate future payments of deferred student loan debt which, once due, could negatively impact a Borrower’s long-term ability to repay their Mortgage and other monthly obligations” according to the HUD press release. What’s more, FHA loan rules did not consider deferred and non-deferred student loan debt separately.  When HUD 4000.1 was published to replace HUD 4155, FHA loan rules were modified to require a | more...

 
Construction Loans For First-Time Home Buyers

Planning Your One-Time Close Construction Loan

Some FHA loan applicants do not realize they have the ability to apply for a One-Time Close mortgage that lets the borrower build a home on their own lot instead of buying an existing construction home. The FHA One-Time Close (OTC) construction loan, like its’ VA construction loan counterpart, is a loan backed by the government that allows the borrower to apply for a single mortgage loan to cover both the costs of construction of a home from the ground up and the purchase of the home.  This is offered as an alternative to construction loans that require two loan applications (one for construction, one for the completed home) and two closing dates. OTC Loans Have The Same Down Payment Requirements As Other FHA Loans The One-Time Close loan avoids | more...