Articles Published in: 2026

Build on your own lot. Construction loan basics

July 30, 2026

Build A House On Your Own Land With An FHA Mortgage

Some house hunters eventually stop looking at existing homes and start thinking about building one from the ground up. Others know from the beginning of their homeownership search that they want to build rather than buy. FHA loan rules include guidelines for lenders who want to help these borrowers get financing. The section of the rulebook covering this option is titled “Building on Own Land,” and it tells lenders how to proceed with this type of loan, including maximum loan amounts, who can act as the general contractor, and other requirements borrowers should know about before they start planning. Are you interested in having a house built for you on land you already own, rather than choosing from existing construction? Building on your own land may be the right move, | more...

When Is An FHA Loan Better Than A Conventional Loan?

July 28, 2026

FHA Minimum Property Standards: Encroachment, Power Lines, and Property Access

By Bruce Reichstein

FHA loans come with Minimum Property Requirements (MPRs) designed to protect both the borrower and the lender by ensuring a home is safe, sound, and secure enough to serve as collateral for a government-backed mortgage. These standards guide how an FHA appraiser evaluates a property during the loan process, covering everything from how close a structure sits to the property line to how residents get in and out safely. Because MPRs shape the appraisal itself, a property that falls short in one of these areas can hold up financing until the issue is resolved. Understanding a few of the basics, encroachment, overhead power lines, and access to the property, can help buyers and sellers avoid surprises before closing. Encroachment An FHA appraisal looks closely at whether any part of the | more...

July 22, 2026

FHA Loans And Surplus Land

By Bruce Reichstein

What do FHA loan rules say about surplus and excess land? For someone shopping for a condo unit, this issue typically won’t come up. But for buyers considering homes in rural areas or on larger lots, excess or surplus land can become an important detail once the appraisal is ordered. FHA guidelines address appraisals where surplus land or excess land may be present, and while the guidance is brief, it outlines what borrowers and appraisers can expect in these situations. The central question FHA rules focus on is how the extra land affects the appraised value of the property, and ultimately, how much of that land the lender can count toward the home’s value for mortgage purposes. What Is The FHA Definition Of Surplus Or Excess Land? FHA guidelines define | more...

July 15, 2026

FHA Loans: New Construction Vs. Existing Construction?

By Bruce Reichstein

What is the real difference between new construction and existing construction on an FHA loan? The distinction affects which appraisal rules apply, what paperwork a lender needs, and how much protection a borrower gets before closing. FHA loan guidelines draw a clear line between the two categories, and knowing where a property falls can help buyers set the right expectations from the start. Existing Construction A property counts as existing construction once it has been fully finished for over a year, or finished for less than a year but already lived in at some point. The appraisal process for existing homes differs somewhat in timing, paperwork, and required forms, but the detail that matters most to a typical borrower is what the appraisal is not meant to do. An FHA | more...

July 6, 2026

FHA Loans And Community Property States

By Bruce Reichstein

One of the most common questions we are asked about FHA mortgages involves state community property laws, non-borrowing spouses, and their credit issues. Does an FHA loan applicant have to include a non-borrowing spouse’s financial information when applying for an FHA mortgage? The answer depends on where the borrower resides and where the property is located. If either is in a community property state, the transaction may be affected because state law can make one spouse responsible for certain debts incurred by the other spouse. For FHA loan purposes, non-borrowing spouse debt generally means debt owed by a spouse that is not also owed by, or in the name of, the borrower. A spouse is not required to become a borrower or co-signer simply because the couple lives in a | more...

July 1, 2026

FHA Home Loan Rules For Salary, Hourly, Part-Time Income

By Bruce Reichstein

Not every home loan applicant has the same type of employment, compensation, or schedule of compensation. That’s why FHA home loan rules include different instructions to the lender for a diverse range of income sources. FHA Loan Rules For “Primary Income” FHA loan rules have sections for hourly income, salary, and part-time income. The section that includes these guidelines states that the lender is responsible for examining earnings from the home loan applicant’s “primary employment” and defines it as follows: “Primary Employment is the Borrower’s principal employment, unless the income falls within a specific category identified below. Primary employment is generally full-time employment and may be either salaried or hourly.” “Current Pay” Versus “Projected Pay” According to FHA loan rules, applicants who earn a salary will generally have their current | more...

June 15, 2026

FHA Loan Rules For Part-Time Income

By Bruce Reichstein

FHA loan rules require the lender to verify employment and income. The lender must determine that a borrower’s income is stable, documented, and reasonably likely to continue. But what kinds of employment income can be used to qualify for an FHA mortgage? A reader once asked about a young borrower who held two receptionist jobs. One position had lasted more than two years at approximately 15 hours per week, while the second had lasted a little more than one year at approximately 20 hours per week. Could both incomes be used as qualifying income? The answer depends on how each job is classified and whether the income meets FHA requirements. Primary employment is the borrower’s principal job and is generally full-time, salaried or hourly. Part-time employment generally refers to work | more...

June 1, 2026

FHA Loans and Income Verification: “Future Income”

By Bruce Reichstein

Borrowers who apply for an FHA home loan are required to list the income they want the lender to consider on the application. This is required for multiple reasons; the lender must calculate the applicant’s debt-to-income ratio and determine whether the borrower appears able to afford the new mortgage payment and other recurring obligations. A borrower who has too much going out and not enough qualifying income may not be approved for an FHA loan. But there’s another reason for the requirement; an FHA lender must verify and document the employment and income used to qualify the borrower. The lender cannot simply accept on good faith that the information listed on the application is accurate. When a borrower is approved for an FHA-insured mortgage, that approval comes only after the | more...

May 1, 2026

Appraisal Rules For FHA Loans: Basements & Crawlspaces

By Bruce Reichstein

When reviewing your closing checklist or simply trying to plan for all the expenses of your FHA home loan, the appraisal and the optional—but important—home inspection are two costs you may need to prepare for. An FHA appraisal is required for FHA-insured financing. A home inspection is generally optional unless the purchase contract, lender, or another applicable requirement calls for one. Even when it is optional, borrowers should strongly consider an inspection before deciding whether to purchase a home. FHA appraisal requirements are designed to help the lender determine whether the property meets FHA minimum property requirements and minimum property standards and whether it can serve as acceptable collateral for the loan. The appraisal is not a guarantee from FHA or the lender that the home is free of defects. | more...

April 1, 2026

FHA Loan Options Are Available to Homebuyers?

By Bruce Reichstein

FHA loans remain one of the most popular mortgage options for homebuyers because they offer flexible qualification requirements and low down payment options. Many borrowers know about FHA purchase loans, but fewer realize that the Federal Housing Administration insures several different mortgage programs designed for a variety of financial situations. Whether you’re buying your first home, refinancing an existing mortgage, renovating a property, or accessing home equity, there may be an FHA loan option that meets your needs. Why Do Borrowers Choose FHA Loans? Many borrowers choose FHA financing because qualification requirements are often more flexible than those associated with some conventional loan programs. FHA loans also permit a down payment as low as 3.5% for borrowers who meet program requirements. Another advantage is that FHA allows borrowers to use | more...