Articles by: Bruce Reichstein

Planning To Buy A Home? Credit Resources You Need

September 17, 2021

FHA Loans Versus Conventional Home Loans

If you are planning to look at real estate listings soon or use the help of a realtor to locate a new home, here are some questions to ask yourself about your new home loan; the answers will help you decide whether to pursue an FHA mortgage, a conventional loan, etc. FHA Mortgage Versus Conventional Home Loans: Compare Down Payments Make sure you know your FICO scores in advance of comparing down payment requirements since the amount of cash you will be required to put down is affected by credit scores when those scores are below a specific cutoff. There is more than one standard for FICO scores in this area-FHA loan minimums and lender requirements. Lender standards will apply no matter whether you are applying for FHA or conventional | more...

September 10, 2021

Your FHA Mortgage And Natural Disasters In 2021

By Bruce Reichstein

In the early days of the month of September, the FHA and HUD have made a number of announcements regarding disaster relief for portions of the country that have experienced fires, floods, and hurricanes. The agencies have, from the start of September to September 10, 2021, issued no fewer than seven announcements related to disaster relief. The first of those, dated September 1, 2021, includes the following related to disaster relief measures for those who are in presidentially declared federal disaster areas: Foreclosure relief – There is an automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages beginning on the date of the major disaster declaration; Call the FHA Resource Center at 1-800-304-9320 for assistance FHA Rehab Loans — FHA Section 203(h) Rehabilitation Loans for disaster victims | more...

First Time Home Buyers: Improve Your Credit With Credit Monitoring

September 9, 2021

Do You Have An FHA Adjustable Rate Mortgage?

By Bruce Reichstein

Do you have an FHA adjustable-rate mortgage, also known as an FHA ARM loan? Is your introductory rate about to expire? It may be a very good idea to explore your refinance options to avoid the higher interest rate. Borrowers with adjustable-rate home loans rightfully get a bit nervous when the end of their introductory interest rate period, also known as a “teaser rate” period is about to and the first adjustment to the ARM loan’s interest rate becomes due. Borrowers can negotiate an introductory rate that lasts as little as one year and as many as 10 years with the lender, but eventually, that initial rate will end and the first adjustment will come due. If you have an FHA ARM loan you may be eligible for either a | more...

August 30, 2021

FHA Loan Guidelines For Verifying Your Credit History

By Bruce Reichstein

FHA loan rules have a lot to say about what the lender needs to look for to verify a potential FHA borrower’s creditworthiness. No matter if you are looking for a condo loan, a mobile home loan, or you want to build a house on your own land with an FHA construction loan, the requirements in the FHA Lender’s Handbook are identical. There are minimum FICO score requirements, instructions to the lender for reviewing the borrower’s record on-time payments (12 months of reliable payments on all financial obligations is strongly recommended), and much more. One area that is also covered in HUD 4000.1 is what the lender should do if collections are included in the borrower’s credit history. The presence of a collection action on a loan applicant’s record may | more...

Is Your Credit Report Hurting Your Chances At Loan Approval?

August 23, 2021

FHA Home Loans: Why You Need To Review Your Credit Report Now

By Bruce Reichstein

Why is it so important to review your credit report long before you apply for a mortgage? One important reason–the one you read in almost every article with advice on this topic–is to start reviewing your credit early in case you have to dispute an item on your report. But what happens in the event you find errors, outdated information, or evidence of identity theft? In the 21st century the likelihood of having any–or even all–of these in your credit report is elevated due to hackers, accidental breaches of personal data, or even mistaken identity. So what should a potential borrower do if they discover trouble with their credit reports? The first thing to do is to remember you’ll need to check all three credit reporting agencies to determine if | more...

August 16, 2021

Rent Or Buy?

By Bruce Reichstein

Are you tired of paying rent, answering to landlords, and trying to maintain your living space while trying to be mindful of thin walls, sensitive neighbors, or other concerns associated with living in an apartment complex or other rental situations? One way to get closer to a decision is to use a rent vs. buy calculator or to run your own numbers using similar data. You’ll need a typical home price for the local area to calculate a mortgage payment (using principal, interest, property taxes and any applicable homeowners association fees) and compare it to how much you pay in rent, renter’s insurance, etc. You can use a rent vs. buy calculator to give yourself a good idea of how the basic numbers compare. But there are a few variables | more...

August 5, 2021

VA One-Time Close Construction Loan Options for Military Veterans Expanded

By Bruce Reichstein

Some house hunters get fed up with looking for just the right home, while others start out their home loan journey knowing in advance they want a house built for them. What options to these borrowers have? There is an FHA home loan known as the FHA One-Time Close / Single-Close construction loan that lets borrowers apply for a single loan that covers both construction costs and the mortgage itself. The FHA version of this type of construction loan requires the borrower and lender to work together to establish a plan for the project including estimated completion times, interest rates, budgets, and more. Some borrowers aren’t interested in FHA home loans since they have other options; do qualifying military veterans have a VA loan version of the FHA One Time | more...

August 5, 2021

FHA Home Loans: Mistakes To Avoid When It’s Time To Close

By Bruce Reichstein

As you get closer to the day when you sign the paperwork, pay your closing costs, and take possession of your new home, there are some important mistakes to avoid. Do you know what they are? FHA home loan closing day is an important milestone; make sure you know what to expect leading up to the big day. Don’t Move The Same Day You Close Closing dates can change, circumstances may require a new closing date. If you hired movers or rented a truck on the same day that you are supposed to close the deal, you may be disappointed. Don’t Be In A Hurry Take the time to carefully read all documents you are required to sign, don’t skip the home inspection, and don’t give in to any kind | more...

July 21, 2021

Why Get Pre-Approved For An FHA Home Loan?

By Bruce Reichstein

Why get pre-approved for an FHA mortgage? This is a question some first-time home buyers ask, and the answers can make a big difference in how you approach your home loan. FHA Home Loan Pre-Approval Does Not Commit You To A Mortgage When you fill out the forms to be pre-approved for a home loan, you are not committing to the transaction in the sense that you would be financially obligated to buy. The borrower is not legally committed to a purchase when getting pre-approved. Home loan pre-approval actually works to help you be taken seriously as a buyer when you do find a home you’re ready to commit to. The buyer takes a pre-approved borrower more seriously and you may find that a pre-approval letter (depending on the housing | more...

Protect Your Credit During The COVID-19 Emergency

July 14, 2021

How Much Will My FHA Home Loan Be?

By Bruce Reichstein

How much will my FHA home loan be? That is a question many borrowers want to know, and the answer can be more complicated than just taking the sale price of the home and doing the math. FHA home loan maximum amounts are determined by factors including the maximum FHA loan guaranty for the housing market you are buying the home in, your credit history, the amount of your down payment, and more. The final amount of your FHA mortgage loan is affected by your down payment, the FHA loan limit in your area, and other factors. FHA Home Loan Limits FHA home loan limits are not the same in all housing markets. Some parts of the country are considered low-cost areas and have a lower FHA loan guaranty limit | more...