October 16, 2017

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Articles in Category: FHA Loan Types

What do I need to know about applying for an FHA loan?

What Do I Need To Know About Applying For An FHA Loan?

What do I need to know about applying for an FHA loan? There are a variety of things you should know before you fill out FHA mortgage loan application paperwork. FHA Loan Residency Requirements You do not have to be a United States citizen to apply for an FHA mortgage loan. The only requirement is that the applicant must be in the U.S. legally and have documentation to prove it. Resident aliens and non-resident alien loan applicants will be required to document their status but would not be turned down for an FHA mortgage loan on the basis of not being a citizen. FHA Loan Credit Requirements For maximum financing, FHA loan rules say FICO scores of 580 or better are required. However, lender standards may be higher-check with your | more...

 
Is There An FHA Loan For Homes On Tribal Land?

Is There An FHA Loan For Homes On Tribal Land?

Is there an FHA loan for homes on tribal land? According to the FHA loan handbook, HUD 4000.1, a type of loan known as a “Section 248 Mortgage” is available specifically for home purchases of this type. HUD 4000.1 defines the Section 248 mortgage as “a purchase or refinance Mortgage covering one- to four-family dwellings on Indian Lands.” Since definitions are extremely important for many aspects of the FHA loan program, this section of the FHA loan rules also defines what the FHA considers to be “Indian land” and the communities that live there: “Indian Land refers to those lands that are held by or for the benefit of Indian Tribes under some restriction or with some attribute peculiar to the legal status of its owners. Indian Tribe refers to | more...

 
Can I buy a mobile home with an FHA mortgage?

Can I Buy A Mobile Home With An FHA Mortgage?

Can I buy a mobile home with an FHA mortgage? That’s a question on the minds of many not looking for a typical suburban house or a condo unit. FHA loan rules in HUD 4000.1, the FHA loan handbook, address the question of mobile home and manufactured housing purchases with an FHA mortgage. FHA Loans Can Be Used To Purchase A Mobile Home Or A Manufactured Home HUD 4000.1 includes instructions for the lender on processing FHA mortgage loans for mobile homes and manufactured housing. There are restrictions on the age of the mobile home; it must have been built on or after June 15, 1976 in order to qualify for an FHA mortgage loan. Additional lender standards in this area may also apply. Mobile Home Requirements To Qualify For | more...

 
What Are My FHA Loan Options For Buying A New Home?

What Are My FHA Loan Options For Buying A New Home?

What are my FHA loan options for buying a new home? FHA loans are attractive to many house hunters thanks to lower down payment requirements, an credit standards that can be more forgiving than some conventional mortgages. The ability to freely sell the home or allow the FHA mortgage to be assumed (with lender participation) by someone else should the need arise is also a good, consumer-friendly feature. There are a few misconceptions about FHA home loans including the requirements to qualify and types of property available to be purchased with an FHA mortgage. Fortunately, some of those misconceptions have to do with things the borrower thinks cannot be done for some reason, but are actually options in the borrower’s favor. FHA Loans: Not Just For First Time Buyers FHA | more...

 
Can I Get An FHA Loan For A Mixed-Use Property?

Can I Get An FHA Home Loan For A Mixed-Use Property?

Can I get an FHA loan for a mixed use property? Many borrowers want to know if the building they want to buy is still eligible for an FHA loan in spite of zoning issues, design, or other factors that render the home a combination of a residence and non-residential purposes. What do FHA home loan rules in HUD 4000.1 say about such transactions? To begin, the FHA defines what it deems to be “mixed use property”: “Mixed Use refers to a Property suitable for a combination of uses including any of the following: commercial, residential, retail, office or parking space. Mixed Use one- to four-unit Single Family Properties are eligible for FHA insurance” with certain restrictions in place. It’s important to note that FHA loan rules in this area | more...

 
Can I buy a manufactured home with an FHA loan?

Can I Buy A Manufactured Home With An FHA Mortgage?

Can I buy a manufactured home with an FHA loan? That is a question on the minds of many who are interested in purchasing a mobile home or manufactured home. What are the FHA loan rules for these properties? For starters, It IS possible to buy a mobile home or manufactured home using an FHA mortgage. Not all participating FHA lenders offer these loans (that’s up to the discretion of the lender) so you will need to find a lender who offers this type of FHA mortgage. Secondly, the homes themselves must meet FHA loan standards and other requirements in order to qualify for the mortgage. What are the FHA loan rules for mobile and manufactured home loans? One of the most basic areas addressed in the FHA loan handbook | more...

 
FHA One Time Close Construction Loans: How They Work

FHA One-Time Close Construction Loans: How They Work

How do FHA One-Time Close construction loans work? These FHA mortgages are for borrowers who want to have a home built for them from the ground up rather than looking for an existing home to purchase and move into right away. Many participating FHA lenders offer these loans for “stick built” homes, which are homes built on-site (as opposed to a manufactured home which is delivered pre-built in sections and assembled). What are the rules for this type of FHA construction loan? From the FHA/HUD official site, we learn that a One-Time Close loan is also known as a “construction to permanent” loan. “A construction to permanent mortgage combines the features of a construction loan (a short-term interim loan for financing the cost of construction) and the traditional long-term permanent | more...

 
Can I Add Energy-Efficient Upgrades To An FHA One-Time Close Construction Loan?

Can I Add Energy-Efficient Upgrades To An FHA One-Time Close Construction Loan?

Can I add energy-efficient upgrades to an FHA One-Time Close Construction Loan? FHA loan rules governing the FHA Energy Efficient Mortgage add-on to other loans such as an FHA One-Time Close new construction loan are found in HUD 4000.1. There we learn the following on page 400: “The Energy Efficient Mortgage (EEM) program allows the Mortgagee to offer financing for cost-effective energy efficient improvements to an existing Property at the time of purchase or refinancing, or for upgrades above the established residential building code for New Construction.” We know from that reading of FHA loan rules that new construction loans (including One-Time Close mortgages) do qualify for FHA EEMs, which allow the borrower additional funds for an “energy package” defined as: “…the set of improvements agreed to by the Borrower | more...

 
What Is A New Construction FHA Home Loan Compared To Existing Construction Loans?

What Is A New One-Time Close Construction FHA Home Loan Compared To Existing Construction Loans?

What is an FHA new construction loan compared to existing construction loans? Essentially the difference involves whether the home has been occupied or not since the time it was completed. FHA loan rules governing how such properties are classified can be found in HUD 4000.1, the FHA Loan Handbook. Existing Construction Existing construction loans are for structures that have been occupied at least once since the time they were completed. Such properties may be very new, others may be very old. “Existing Construction” loan procedures are less complex than for New Construction loans because the permits, escrows, inspections and other aspects of building a home have already been satisfied before the borrower comes along to buy the property. New Construction This type of property has never been occupied by an | more...

 
Can I buy a condo unit with an FHA mortgage?

Can I Buy A Condo Unit With An FHA Mortgage?

Can I buy a condo unit with an FHA mortgage? Some people have a misconception about FHA mortgages, thinking they are intended for a certain income bracket, a certain type of home, or that it is possible to earn “too much income” to qualify for an FHA loan. None of those things are true. You cannot earn too much money to qualify, and you can explore options to buy a variety of property types up to and including condominium units. Yes, FHA condo loans are possible, but they have some unique requirements (see the section on the FHA “condo project approval” list) and certain property types may be listed as condos even if they are “detached dwellings”. The requirements for these units, sometimes known as “site condos” vary slightly from | more...