July 20, 2018

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Articles in Category: FHA Loan Types

What Is A Mortgage?

What Is A Mortgage?

What is a mortgage? To some that may sound like a totally obvious question, but for some first-time home buyers, the more information you get up front about the process of finding, buying, and owning a home the better. And that includes the most basic details of the process. FHA mortgages are an option for the serious home buyer who wants a lower down payment than many conventional mortgages and would like to enjoy the benefits of a government-backed mortgage. Why Do I Need A Mortgage? This is one of the most basic questions about the home buying process. Most people will apply for a mortgage to buy a home whether that’s an FHA new purchase mortgage, A VA home loan for qualifying military members, a USDA mortgage for those | more...

 
Things To Ask About Buying Condos And Other Homes

Things To Ask About Buying Condos And Other Homes

If you are in the market for a condo that you want to buy with an FHA home loan, there are some important questions to ask before you commit. Some of these questions apply to any property type, but some more specifically apply for condo loans or FHA home loans for properties that come with a requirement to join a Homeowners Association (HOA) or agree to its’ rules. What should an FHA borrower ask a seller about a condo unit or a home governed by a condo association agreement or homeowner association agreement? First, ask if any applicable agreements include a Right of First Refusal, which requires the borrower to submit any sale or transfer of the home to the association for approval. FHA loans cannot be approved for properties | more...

 
FHA Mortgage Loan Closing Day Tips

FHA Mortgage Loan Closing Day Tips

Need some tips to help you navigate your closing date for your FHA home loan? There are some important things to do and things NOT to do on closing day. When your sale is final the seller or the real estate agent will give you the keys to your new home, but before you can get your hands on those keys, some important things must happen. Read All Home Loan Closing Documents Carefully FHA mortgage loans, like all other home loans, feature initial estimates of expenses and payments; the final numbers should be represented accurately at closing time and should not be estimates. If the numbers you were expecting don’t line up with what is in the closing documents, don’t let it go-ask for clarification. Don’t sign incomplete mortgage closing | more...

 
FHA loans

Happy 4th of July 2018!

Today we pause from our regular posts on FHA home loans, FHA refinance loans, and FHA Reverse Mortgages to observe the 4th of July Independence Day holiday. Thank you very much for reading, have a safe holiday and we will resume our regular posting schedule on Thursday July 5th. Thank you for reading!

 
Seven Facts About FHA Home Loans

Seven Facts About FHA Home Loans

Seven facts about FHA home loans you should know include lower credit score requirements and down payments than conventional mortgage counterparts. The other five facts are just as useful to a house hunter as the low down payment and FHA credit score rules. FHA Home Loan Limits Are Adjusted Yearly And Vary Depending On The Housing Market Not all housing markets have the same costs or median house prices. A Zillow.com report for home values in 2018 says houses in California may average around $500,000 while homes in Pennsylvania average around $160,000. FHA home loan limits for high-cost and low-cost areas are adjusted rather than featuring an one-size-fits-all approach. FHA Loan Down Payment Requirements Compared To Conventional Mortgage Loan Requirements FHA loans specify down payment minimums between 3.5% of the | more...

 
Remodel Your Home With An FHA Rehab Loan

Remodel Your Home With An FHA Rehab Loan

Are you thinking of selling your home? Need to think about increasing the value of your house before you put it on the market? Or maybe you want to remodel the home you’re planning on staying in long-term and are looking for the best return on investment or ROI for a remodeling project? FHA 203(k) Rehab loans can help you invest good money for a sound ROI on upgrades, improvements, and repairs. You can remodel your home with an FHA 203(k) rehab loan as a new purchase loan or as a refinance loan for your current mortgage. What types of remodeling projects have a good ROI and are allowed under the parameters of the FHA rehab loan program? The answer may depend on whether you apply for a standard or | more...

 
FHA Mortgage Loans: Do Interest Rates Matter?

FHA Mortgage Loans: Do Interest Rates Matter?

If you are a first time home buyer you might wonder whether FHA home loan interest rates quoted to you at the appropriate time actually matter-after all, aren’t these rates subject to change depending on market forces and isn’t the borrower basically being offered the “going rate” no matter what? The short answer is, interest rates DO matter and the rates you are offered are not necessarily the “going rate”, whatever that may be. Why? There are a few variables that affect the mortgage loan interest rate you are offered by the lender. Market forces are one of those variables. Depending on breaking news, market activity, and even overseas financial developments, the rates offered at any given time may be different than the last time you checked the rates. Another | more...

 
FHA Home Loan House Hunting Checklist

FHA Home Loan House Hunting Checklist

Do you want to buy a new home? An FHA home loan, with its’ low down payment requirements for qualified borrowers is definitely an option to consider. With a low 3.5% down payment for qualified borrowers AND the ability to use approved down payment assistance and/or gift funds for potentially no money out of pocket for a down payment, FHA mortgages can have a lot of appeal. The house hunting process is an important part of any loan. When you are in the planning stages for your FHA mortgage, there are some big issues to consider before you launch into your search for the perfect home. Those issues can be covered by a checklist you can make and plan with, even house hunt with; when making your house hunting checklist, | more...

 
FHA Loan rules for property types

FHA Loan Rules For Property Types

FHA loan rules in HUD 4000.1 spell out the rules for approved property types that can be purchased or built using an FHA mortgage. Some borrowers may not realize they can buy, build, or refinance properties aside from the typical suburban home. The list of property types you can choose from include mobile homes, manufactured housing, condos, town homes, row houses and more. Specifically, HUD 4000.1 lists the following: detached or semi-detached dwellings Manufactured Housing townhouses or row houses individual units within FHA-approved Condominium Projects Borrowers can use an FHA One-Time Close construction loan to build a home, but there are restrictions on the type of dwelling you can build. In general homes built using these loans must be single-family residences and not multi-unit properties; your lender will explain what | more...

 
FHA loans for investment properties

FHA Loan Rules For Investment Properties

Admittedly, the title, “FHA Loan Rules For Investment Properties” might sound a little misleading; the FHA lender’s handbook HUD 4000.1 states clearly on page 142, “Investment Properties are not eligible for FHA insurance.” But what is the FHA definition of an investment property? The answer to that question is twofold-to understand what constitutes an investment property, we have to examine what is NOT an investment. What is the type of home loan the FHA does guarantee? FHA mortgages are primarily for owner-occupiers. At least one borrower obligated on the mortgage must live in the home as her permanent, principal residence within a reasonable time after the loan closes. In some cases, FHA loan rules make provisions for borrowers who want to use an FHA loan for a secondary residence, but | more...