April 27, 2018

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Articles in Category: FHA Loan Types

FHA Home Loan Options: Build, Buy, Or Rehab

FHA Home Loan Options: Build, Buy, Or Rehab

Build, buy, or rehab? Those are among the options open to FHA home loan applicants. Do you know what is possible with an FHA mortgage loan? The options range from purchasing an existing 1-4 unit home to having a single-family house built from scratch using an FHA One Time Close construction loan. FHA Home Loans: The “Forward Mortgage” “Forward mortgage” is a fancy way of describing the new purchase loan-an FHA mortgage that will help you buy a home. “Forward mortgages” are described as such to distinguish them from Home Equity Conversion Mortgages (HECM) or as they often called, Reverse Mortgages. A forward mortgage can include purchase of land and funds for a construction phase when an FHA One Time Close loan is being used to build to suit. FHA | more...

 
FHA Home Loans For New Construction, Existing Construction Homes

FHA Home Loans For New Construction, Existing Construction Homes

FHA home loans are available for a variety of different types of property. You can use an FHA mortgage to buy a typical home in the suburbs, a condo, a town home, mobile or manufactured homes, etc. FHA home loans are also for properties classified in one of several ways; existing construction, new construction, proposed or under construction, etc. What do these terms mean and how does the property type affect the FHA home loan? In some cases the nature of the property may dictate whether a builders’ warranty must be provided. New construction homes, for example, must include a 10-year warranty. This is true for all property types that fall under the FHA definition of new construction property including proposed construction homes, under construction homes, and those that have | more...

 
More FHA loan options for new and returning borrowers

More FHA Home Loan Options For New And Returning Borrowers

In our last blog post we discussed some basic FHA home loan options for those who want to buy or refinance a home. More FHA loan options for new and returning borrowers alike include FHA fixed-rate and adjustable rate financing, FHA condo loans, and more. FHA Home Loan Interest Rate Options FHA home loan interest rate options are not the same at all participating lenders. Depending on both your own personal financial qualifications and lender requirements, it may be possible to apply for a fixed rate 15-year or 30-year mortgage, or for an FHA Adjustable Rate Mortgage (ARM) in the same terms. All FHA loans are generally required to amortize within the terms of the loan agreement and FHA loan rules. At the time of this writing, HUD 4000.1 states, | more...

 
FHA Home Loans: Facts You Should Know Before You Buy

Do You Know What Kind Of FHA Home Loan You Need?

Do you know what type of FHA home loan you need? There are many options with an FHA mortgage and not all of them involve purchasing a new home; you can apply for FHA rehab loans, FHA refinance loans, even an FHA reverse mortgage for qualified borrowers aged 62 or older. FHA One-Time Close Construction Loans For Building A New Home FHA loans do not require you to purchase property that has already been built; did you know there’s an FHA construction loan option that features only one loan application and closing date? Many participating lenders offer FHA One-Time Close construction loans; for those who financially qualify this allows you to have a house built for you from the ground up. You may find some lenders willing (or unwilling) to | more...

 
FHA Home Loans For Houses, Condos, And Townhouses 2

FHA Home Loans For Houses, Condos, And Townhouses Part Two

In our last blog post we began examining FHA loan rules and how they differ whether you are buying a suburban house, a condo unit or townhouse, etc. When you buy a typical suburban home, the credit check/appraisal/downpayment issues are the same as for condo units and townhouses. But when you buy a home such as a condo or townhouse, you’re required to pay more attention to common areas and agree to your share of the maintenance/upkeep of the property in general. FHA loan rules recognize these issues and addresses some (not all) of them in the FHA loan handbook to avoid confusion about what the borrower is required to do and cases where FHA loans are not allowed because of restrictions on the borrower’s ability to sell the home. | more...

 
Top Questions About Buying A Home With An FHA Mortgage

Top Questions About Buying A Home With An FHA Loan

What are your top questions about buying a home with an FHA home loan? For some it’s about how much the loan will cost month-to-month, while for others the issue of the loan’s long-term cost are an issue. If you aren’t sure how the FHA home loan program works, you’ll definitely want to read on. What You Can Buy With An FHA Mortgage In general, FHA home loans are for owner/occupiers who want to buy a home to use as their primary residence. You can buy a property with as many as four units as long as it meets FHA minimum standards and you are financially qualified for the mortgage loan. FHA loan applicants may apply for any type of FHA loan offered by a participating lender including mobile home | more...

 
What You Need To Know About Identity Of Interest Transactions

What You Need To Know About Identity Of Interest Transactions

What do you need to know about FHA loan down payment rules and identity of interest transactions? We’ve been covering this topic more recently due to some reader questions about how it all works; we’ve noticed some confusion about the rules in this area and who those rules apply to. FHA identity of interest transaction rules are specifically for borrowers who have a family or business relationship with the seller. In such cases, the general rule is that a 15% down payment is required. The confusion comes in over who this applies to. FHA Loan Rules For Down Payments When The Seller Is A Family Member Or Business Associate Because identity of interest transactions require a higher down payment, naturally borrowers want to know if there are exceptions and how | more...

 
More FHA loan options for new and returning borrowers

FHA Home Loan Fact And Fiction

FHA home loan fact and fiction; do you know what’s true and what’s not about your FHA home loan options? There are plenty of misconceptions about getting an FHA home loan including the all-time number one-the idea that FHA loans are ONLY for first-time home buyers. That is definitely NOT true. FHA loans are for any financially qualified borrower regardless of their previous home ownership status. FHA home loan fictions also include the idea that you can only purchase a typical suburban home with an FHA mortgage; this is also not true as FHA loans can be approved for mobile homes, condo units, mixed-use property that is primarily residential, town homes, and multi-unit homes. The truth about FHA home loans is that borrowers are allowed to buy “real property” with | more...

 
FHA Home Loans For Houses, Condos, And Townhouses 2

Know Your FHA Loan Options

Do you know your FHA home loan options? There are many things you can do with an FHA mortgage and buying a new home is just one of them. You can use an FHA home loan to buy, refinance, rehab, or upgrade a principal residence, with lower down payments and protections for the borrower when paying off early. FHA New Home Loans Did you know you can use an FHA mortgage to buy an existing home or have one built for you from the ground up? Buying an existing property is one of the most common uses of an FHA mortgage, but you can apply for an FHA One-Time Close Construction Loan (also known as an FHA Construction-To-Permanent loan) using an approved builder to have a house built brand new. | more...

 
Can I Assume An FHA Mortgage?

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...