October 22, 2017

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Articles in Category: Fixed Rate Mortgage

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...

 
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...

 
What does my FHA lender look for in my credit report?

What Is An FHA Loan?

What is an FHA loan? Simply put, an FHA loan is a kind of home loan that is guaranteed by the FHA and issued by a participating lender. Only FHA-approved participating lenders may offer FHA home loans, and the FHA itself does not lend money to home loan applicants. What The FHA Loan Program Can Do For You FHA loans can help you purchase a new home. These homes can be already built, but qualified borrowers also have the option to apply for FHA loans to pay for a home to be constructed from the ground up. Such loans are generally for what is known in the industry as “stick built” housing, which means a home that is constructed on-site rather than a manufactured home which is shipped in sections | more...

 
Do FHA home loan limits change?

When Is An FHA Loan Better Than A Conventional Loan?

When is an FHA loan better than a conventional loan? Many potential FHA borrowers ask this question. Do you know how FHA loans stack up against their conventional loan counterparts? Purchase And Refinance The FHA Single Family Loan program features loans for both new purchases and refinancing. If you are considering a refinance loan in your home buying strategy, an FHA mortgage may be the right move for you. If you buy FHA and refinance FHA, you can take advantage of the FHA-to-FHA only Streamline Refinance loan to get into a lower mortgage payment and/or interest rates. We’ll cover the refinancing aspect of FHA mortgage loans more closely in another blog post. FHA Loan Interest Rates FHA home loans feature interest rates that are often competitive with their conventional loan | more...

 
Who should get an FHA loan?

Who Should Get An FHA Loan?

Who should get an FHA loan? There are a variety of options with FHA mortgages, and depending on your financial goals and needs, you may find an FHA mortgage is the right choice for you, especially if you are interested in lower interest rates, and a more competitive down payment requirement. FHA Loans Are For Those Who Need A Lower Down Payment You should get an FHA mortgage loan if the idea of paying as much as 10% down doesn’t work for you. FHA mortgage loans require a minimum 3.5% down payment, which is based on the adjusted value of the property you are purchasing. It is important to know that your credit history will play an important part in determining your down payment in some cases; borrowers who have | more...

 
What Can I Rehab With An FHA 203(k) Mortgage?

What Is An FHA Loan Rate? FHA ARM Loans and Fixed Rate FHA Mortgages

What is an FHA loan rate? We discussed this question in our last blog post-that the FHA and HUD do not set or regulate interest rates on FHA mortgages, the ability of the borrower to buy discount points in order to lower the FHA loan rate up front, and how a borrower’s FICO scores can affect the kind of mortgage rates offered by the lender. But there is still an important issue to cover-the difference between how fixed rate FHA mortgages work and how FHA adjustable rate mortgage loans (ARM loans) work. What are the primary differences between an FHA fixed-rate loan and an FHA ARM loan? FHA Fixed Rate Mortgage Loans FHA fixed rate mortgages feature one interest rate, negotiated up front between the borrower and lender. Once the | more...