Articles in Category: Mobile Home Loans

May 22, 2017

Getting Ready For An FHA Mortgage Loan

Getting ready for an FHA mortgage loan doesn’t just mean checking your credit report and FICO scores, saving up money for a down payment, and reducing your debt-to-income ratio. It also means making important choices about your home and mortgage needs. Some of these choices may need to be made early in the preparation stage, others may come later depending on the type of home you decide to buy. Are you ready for an FHA mortgage loan? Type Of Home Believe it or not, the nature of the property you buy with your FHA mortgage loan could affect the type of home loan you apply for. A typical suburban home isn’t the same as a mobile home or a condo. The loans for a condo or manufactured home have different | more...

April 11, 2017

Maximum Loan Amounts For FHA Loans

By Joe Wallace

What are the FHA loan rules for maximum loan amounts? The rules for loan amounts are found in the FHA single family home loan rule book, HUD 4000.1 has answers, starting with this from page 155: “A Mortgage that is to be insured by FHA cannot exceed the Nationwide Mortgage Limits, the nationwide area mortgage limit, or the maximum Loan-to-Value (LTV) ratio. The maximum LTV ratios vary depending upon the type of Borrower, type of transaction (purchase or refinance), program type, and stage of construction.” Borrowers sometimes wonder if they can apply for a home loan for more than the purchase price of the home. The answer to such questions depends greatly on what the extra money is to be used for. For forward mortgages and refinance loans alike, FHA | more...

March 10, 2017

FHA Appraisals: A Reader Question

By Joe Wallace

This week in our comments section, a reader asked us a question about how certain aspects of FHA appraisals work. “I am pre-approved for a FHA loan, and lucked into having an estate offered to me before they list with a realtor, at a fantastic price! Problem is, it is 6 acres with an older mobile home…it was built in 1977, so meets the age requirement barely, but I have heard many different explanations as to what qualifies it as ‘permanent’, or ‘tied to the land’.” “It cannot be moved, has had permanent additions on foundations attached, and a complete roof addition over all of it, so certainly cannot be moved, and is in REALLY great condition. However, the title has NOT been retired for itso my question is, can | more...

September 1, 2016

FHA Home Loans: General Rules

By Joe Wallace

FHA home loans are unique compared to conventional loans due to the lower down payment and more forgiving credit requirements. There are some basic rules governing FHA mortgage loans you should know about going into the process; keeping these in mind will save time and help you better prepare for the loan. One of the key issues for FHA mortgages is the location of the home. According to HUD 4000.1, “The Property must be located within the U.S., Puerto Rico, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or American Samoa.” That’s a very basic requirement, but FHA loan rules do get more specific from there. A property must be situated in a reasonable owner-friendly location. For example: “The Mortgagee must determine if a Property is located | more...

August 2, 2016

FHA Home Loan Questions: Mobile Home/Manufactured Home Foundations

By Joe Wallace

We have not one, but two questions in our comments section recently about mobile homes/manufactured homes. Here’s the first: “We had our modular home purged when we ref in 1997. It was required to have tie downs installed when it was refinanced. We are now selling our property and now the lender is requiring that different tie downs need to be done. Is there a clause grandfathered in any tie downs prior to 2001 excludes this update to the old tie downs?” The problem with answering this question is that lender standards, plus state/local building code would definitely apply. It’s not clear what the reader is asking when discussing the “grandfather clause”. Is that in reference to HUD 4000.1 rules governing FHA loans for manufactured homes? Or is that in | more...

July 8, 2016

FHA Loans Versus Conventional Loans

By Joe Wallace

Here’s the Scoop on Conventional Loans from FHA.com on Vimeo. What are the differences between FHA home loans and conventional loans? There are several, some features of mortgage loans can vary depending on the lender, and state law may also affect how your home loan is handled depending on circumstances, but there are a few very important general differences to keep in mind when comparing FHA loans to conventional loans. The first difference is the basic nature of the loan itself. Conventional loans are not backed by the government, unlike FHA home loans where the FHA guarantees a portion of the loan to make it more attractive to the lender to issue credit. In the event that a borrower defaults on an FHA loan, the lender and the FHA have | more...

May 6, 2016

FHA Loan Tools

By Joe Wallace

If you are in the planning stages of a new home loan, there are plenty of FHA loan tools you can use to help you prepare. The planning stage of your new home loan is just as important as the house hunting, home inspection, and negotiation stages. Do you have the right tools to get started? FHA Loan Limits Knowing how much loan the FHA guarantees in your area is an important part of the process. FHA loan limits are not the absolute maximum you can borrow, but getting a bigger home loan above and beyond those limits may require you to work with a loan officer to determine what you need to do to apply for a “Jumbo Loan”. Learn what the FHA loan guaranty limit for your area | more...

May 2, 2016

Budgeting and Planning For Your FHA Loan

By Joe Wallace

If you are planning to apply for an FHA loan soon and are still in the planning stages of that loan, there are some expenses you can anticipate and save up for. Some borrowers may be interested in financing some of the costs associated with a new loan, but paying them up front can help save money over time. Those who choose to pay these costs up front are often looking at their mortgage loan over the long term. Those who choose to finance certain expenses where permitted may be trying to save money up front. Whichever option you choose, it pays to be an informed borrower-even if you know in advance you want to finance certain expenses. FHA loans and refinance loans have different rules for what expenses can | more...

March 22, 2016

How Much Can I Borrow With An FHA Mortgage Loan?

By Joe Wallace

One of the most common questions about FHA loans is, “How much can I borrow?” The answer to that question is a lot easier to get by using an online mortgage calculator to factor in the length or term of the loan, interest rate (estimated), estimated property taxes and other details. Some of the information you need to calculate how much you can borrow depends on circumstances. The interest rate, for example, is determined in part by what rates are on offer currently based on market conditions and other factors but also by your credit history and FICO scores. The better your FICO scores are, the better the interest rates. The borrower and the lender negotiate interest rates on FHA mortgages, they are not set or regulated by the FHA | more...

February 15, 2016

FHA Loan Rules For Manufactured Housing

By Joe Wallace

Recently we wrote about HUD’s proposed rule changes for manufactured housing standards to exclude certain recreational vehicles from the same requirements as home manufactured as permanent living spaces. In light of that recent news, it’s a good idea to review FHA home loan rules for manufactured housing, mobile homes, etc. The first requirement for an FHA home loan on a manufactured home/mobile home is that the home must be classified as a single-family dwelling. It must be no less that 400 square feet and must end up being affixed to a permanent foundation. Other requirements include having a HUD Certification Label affixed or the home must have “obtained a letter of label verification issued on behalf of HUD, evidencing the house was constructed on or after June 15, 1976, in | more...