Articles in Category: FHA Loan Types

December 26, 2023

How Much Can You Borrow In 2024?

FHA loan limits increase in many housing markets in the United States in the new year. Higher FHA loan limits typically reflect the state of the housing market in the last year, and 2024 is no exception. We examine the finer points of FHA loan limits below. FHA Loan Limits Are Set Once Per Year Federal law dictates FHA loan limits be established annually using specific types of data to inform the new rates. The National Housing Act contains the guidelines FHA must use to establish loan limits in the new year. FHA and HUD typically announce these limits in the final weeks of the prior year, sometime between November and the end of December. FHA loan limits are set at 115 percent of the median house prices in a | more...

December 22, 2023

FHA Loan Prep Versus Holiday Spending

By Joe Wallace

House hunters who want a home in the new year, have many financial issues to worry about. One seasonal issue is holiday spending, and if you overextend yourself in December it can lead to more than financial stress. Fortunately, there are things you can do to manage credit issues and keep them from being a liability at loan application time. Don’t Allow Missed Payments What makes a late or missed payment can vary depending on the creditor. Do you know the current due dates on your bills? Have you arranged to make a partial payment rather than miss the deadline if you can’t make the full payment? These are all steps that can help you get closer to a loan next year. Consider How You Pay In 2024 Paying with | more...

December 20, 2023

Factors To Consider When Buying A Home In 2024

By Joe Wallace

Many Americans are considering new options for housing in 2024. The new year may be shaping up as a good time to reconsider options for home ownership. Are you ready to stop renting and start owning? Many would-be house hunters read headlines in late 2023 about when a housing recovery will happen, the fact that the Fed decided not to raise interest rates, and talk that inflation may be slowing or stopping. And then there are the market forces (including lower home loan rates) that are coming together to bring more potentially positive change. What do you need to know about buying a home in the new year? For a start, the fact that tou don’t have to be a first-time home buyer to use an FHA mortgage to buy | more...

December 13, 2023

Contingency Clauses To Consider When Buying A Home

By Joe Wallace

Did you know there are ways to protect yourself from buying a home you ultimately decide you do not want? Or ways to make your purchase enforceable only if you sell your current home? You can do this using a contingency clause. These are add-on language to your sales contract specifying the buyer or seller will only proceed with the sale when certain conditions are met. At the FreddieMac official site, we learn, “Contingencies are an expected, normal part of the home buying process, providing both the buyer and the seller a legal way out of the contract if something goes awry.” Consider each of the following options below. One might be very important for your house-hunting journey. Home Sale Contingency Clause If you already own a home, consider using | more...

December 7, 2023

The 2024 Housing Market

By Joe Wallace

Real estate agencies and finance blogs get into the prediction business at the end of each year, with many publishing articles comparing their expectations for the new year with what happened in the current year. 2024 is no different. One such company, Redfin, predicts that the new year could be a great time to reconsider buying a home as the housing market enters into recovery mode. The End Of The Seller’s Market? Redfin makes a prediction for 2024 many really want to hear. “Home prices will fall because supply will rise more than demand.” The lack of supply caused the seller’s market of 2022, and more housing inventory will begin leveling the playing field, so to speak, between buyers and sellers. In a seller’s market, as the name implies, the | more...

November 27, 2023

Home Loan Interest Rates Back Away From 8%

By Joe Wallace

In November 2023, mortgage loan rates came uncomfortably close to the 8% range. Since then rates seem to have backed away, with incremental improvement. Is this the time for some house hunters to make their move? The short-term gains mentioned above may benefit anyone ready to make a deal. But what about those who need more time? In such cases, you should not read too much into these rate adjustments until there’s a longer history of consistently lower rates. FHA Home Loan Mortgage Rate Trends Day to day or week to week, home loan rates can alternate between trends moving suddenly higher or lower, but over the long term, such moves won’t mean indicate much until there is a consistency in the rates over a longer period of time. For | more...

November 20, 2023

Home Loan Interest Rates In 2024: Higher or Lower?

By Joe Wallace

Financial pundits are noting that home loan interest rates are unlikely to fall as low as in July of 2020 when the rates moved below 3%. Is it smart to wait to buy a home until well into the new year? Should we expect more of the same higher rates in the new year as we saw last year? FHA Mortgage Rate Predictions For 2024 Business Insider repeats the Fannie Mae prediction for 2024 that rates may reside between 6.4% and 7.1% for 30-year fixed-rate conventional mortgages. FHA and VA mortgage rates are likely to be at or slightly below these numbers. The National Association of Realtors takes a less conservative approach, predicting rates could fall as low as 6.1% in 2024. These are predictions only, and various factors, including | more...

November 7, 2023

FHA Announces Manufactured Housing Appraisal Updates

By Joe Wallace

If you need an FHA manufactured home loan, you may benefit from updated FHA and HUD appraisal policies announced in November 2023. The FHA published its revised manufactured housing guidelines, specifically for the appraisal of manufactured homes certified under Fannie Mae’s MH Advantage and Freddie Mac’s CHOICEHome programs. These homes and other manufactured housing now get added consideration in the appraisal process when there are less than the required amount of “certified manufactured homes available.” FHA Loan Appraisal Changes Explained When the FHA changed its policies, the new rules ordered FHA appraisers to use “the most appropriate” comparables “when there are less than two comparable sales of these certified manufactured homes available.” A “comparable” is a similar property type the FHA appraiser can review side-by-side with the property being appraised | more...

November 6, 2023

Mortgage Interest Rate Trends In Late 2023

By Joe Wallace

In the last quarter of 2023, the Fed paused its interest rate hike campaign. First-time home buyers sometimes ask whether that means a pause on changes to FHA home loan interest rates. The short answer is no, and we’ll explain why below. Fed Rate Hikes Versus Home Loan Interest Rates The first thing to know? The Fed does not directly control mortgage rates but its actions do affect them less directly. Fed actions to increase rates are aimed at the lender side of the operation; when it pauses rate hikes, the Fed is putting increases on hold that affect how much it costs a lender to loan you money. The lender’s increased costs are passed on to the consumer through higher mortgage rates. What It Means When The Fed Pauses | more...

November 2, 2023

Do You Need Down Payment Help?

By Joe Wallace

Saving for your down payment early is a great idea, and doing so can be easier when you have a clear goal in mind. But how much IS that down payment, and when should I start doing the math? Some people are intimidated by saving up for and making the down payment. Even the most disciplined house hunter used to cutting corners for a bigger goal might need some outside help regarding the down payment needed to buy a home. FHA Loans Require Less Money Down FHA mortgages have lower down payment requirements than conventional loans, especially if you want to avoid Private Mortgage Insurance on a conventional mortgage (20% is usually required in such cases). State agencies and other entities operating at the local level often offer down payment | more...