January 23, 2020

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Articles in Category: FHA Refinance

FHA Rehab Loans Versus FHA 203(b) loans

FHA Rehab Loans Versus FHA 203(b) Loans

When shopping for real estate, most borrowers are thinking of the kind of mortgage such as the one known as an FHA 203(b). That’s the loan you want when shopping for a house you want to buy as-is; one that meets FHA appraisal standards and requires little to no work on the property to make it eligible for a 203(b) forward mortgage. Then there is another type of home loan option available to FHA borrowers; the FHA 203(k) Rehabilitation Mortgage, which allows you to buy a fixer-upper and have it brought up to FHA appraisal standards and local code requirements. The FHA 203(k) Rehab Loan is good for both new purchase and refinance applications. Regardless of whether you buy or refinance with an FHA Rehab Loan, you are permitted to | more...

 
FHA Rate And Term Refinance Loans

FHA Rate And Term Refinance Loans

There are different refinance loans for different needs, and the FHA rate and term refinance option is available to help borrowers who aren’t looking for cash out at closing time. The financial website Investopedia defines a rate-and-term refi loan as follows: “The potential benefits of rate-and-term refinancing include securing a lower interest rate and a more favorable term on the mortgage, but the same principal balance will remain. Such refinancing could lower the homeowner’s monthly payments, or potentially set a new schedule to pay off the mortgage more quickly.” The FHA Rate and Term refinance loan has different features and requirements than FHA cash-out refinancing or reverse mortgages. The rules that cover FHA rate and term refinancing are found in the FHA loan handbook, HUD 4000.1, and explains how this | more...

 
FHA Cash-Out Refinance Loans: Common Questions

FHA Cash-Out Refinance Loans: Common Questions

Do you know what to expect when you want to refinance your mortgage in order to convert part of your home’s value into cash? Is there a difference between cash-out refinance loans in Illinois and California? How much money will you get in cash? These and other questions are important to answer in advance. Are FHA Cash-Out Refinance Loans The Same In All Housing Markets? No. All housing markets differ. And that’s a theme you’ll see repeated in this article; if you are applying for an FHA cash-out refi loan in an area with rapidly increasing property values, you may discover your home is worth far more than in a housing market that has experienced a plateau in those rising values. Why Does My Lender Require An Appraisal? Property values | more...

 
FHA loans

Happy New Year 2020

Happy New Year 2020! We hope your holiday season has been safe and fun. We pause from our usual posts about FHA home loans to enjoy New Year’s Day 2020, and our regular posting schedule resumes on Thursday. Thanks for reading and have a great holiday.

 
Do you want to buy a house this year?

FHA Home Loan Applications In 2020

If you are considering the purchase of a home or having a house built for you on your own land in 2020, you are thinking about making the commitment to a mortgage at a very good time. FHA loan limits have been increased for another year, the previous year has been a very good one for mortgage loan interest rates, and even those contemplating refinancing instead of buying have more to think about in 2020 than in years past. Are you ready to apply for a purchase loan, construction loan, or FHA refinance in the new year? Know The Content Of Your Credit Reports If you do not know what your credit report says about you, if you have no idea what your credit score is, be sure to give | more...

 
FHA Mortgages And Conventional Loans: Which Is Better?

FHA Mortgages And Conventional Loans: Which Is Better?

Are there real differences between FHA mortgage loans and conventional real estate loans? The short answer is yes, the first and most basic difference is that an FHA mortgage is guaranteed by the government, where a conventional loan is not. And there are many other differences. The government’s guarantee to the lender to back a certain portion of each FHA mortgage makes the loan a better risk for the financial institution offering you a line of credit. It doesn’t matter if you want to build a home on your own lot, buy a condo unit, or a mixed-use property (that’s mostly residential). There are FHA loans for all those purposes and at the same low down payment requirements that FHA mobile home loans and single-family houses have. Just because you | more...

 
FHA Loan Rules And Your Personal Information

FHA Loan Rules And Your Personal Information

HUD 4000.1, also known as the FHA Single-Family Lender’s Handbook, guides the lender through the entire FHA loan process including how your application data must be processed. In the same way FHA loan rules have a lot to say about where a borrower’s down payment money comes from and verifying the sources of those funds, FHA loan rules also govern how the lender can gather your financial data. For example, did you know your credit scores and other data must be given to the lender from approved sources and that the information cannot come from you even if it’s sealed and hand-delivered? Did you know that HUD 4000.1 does not permit the borrower to handle or transmit other kinds of information to the lender, too? Sourcing counts in both down | more...

 

Happy Thanksgiving 2019!

Happy Thanksgiving 2019! We pause from our usual schedule of writing about FHA home loans and answering reader questions to observe the holiday. Thank you very much for reading! Our regular schedule of posts resumes on Monday. Thanks for reading!

 
FHA Home Loan rules for closing costs

Important FHA Loan Options For Almost Any Mortgage

There are important FHA loan options you should know about that apply to practically any type of mortgage. No matter if you need a single-unit loan for a typical suburban home or you want to build a house on your own lot using an FHA One-Time Close construction loan, there are options you should consider to get the most mileage out of your loan. FHA Loan Options: Energy Efficient Add-Ons The FHA Energy Efficient Mortgage is an option you can use to add funds for approved energy-saving upgrades to the property. That much is more well-known than the fact that you can use this FHA loan option even if you are applying for an FHA Rehab loan which is already intended to provide funds to repair, renovate, or upgrade a | more...

 
Rent or Buy?

Real Estate, Millennials, And Down Payments

What do millennials and Gen Z’ers say about buying real estate and making down payments? A home ownership-centric website called Porch.com did a survey of roughly 1300 people and the results are quite interesting–and useful to anyone in the planning stages of buying a home. The attitudes of the age groups such as Generation Z and Millennials were of particular interest for this study. “According to our findings” the Porch.com survey page for the Generational Outlook Survey says, “over 75 percent of Gen Zers said it was ‘very important’ or ‘important’ to own a home in their lifetime”, but “only 41 percent” believe it is necessary to do that in the next decade or so. But regardless of when the home is to by purchased, more than 40% of those | more...