February 21, 2019

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Articles in Category: FHA Requirements

Buying A Home With An FHA Mortgage Versus Renting

Buying A Home With An FHA Mortgage Versus Renting

How much money do you spend renting a home instead of owning one? If you count the security deposit, any applicable pet deposit, and other expenses, the numbers can add up quickly. When you rent a home instead of buying real estate with a mortgage loan, you are also stuck with whatever appliances your landlord has seen fit to install in the home, regardless of quality. You have to live with someone else’s interior design and paint scheme preferences, and chances are the carpet is not what you would have chosen…at all. Renting A Home: Where Are The Long-Term Financial Benefits Compared to Home Ownership? When you rent, you get no equity, no cash-out refinance loan option, and no ability to sell the home at a higher price than you | more...

 
FHA loans

Happy Presidents’ Day 2019

Happy Presidents’ Day 2019! Today banks and markets are closed, and we pause from our usual schedule of writing posts and giving information about FHA home loans to observe the holiday. We return with our regular content schedule tomorrow. Thank you very much for reading!

 
FHA loan policy changes for income and employment verification

FHA Loan Policy Changes Regarding Income, Employment Verification

The FHA and HUD have issued a Mortgagee Letter explaining recent policy changes that affect how borrowers will have their income and employment verified, among other issues. Mortgagee Letter 19-01, issued February 15, 2019, announces the specific inclusion of third-party vendors (TPV) for the purpose of income and employment verification. The change is needed, according to the Department of Housing and Urban Development, because FHA home loan rules in HUD 4000.1 did not previously mention third party vendors specifically. “FHA allows for electronic verifications as an option to a written Verification of Employment but makes no specific reference to TPV services. TPV provides an alternative means for verifying a Borrower’s employment, income, and assets which would eliminate the requirement for a Mortgagee to collect pay stubs, W-2s, and bank statements”. | more...

 
Should You Become A Landlord With An FHA Mortgage?

Should You Become A Landlord With An FHA Mortgage?

Some reports in 2019 indicate more married couples living with room mates than ever; since the mid-90s the number of couples who live with roommates has doubled and many people are considering renting out a spare bedroom to cover housing costs. If you are thinking about a mortgage loan as a first-time home buyer and wondering how you might be able to afford the loan long-term, consider using an FHA mortgage loan to purchase a property with more than one living unit and renting out the unused unit. FHA home loans are possible for first-time buyers (and all other financially qualified applicants) with homes up to four units, making your options to rent out a spare bedroom very attainable. There is no increase the the minimum FHA loan down payment | more...

 
Will another government shutdown affect first-time home buyers?

Will Another Government Shutdown Affect First-Time Home Buyers Applying For FHA Mortgage Loans?

While threats of another government shutdown seem to be on-again, off-again, some potential FHA borrowers are wondering if there will be a repeat of the stalemate that brought the longest government shutdown in recent memory. And will FHA home loans be available to first-time home buyers if the whole affair repeats itself again? FHA Mortgage Loans Will Still Be Available During The Government Shutdown The kind of loan you buy a home with, FHA forward mortgages, will continue to be serviced during a possible shutdown as previously reported here and elsewhere, as discussed in the HUD/FHA contingency plan released prior to the last shutdown. Reverse mortgages, on the other hand, may once again be completely unavailable during the shutdown. FHA loans that cannot be processed using automated means-those that require | more...

 
HUD announces disaster relief for Alaska earthquake victims

HUD Announces Disaster Relief For Alaska Earthquake Victims

Department of Housing and Urban Development has announced federal disaster assistance for the State of Alaska and those affected by the earthquake there. On January 31st, the President declared a major disaster area in Anchorage, Matanuska-Susitna Borough, and Kenai Peninsula Borough. A federal disaster declaration allows HUD to offer foreclosure relief and other assistance to those living in the affected areas. According to the press release, HUD offers immediate foreclosure relief to those with FHA mortgages in the disaster area. Borrowers should not delay in contact their FHA loan officers. Home loan disaster relief is not automatic and you will need to discuss your options with the lender as soon as possible once you know you will experience a delay in making payments. Borrowers are eligible for 100 percent financing, | more...

 
Rising Rent Versus FHA Home Loans For First-Time Home Buyers

Rising Rent Versus FHA Home Loans For First-Time Home Buyers

Real estate and home mortgage blogs in the first quarter are 2019 are still reporting on the rising rent trends in many areas of the country that seem to be encouraging renters to examine their home buying options. Did you know that rents increased in places ranging from Wichita, Kansas to Scottsdale, Arizona? The increases in those two areas was above 12% each. Studio apartment rents climbed roughly 5% higher by the end of 2018, and in Newark, New Jersey renters were on the receiving end of more than 17% higher rents from last year. If you are tired of renting and are considering buying a first home, consider these perks of the FHA home loan program: Low Down Payment Requirements For FHA Loans First time home buyers looking at | more...

 
How To Find The Right Mortgage

How To Find The Right Mortgage

First-time home buyers often aren’t sure what to look for when it comes to choosing the right mortgage loan. You can have a real estate agent help you with MLS listings to find the right type of home, you can compare participating FHA lenders to see which ones offer the best mortgage loan interest rates, and you can select from a variety of options with the mortgage itself. Choose The Right Mortgage Loan For Your Needs The family that needs to relocate to a new area for a job move does not have the same immediate needs as someone interested in buying a fixer-upper home with an rehabilitation loan. Your needs and financial goals will play an important part in the type of mortgage loan you choose. FHA Home Loans | more...

 
FHA Mortgage Loan Approval For First-Time Borrowers

FHA Mortgage Loan Approval For First-Time Borrowers

What does it take for a first-time borrower to get home loan approval with an FHA mortgage? There are several areas to pay attention to; don’t make the common first-time buyer mistake of thinking that FICO scores are the only thing that matter when it comes time for your lender to approve your mortgage loan. First Time Buyer Home Loan Approval Criteria: Employment FHA loan rules require your lender to verify two years of employment, though those two years do not have to be with the same company. What borrowers should know about this requirement is that the lender wants to know if your income is stable and likely to continue long after the loan has been closed. Generally a lender wants to know if your current income will allow | more...

 
FHA Loan Approval: Credit Check Facts

FHA Loan Approval: Credit Check Facts

First-time borrowers and experienced house hunters alike often wonder if their credit is good enough to be approved for a new mortgage loan. Do you know the facts about credit and FHA home loan approval? FHA Credit Score Standards May Vary From Your Lender’s Requirements The FHA home loan program’s FICO score standards are the minimum requirement. FHA loan rules say that any borrower with a FICO score of 500 or higher is eligible to apply for an FHA loan. Lender standards may be higher than this, which is one reason why it’s best to start working on your credit early-long before you apply for a home loan. FHA Credit Requirements Can Be More Forgiving FHA loan rules in HUD 4000.1 say that it is not impossible to get a | more...