Articles in Category: FHA Guidelines

FHA Loan Rules And Your Personal Information

July 8, 2021

Worried About FHA Home Loan Interest Rates?

What forces affect FHA home loan interest rates? If you are worried about getting the best FHA loan rate, you should know what factors go into the mortgage rate you are offered by a participating lender. There are multiple factors that influence rates, some are market forces but some are directly in the borrower’s control–at least in terms of the rate you could be offered. The most important thing to understand about rates–especially home loan interest rates–is that they fluctuate frequently. This means that some aspects of the rate you are offered are beyond your control. Other aspects are in the borrower’s ability to change for better or worse. What do we mean? Your Choices Can Affect The Interest Rate You Are Offered The choices you make as a consumer | more...

FHA Fixed-Rate Mortgages Versus Adjustable Rate Mortgages

June 30, 2021

The End Of National Homeownership Month

By Joe Wallace

The month of June is National Homeownership Month, and now that the month is over, the FHA and HUD are reminding potential FHA borrowers about government initiatives to encourage homeownership, prevent discrimination, and enable first-time homebuyers to consider purchasing a new house. The HUD official site announced at the end of June that there are more initiatives coming to improve free access to housing and further prosecute violations of the Fair Housing Act. According to a press release on HUD.gov, this process began in the first days of the Biden Administration with the newly-sworn-in President of the United States issuing a memorandum to the Department of Housing and Urban Development “to address discrimination in our housing market”. Since those earliest days, HUD has issued a proposed rule “on countering housing | more...

May 17, 2021

What First-Time Home Buyers Need To Know

By Bruce Reichstein

Some people aren’t sure if they are considered first-time home buyers or not, and in some cases it definitely makes a difference. Some people don’t realize they are considered first time home buyers even though they owned property in the past. It is important to know your status as a buyer as those eligible for first-time buyer status in local communities may qualify for down payment help on their FHA mortgages. What does it take to be considered a first-time home buyer? What are the advantages? There is a persistent myth about FHA home loans that fools some people from considering FHA loans as an option. But if you have owned property in the past, depending on how far back in the past that home ownership goes, you may qualify | more...

May 7, 2021

Can I Make A Home Loan Down Payment With Bitcoin?

By Joe Wallace

What can consumers who own Ethereum or other cryptocurrencies do with these funds? There are many platforms for buying and selling virtual currencies themselves, and more shopping options open up for Bitcoin and other crytpo all the time. Some house hunters who are invested in cryptocurrencies are wondering whether it is possible to make a down payment on a home with Bitcoin or other virtual cash. The answer to the house buying question depends on the nature of the transaction–for example, an arrangement between a seller and a buyer involving Bitcoin may be possible if all parties can agree. But what about when a lender gets involved? If you have a situation where a buyer wants to use Bitcoin or other virtual currencies to make a down payment on an | more...

April 26, 2021

Home Loan Application Documents: What You Need To Know

By Bruce Reichstein

There is documentation required to process your home loan application. Do you know what your home loan or refinance loan transaction requires of you? The lender requires tax documents, information about the sources of your down payment, access to your credit reports, and more. But there are rules about who provides these documents, and you’ll need to be aware of them when gathering your paperwork. FHA Loan Rules On Documentation Some of the information your lender needs comes from you personally. What does this include? Your photo identification, and proof of legal residence in the USA (which may be required where applicable). FHA loan rules say you do not have to be a citizen to be approved for an FHA mortgage, but you must have documentation that shows your status | more...

February 9, 2021

FHA Home Loan Approval And Your Finances

By Joe Wallace

Do you need to buy a home with an FHA mortgage? Or refinance your existing loan? There are some financial issues to be mindful of going into a new loan application–don’t let a lack of information derail your mortgage loan process. Mortgages and refinance loans don’t have one-size-fits-all solutions; in the same way you have many housing choices there are also many different kinds of mortgage loan circumstances. When your loan application comes in, the lender has to make sure the loan will be a good credit risk. To be approved, your application requires your tax returns, bank statements, and other financial data. The lender reviews these ahead of loan approval. And some issues can create more problems for the lender than others at first. For example, what happens if | more...

December 3, 2020

Higher FHA Loan Limits In 2021

By Bruce Reichstein

The FHA and HUD have announced higher FHA forward loan limits for 2021. Most borrowers will experience a higher FHA loan limit depending on their location and other variables. Federal law requires FHA to establish forward mortgage / purchase loan floor and ceiling loan limits each year. These limits are based on the loan limit set by the Federal Housing Finance Agency for conventional mortgages owned or guaranteed by Fannie Mae and Freddie Mac. The national conforming loan limit for 2021 is $548,250. While these limits DO NOT apply until 1 January 2021, you can locate the entire list of FHA loan limits. That list includes areas at the FHA ceiling, areas between the floor and the ceiling at the FHA official site. The National Housing Act and its amendments | more...

November 30, 2020

Common Questions About FHA Mobile Home Loans

By Bruce Reichstein

FHA home loan options include FHA mortgages for mobile homes. You can buy a mobile home, manufactured home, or modular home using an FHA mortgage and there are many common questions about this type of FHA mortgage option. What Does the FHA Define As A Manufactured Home? The FHA official site describes a mobile home (also known as a manufactured home) as a property built “to the Manufactured Home Construction and Safety Standards (HUD Code) and displays a red certification label on the exterior of each transportable section”. The FHA official site also states that manufactured homes are built “in the controlled environment of a manufacturing plant” and are transported in one or more sections on a permanent chassis. FHA loan rules state that any mobile home must be affixed | more...

November 4, 2020

Do I Need To Use An Escrow Account For My Home Loan?

By Bruce Reichstein

An escrow account is a tool you and the lender can use to simplify mortgage payment issues with respect to property taxes, homeowner insurance, and other payments. Depending on the nature of your mortgage your lender may require the use of escrow, especially if you are applying for a One-Time Close construction loan or an FHA 203(k) Rehabilitation loan or 203(k) refinance loan. Escrow accounts make it possible for some hands-off payments for property taxes and other expenses. Escrow may be required by law depending on the state you’re buying in and the circumstances of your loan. Escrow accounts may be referred to as impound accounts and if you are putting a fixed amount of money into escrow each month (via your mortgage payment), your lender is basically letting those | more...

October 14, 2020

FHA Mortgage Loan Issues: “Identity Of Interest”

By Joe Wallace

What does it mean to have an “identity of interest” when applying for an FHA home loan? This can be an issue if the borrower has been renting the property to be purchased with an FHA mortgage from the seller prior to the home loan application. That is not the only issue addressed under the rules for identity of interest–those with family ties buying or selling to one another may also need to have an understanding of the rules in this area. What is the meaning of “identity of interest?” The FHA loan handbook, HUD 4000.1, describes identity of interest transactions as a real estate sale between two parties “with an existing Business Relationship” or between family members. The word “interest” in this case refers to the interest the seller | more...