Articles in Category: FHA Lenders

August 15, 2019

FHA Announces New Condo Loan Rules

The Federal Housing Administration has announced changes to its’ condo approval policies that could make it easier for house hunters to find and purchase condo units with an FHA mortgage. The changes are intended to increase lender flexibility and to adapt to changing conditions in the housing market. The FHA and HUD issued a press release on the new rules which states that the new rules …“will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved.” Under the old rules, a condo project had to be on the FHA approved list or added to it. As of October 15, 2019, the new FHA policies will, according to the FHA official site, include the following changes to FHA condo | more...

July 26, 2019

Qualifying For An FHA Home Loan With Disability Benefits

By Joe Wallace

FHA home loan rules permit the use of disability benefits to financially qualify for the loan. All income used in the lender’s debt ratio calculations must be verifiable, which means it must be a stable source of income and is likely to continue. Some borrowers worry that their disability income won’t be counted for the purposes of loan approval, but if that income meets FHA standards, there shouldn’t be any problem. Those standards are found in HUD 4000.1 and start with a basic definition: “Disability Benefits are benefits received from the Social Security Administration (SSA), Department of Veterans Affairs (VA), other public agencies, or a private disability insurance provider. “ These benefits must continue for at least three years into the mortgage to be counted as verifiable income. The lender | more...

March 20, 2019

Home Loan Rules You Should Know

By Bruce Reichstein

What home loan rules should you know ahead of your mortgage loan application? There are several that you should keep in mind when planning and applying for your new home loan. FHA Loans Are Issued By Participating Lenders A lender must meet FHA standards, conform to the FHA loan program rules, and generally be recognized by the FHA as being permitted to issue FHA-guaranteed mortgage loans. But not all lenders choose to participate in the FHA home loan program so you may need to shop around for a lender. Shopping around is a good thing, but some feel that one lender is as good as another. When it’s time to compare interest rates and mortgage loan terms, you may find that to be untrue. But not all lenders choose to | more...

March 12, 2019

Why You Could Buy A First Home With An FHA Mortgage

By Joe Wallace

First-time home buyers may not realize the full value of some FHA home loan features, but once you’ve had a bit of experience with real estate and related issues, the FHA loan features that look good to you will do so for important reasons. FHA home loans have several strengths for those looking for a first home. Do you know what they are? FHA mortgages allow down payment gifts from approved sources. Your family, friends, co-workers, or agencies with no financial stake in the outcome of the transaction may provide genuine gifts of down payment money. The seller of the real estate you want to buy can not contribute toward your down payment. But you CAN negotiate with the seller to get up to six percent of the home’s sale | more...

March 6, 2019

FHA Home Loan Options For First-Time Home Buyers

By Joe Wallace

When some people think about buying a first home, the stereotypical image of a suburban house may come to mind, but that isn’t the only option you have when searching for just the right real estate for your needs. Your participating FHA lender and real estate agents alike will tell you about a variety of housing types and configurations that go above and beyond a typical two-bedroom bungalow, ranch home, split-level home, etc. What other kinds of homes can you purchase with an FHA mortgage? There are FHA home loans for manufactured or modular homes that can be assembled and put on a permanent foundation on land the borrower either already owns or is purchasing as part of the FHA mortgage loan. FHA loans for mobile homes are similar, though | more...

January 28, 2019

FHA Loans And The Government Shutdown: What’s Next?

By Bruce Reichstein

Headlines in the earliest part of 2019 about the government shutdown gave way at the end of the third full week to those discussing the interim re-opening of the government for three weeks so that negotiations on the federal budget may continue. On Friday, January 5, 2019, the partial shutdown ended, bringing furloughed workers back on the job and ending the question of how long nearly one million American workers would have to do without a paycheck. What does all this have to do with FHA mortgage loans? Many wondered if the FHA would stop the home loan program during the partial shutdown, and while that did not happen, some aspects of the FHA mortgage program were affected including the Home Equity Conversion Mortgage program and certain aspsects of the | more...

January 7, 2019

FHA Loans And The 2019 Government Shutdown

By Bruce Reichstein

At the time of this writing, the partial government shutdown continues and we are seeing more headlines about the services affected, including certain kinds of home loans. Specifically, home loan applicants seeking USDA mortgages are locked out of the process for the duration of the shutdown according to a variety of sources. Some potential USDA borrowers were caught in the middle of their transactions when the government shut down, and the media reports stories of those left more or less in limbo until the current situation is resolved. So what does this mean for FHA mortgage loans? FHA Mortgage Loans Are Still Available During The Government Shutdown Forward mortgages will continue to be serviced during the shutdown as previously reported here and elsewhere. But there are some important things you | more...

December 29, 2018

FHA Loans Are Available During The Government Shutdown

By Joe Wallace

Are FHA home loans available during the government shutdown? The answer is yes in many cases, with the exception of Reverse Mortgages and Title I loans. FHA Condo loans may be affected by the government shutdown depending on whether or not the condo project was on the FHA approved list prior to the shutdown or not. The FHA and HUD official sites have notices stating that the websites will not be updated until the government reopens, and many functions of the FHA and HUD will be limited or unavailable. According to HUD.gov, there are a list of guidelines you should know during this time that will affect how FHA loans are handled. The official site states that HECM loans and Title I loans cannot be endorsed during the shutdown: “The | more...

September 28, 2018

FHA Home Loan Approval Questions Part Two

By Bruce Reichstein

There are many questions borrowers have about home loan approval and how the lender decides which loans to approve. Knowing more about this process can help you better prepare for it; here are some of the most commonly asked questions about FHA home loan approval. Why Does My FHA Loan Application Get Denied With One Lender But Approved By Another? FHA home loan rules include minimum standards for FICO scores, credit history, and other factors. But these minimums are not the only guidelines that affect home loan approval. Your FHA mortgage loan is also subject to lender standards which will vary from lender to lender but also may be different than FHA loan minimums. FICO scores, employment history, and other factors may vary from the FHA minimums, which is permitted | more...

September 28, 2018

FHA Home Loan Approval Questions Part One

By Joe Wallace

FHA home loan approval is a process that requires your lender to review your credit history, employment history, and many other factors before deciding to approve or deny a home loan application. There are many questions about this process, and the more answers you have before yo start filling out applications, the better. The answers in this blog post pertain to FHA loan basics, but also rules for self-employed borrowers and those earning commission income. FHA Loan Approval Basics: What Do I Need To Know? The lender will pull copies of your credit report and review your payment history for the 12 months leading up to the mortgage loan application. FHA loan rules are similar to other home loan requirements in this area; coming to your FHA mortgage application process | more...