Articles in Category: Special FHA Programs

One-Time Close Construction Loan Options For Veterans

June 9, 2022

Questions To Ask About FHA Construction Loans And 203(k) Rehabilitation Loans

There are FHA mortgages that let you build a home from the ground up on land you already own or purchase in conjunction with the mortgage. These are called FHA One-Time-Close mortgages. There are also FHA loans that can help you buy and renovate a home. These are called FHA 203(k) Rehabilitation loans and they are also available as an FHA refinance option. Both types of loans will require you to use escrow, hire builders, and have custom work done. And if you have never done this before, there are a few things to know going into the process. Did you know that not all builders are suitable for construction loans? Not every licensed contractor has experience with a large project such as a home renovation, and you will want | more...

Home Loans For Building On Your Own Land

May 24, 2022

Building Your Home Instead Of Buying Someone Else’s House

By Bruce Reichstein

If you want to build your home from the ground up on your own lot, you have plenty of options, starting with a choice between a construction loan with two applications, two loans, and two closing dates and a loan that only has a single application, one loan, and one closing date. The loans that require only one application and closing date are known as One-Time Close construction mortgages. They are also known as construction-to-permanent mortgages. The loans that require two of everything are simply known as construction-only loans and you must apply for the mortgage loan separately from the construction loan. What are the basic benefits of choosing a One-Time Close loan aside from the obvious? Your ability to have single loan approval and one closing date are important. | more...

May 13, 2022

Reasons To Refinance With An FHA Mortgage In 2022

By Bruce Reichstein

There are many reasons to consider refinancing a home loan with an FHA mortgage. Some aren’t as attractive in times when interest rates are moving higher, and others may require a refinance no matter what the rates are doing. Recovering from financial or natural disasters can bring a homeowner back to the lender to discuss options for saving a home through refinancing as one possible option. In the spring of 2022 when inflation and other issues contributed to rising interest rates, cash-out refinancing may not be on the table in the minds of those worried about a continued rise in rates. But some homeowners affected by the pandemic who are struggling to make their mortgage payments or struggling to keep up due to the long-term financial effects of COVID-19 on | more...

FHA Construction Loan Rule Changes In 2021

May 10, 2022

FHA One-Time Close Construction Loans: Buying And Owning Land

By Bruce Reichstein

With an FHA One-Time Close construction loan, you have the ability to build a home on your own land instead of purchasing someone else’s house. There are two kinds of borrowers for these construction loans, those who already own land and those who do not. Some might wonder if they are left out of the FHA construction loan option simply because they don’t own a parcel of land yet. The good news is that FHA One-Time Close loans allow you to apply for a loan to buy the land as well as build the home. You’ll find that it may be easier to qualify for an FHA One-Time Close loan than a conventional equivalent, but keep in mind that you may have certain closing costs that aren’t applied with certain | more...

April 19, 2022

FHA Adds 40-Year Mortgage Relief Option

By Joe Wallace

The Federal Housing Administration has announced a 40-year mortgage modification option for borrowers who are struggling to save their homes due to COVID-19. The announcement will have lenders offer more options to those who are behind on FHA Title II loans, which are the mortgages most commonly used under the FHA loan program to buy primary residences with. The new 40-year option is meant for those who “cannot achieve a minimum targeted 25 percent reduction in the Principal and Interest portion of their mortgage payment through FHA’s existing 30-year mortgage modification with a partial claim” according to the press release. Over time, the FHA and HUD have made major changes to the COVID-19 homeowner relief choices offered to those with FHA mortgages. According to the FHA and HUD, adding the | more...

February 2, 2022

HUD Announces More Funding For Areas Hit By Natural Disasters

By Bruce Reichstein

The Department of Housing and Urban Development has been very busy in 2021 and 2022 responding to natural disasters and announcing the latest federal disaster assistance in areas hardest hit by storms, fires, flooding, and more. Homeowners in federally-declared disaster areas soon learn about the FHA’s foreclosure moratoriums and options for recovering damaged or destroyed homes using FHA 203(h) and FHA 203(k) Rehabilitation Loans (amongst multiple options). Now, HUD has announced further assistance for current and future disaster areas in the form of “Allocations for Community Development Block Grant Disaster Recovery” plus the start of something called CDBG-DR Consolidated Waivers and Alternative Requirements Notice.” That notice is described by the HUD press release as being “ a critical step taken by the department to open access to more than $2 | more...

January 26, 2022

FHA and HUD Expand REO Sales Options For Owner-Occupiers

By Joe Wallace

They are sometimes known as HUD homes, more formally as HUD real-estate owned homes–properties that were purchased with FHA mortgages that later fell into loan default and ultimately foreclosure. The FHA and HUD, in such cases, have a reimbursement program for the lender but the property itself reverts back to HUD upon foreclosure. The HUD official site states, “A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.” And now, thanks to a move by the FHA and HUD, there are expanded opportunities for borrowers who want to be owner-occupiers to bid on and purchase these HUD homes before | more...

January 21, 2022

HUD Announces Disaster Relief For Alaska, Missouri, And Tennessee

By Joe Wallace

The U.S. Department of Housing and Urban Development has announced federal disaster assistance to three states affected by natural disasters in 2021 and in 2022. Certain counties in Tennessee, Alaska, and Missouri are now eligible for federal disaster relief, FHA foreclosure moratoriums, and more. Tennessee was affected by severe storms, high winds, and tornadoes from December 10 to December 11, 2021; in January of 2022 the President issued a major disaster declaration for the following Tennessee counties: Cheatham Davidson Dickson Gibson Henderson Henry Lake Obion Stewart Sumner Weakley Wilson The President also announced a major disaster declaration for portions of Alaska affected by severe storms, high winds, floods, landslides, and mudslides from October 29 to November 1, 2021. In January 2022 the President declared the Kenai Peninsula Borough a major | more...

January 11, 2022

HUD Announces Disaster Relief For Counties In Washington State

By Joe Wallace

The U.S. Department of Housing and Urban Development has announced federal disaster relief for certain counties in Washington State affected by natural disasters late in 2021. The following counties have been declared federal disaster areas: Clallam Skagit Whatcom That is in addition to federal disaster areas for the Lummi Nation, Nooksack Indian Tribe, and Quileute Tribe in Washington. The relief is intended to “supplement state, tribal, and local recovery efforts in the areas affected by flooding and mudslides” from November 13 to November 15 in 2021. If you live in any of the affected counties or tribal areas mentioned above, contact your loan officer immediately and ask your lender about the following relief and foreclosure prevention remedies for those with FHA mortgages: Immediate Foreclosure Relief In federal disaster areas, there | more...

January 5, 2022

FHA And HUD Announce Disaster Relief For Arkansas and Colorado

By Joe Wallace

The U.S. Department of Housing and Urban Development has announced federal disaster relief for portions of Arkansas and Colorado affected by natural disasters. In the case of the Arkansas declaration, the following counties are eligible for relief thanks to a Presidential major disaster area declaration: Craighead Jackson Mississippi Poinsett Woodruff These counties were hit by severe storms and tornadoes in December 2021. For the Colorado declaration, Boulder County has been declared a major disaster area due to wildfires that began in late December 2021 and into 2022. The declaration also means that FEMA funding is provided to the affected areas “on a cost-sharing basis for hazard mitigation measures”. If you live in any of the affected counties mentioned here, the following disaster relief options are available to you: Immediate Foreclosure | more...