May 19, 2022

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Articles Tagged With: Appraiser

Five FHA Home Loan Questions To Ask Your Lender

FHA Home Loan Issues For Veterans

Veterans interested in buying a home have many choices including a VA home loan, but also FHA loans that function in much the same way as their VA counterparts. While it is true that VA loans require no down payment in most cases but FHA home loans always require one in most cases, some veterans explore their FHA loan options just the same. Some want existing construction loans, others want a One Time Close mortgage to build a suitable home from the ground up. One Time Close mortgages are available in both VA and FHA versions, so military and veteran borrowers have options with either type of mortgage. But some military members and veterans may enter the service after already having purchased a home, or after having assumed an FHA | more...

 
FHA Home Loans And Interest Rates: What You Should Know About Low Rates

Buying A Condo Unit With An FHA Loan

The FHA Single-Family Home Loan program offers condominium loans in addition to its other single-family home loan options. This surprises a small number of house hunters who wrongly assume that FHA home loans are need-based loans or that condo units don’t qualify for an FHA mortgage. They do. But there are some important things to know about the FHA Condominium Loan option–the first is that since 2019, there have been different rules about how condo loans are processed. Once upon a time you could not get an FHA condo loan if the condominium project was not on or added to the list of FHA-approved projects. Now, you may be allowed to buy a condo unit in a project that is NOT on the FHA’s list provided that the condo unit | more...

 
Cash out refinancing

FHA Home Loans: The Escape Clause

Of course it’s not formally known as the “escape clause” but first-time homebuyers should know about the FHA home loan rules that govern what happens if the appraised value of the home comes in lower than the asking price of the real estate. HUD 4000.1 instructs the lender that a clause must be inserted into any legally binding commitment to purchase the home that guarantees that the borrower does not forfeit earnest money or retain an obligation to purchase the property if the appraisal is lower than the sale price. The wording of such a clause is suggested in HUD 4000.1 (page 117) as something to this effect: “It is expressly agreed that notwithstanding any other provisions of this contract, the purchaser shall not be obligated to complete the purchase | more...

 
FHA and HUD

Appraisals Vs. Home Inspections: What You Need To Know

Can you buy a house relying on the appraisal alone to tell you about the home’s condition or should you shell out the money to pay for a home inspection? That’s a question more than one home buyer has answered in the wrong way. Here’s one version of a very common question asked about FHA home loans, appraisals, and the inspection process.  “I bought a house and I am discovering major problems and code violations. I did not have a home inspection and was told the FHA does its own inspection. Can you explain why the FHA inspection did not find these violations of code?” To start, the FHA does not inspect homes and you should not expect the FHA appraisal process to be anything more than what it is | more...

 
What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

How Much Do I Put Down On An FHA Home Loan?

There are persistent myths and misunderstandings about home loans. One persistent myth is that FHA mortgages are only approved for first-time home buyers. Another is that FHA loans are only for low to moderate-income borrowers. And a third–and the focus of our article–is that you have to make a 20% down payment on a home loan. What’s the reality? FHA home loans do NOT require a 20% down payment, even if you are at the lower end of the qualifying credit score range. According to FHA loan rules, the most you are required to put down on an FHA mortgage (on paper, according to the FHA) is 10%. That is for borrowers who do not have FICO scores that qualify them for 3.5% down. So why do people think you | more...

 
Is your credit ready for an FHA loan?

Get A Lower Interest Rate On Your FHA Home Loan

First-time borrowers might not fully understand how they can get a lower interest rate on their home loans; experienced house hunters who have been through the home buying process before aren’t necessarily at an advantage in this area. No matter whether you have owned a home before or not, it’s smart to focus on what can be done to earn a competitive interest rate on a home loan, home loan refinance, etc. Want A Lower Interest Rate On Your FHA Mortgage? Check Your Credit Scores It’s possible to apply for a home loan without ever looking at your credit report. It’s also a very bad idea to do so. Why? Borrowers who are unaware of the information in their credit reports are not ready to apply for a home loan. | more...

 
FHA loans

FHA Appraisal Refunds?

Some borrowers don’t understand the nature of the home loan appraisal process and as a result, they often ask a common question if the results of the appraisal don’t come back as expected. The process works like this–a buyer goes looking for a home to purchase with an FHA mortgage. They find a home they want to buy and before the home loan can be approved, there is a required FHA appraisal. The appraisal is a tool for the lender, not the borrower, to help establish the market value of the property and insure the house meets minimum standards. The home loan amount is based in part on the appraisal and homes don’t always appraise for what the borrower or seller thinks it should. In situations where the appraisal comes | more...

 
FHA Loan

Can I Get A Second FHA Appraisal If I Don’t Agree With The First One?

Can I get a second FHA appraisal if I don’t agree with the first one? This is a common question, normally asked if the appraised value of the home comes in differently than a buyer or seller expects it to. FHA loan rules don’t allow a borrower to be forced into purchasing a home where the appraised value is lower than the asking price, so it’s an issue that can definitely affect a home loan transaction depending on what the borrower wishes to do in such cases. Can I Order A Second FHA Appraisal? FHA appraisals are ordered by the lender, so the borrower cannot initiate any second appraisal requests. In any case, the lender is restricted on how and when a second appraisal may be ordered. Specific Restrictions On | more...

 
Time Is Running Out On Exterior-Only FHA Appraisals

Time Is Running Out On Exterior-Only FHA Appraisals

In August 2020, the FHA and HUD issued an extension of their temporary exterior-only appraisal guidelines for borrowers applying for FHA mortgages and refinance loans. This measure, and others similar to it, came after the President declared a national emergency with respect to the coronavirus pandemic and, according to the FHA/HUD official site, “initiated actions to stem the threat to public health and the American economy.” On March 27, 2020, HUD published Mortgagee Letter 2020-05, authorizing “flexibilities to the re-verification of employment and Acceptable Appraisal Reporting Forms and Protocols by allowing exceptions for Exterior-Only and Desktop Appraisal inspections in certain transactions”. The original measures were issued in March of 2020 to allow FHA appraisers to perform their work on FHA mortgages without having to put themselves at risk of COVID-19 | more...

 
HUD

HUD Extends Modified Exterior-Only Appraisals During COVID-19

The World Heath Organization says “the worst is yet to come” with regard to the global coronavirus pandemic; the Department of Housing And Urban Development responded to COVID-19 quarantine measures in March 2020, eliminating a requirement temporarily to suspend in-person or indoor appraisal activity. Those changes temporarily meant FHA appraisals would not be subject to a requirement for in-person appraisals that might run in violation of community social distancing policies. The appraisal policy (as well as modified employment verification requiremets for certain loans). But that was all set to expire (more than once, as we’ll read below) until HUD acted to extend these measures anew. Now, with COVID-19 hot spots in the forefront of American news headlines, HUD has extended the modified appraisal guidelines (as well as employment verification rules)–they | more...