June 2, 2020

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Articles Tagged With: FHA Closing Costs

Build on your own lot. Construction loan basics

FHA Construction Loan Facts: What You Need To Know

There are many options available when you are searching for a house to buy. The first set of choices often involves the type of home loan you want to apply for–believe it or not there is no one-size-fits-all mortgage. If you want to purchase a condo with an FHA mortgage, for example, there is a specific loan and procedures for that. But what if you want to have a house built for you from the ground up? This is also an option, even for first-time home buyers. You can apply for a conventional one-time close construction loan, but you’ll be applying for conventional loan interest rates and terms; an FHA One-Time Close construction loan has a 3.5% down payment requirement, which is lower than you may be offered on a | more...

 
HUD Updates Coronavirus Home Loan Guidelines For Loan Closing

HUD Updates Coronavirus Home Loan Guidelines For Loan Closing

The FHA and HUD have issued guidelines for mortgage loan closing procedures that may be affected by coronavirus lockdown measures, quarantine, and other issues related to the COVID-19 pandemic. Many home buyers were caught by surprise by coronavirus issues and there are many home loans that are affected. The Department of Housing and Urban Development issued initial policies in March, 2020, but updated them in mid-April to include provisions in several areas designed to help facilitate FHA home loans during the outbreak. FHA Loan Rules On Title insurance The FHA and HUD issued guidance on loan servicing issues designed to address situations in counties where recording offices are not operational during the national emergency. The FHA/HUD official site answers the following question related to such scenarios: “Will FHA accept title | more...

 
What you need to do before you apply for a mortgage

FHA Home Loan Approval Rules And Income Verification

Can all of your income be used to qualify for an FHA mortgage? If you need to buy a home soon, it’s important to understand home loan approval rules, especially in times of economic uncertainty. There are some forms of income that don’t qualify to be counted as “verifiable income” for the purpose of establishing the borrower as a good candidate for loan approval. There is specific criteria for the kinds of earnings you can use to qualify, and specific criteria for the types of earnings that the lender cannot count as part of your monthly predictable pay. Understanding those income rules is very important, especially now. Many Americans are receiving unemployment, government stimulus checks, and other financial resources. But not all money can be used toward your verifiable income, | more...

 
One-Time Close Construction Loan Options For Veterans

Your Construction Loan Options

Build a home instead of buying an existing one? This is a reality and there are plenty of choices to go around; FHA One-Time Close construction loans, the VA construction loan equivalent, USDA construction loans, and even conventional mortgages to build on your own land instead of buying an existing home. These loans all have features that are different than existing construction loans. They include how long it takes for you to move in, when your mortgage payments begin, and the kinds of features your home may have. Construction loans can be a bit more complex than a new purchase loan for a house in a typical neighborhood, and some read articles like this and want to be ready to commit, but an equal number of people read this but | more...

 
How To Avoid Foreclosure During The Coronavirus

5 Home Loan Myths You Should Know About

There are many myths about FHA home loans; that you must be a first-time buyer to qualify, that you can only buy a certain kind of home with an FHA mortgage, and that FHA loans are only for economically disadvantage home buyers. None of those things are true. There are other pervasive myths about FHA mortgages you should know. #5: FHA Loans Are Only For Existing Construction Property Not True! The FHA One-Time Close Construction loan allows even first-time homebuyers the chance to apply for a loan to build a house from the ground up. Construction loans require more time and you won’t be able to move into the home until the construction phase is complete, but for those not in a hurry to move in favor getting just the | more...

 
Do you know how to protect your credit score during the COVID-19 outbreak? Millions of Americans have suffered economic setbacks as a result of containment measures designed to stop the spread of the virus, and many of them were already struggling with credit issues prior to the outbreak. How can you protect your credit going forward? The first step is to know what your credit report says and to actively monitor your credit. In some cases, credit problems wind up being the result of factors beyond the consumer including: Inaccurate credit report data Outdated credit information that needs to be removed Evidence of identity theft Credit report information that is accurate, but for someone else with the same name Any of these issues can hurt your credit, and they take time to correct. But they ARE correctable. Here is what you need to know about protecting your credit during and after COVID-19: You should NEVER pay a third party who offers to remove accurate negative credit reporting data from your credit report. No one can do this, it is not legal to claim you can remove ACCURATE negative credit data. You can pay a reputable third party to help you MONITOR your credit with updates and alerts that can actually help you manage your file. Pay on time, every time. Every missed payment can hurt your credit. If you cannot pay on time, contact your creditors to let them know and make arrangements. If you do not contact your creditors to make arrangements, you risk negative credit consequences that can hurt your ability to be approved for credit at multiple levels, not just major purchases. Contacting your creditors to make payment arrangements and avoid negative credit reporting is very important. Remember that late and missed housing payments (mortgage, rent, etc) reflect badly on your credit score in the best of times; if you don’t contact your landlord or mortgage servicer to make arrangements, you do not have protection against credit score damage as a result. Communication with your creditors is time consuming and, let’s face it, a bit laborious. But the protection you give yourself is definitely worth the effort. Don’t let the challenge of these tasks prevent you from getting the most protection possible for your FICO scores and credit report.

Refinancing In 2020? Questions To Ask

Are you looking for a refinance loan in 2020? Refinancing your home loan can be a smart move for some homeowners, especially in times where rates are falling. Mortgage loan interest rates in 2020 hit three-year interest rate lows due to a variety of factors including hangovers from trade war woes with China, the coronavirus, and other variables. And that means more potential borrowing options in expensive housing markets like New York, California, and Washington D.C., as well as smaller markets where the falling interest rates have improved things for buyers as well. Why? More affordable loans, rising property values (depending on the market), and the ability to pull more cash out of the home in a refi loan situation make applying more attractive. Is your long-term home loan goal | more...

 
Do You Need Down Payment Help?

Do You Need Down Payment Help?

Saving for your down payment early is a great idea, and doing so can be easier when you have a clear goal in mind. But how much IS that down payment and when should I start doing the math? Some people are intimidated by the idea of saving up for and making the down payment. Even those who are disciplined and used to cutting corners for a bigger goal can need some outside help to find the down payment money down needed to buy a home. FHA Loans = Lower Money Down FHA mortgages have lower down payment requirements than conventional loans, especially if you want to avoid Private Mortgage Insurance on a conventional mortgage (20% is usually required in such cases). State agencies and other entities operating at the | more...

 
FHA Refinance Loans: Are You Ready?

Rent Or Buy?

For some, buying is better. Why? Much depends on your financial goals but you should also take into consideration aesthetics and practical concerns, too. One argument in favor of buying or building (on your own lot) a home with an FHA mortgage? The ability to modify your property without having to go running to the landlord to ask permission is a big one. But some renters don’t realize that you can, when you own your home, also apply for a refinance loan to repair or modify your property. That is not something you can do with a rental unit. You’re basically at the mercy of the landlord in such cases. Another argument in favor of buying a home with an FHA mortgage instead of renting? The ability to purchase a | more...

 
Build on your own lot. Construction loan basics

Build On Your Own Lot: Construction Loan Facts

If you are interested in building a home on your own lot instead of buying a house owned by someone else, the One-Time Close construction loan is an option worth considering. Facts about One-Time Close mortgages include your options–there are FHA, VA and USDA versions of the One-Time Close Construction (OTC) loan. With a VA OTC, there is an option to put 0% down, FHA construction loans feature a low down payment of 3.5% of the adjusted price of the home in most cases. Construction loans require you to work with an approved contractor so you should plan on spending some time searching for one. Construction loans are sometimes hard to come by because borrowers don’t know the right loan to ask for, or are working with a lender who | more...

 
Buying a House In The Era of Corona

FHA Loan Rules And Mortgage Closing Costs

FHA home loan rules for mortgage closing costs include a requirement that down payment funds come from approved sources, but there are plenty of other guidelines for the money you’ll need to pay at closing time. There are three basic categories when it comes to your home loan closing costs, some of which are subject to change. Some costs are fixed, and some can be increased by the lender depending on whether or there is a change in circumstances that affects the borrower’s credit rating, if there is a change in the down payment, or even the type of home loan (see below). When And How Closing Costs May Change There are certain rules that allow your lender to alter your closing costs. Under the right circumstances, those costs may | more...