Articles Tagged With: FHA 203b Mortgage

February 21, 2024

Who Needs Homeowner Insurance?

FHA loans, VA mortgages, and similar government-backed home loans don’t force the borrower to select specific types of homeowner insurance to protect your investment but that does not mean it’s not necessary. Mortgage insurance protects the lender. If the borrower defaults on the FHA home loan, mortgage insurance minimizes the loss for the bank. Home insurance, on the other hand, is a tool for the borrower. It protects your investment by insuring your home and its contents depending on the wording of your specific policy. First And Foremost Paying for both insurance types may make you feel there is protection for all circumstances. But not all types of damage are covered by your insurer. Did you know that flood insurance is completely separate from insurance for water damage? Some borrowers | more...

February 6, 2024

Fees and Services For Your Home Loan

By Bruce Reichstein

What do first-time home buyers need to remember about buying a home with an FHA mortgage? Many home loan services you need to get to closing day are not centralized and you may have to deal with multiple service providers. It’s good to anticipate the help you’ll need on your home loan journey. We explore some of those services below. Brokers And Agents A real estate agent can help new house hunters find a suitable home. It’s a third-party service you don’t have to use, but many choose to do so to make the process easier on them. A mortgage broker provides a service to those who need a lender. A broker can match you with a participating FHA lender willing to work with you but you are not required | more...

February 2, 2024

FHA Home Loan Down Payments

By Bruce Reichstein

Most home buyers will make some form of down payment, with exceptions for those using VA mortgages with no money down for qualifying servicemembers, veterans, and surviving spouses. There is also no-money-down USDA loans, but these are need-based and have income caps. By comparison, FHA mortgages, with their low 3.5% down payment requirements, are attractive to many house hunters who want to save more money upfront on the mortgage. Do You Really Have To Put 20% Down? Some borrowers may hear stories of borrowers being required to pay 20% down. This would be true in cases where the home buyer wants to avoid mortgage insurance on a conventional mortgage. And while that is not the only down payment option offered in such cases the mere idea of paying 20% down | more...

December 20, 2023

Factors To Consider When Buying A Home In 2024

By Joe Wallace

Many Americans are considering new options for housing in 2024. The new year may be shaping up as a good time to reconsider options for home ownership. Are you ready to stop renting and start owning? Many would-be house hunters read headlines in late 2023 about when a housing recovery will happen, the fact that the Fed decided not to raise interest rates, and talk that inflation may be slowing or stopping. And then there are the market forces (including lower home loan rates) that are coming together to bring more potentially positive change. What do you need to know about buying a home in the new year? For a start, the fact that tou don’t have to be a first-time home buyer to use an FHA mortgage to buy | more...

December 12, 2023

FHA Home Loan Mistakes To Avoid

By Joe Wallace

Many people have checklists to help them shop for a home, apply for a mortgage loan, and close the deal. But is your house-hunting checklist really complete without adding a list of mistakes to avoid? Steer clear of these common errors some home buyers make, and you will save yourself time and money. FHA Loan Mistakes: Not Getting Pre-Approved For A Home Loan If you get pre-approved for a home loan, the seller of the property you decide to buy (or the real estate agent, or both) will know you are a serious buyer. Those who are in the window shopping phase of their home loan process aren’t take as seriously by a seller or RE agent, and in some cases not having pre-approval may exclude you from looking at | more...

November 22, 2023

Planning A Mortgage: Credit Resources You Need

By Bruce Reichstein

Are you planning a home loan? Are you in the budgeting and saving stages of your home loan journey? If so, there are some necessary resources you should explore before you apply for an FHA mortgage. It’s important to give yourself enough time to plan and save for your home loan and that includes paying more attention to and working on your credit. Credit resources can be a huge help in this regard–don’t pass on the chance to improve your FICO scores, get your payment history into good shape, and prevent identity theft or other problems from stopping your mortgage loan in its tracks. The first resource you should consider is the offer made by the FHA and HUD to give free referrals to a HUD-approved housing counselor. You can | more...

November 2, 2023

Do You Need Down Payment Help?

By Joe Wallace

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 saving up for and making the down payment. Even the most disciplined house hunter used to cutting corners for a bigger goal might need some outside help regarding the down payment needed to buy a home. FHA Loans Require Less 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 local level often offer down payment | more...

FHA Home Loans And The Biggest Credit Mistake You Can Make

September 18, 2023

No Down Payment FHA Loans?

By Bruce Reichstein

Are there no down payment FHA loans? Some borrowers feel the pinch when trying to save up for closing costs, inspections, and the required minimum investment FHA loan guidelines say are mandatory for most FHA loans. They often wonder if there is a no-downpayment option when applying for an FHA mortgage. Making a down payment is an important and mandatory part of the FHA loan process, and you won’t be allowed to sidestep this requirement. That said, there is an exception for FHA 203(h) rehabilitation mortgages, but those are reserved for victims of natural disasters in federally declared disaster areas. Why do some people mistakenly believe FHA home loans are available for no money down? Partially because they are mistaking FHA loans for the VA home loan program, which offers | more...

September 12, 2023

Do You Want To Buy A House This Year?

By Joe Wallace

Do you want to buy a house this year? There is still time in 2023 to take advantage of the lower FHA loan limits set at the beginning of the new year. There are also things you should do to prepare for the loan, and it’s a very good idea to give yourself extra time to get it all done. It’s best to come to the application process with the following steps already accomplished. Check Your Credit Report Start reviewing your FICO scores and details to make sure there are no errors, identity theft, outdated information, etc. You are legally entitled to a free credit report. Contact Experian, Equifax, and TransUnion to learn more about contesting errors or other issues on your credit reports. Use A Mortgage Calculator An online | more...

August 28, 2023

How Much Is Your Monthly FHA Mortgage Payment?

By Joe Wallace

When you enter the planning stages for a new home loan, you’ll want to know how to budget for the expenses of your mortgage such as the appraisal fee, down payment, home inspection, etc. But you will also want to know about the monthly mortgage payment–how much it could be, how you need to adjust your personal finances to accommodate the new loan, etc. That’s why one of the most important questions a home loan applicant can ask in the planning stages is, “How much will my monthly mortgage payment be?” It’s easy to assume this is a simple calculation of how much the loan is, divided by how many months the mortgage loan payments are required. But is it REALLY that simple? The truth is that it’s more complex | more...