October 16, 2019

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Articles Tagged With: FHA 203b Mortgage

Home Loan Credit Advice From Credit Bureaus

Home Loan Credit Advice From Credit Bureaus

We discuss FHA home loan credit issues here frequently, but our advice is only one source. What do the three major credit reporting agencies have to say about credit issues related to mortgage loans? Equifax, Experian, and TransUnion all have official sites with advice for consumers who want a fair and honest mortgage loan. Let’s examine some of the advice for potential home loan applicants. Mortgage Loan Credit Advice From Equifax The credit reporting agency Equifax has some advice for borrowers, including a very useful tip about how to do damage control on your credit report if a situation beyond your control resulted in late or missed payments. According to the Equifax official site, in such cases, “Consider adding a consumer statement to your credit reports.” Did you know you | more...

 
FHA Home Loan Rules For Mixed-Use Properties

FHA Home Loan Rules For Mixed-Use Properties

FHA Single-Family home loans are designed for those who want to be owner-occupiers. Those looking for affordable housing often turn to FHA mortgages to buy condos, mobile homes, town houses, and typical suburban houses. But there is also the potential to purchase mixed-use properties with an FHA mortgage as long as those homes meet FHA standards, lender requirements, local zoning, and local building code requirements. What are the rules for buying a mixed-use property? To start, the nature of the real estate must be primarily residential in nature. The non-residential use of the home cannot detract from its’ use or status as a dwelling. The FHA Single Family home loan handbook, HUD 4000.1, starts in this area by formally defining what it considered to be a mixed-use property and the | more...

 
FHA Home Loan Interest Rates Lower

FHA Home Loan Interest Rates Lower

There is still time to take full advantage of the higher 2019 FHA home loan guaranty limits set at the start of the new year. If you are thinking about a mortgage or a refinance loan, 2019 may be the year for you. Recent headlines combining a trend in rising home values, more borrowing power, and changes to certain aspects of the home loan industry making it easier in certain sectors (including condo project sales) to buy and sell real estate for residential purposes. Add to that interest rates that are lower after two weeks of improvements at the time of this writing and you have the perfect circumstance for some borrowers interested in lower rates and more borrowing power. What do you need to know about the current FHA | more...

 
Home Buying And Your Credit

Home Buying And Your Credit: Three Simple Tricks

Worried about your credit score? Thinking about buying a home but you don’t know if your credit is good enough to qualify? There is a LOT of home buyer advice out there, especially where improving your credit score is concerned. Work On Your Credit As Early As Possible Do you know how long it takes to dispute wrong information on your credit report? How many people share your first and last name? Do you know how possible or likely it is that someone else’s credit data might end up in your credit report? Or how likely it is that outdated information is still plaguing your credit information? If you don’t you, you are not ready to apply for a home loan yet. No borrower should apply for a mortgage loan | more...

 
It Pays To Shop Around For An FHA Home Loan

It Pays To Shop Around For An FHA Home Loan

Why does it pay to shop around for an FHA home loan? A September 2019 report by Zillow.com has some revealing insights into this. Shopping around for the right mortgage lender can be just as crucial as taking a variety of cars out for test drives when you are thinking about taking out an auto loan. You would never buy a car without taking it for a test-drive and comparing dealer prices on the same make and model so why would you apply for a home loan without comparing prices? The Zillow report says a certain range of house hunter will find a wider range of results when shopping around; those who have low credit scores will, according to Zillow, find great variations in what multiple lenders will offer the | more...

 
Why You Can't Buy An Airbnb With An FHA Mortgage

Why You Can’t Buy An Airbnb With An FHA Mortgage

Some borrowers read our previous blog posts on what you can and cannot purchase with an FHA home loan and want to know why you can’t buy an Airbnb with an FHA mortgage. FHA loan rules in HUD 4000.1 state clearly that FHA Single-Family Mortgages are intended for primary residences and that any non-residential use of the home must be “subordinate to” the residential nature of the property. HUD 4000.1 also includes instructions to the lender about other acceptable uses of the property including various prohibitions including whether or not you can rent unused portions of your home out to other people after buying it with the FHA loan. For those who are interested in renting to another person as a long-term resident, this is NOT a problem. FHA loan | more...

 
Do FHA loans have an income cap?

Do FHA Home Loans Have An Income Cap?

Some borrowers learn that FHA mortgage loans are government-backed and guaranteed by the FHA and HUD, which can lead to certain assumptions about the nature of a government-backed mortgage. One of the misconceptions about FHA home loans is that due to their government association have either an income limit, or are otherwise need-based. Some borrowers might be confusing the government-backed USDA loan program with the FAH loan rules. USDA loans ARE need based. However, FHA loan rules in HUD 4000.1 do not specify a maximum income and do not require a specific financial need to qualify. FHA loans do not have a low-income requirement, a household income cap, or a requirement that you be a first-time buyer. These loans are instead designed for those who want to purchase a home | more...

 
If Your Home Was Damaged In A Federally Declared Disaster Area

If Your Home Was Damaged In A Federally Declared Disaster Area

Do you know what your FHA loan options are for recovering from natural disasters in federally-declared disaster areas? FHA home loan options include loan forbearance, FHA Rehab loans to replace or repair a damaged home, refinance options, and much more. The FHA, HUD, and FEMA all urge those who are affected to contact their loan officers immediately. It is never safe to assume any offered relief measures are automatic; you must usually make arrangements to get assistance, disaster relief, etc. Those who had properties secured by conventional mortgages at the time of the disaster may still be able to get help by applying for an FHA Rehab loan (mentioned above) that is specifically meant for those in federal disaster areas. FHA 203(h) loans (specifcially for disasters) can be used in | more...

 
FHA Loan Down Payment Rules: When More Is Required

FHA Loan Down Payment Rules: When More Is Required

FHA home loan down payment rules allow for a low 3.5% down for borrowers who qualify with FICO scores in the 580-or-above category. FHA loan minimums do not address lender standards, which may be higher, but that is one reason why it’s important to shop around for the right FHA lender. The low FHA loan down payment is one reason why FHA mortgages can be so attractive, especially for first-time home buyers. But when will a borrower be required to put a higher amount down on the mortgage? There are several instances to be mindful of. FHA Loan Transactions That Require 15% Down: Identity Of Interest The FHA Single Family Loan Handbook, HUD 4000.1, says there are circumstances where 15% down is required; often when there is an identity of | more...

 
Home Buying, FHA Loans, And Mortgage Trends

Home Buying, FHA Loans, And Mortgage Trends

Is 2019 the best time to consider buying a home? Recent mortgage loan interest rate trends and the news agencies that report on them seem to indicate that conditions are very good for first-time home buyers looking to purchase a home in the remainder of the year. One indication? Headlines during the week of August 4, 2019 that included phrases like, “Lowest Rates Since November 2016”. And then there are reports by agencies that monitor house prices in the United States. Consider the First American Real House Price Index (RHPI), which tracks the prices of single-family homes and the effects of factors like changes in mortgage loan interest rates on consumer borrowing power. The May 2019 report by First American includes this quote: “Consumer house-buying power, how much one can | more...