February 25, 2020

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Articles Tagged With: FHA 203b Mortgage

Corona Virus Headlines And FHA Mortgage Rates

Corona Virus Headlines And FHA Mortgage Rates

The headlines recently have said it all; “Coronavirus fears cause mortgage rates to plunge to 8-year low”. That’s courtesy of CNBC, not one of the many many amateur finance blogs or fly-by-night junk stock purveyors. What’s the reality behind the headline? FHA and VA home loan rates for Monday, February 25 2020 were reported at 3.25%, which is definitely one of the lowest points the rates have fallen to in the last several years.  There is speculation that rates might broach new territory where historic lows are concerned; whether this actually happens or not remains to be seen. Why do interest rates move higher and lower? There is no single factor, just as there is no single factor that goes into a home loan transaction; it’s a complex operation featuring | more...

 
FHA Mortgages: Great For First-Time Borrowers In 2020

FHA Mortgages For First-Time Borrowers In 2020

What makes FHA home loans a great option for first-time home buyers? Anyone purchasing their first real estate, working with a realtor, and getting their credit ready for a home loan for the first time should know about the FHA mortgage program and it’s lower interest rates and flexible income requirements. FHA Loan Guidelines Are More Flexible It’s true that FHA mortgages require a borrower to have two years of employment history. But that history requirement does not have to be with a single company or employer.  Borrowers should know that some frequent job changes are acceptable to FHA lenders, but overall your employment record is reviewed on a case-by-case basis when necessary. You may want to explain any unusual job circumstances to a loan officer up front to see | more...

 
Refinancing In 2020? Questions To Ask

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...

 
Buying a home is a major investment. And unless you are applying for a need-based loan such as a USDA mortgage, or if you are a qualifying veteran or military member applying for a VA mortgage, you will need to come up with a down payment.

For Borrowers Who Need Down Payment Help

Buying a home is a major investment. And unless you are applying for a need-based loan such as a USDA mortgage, or if you are a qualifying veteran or military member applying for a VA mortgage, you will need to come up with a down payment. Borrowers who use conventional loans typically make larger down payments than those who use government-backed mortgage loans like FHA loans. Why? Because government-backed mortgages carry an advantage for the lender; they are guaranteed against loan default and foreclosure. Should the worst happen after the loan has closed, the government pays the lender a portion of the mortgage. It’s called a claim when this happens, and such claims are a risk of doing business in the mortgage market. Reduced risk for the lender is a | more...

 
Income Rules For FHA Loan Approval: What You Need To Know Today

Income Rules For FHA Loan Approval: What You Need To Know Today

FHA home loans, like other mortgages, require the lender to make sure their applicants have enough income to be able to realistically afford the loan. This is known as “qualifying income” and the lender is only permitted to use earnings that meet FHA standards. Those paychecks must be stable, and likely to continue for the purpose of debt-to-income ratios and other loan approval procedures. Those regulations apply regardless of whether you are buying existing construction or want to build a house on your own lot using an FHA construction loan so it’s important to be familiar with them. Military Pay And Earnings: Yes, military people have access to the GI Bill and the VA home loan program, why would they need an FHA home loan? There are actually many reasons, | more...

 
Build on your own lot. Construction loan basics

Build A House On Your Own Land With An FHA Mortgage

Some house hunters decide to stop looking at existing construction homes and start thinking about building a house for themselves from the ground up. Other people know from the start of their homeownership journey that they want to build and not buy an existing home. FHA home loan rules in HUD 4000.1 include guidelines for lenders who want to help these borrowers. The section of the rulebook titled “Building on Own Land” tells lenders how to proceed with a construction loan including maximum loan amounts, who can act as the general contractor on the project, and more. Are you interested in having a house built for you on your own lot? Not interested in having to choose from existing construction housing? Building on your own land may be the right | more...

 
Why Buy A Home In 2020?

Why Buy A Home In 2020?

There are many reasons why it’s smart to think about looking for a forever home in 2020; owning instead of renting, the ability to freely customize your living space, being able to apply for cash-out refinancing to convert part of your home’s value into cash, and never having to wait for a landlord to fix a problem in the home. But in 2020 there’s another reason to consider owning a home soon; a Zillow.com report indicates that 2020 is going to be a good year for home values depending on the housing market. The Zillow Home Price Expectations Survey from the 4th quarter of 2019 includes data that indicates U.S. home values may grow by 2.8% in 2020. Rising or hot-again housing markets in the new year include Austin, Texas | 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...

 
Buy Or Rent? The Cost Gap Gets Narrower

Buy Or Rent? The Cost Gap Gets Narrower

Do you want to own a home or rent one from someone else? According to a Realtor.com report from the fourth quarter of 2019, the cost gap between being a renter and a homeowner is lower, and it may be even more affordable to own your own home in smaller rural areas. Why? According to Realtor.com, “After years of escalating home prices making the cost to purchase a home more expensive than renting in many of the nation’s largest counties, rising rents, lower mortgage rates, and moderating home prices made purchasing a home in Q4 2019  more attractive compared to last year.” That report adds that in more than 80% of American’s largest counties it may still be more expensive to own instead of rent. Findings from the Realtor.com report | more...

 
What Affects The Cost Of Your Home Loan

What Affects The Cost Of Your Home Loan

Shopping around, haggling over terms, and negotiating your home loan are not unusual practices, but some are not comfortable with trying them. Want an advantage in the home loan process? Learn how to do some low-key bargaining as it can save you money and time over the long haul with your home loan. Negotiating with the seller, for example, could get you extra money (provided by the seller) toward closing costs; up to six percent of the sale price of the home! But haggling isn’t the only factor that can affect the cost of your home loan. The Wuhan virus, discussed in the news as a coronavirus or a “coronavirus outbreak”, affected mortgage loan interest rates and sent them to the lowest levels we’ve seen in some time. The virus, | more...