October 26, 2021

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Articles Tagged With: FHA 203b Mortgage

Four Things to Remember About Home Loans and Credit Scores

FHA Loans: New Construction Vs. Existing Construction?

What is the difference between new construction and existing construction? For the purpose of an FHA home loan, the distinction can be important, even if it’s just on a procedural level. The FHA loan handbook (HUD 4000.1) makes important distinctions between new construction and existing construction loans. FHA Home Loans For Existing Construction Properties The FHA defines existing construction properties in a very specific way: “Existing Construction refers to a Property that has been 100 percent complete for over one year or has been completed for less than one year and was previously occupied.” The appraisal requirements for existing construction are not quite the same (in terms of timing, paperwork and required forms) but the issue that will most affect a typical borrower is in how the appraisal is to | more...

 
HUD

FHA Mortgage Relief Announced For Vermont Disaster Areas

In many cases, the FHA and HUD make announcements about disaster relief after tropical storms, hurricanes, forest fires.  But you don’t have to experience a Category 3 hurricane to be severely affected by weather; one excellent example of this comes with the HUD announcement of federal disaster assistance for parts of the State of Vermont that were in the path of severe storms and flooding at the end of July 2021. On September 29, 2021, there was a Presidential Major Disaster Declaration for two  Vermont counties–Windham and Bennington. Thanks to that Presidential declaration, HUD has offered an automatic 90-day foreclosure moratorium for those two counties–this affects those with FHA mortgages, “commenced on the date of the Presidential major disaster declaration, and foreclosures of mortgages to Native American borrowers guaranteed under | more...

 
FHA Home Loan Resources

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...

 
Planning To Buy A Home? Credit Resources You Need

FHA Loans Versus Conventional Home Loans

If you are planning to look at real estate listings soon or use the help of a realtor to locate a new home, here are some questions to ask yourself about your new home loan; the answers will help you decide whether to pursue an FHA mortgage, a conventional loan, etc. FHA Mortgage Versus Conventional Home Loans: Compare Down Payments Make sure you know your FICO scores in advance of comparing down payment requirements since the amount of cash you will be required to put down is affected by credit scores when those scores are below a specific cutoff. There is more than one standard for FICO scores in this area-FHA loan minimums and lender requirements. Lender standards will apply no matter whether you are applying for FHA or conventional | more...

 
FHA Home Loans For Manufactured Housing

Why Get Pre-Approved For An FHA Home Loan?

Why get pre-approved for an FHA mortgage? This is a question some first-time home buyers ask, and the answers can make a big difference in how you approach your home loan. FHA Home Loan Pre-Approval Does Not Commit You To A Mortgage When you fill out the forms to be pre-approved for a home loan, you are not committing to the transaction in the sense that you would be financially obligated to buy. The borrower is not legally committed to a purchase when getting pre-approved. Home loan pre-approval actually works to help you be taken seriously as a buyer when you do find a home you’re ready to commit to. The buyer takes a pre-approved borrower more seriously and you may find that a pre-approval letter (depending on the housing | more...

 
Protect Your Credit During The COVID-19 Emergency

How Much Will My FHA Home Loan Be?

How much will my FHA home loan be? That is a question many borrowers want to know, and the answer can be more complicated than just taking the sale price of the home and doing the math. FHA home loan maximum amounts are determined by factors including the maximum FHA loan guaranty for the housing market you are buying the home in, your credit history, the amount of your down payment, and more. The final amount of your FHA mortgage loan is affected by your down payment, the FHA loan limit in your area, and other factors. FHA Home Loan Limits FHA home loan limits are not the same in all housing markets. Some parts of the country are considered low-cost areas and have a lower FHA loan guaranty limit | more...

 
Why did my mortgage payment increase

Can I Assume An FHA Mortgage?

Can I assume an FHA mortgage? That is a question on the minds of those looking to take over an FHA home loan from the original borrower. Loan assumptions are a bit different than a new purchase home loan application, though the borrower must be able to afford the loan in both cases. The short answer is that yes, in most cases with lender participation you may be able to assume an existing FHA home loan from the original borrower. A credit check may or may not be required (see below) depending on circumstances, and lender standards. It’s the lender’s job to determine whether or not the loan assumption will happen-FHA loan rules in HUD 4000.1 permit the assumption of an FHA mortgage, but the process requires the lender’s participation. | more...

 
Will FHA Loans Let Me Rent Out My Home?

FHA Mortgage Loan Facts

What do you need to know about FHA home loans? Aside from dispelling the common myth that FHA mortgages are only for first-time home buyers or economically disadvantaged house hunters, there are many things you should know about the FHA loan program before you apply. FHA loans differ from other mortgages with their lower credit score requirements, low down payments, and zero penalty for early payoff of the loan. FHA home loans are for any borrower who can financially qualify and you do not need to worry about income limits or other need-based restrictions. There are some things you should know about FHA loans that are universal to all home buying experiences in America. One of those? No matter what your lender, real estate agent, or anyone else says or | 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...

 
Buying a House

Can I Make A Home Loan Down Payment With Bitcoin?

What can consumers who own Ethereum or other cryptocurrencies do with these funds? There are many platforms for buying and selling virtual currencies themselves, and more shopping options open up for Bitcoin and other crytpo all the time. Some house hunters who are invested in cryptocurrencies are wondering whether it is possible to make a down payment on a home with Bitcoin or other virtual cash. The answer to the house buying question depends on the nature of the transaction–for example, an arrangement between a seller and a buyer involving Bitcoin may be possible if all parties can agree. But what about when a lender gets involved? If you have a situation where a buyer wants to use Bitcoin or other virtual currencies to make a down payment on an | more...