Articles Tagged With: FHA 203k Mortgage

July 6, 2021

Buy A Fixer-Upper With An FHA Rehab Loan

Do you know what an FHA 203(k) rehab mortgage loan is? This is the loan to ask for from a participating FHA lender if you want to buy a home to renovate instead of purchasing a “like new” home. What You Can Do With An FHA Rehab Loan Borrowers are allowed to apply for a new purchase loan or an FHA refinance loan under the 203(k) program, which the FHA loan handbook says may be used to buy and rehabilitate an existing one- to four-unit Structure, which will be used primarily for residential purposes. It can also be used to rehabilitate / refinance outstanding indebtedness “on the Structure and the Real Property on which the Structure is located” or to purchase and rehabilitate “a Structure and purchase the Real Property | more...

July 1, 2021

5 Things To Know About Home Loans

By Joe Wallace

What do you need to know about home loans? There are certainly more than five things you’ll want to remember, but this is a great way to begin the planning stages of your new home loan. Home Loan Tip #5: One Application At A Time When you are in the planning stages of a new home loan, it might not occur to you (at first) to think of all your finances as a single entity. This is important because your lender will certainly do so, and if you have applied for any other credit in the meantime it can make it harder for your loan officer to justify approving your home loan. Plan on applying for ONE line of credit in the year you commit to the loan–your mortgage. Home | more...

June 22, 2021

Home Renovation With An FHA Loan

By Joe Wallace

There are two kinds of home renovation projects; the ones you plan and the unexpected renovation you may need to do if there is a sudden problem in the home after purchasing it. An unexpected home renovation can be caused by many things that were not a factor at the time your home inspection was done; a water pipe can burst, a stove can prematurely stop working, or storm damage could cause a leak in your roof. Repair experts and contractors will be quick to point out that even a home that passes an inspection can develop such problems through no fault of the builder or seller. An unexpected home repair situation isn’t uncommon for home owners, so what’s a borrower to do when the need arises? You can fund | more...

June 15, 2021

FHA Mortgage Loan Facts

By Joe Wallace

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...

March 11, 2021

FHA One Time Close Construction Loans Versus FHA Rehabilitation Mortgages

By Joe Wallace

There are FHA home loans you can apply for that allow you to build or renovate existing construction. One type of home loan–one that lets you build instead of buying existing construction–is the FHA One-Time Close (OTC) construction loan. An alternative, known as the FHA 203(k) Rehabilitation mortgage and it is used to repair or renovate a home. One-Time Close construction loans and FHA 203(k) Rehab loans are similar–these two loans need approved builders to do the work, and they both require a minimum down payment unless you choose a VA or USDA OTC loan instead. One-Time Close Down Payment Rules FHA One-Time Close loans have a 3.5% down requirement for those with FICO scores within the qualifying range. Borrowers with lower credit scores may be required to put 10% | more...

February 25, 2021

HUD Announces Further Modifications Of Home Loan Policy During COVID-19

By Joe Wallace

The pandemic has forced many business owners, consumers, house hunters, and home sellers to rethink their approach to the task at hand. The FHA and HUD have modified many FHA loan rules to accommodate the need to socially distance and implement other coronavirus mitigation procedures and prevent the spread of the virus. And in 2021, those modifications must continue. On Tuesday, February 23, 2021, the HUD official site announced extensions of already-modified Single Family mortgage loan policies–modifications that would allow the FHA to help “maintain new mortgage originations for homebuyers and allow 203(k) rehabilitation projects to continue during the COVID-19 pandemic”. Extending these policies insures continued flexibility in certain guidelines for single family home loans. Why is it needed? To ensure home loans are available via the FHA program for | more...

February 23, 2021

Buying And Repairing A Home With An FHA 203(k) Rehab Loan

By Joe Wallace

Are you considering home repairs and renovation? In 2021 some are as part of disaster recovery. Other homeowners need a home repair or upgrade, or they want to purchase a fixer-upper house. Whether you want to replace your current home, or remodel it, the FHA 203(k) rehab loan can help These rehabilitation loans (which are also available as a refinance loan) are for any home owner who wants to buy or refinance a property and repair or renovate it at the same time. There is a standard version of the 203(k) purchase and refinance loan, and a limited version of both for smaller renovation projects. Some Won’t Use An FHA 203(k) But some borrowers won’t use an FHA 203(k) rehab loan. They either cannot, due to the nature of the | more...

February 22, 2021

Texas Home Owners Get Federal Disaster Relief

By Bruce Reichstein

Millions of homeowners in Texas were affected by severe winter weather and unprecedented freezing conditions there; On Monday, February 22, 2021 Texas residents woke up having had their state declared a federal disaster area. Those with FHA mortgages who own homes in the state of Texas are getting help from the federal government in the wake of deadly winter storms in the area affecting some half a million homeowners in the Lone Star State. President Biden has declared the state of Texas as a federal disaster area, and that means federal assistance for state and local recovery efforts. It also means Texas homeowners have access to disaster relief to help repair or replace homes damaged by the winter weather there. Do you have an FHA home loan? Contact your loan | more...

Information You Need To Pre-Qualify Or Get Pre-Approved For A Mortgage

February 16, 2021

Refinancing Your Mortgage With An FHA Loan

By Joe Wallace

If you have been looking at home loan interest rates in 2021 and considering your refinance loan options, it’s a good idea to take some steps that will help you get closer to refi loan approval. Borrowers who need or want to refinance should shop around for their new loan, and get all the information possible about how much their refinance loan will cost over the loan run and up front. Addressing Credit Issues Before applying for ANY loan, refinance or not, review your credit report in detail. You may have credit problems associated with the pandemic, there may be COVID-19-related factors in your credit that can be accounted for as a one-time problem created due to circumstance. And the Federal Trade Commission advises borrowers that such unique issues will | more...

February 2, 2021

On Buying Real Estate Sight Unseen With An FHA Mortgage

By Joe Wallace

Would you buy a house without having personally walked through it? In the era of COVID-19, there are increased numbers of transactions where the buyer and seller negotiate the sale of a home and close the deal without the buyer ever having physically set foot on the property. This practice is known as buying a house, “sight unseen” and the housing market website Redfin.com reports that for the year 2020, almost two thirds of those who bought real estate in 2020 had not seen the property in person. What does Redfin make of “the highest share since at least 2015″, according to a Redfin-commissioned survey in November and December”. That survey consisted of more than 1,900 homebuyers across 32 major markets, “up from 32% a year earlier, and 45% in | more...