Articles Tagged With: FHA 203k Mortgage

March 11, 2021

FHA One Time Close Construction Loans Versus FHA Rehabilitation Mortgages

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...

HUD Announces Fair Housing Act Protection Improvements

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...

January 22, 2021

Do You Need To Refinance Your Home Loan?

By Joe Wallace

2021 may be a very good time for some home owners to consider their refinance options. At the time of this writing, FHA mortgage loan interest rates are reported at a best-execution (ideal qualifications assumed) 2.34% by multiple sources, and FHA loan limits are higher in 2021 too making this a very good year to consider an FHA loan (even if it’s not a refi). Should you refinance with an FHA mortgage? You can refinance an existing FHA loan or a non-FHA mortgage; do you want a more competitive interest rate? Perhaps you want to get out of an adjustable-rate loan and into a lower mortgage rate than a conventional loan? Here are some scenarios you should think about when considering the options. Refinancing To Get A Better Interest Rate | more...

January 21, 2021

Why You Should Consider A Limited 203(k) Rehab Loan

By Bruce Reichstein

Do you want to buy or refinance a fixer-upper home? The FHA 203(k) Rehabilitation loan and the FHA 203(k) Rehabilitation Refinance loan can help if you would rather buy a fixer-upper or renovate an existing home you’re living in as your primary residence. You don’t have to buy a property to use the FHA 203(k) rehab loan; you can use it to refinance your current home and get money to accomplish FHA and lender-approved improvements or other projects associated with remodeling or renovation. That said, not every borrower needs to fully refinance a home to repair or improve it. Are you thinking of smaller projects that don’t require a huge sum of money? The Limited 203(k) Rehab loan lets you accomplish smaller projects without committing to a full refinance or | more...

January 19, 2021

Home Loans And Your Credit Score: The Cost Of Your Mortgage

By Joe Wallace

Did you know that credit scores affect more than the simple approval or denial of your mortgage? Your overall costs for the mortgage over the long term will depend in part on your FICO scores, as we’ll explore below. FICO Scores And Your Down Payment You have not one, but TWO FICO score standards to meet when you want to apply for a large loan such as a mortgage. The first standard is from the FHA itself (these are the FHA minimum requirements for the Single Family home loan program) and the second is your lender’s standards. Naturally these will vary from lender to lender. And your lender’s standards may or may not be higher than the FHA minimum. FHA FICO score minimums begin at 580 or better for maximum | more...

Buy or Build a House On Your Own Lot in 2020

January 14, 2021

What Are FHA Energy Efficient Mortgages?

By Joe Wallace

What is an FHA Energy Efficient Mortgage (EEM)? Whether you want to buy existing construction or choose to build a house on your own lot using an FHA One-Time Close mortgage, the FHA EEM can add funds to your loan. You read that correctly–these funds are added only after the loan amount has been calculated–this is an add-on to your loan and not a higher loan amount to qualify for (see below) Are you a first-time home buyer? Don’t mistake an Energy-Efficient Mortgage as a type of home loan option like an FHA Construction Mortgage or FHA Rehabilitation Mortgage. As mentioned above, an EEM is quite different. Why EEM Funds Are Added After Your Loan Amount Is Calculated The Energy Efficient Mortgage is an add-for purchase loans including FHA Rehab | more...