January 24, 2021

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Articles Tagged With: FHA and HUD

Is your credit ready for an FHA loan?

What Affects My FHA Loan Approval? Debt Ratio Issues

Every mortgage or finance blog includes a lot of writing and advice about the need to monitor your credit reports. And make no mistake, this is important advice that is good to follow, but if you are in the market for a new home in 2021 the amount of monthly debt you have compared to your monthly income will be just as important for loan approval. Why Your Debt Matters Some applications crunch the numbers and believe they can afford the loan on paper. But what happens when that does not match what the lender gets when she runs your debt ratio numbers? People who technically qualify on paper but not in reality are bad risks for the lender and their jobs depend on screening out those bad risks. And | more...

 
Credit Requirements For Your FHA Home Loan In 2020

FHA Mortgage Rates In Early 2021

All eyes are on 2021 and what the new year could bring for housing markets, including what might happen with mortgage loan interest rates. FHA loans and other government-backed home loans saw sub-three-percent mortgage loan interest rates in 2020, and the earliest days of 2021 those rates did not rise above three percent. Mortgage rates for FHA home loans including FHA One-Time Close construction loans, FHA Rehab loans, and others remain below the three percent line (assuming ideal conditions including a well-qualified borrower) where they sat, more or less, for a significant amount of time in years past.  American political chaos, the coronavirus pandemic, economic uncertainty, nervous investors, and other variables have all worked together to keep mortgage loan interest rates below three percent for the time being. Did the | more...

 

One-Time Close Construction Loan Availability In 2021

Here is a commonly asked question about One-Time Close construction loans; “I want to build my home instead of buying it but my lender says they won’t do a construction loan”. Or conversely, “I want to use a VA mortgage to build a home but the lender says they don’t offer VA construction loans. Can they do that?” If you are interested in building a home from the ground up instead of buying an existing property, you can use the One-Time Close construction mortgage to do so and there are a variety of options including both VA loans and FHA construction loans. People gravitate toward these mortgages because of more forgiving FICO score rules and lower down payment requirements. But not all lenders offer FHA mortgages or VA home loans; | more...

 
Planning To Buy A Home? Credit Resources You Need

FHA And HUD Announce Streamlined Loan Paperwork

The FHA and HUD have in the last year made efforts to streamline and revise aspects of the Single Family Home Loan program to increase the security of the program and make certain certification issues easier for participating lenders. HUD.gov announced it had finalized a revised loan-level certification form which is required as part of the FHA Single Family home loan process. Lenders must submit this form to the FHA for each home loan. What is the revised form? HUD Form 92900-A, Addendum to Uniform Residential Loan Application, this form is an FHA requirement and must contain signatures from the underwriter or “other lender representatives”, along with the signature of the loan applicant. The revised HUD Form 92900-A may be used by lenders immediately. It is required for all transactions | more...

 
Buying a House In The Era of Corona

FHA Home Loan Resources For New Borrowers

Are you thinking about your first home loan for 2021? Are you considering your options for your very first refinance loan? There are some important resources you should know about that can help you in the planning stages. Know Your FHA Loan Limits If you don’t know what the FHA loan limits are for your county for 2021, you can look at the FHA.gov official site, but you can also look at home loan websites to view both the rundown of 2021 home loan guaranty limits but also get information in getting pre-qualified, etc. When exploring your area FHA loan limits, don’t forget that the limits increase if you purchase a multi-unit property. The single-unit FHA loan limit is lower than the four-unit FHA loan limit and borrowers are permitted | more...

 
Low Mortgage Rates and Refinance Options

Changes To FHA Home Loan Paperwork In 2021

Are you looking for a house to buy in the new year? If you are new to house hunting and the home loan process in general, you won’t notice the changes coming to FHA loan paperwork in 2021, but you’ll definitely be affected by the changes. The FHA and HUD issued a press release in late 2020 announcing the publication of a revised Form HUD-92900-A, (92900-A) HUD Addendum to Uniform Residential Loan Application (URLA). The revisions change certain consent forms, remove a requirement for new construction, and modify other aspects of the home loan process for FHA mortgages. The modifications are applied to documents considered typical for the FHA home loan process. Why are they changing? The move is part of a process dictated by something the FHA and HUD | more...

 

FHA Mortgage Relief Extended Into 2021

Millions of homeowners with FHA mortgages in need of mortgage relief during the coronavirus pandemic are getting an extension on their options to avoid foreclosure. That is thanks to a recent move by the Department of Housing and Urban Development; the agency has announced an extension to coronavirus relief measures intended to help borrowers financially affected by COVID-19. FHA and HUD official sites announced this week that they have approved a two-month extension to the COVID-19 related foreclosure and eviction moratorium. The new expiration date for the moratorium is listed as February 28, 2021.  There is now more time for FHA borrowers to request what the FHA calls an “initial COVID-19 forbearance” which must be obtained from the borrower’s mortgage servicer. This forbearance is meant to “defer or reduce” FHA | more...

 
Who should apply for a construction loan?

Build Your Dream Home With A One-Time Close Loan

Do you own land you want to build a home on with a low down payment? Do you want to build a house from the ground up and purchase the land at the same time? There is a construction loan that can allow you to do both–the One-Time Close construction mortgage. These loans, also known as OTC mortgages or single-close mortgages, are offered as FHA mortgages (with a low 3.5% down payment requirement for any financially qualified borrower), USDA loans (need-based mortgages with income caps and other requirements) and VA construction loans with no down payment required in most cases. Some potential homeowners may be hesitant to commit to a construction loan–the process is unfamiliar to them, and to some it just seems a bit overwhelming. But getting started is | more...

 
FHA Condo Loan Basics You Should Know

FHA Condo Loan Basics You Should Know

Some borrowers are surprised that you can choose an FHA condo loan; some view condo units as more of a luxury-type housing option or somehow otherwise out of their price range. But FHA home loans include a condo loan option and the FHA official site explains how it works; “Section 203 (b) of the National Housing Act provides authority to insure any mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project.” FHA home loans can be approved for condo units for up to 30-year terms (purchase or refinance) for units in an FHA-approved condominium project OR, as FHA.gov describes, “in a project that is not FHA-approved but meets the Single-Unit Approval requirements”. How does a condo | more...

 
FHA Construction Loan Rule Changes In 2021

FHA Construction Loan Rule Changes In 2021

The FHA One-Time Close construction loan, also known as a construction-to-permanent mortgage or simply as a home construction loan, is an option for home buyers who want to build a home from the ground up. There are USDA versions of this type of loan (with income caps and other need-based restrictions), there’s a VA One-Time Close loan for qualifying military personnel, and there is also the FHA One-Time Close construction loan which features a low 3.5% down payment the same as all other FHA purchase loan options. The FHA and HUD have announced changes to the FHA One-Time Close program in 2021. These changes will formalize certain elements of the program, and change others as we’ll see below. HUD has changed its maximum financing policy and other requirements for New | more...