Articles Tagged With: FHA Appraisals

July 1, 2019

FHA Home Loan Questions: Appraisals

Do you have questions about the FHA appraisal process? Many do and it’s no surprise why-the appraisal is the process that determines whether the home you want to buy meets minimum FHA standards or not. Here are some common appraisal questions and answers you should know before you get to that part of the home loan process. Whether you are a first-time home buyer applying for your first FHA mortgage or an experienced house hunter returning to the FHA loan program to buy a new primary residence, these questions are important. Who Is Responsible For Ordering The FHA Appraisal? The lender. The borrower does not initiate the appraisal process or select the appraiser. Who Pays For The Appraisal? The borrower is responsible for paying the cost of the FHA appraisal | more...

Will FHA Mortgage Loan Interest Rates Drop Even More?

June 24, 2019

FHA Appraisal Standards: What You Need To Know

By Bruce Reichstein

A recent press release by HUD applauds new lead paint hazard requirements issued by the Environmental Protection Agency. Those standards include a more strict requirement for lead levels in certain homes and “child-occupied facilities”. According to a press release on the HUD official site, “Since the 1970s, the United States has made tremendous progress in lowering children’s blood lead levels. In 2001, EPA set standards for lead in dust for floors and windowsills in housing, however since that time, the best available science has evolved to indicate human health effects at lower blood lead levels than previously analyzed.” The new rules don’t necessarily affect FHA appraisal guidelines with specific changes-FHA loan rules address lead paint issues, generally requiring abatement of lead-based paint in homes older than 1978 where there is | more...

May 30, 2019

FHA Appraisal Rules You Need To Know

By Bruce Reichstein

Are you a first-time home buyer? Are you looking into your FHA home loan options and not sure what the appraisal process is all about? The FHA appraisal is a tool for the lender to determine the home’s fair market value and a way to make sure a property meets MINIMUM standards. No matter what you might hear (and some mistakenly call the appraisal an “inspection”) the appraisal will not tell you the true condition of the home. Even the FHA and HUD themselves warn borrowers to pay for the optional home inspection (which is technically not a requirement, but then again, neither is test-driving your car before you buy it). And what should borrowers know about the FHA appraisal process? The appraisal’s most important feature for some borrowers is | more...

May 17, 2019

FHA Loan Appraisal Questions: Why Is Peeling Paint A Problem?

By Joe Wallace

One common question about FHA appraisals involves the issue of peeling paint. This can be a problem for some homes, especially those built on or before the year 1978. Borrowers want to know why the appraiser reviewed the home (the appraisal is not a property inspection) and required a correction of a peeling paint issue as a condition of loan approval. The borrower’s question in these cases is normally a variation on, “It’s just a cosmetic issue, why is the appraiser making a big deal out of peeling paint?” Unfortunately, for homes (including condo units) built on or before 1978, peeling paint is not just a cosmetic problem due to the use of lead paint in those construction projects before it was recognized as a safety hazard. FHA home loan | more...

April 29, 2019

Can I Use An FHA Loan To Buy A Single Family Rental Home?

By Joe Wallace

Some FHA borrowers want to purchase a first home, while others are looking for real estate they can purchase in addition to an existing property. But still others are wondering if they can use an FHA mortgage loan to become a landlord by purchasing real estate they intend to rent out to others. Does the FHA home loan program allow a borrower to apply for a mortgage loan to buy a home intended as a rental? The short answer is that it depends greatly on two factors-the size of the home and whether the borrower intends to live in that property full-time. Borrowers applying for FHA mortgages are allowed to purchase real estate with one to four units. The borrower is free to rent out the unused units in the | more...

March 26, 2019

FHA Home Loans: Why You Want To Haggle With The Seller

By Bruce Reichstein

Many first-time home buyers hate the idea of negotiating, haggling, or otherwise trying to adjust the price of the home with a seller. But haggling has some benefits that can directly affect how much money you pay for the home and NOT just where the general price of the property is concerned. Why Should A First-Time Home Buyer Be Willing To Negotiate With The Seller? The most obvious reason to haggle with the seller of the real estate you want to buy is to get a lower price. And this also becomes more crucial if the appraisal comes back lower than the asking price of the property. The buyer cannot be forced to close the deal in cases where the appraised value of the home is lower than the asking | more...

March 14, 2019

Buying Real Estate With An FHA Mortgage

By Joe Wallace

Buying real estate with an FHA mortgage is easier when you know what is allowed and what is not. The mortgage loan process can be complex at times due to federal law, state and local requirements, lender standards, and the nature of the mortgage you seek. But there are some simple answers to real estate buying questions that can help you use an FHA loan to your best advantage. Can I Buy A Multi-Unit Property With An FHA Mortgage Loan? Yes. FHA home loans are for one-to-four unit properties and you can purchase a townhouse, duplex, mixed-zoning property that meets FHA guidelines, and many other types of homes. Do I HAVE To Be A First-Time Borrower Or First Time Home Buyer To Qualify For An FHA Mortgage? No. Can I | more...

FHA Home Loan Basics For First-Time Home Buyers

March 6, 2019

What You Need To Know About Home Loan Appraisals As A First-Time Home Buyer

By Joe Wallace

What do first-time home buyers need to know about real estate appraisals when it’s time to make an offer on a home? Your real estate agent and lender know the power of the appraisal-do you? FHA Home Loans Require An Appraisal For Most Transactions There is only one kind of FHA mortgage loan that has no FHA-required appraisal, called the FHA Streamline Refinance loan. All others will need an appraisal to determine the fair market value of the home. The Appraisal Is A Tool For The Lender Borrowers should not use the appraisal to determine whether the home has defects or hidden problems. No matter what you may be told by others, the appraisal process is not intended to help the borrower decide whether or not the home is ok | more...

March 5, 2019

What You Should Know About FHA Loan Rules And Down Payment Gifts

By Bruce Reichstein

One of the appealing aspects of an FHA mortgage, especially for first-time borrowers who may have tight budgets, is the low 3.5% down payment. Some real estate studies show that the age group commonly known as Millennials paid roughly 8% down in the previous year. But does a typical FHA borrower, even a first-time home buyer who may not have a long credit history, have to pay that much down for a home? No. 3.5% is available for all financially qualified FHA borrowers. But even this down payment could be a financial burden depending on circumstances, which is why FHA loan rules allow for gifts of down payment funds from employers, relatives, or friends. You can also find a down payment assistance program in your local area to help, if | more...

February 19, 2019

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

By Joe Wallace

Before you get FHA home loan approval on that piece of real estate you have your eyes on, your mortgage loan application process will include a credit check. Your lender will need to determine your creditworthiness, and also verify your employment and income. Most borrowers expect this process and thanks to having other kinds of credit applications including credit cards, auto loans, and student loans, have a basic idea of what will happen. But not everyone expects that their initial credit check for the home loan they are applying for will NOT be the last one the lender does before the loan closes. You might not get the down-low on this from your real estate agent or your lender, but this is one of the “secret” things about the home | more...