July 8, 2020

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Articles Tagged With: FHA Energy Efficient Mortgage

Five tips about FHA loan interest rates

FHA Home Loans: Solar And Wind Technology

Did you know that you can ask for an add-on to your FHA home loan or refinance loan to get funds for solar or wind-powered energy efficient upgrades to the home? Whether you want to add such features to your home at purchase time or refinance time is up to you but it is possible to apply for extra funds to install wind or solar power features. Some reading at this stage might assume we are talking about the FHA Energy-Efficient Mortgage add-on, but this is actually a different program. Under a section in the FHA loan rulebook, HUD 4000.1, labeled “Solar And Wind Technologies” we find the following information: “The solar and wind technologies policy allows the Mortgagee to increase the Base Loan Amount to cover the cost and | more...

Is your credit ready for an FHA loan?

FHA Home Loan Options For First-Time Home Buyers

When some people think about buying a first home, the stereotypical image of a suburban house may come to mind, but that isn’t the only option you have when searching for just the right real estate for your needs. Your participating FHA lender and real estate agents alike will tell you about a variety of housing types and configurations that go above and beyond a typical two-bedroom bungalow, ranch home, split-level home, etc. What other kinds of homes can you purchase with an FHA mortgage? There are FHA home loans for manufactured or modular homes that can be assembled and put on a permanent foundation on land the borrower either already owns or is purchasing as part of the FHA mortgage loan. FHA loans for mobile homes are similar, though | more...

Refinancing a Second Home With An FHA Mortgage Loan

What Can I Do With An FHA Home Loan?

What can I do with an FHA home loan? This is a question on the minds of many, especially first-time home buyers who are not sure what is possible with an FHA loan and what is not. Can I Get A No-Money Down FHA Mortgage? The short answer is no-the FHA does not offer a no money down home loan. However, FHA mortgages do permit a relative, employer, or others not directly involved in the transaction to provide gift funds for the down payment which can reduce the borrower’s out-of-pocket expenses. The seller of the home cannot contribute to the down payment, but is permitted to contribute up to a certain limit to help cover closing costs. This is not part of the borrower’s required minimum down payment of 3.5% | more...

FHA Appraisal Rules You Should Know Today

The One-Time Close Construction Loan: VA, FHA, And USDA Options

There are two general types of construction loan. One construction loan has two applications and two closing dates, requiring a new credit check for each phase of the loan-the construction itself and the mortgage. Another type, the One-Time Close / Single-Close construction loan, has only one application and closing date, protecting the borrower from potential complications associated with a second loan application. There is an FHA One-Time Close loan, but also a VA OTC version of the program and a USDA OTC option available for those in qualifying rural areas. What do these loans have in common with each other? FHA One-Time Close / Single-Close Construction Loans Versus VA One-Time Close Loans The FHA and VA One-Time Close / Single-Close loan programs are quite similar. Both require builders on a | more...

Is your credit ready for an FHA loan?

FHA Home Loans For New Construction, Existing Construction Homes

FHA home loans are available for a variety of different types of property. You can use an FHA mortgage to buy a typical home in the suburbs, a condo, a town home, mobile or manufactured homes, etc. FHA home loans are also for properties classified in one of several ways; existing construction, new construction, proposed or under construction, etc. What do these terms mean and how does the property type affect the FHA home loan? In some cases the nature of the property may dictate whether a builders’ warranty must be provided. New construction homes, for example, must include a 10-year warranty. This is true for all property types that fall under the FHA definition of new construction property including proposed construction homes, under construction homes, and those that have | more...

FHA Home Loans And The Biggest Credit Mistake You Can Make

No Down Payment FHA Loans?

Are there no down payment FHA loans? Some borrowers feel the pinch when trying to save up for closing costs, inspections, and the required minimum investment FHA loan guidelines say are mandatory for all FHA loans. Why do some people mistakenly believe FHA home loans are available for no money down? Partially because they are mistaking FHA loans for the VA home loan program which does offer a zero down option. But that’s not the only reason. Some borrowers may have heard that others may have taken advantage of state or local down payment assistance programs, resulting in a reduced down payment expense for the borrower. These programs are not available via the FHA or HUD, and you will need to find any down payment assistance in your housing market. | more...

Four Things to Remember About Home Loans and Credit Scores

Why Do People Prefer FHA loans? Part Two

Why do people prefer FHA loans? That’s a question we’ve been examining recently. In a recent blog post we discussed FHA loan down payments, credit requirements, and related issues-all reasons people might turn to an FHA mortgage instead of a different kind of home loan. But there are other reasons to think about FHA mortgages, reasons that aren’t as as top-of-mind as what kind of down payment you might need. Consider the consumer protections and benefits built in to FHA mortgages that make these loans attractive. FHA Loans Permit Early Payoff Of The Mortgage Without Penalty The FHA lender handbook, HUD 4000.1, states that the borrower cannot be penalized for early payoff of the mortgage. In a section covering pre-payment of FHA loans, “pre-payment” is defined as follows: “A Partial | more...

FHA down payment rules

What Kind Of House Can I Buy With An FHA Mortgage?

What kind of house can I buy with an FHA loan? Many first time home buyers want to know if FHA mortgages can be used to buy certain kinds of property including condos, duplexes, mobile homes, etc. FHA mortgage loans are flexible enough to purchase many different types of houses depending on the housing market, the lender, and local market standards. Not all FHA lenders will offer all the FHA loan types available to them, so it’s good to ask early if the property type you are interested in is an option. FHA Loans For Typical Suburban Homes The most obvious type of home loan is definitely available for purchase with an FHA mortgage. A suburban home can be existing construction, new construction, or built to suit. FHA loan requirements | more...

Mortgage Loan Interest Rates: What You Need To Know About Trends

What Can I Add To My FHA Mortgage Loan?

What can I add to my FHA mortgage loan? There’s a list of items that may be allowed to be added to your mortgage loan above and beyond the adjusted value of your property. Let’s examine what the FHA loan handbook, HUD 4000.1, has to say about adding certain costs to your home loan amount. Calculating The Maximum Mortgage Amount On Your FHA Loan To start, let’s see what HUD 4000.1 says about how the lender is expected to calculate the maximum mortgage amount. “The maximum mortgage amount that FHA will insure on a specific purchase is calculated by multiplying the appropriate LTV percentage by the Adjusted Value. In order for FHA to insure this maximum mortgage amount, the Borrower must make a Minimum Required Investment (MRI) of at least | more...

FHA loans

Happy Independence Day!

Today we pause from our usual schedule of writing about all things related to FHA home loans and refinance loans. We celebrate the 4th of July holiday with you today and will return tomorrow with our regular schedule of news and information about FHA mortgage loans. Have a safe and fun holiday, and thank you for reading!