July 20, 2018

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Articles Tagged With: FHA Home Loan

Seven Facts About FHA Home Loans

Seven Facts About FHA Home Loans

Seven facts about FHA home loans you should know include lower credit score requirements and down payments than conventional mortgage counterparts. The other five facts are just as useful to a house hunter as the low down payment and FHA credit score rules. FHA Home Loan Limits Are Adjusted Yearly And Vary Depending On The Housing Market Not all housing markets have the same costs or median house prices. A Zillow.com report for home values in 2018 says houses in California may average around $500,000 while homes in Pennsylvania average around $160,000. FHA home loan limits for high-cost and low-cost areas are adjusted rather than featuring an one-size-fits-all approach. FHA Loan Down Payment Requirements Compared To Conventional Mortgage Loan Requirements FHA loans specify down payment minimums between 3.5% of the | more...

 
Do You Suffer From Home Loan Anxiety?

Do You Suffer From Home Loan Anxiety?

Do you suffer from home loan anxiety? There are many people who want to apply for an FHA mortgage loan, often first-time home buyers looking at an existing construction loan or an FHA One-Time Close construction loan, who begin to worry about getting their loan application approved. Are You Worried About Being Able To Afford Your FHA Mortgage? There is good news for those who are worried they might not be able to afford the FHA home loan and can’t decide whether or not to apply. But there are tools you can use to help get an estimate of how much your FHA mortgage payment might run every month in the form of online mortgage calculators. These tools ask you to input an estimated price of the home, potential down | more...

 
FHA Home Loan House Hunting Checklist

FHA Loan-To-Value Limits: More Rules You Should Know

In a previous blog post, we discussed some of the basic loan-to-value ratio rules (LTV) for FHA loans. Your loan-to-value ratio is calculated based on the amount of the required down payment a borrower has to make as part of the FHA mortgage loan transaction. When you buy a home using an FHA mortgage, the loan-to-value ratio can be affected by your FICO scores. A higher down payment requirement means a different LTV than for those who make the lowest possible downpayment on an FHA mortgage loan of 3.5% of the adjusted value of the property. But credit score issues aren’t the only things that can affect a borrower’s LTV on an FHA mortgage to buy a new home. Some FHA loan transactions, under FHA loan policy, require as much | more...

 
FHA Home Loan House Hunting Checklist

Can Military Members Refinance A VA Mortgage To An FHA Loan?

Can a military member or veteran with a VA mortgage loan refinance that loan into an FHA mortgage? If a VA borrower wanted to refinance using an FHA Rehab loan, for example, is such a transaction possible? Some online research into the possibility of a “VA rehab loan” turns up results that indicate that a borrower might have a difficult time finding a lender willing to issue the right kind of refinance loan for the borrower’s needs in this particular area. VA loan rules basically address cash-out refinancing, Interest Rate Reduction Refinancing Loans (IRRRLs) and refinancing loans to cure a delinquent mortgage. There is a section under “other refinancing loans” for VA refinance options that include a construction loan, but the VA in general does not offer the same kind | more...

 
FHA loans for investment properties

FHA Loan Rules For Investment Properties

Admittedly, the title, “FHA Loan Rules For Investment Properties” might sound a little misleading; the FHA lender’s handbook HUD 4000.1 states clearly on page 142, “Investment Properties are not eligible for FHA insurance.” But what is the FHA definition of an investment property? The answer to that question is twofold-to understand what constitutes an investment property, we have to examine what is NOT an investment. What is the type of home loan the FHA does guarantee? FHA mortgages are primarily for owner-occupiers. At least one borrower obligated on the mortgage must live in the home as her permanent, principal residence within a reasonable time after the loan closes. In some cases, FHA loan rules make provisions for borrowers who want to use an FHA loan for a secondary residence, but | more...

 
What You Need To Know About FHA Loan Applications And Loan Approval

FHA Mortgage Credit Issues

FHA mortgage loans require a credit check, but many future FHA borrowers have some kind of credit issue in their past. Some things aren’t enough to derail an FHA home loan application-old credit issues that have since been resolved, disputed accounts that have since been successfully resolved or have had a payment plan created, etc. What do borrowers need to know about credit issues that CAN negatively affect the ability to borrow? For starters, it’s important to know that the most recent 12 months of your credit activity will be very important. It’s crucial to avoid late and missed payments at all costs in those 12 months for best results. Other FHA loan credit issues can affect your loan (or not) depending on the timing, severity, and nature of the | more...

 
FHA Home Loan Closing Costs You Should Anticipate

FHA Home Loan Closing Costs You Should Anticipate

FHA home loans have closing costs a borrower should plan to save and pay for. No matter if you need an FHA Home Equity Conversion Mortgage, a 203(k) rehab loan, or an FHA One Time Close construction loan, there will be closing costs to pay for. No borrower should plan for a home loan without anticipating the closing costs. You should budget and save for these expenses as early as possible-once you know you are interested in purchasing a home, you should prepare for these costs. HUD 4000.1 tells the lender that FHA loan rules permit closing costs; the lender “may charge and collect from Borrowers those customary and reasonable closing costs necessary to close the Mortgage. Charges may not exceed the actual costs.” This is not a complete or | more...

 
FHA Loan Rules: Can The Seller Provide Appliances As Part Of The Sale?

What You Need To Know When Switching FHA Lenders

There are several reasons why a borrower might decide to switch FHA lenders during a home loan transaction. In cases where the switch happens, borrowers should know certain FHA guidelines that can affect the transaction-especially if an appraisal has already happened. Some borrowers think about switching lenders because they have had an unsatisfactory experience. Others may simply be offered a better deal. But there are some instances where the borrower is tempted to switch lenders because of an appraisal issue-namely that the appraisal did not value the property as expected. In such cases, when a borrower is tempted to get a new lender and a new appraisal, what should be known about that process? The first thing borrowers should know is that new FHA appraisals are not possible simply because | more...

 
One Time Close Construction Loan Options: The VA OTC Loan

VA One-Time Close Construction Loan Options for Military Veterans Expanded

Some house hunters get fed up with looking for just the right home, while others start out their home loan journey knowing in advance they want a house built for them. What options to these borrowers have? There is an FHA home loan known as the FHA One-Time Close construction loan that lets borrowers apply for a single loan that covers both construction costs and the mortgage itself. The FHA version of this type of construction loan requires the borrower and lender to work together to establish a plan for the project including estimated completion times, interest rates, budgets, and more. Some borrowers aren’t interested in FHA home loans since they have other options; do qualifying military veterans have a VA loan version of the FHA One Time Close Mortgage? | more...

 
FHA One Time Close Construction Loans: An Option You Should Consider

FHA One-Time Close Construction Loans: An Option You Should Consider

The FHA One-Time Close construction loan is an option you should consider if you are interested in having a home built for you rather than purchasing an already-lived-in property. Construction loans are different than existing construction loans, and the FHA One-Time Close (OTC) construction loan offers a single application, a single closing date, and more peace of mind for the borrower once the loan has been approved. FHA One-Time Close Mortgages And FICO Score Requirements You will have higher credit requirements with an FHA One-Time Close loan due to the higher risk for the lender. Your application may require a FICO score of 620 or higher at the minimum, depending on the lender. Here’s a sample breakdown of FICO score requirements from one hypothetical lender. Please note that although our | more...