October 23, 2017

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Articles Tagged With: FHA Home Loan

Is There An FHA Loan For Homes On Tribal Land?

Is There An FHA Loan For Homes On Tribal Land?

Is there an FHA loan for homes on tribal land? According to the FHA loan handbook, HUD 4000.1, a type of loan known as a “Section 248 Mortgage” is available specifically for home purchases of this type. HUD 4000.1 defines the Section 248 mortgage as “a purchase or refinance Mortgage covering one- to four-family dwellings on Indian Lands.” Since definitions are extremely important for many aspects of the FHA loan program, this section of the FHA loan rules also defines what the FHA considers to be “Indian land” and the communities that live there: “Indian Land refers to those lands that are held by or for the benefit of Indian Tribes under some restriction or with some attribute peculiar to the legal status of its owners. Indian Tribe refers to | more...

 
Can I finance my FHA loan up front mortgage insurance premium?

Can I Finance My FHA Loan Up Front Mortgage Insurance Premium?

Can I finance my FHA loan Up Front Mortgage Insurance Premium (UFMIP)? And how does it affect my mortgage loan? These are questions many ask, unsure of whether FHA mortgage loan limits include the UFMIP and how they are allowed to pay. FHA Up Front Mortgage Insurance Premiums May Be Financed FHA loan rules in HUD 4000.1, the FHA loan handbook, state clearly that FHA UFMIP may be financed. It will be included in the final loan amount at closing time. UFMIP Must Be Financed Or Paid In Cash HUD 4000.1 instructs the lender to either collect the Up Front Mortgage Insurance Premium in cash at closing time, or have it included into the loan amount. However, the borrower must pay 100% either way-you cannot finance half the amount and | more...

 
How do FHA mortgage loan-to-value limits work?

How Do FHA Mortgage Loan-To-Value Limits Work?

How do FHA mortgage loan-to-value limits work? The loan-to-value (LTV) limit is an indicator of how much of a down payment you’ll be required to make on the FHA mortgage loan. There’s no such thing as a no-money-down FHA mortgage for new purchases, so the LTV is an important detail in your loan transaction. The rules covering FHA LTV ratios are found in HUD 4000.1, the FHA loan handbook. There we learn the following by way of introduction to the FHA requirements in this area: “The determination of the maximum LTV percentage available is influenced by…the particular mortgage insurance program (See Programs and Products); and the transaction type. The Mortgagee must apply the lowest applicable LTV percentage as determined under the requirements in this section.” Your LTV limits are determined, | more...

 
FHA One Time Close Construction Loans: How They Work

FHA One-Time Close Construction Loans: How They Work

How do FHA One-Time Close construction loans work? These FHA mortgages are for borrowers who want to have a home built for them from the ground up rather than looking for an existing home to purchase and move into right away. Many participating FHA lenders offer these loans for “stick built” homes, which are homes built on-site (as opposed to a manufactured home which is delivered pre-built in sections and assembled). What are the rules for this type of FHA construction loan? From the FHA/HUD official site, we learn that a One-Time Close loan is also known as a “construction to permanent” loan. “A construction to permanent mortgage combines the features of a construction loan (a short-term interim loan for financing the cost of construction) and the traditional long-term permanent | more...

 
Can I Add Energy-Efficient Upgrades To An FHA One-Time Close Construction Loan?

Can I Add Energy-Efficient Upgrades To An FHA One-Time Close Construction Loan?

Can I add energy-efficient upgrades to an FHA One-Time Close Construction Loan? FHA loan rules governing the FHA Energy Efficient Mortgage add-on to other loans such as an FHA One-Time Close new construction loan are found in HUD 4000.1. There we learn the following on page 400: “The Energy Efficient Mortgage (EEM) program allows the Mortgagee to offer financing for cost-effective energy efficient improvements to an existing Property at the time of purchase or refinancing, or for upgrades above the established residential building code for New Construction.” We know from that reading of FHA loan rules that new construction loans (including One-Time Close mortgages) do qualify for FHA EEMs, which allow the borrower additional funds for an “energy package” defined as: “…the set of improvements agreed to by the Borrower | more...

 
What Is A New Construction FHA Home Loan Compared To Existing Construction Loans?

What Is A New One-Time Close Construction FHA Home Loan Compared To Existing Construction Loans?

What is an FHA new construction loan compared to existing construction loans? Essentially the difference involves whether the home has been occupied or not since the time it was completed. FHA loan rules governing how such properties are classified can be found in HUD 4000.1, the FHA Loan Handbook. Existing Construction Existing construction loans are for structures that have been occupied at least once since the time they were completed. Such properties may be very new, others may be very old. “Existing Construction” loan procedures are less complex than for New Construction loans because the permits, escrows, inspections and other aspects of building a home have already been satisfied before the borrower comes along to buy the property. New Construction This type of property has never been occupied by an | more...

 
Am I ready to apply for an FHA mortgage?

Am I Ready To Apply For An FHA Mortgage?

Am I ready to apply for an FHA mortgage? There’s a set of questions you should ask yourself that can help gauge your readiness to apply for a home loan. Some of them are obvious questions, some aren’t so obvious. All of them deserve some thinking time before you begin filling out application data. Have I Requested Copies Of My Credit Report? If you don’t know what is on your credit report, or if it’s been more than six months since you last reviewed your credit, it is best to wait to fill out a home loan application until you know what your lender will see. Identity theft is a major issue, and now more than ever a borrower should be fully informed as to the contents of those credit | more...

 
Can I use disaster relief for my FHA loan down payment?

Can I Use Disaster Relief For My FHA Loan Down Payment?

Can I use disaster relief for my FHA loan down payment? That question is on the minds of many in the wake of hurricanes, forest fires, and other natural disasters. FHA home loans have a minimum required investment or down payment of 3.5% of the adjusted value of the home. Depending on circumstances including marginal credit scores, some transactions may require a higher down payment. But the down payment is required no matter what, and FHA loan rules state the down payment must come from approved sources. That means a borrower will be required to furnish the lender with information about the source of the FHA loan down payment. Borrowers can use cash saved at home, money from investments or savings clubs, even gift funds from approved sources. Those approved | more...

 
Do FHA home loan limits change?

Do FHA Home Loan Limits Change?

Do FHA home loan limits change? Borrowers who want to know what the FHA loan limits for a given housing market might be have to contend with the possibility of changing limits depending on what time of year they are house hunting. How FHA Loan Limits Work The Federal Housing Administration calculates new purchase mortgage loan limits based on “the median house prices in accordance with the National Housing Act” according to the FHA official site. “FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county and are published periodically.” FHA publishes updated home loan limits for forward mortgages and reverse mortgages on a yearly basis. The FHA official site states, “FHA sets these limits at or between the low cost area and high cost | more...

 
HUD announces disaster relief priorities for survivors of Hurricane Harvey

HUD Announces Disaster Relief Priorities For Survivors of Hurricane Harvey

HUD has announced disaster relief priorities for survivors of Hurricane Harvey, and those priorities include long-term housing needs for those displaced by the disaster. According to a press release published on the HUD official site, the Department of Housing and Urban Development is the “lead federal coordinating agency for long-term disaster-related housing needs resulting from Hurricane Harvey. Federal partners are working closely with the Texas state-led housing task force, as well as other state, local, tribal and voluntary agencies, to meet the need for quality affordable rental homes.” Post-Harvey disaster recovery efforts are, as you can see from the quote above, far-reaching. Those who have been displaced may be eligible for FEMA assistance, and HUD urges all in hurricane affected areas to contact FEMA to determine what they may be | more...