Articles Tagged With: FHA Home Loans

August 5, 2021

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 / Single-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 | more...

Protect Your Credit During The COVID-19 Emergency

July 14, 2021

How Much Will My FHA Home Loan Be?

By Bruce Reichstein

How much will my FHA home loan be? That is a question many borrowers want to know, and the answer can be more complicated than just taking the sale price of the home and doing the math. FHA home loan maximum amounts are determined by factors including the maximum FHA loan guaranty for the housing market you are buying the home in, your credit history, the amount of your down payment, and more. The final amount of your FHA mortgage loan is affected by your down payment, the FHA loan limit in your area, and other factors. FHA Home Loan Limits FHA home loan limits are not the same in all housing markets. Some parts of the country are considered low-cost areas and have a lower FHA loan guaranty limit | more...

February 23, 2021

Buying And Repairing A Home With An FHA 203(k) Rehab Loan

By Joe Wallace

Are you considering home repairs and renovation? In 2021 some are as part of disaster recovery. Other homeowners need a home repair or upgrade, or they want to purchase a fixer-upper house. Whether you want to replace your current home, or remodel it, the FHA 203(k) rehab loan can help These rehabilitation loans (which are also available as a refinance loan) are for any home owner who wants to buy or refinance a property and repair or renovate it at the same time. There is a standard version of the 203(k) purchase and refinance loan, and a limited version of both for smaller renovation projects. Some Won’t Use An FHA 203(k) But some borrowers won’t use an FHA 203(k) rehab loan. They either cannot, due to the nature of the | more...

February 4, 2021

FHA And HUD Announce More COVD-19 Relief Measures

By Joe Wallace

In the earliest weeks of the Biden Administration, the federal government has taken decisive steps to further address the economic impact of the COVID-19 pandemic. The latest of these measures is designed to reduce the need for in-person loan servicing in certain areas and also to give more time to home owners who may need to request help with their home loans. The latest waivers allow mortgage services to continue “in a manner that allows for safe social distancing to help combat the COVID-19 pandemic” according to the FHA press release. The waivers address aspects of any home loan in some cases, but are specifically aimed at certain types of loans in others. HECM borrowers will find the latest waivers help them in particular. “President Biden has made it clear | more...

Home Loans For Building On Your Own Land

February 3, 2021

One-Time Construction Loan Amortization: What You Need To Know Before You Sign

By Bruce Reichstein

The FHA One-Time Close construction loan allows you to have a house built to your specifications rather than buying an existing home. This loan, which also has a VA mortgage counterpart as well as a USDA version, gives borrowers the ability to choose a specific design instead of settling for one you aren’t as interested in. An One-Time Close loan, which is offered to first-time home buyers and experienced home owners alike, provides the means for you to build on your own lot. You can also choose to purchase land with the loan funds as well as building the home. One Time Close loans can take longer depending on how fast the construction phase of the loan goes, but the ability to approve the design and features of the home | more...

January 12, 2021

What Affects My FHA Loan Approval? Debt Ratio Issues

By Bruce Reichstein

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...

What Credit Score Is Needed For An FHA Mortgage?

January 4, 2021

What Are FHA Home Loan Discount Points?

By Joe Wallace

If you don’t know what discount points are, you should definitely get an education while you are still in the planning and saving stages of your FHA mortgage. For new purchase loans including FHA One-Time Close construction mortgages, FHA Condo loans, or FHA Mobile Home loans, discount points may help you save money upfront on your mortgage over the lifetime of the loan. Discount points aren’t for everyone–some borrowers have a priority of reducing their up front costs and these FHA loan applicants won’t be interested in points as they represent a larger up front and out-of-pocket expense. But for those who want to pay more up front so they can save money down the line should consider points. What are these home loan discount points? The financial website Investopedia.com | more...

Build on your own lot. Construction loan basics

December 9, 2020

Build Your Dream Home From The Ground Up With A One-Time Close Construction Loan

By Bruce Reichstein

You don’t have to buy someone else’s property if you are interested in owning your own home. You can–even as a first time home buyer–build a home from the ground up instead. The FHA One-Time Close mortgage, also available to qualifying military members as a VA construction loan, is a great choice for the right borrowers. But who should consider this type of home loan? Timing Counts FHA Construction Loans and VA One-Time Close mortgages are not good choices for those in a hurry. If you need housing quickly it is best to explore your FHA or VA mortgage loan options for existing construction. If the timing of your loan cannot be changed, you need a house NOW, and you cannot wait, there are good reasons to wait on building | more...

December 3, 2020

Higher FHA Loan Limits In 2021

By Bruce Reichstein

The FHA and HUD have announced higher FHA forward loan limits for 2021. Most borrowers will experience a higher FHA loan limit depending on their location and other variables. Federal law requires FHA to establish forward mortgage / purchase loan floor and ceiling loan limits each year. These limits are based on the loan limit set by the Federal Housing Finance Agency for conventional mortgages owned or guaranteed by Fannie Mae and Freddie Mac. The national conforming loan limit for 2021 is $548,250. While these limits DO NOT apply until 1 January 2021, you can locate the entire list of FHA loan limits. That list includes areas at the FHA ceiling, areas between the floor and the ceiling at the FHA official site. The National Housing Act and its amendments | more...

December 2, 2020

Steps To Buying A House

By Joe Wallace

Do you know the ten steps to buying a house? Each one can be considered its own phase of your home loan journey and if you want to buy a house with an FHA mortgage, these are the steps you should anticipate: Check your credit score Calculate how much FHA mortgage you can afford Choose a real estate agent (where applicable) Get pre-approved with a participating FHA lender Start house hunting Make an offer on the house you want Schedule a home inspection Secure your financing Purchase a homeowners insurance policy Close your loan and move into your new home Note that the first steps are squarely in the planning stages of your mortgage; you should know the contents of your credit report and your FICO scores long before you | more...