July 9, 2020

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Articles Tagged With: FHA Lenders

Build on your own lot. Construction loan basics

First-Time Home Buyers: Build Your New Home With A One-Time Close Construction Loan

Buying a home can be challenging for some first-time borrowers. Many newcomers to the mortgage market don’t know all their options open and in that situation it is easy to make choices that are less than fully-informed. One-Time Close construction loans are open to any financially qualified applicant and that includes FHA borrowers who have never purchased a home before but have good FICO scores and repayment history that has no late or missed payments in the last 12 months or better. One-Time Close loans are offered as FHA, VA, and even USDA mortgages. The FHA version is NOT need-based and features no income caps, unlike the USDA version. VA construction loans are intended only for qualifying military members, veterans, and certain surviving spouses of military members. For the average | more...

 
Home Loan Forbearance Options

Home Loan Forbearance Options

Are you one of the many Americans in need of mortgage loan forbearance during COVID-19? There are many different types of mortgages; FHA, VA, USDA, conventional…the options available to you may vary depending on the type of mortgage you have, whether you are current on your home loan payments at the time you request the help, and other factors. If you need to apply for mortgage forbearance, it is important to know the range of choices open to you not just for the forbearance period itself, but also for repaying the money you don’t pay now if you are approved. Some loan forbearance options may allow you to choose to stop making payments for up to a full year and choose a method to repay the year’s worth of delayed | more...

 
FHA and HUD Change Loan Approval Requirements For Coronavirus

FHA and HUD Change Loan Approval Requirements For Coronavirus

The FHA and HUD have announced short-term alterations to appraisal and approval policies for single-family forward mortgages during the coronavirus outbreak. The changes, originally set to expire on May 17, 2020, address issues involving how appraisers review their properties, and how lenders must reverify borrower financial data before closing time. The changes to appraisal requirements (exterior-only inspections allowing the appraiser to work without being at risk of infection) were a big part of that, but not the whole substance of the policy changes. Reducing the risk to appraisers is one thing, but some of the measures are intended to streamline loan approval in a time of crisis. The FHA/HUD official site press release explains that certain measures were needed to, “maintain the stability” of the FHA Single-Family Home Loan program, | more...

 
Mortgage Rate Trends

Mortgage Rate Trends: The Three Percent Range

Mortgage loan rates have been on a wild ride since the advent of the COVID-19 coronavirus outbreak; for a time FHA mortgage loan rates dipped below the three percent threshold. How wild has the ride been? FHA mortgage rates hit a 52-week range of rates between the lowest at 2.75% at the low point during the outbreak and just over 4% at its highest moment in the 52-week range. What does that mean going forward? For the average consumer, not much. It is pure speculation to say we may or may not see rates dip below the three percent range but borrowers should likely assume that those rock-bottom rates are gone and proceed without the temptation to float rather than lock in a mortgage rate commitment with the lender in | more...

 
HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

The Department of Housing and Urban Development is providing FHA borrowers a 60-day foreclosure moratorium described as “immediate relief” for those who may be struggling to make FHA mortgage loan payments during the health crisis. Details From HUD The HUD official site has published details of the HUD-mandated moratorium on all foreclosures on FHA Single-Family home loans and Reverse Mortgages, a move similar to what happens to borrowers in federally-declared disaster areas after a natural disaster such as a hurricane, flood, forest fire, landslide, etc. FHA Mortgage Foreclosure Evictions Also Suspended The HUD foreclosure moratorium announcement includes a suspension of evictions related to those foreclosures, also for sixty days. The eviction process suspension is a critical part of foreclosure relief for some borrowers. The HUD official site’s press release addresses | more...

 
Build on your own lot. Construction loan basics

Is It Safe To Apply For A One-Time Close Mortgage During The Coronavirus?

Is it safe to apply for a One-Time Close construction loan during the coronavirus outbreak? Construction loans are offered for those who wish to apply for a home loan but don’t want to purchase existing construction. These loans are available for FHA borrowers, VA borrowers, even USDA applicants who meet program requirements may be approved. But what do you need to know about Construction loans during a time of national crisis such as the coronavirus? You May Need To Allow For Additional Processing Time Permitting and other official paperwork may be slow to be processed or approved depending on the government agency, demand, and local rules that may be in effect during a quarantine period, “stop movement”, or related restrictions aimed at slowing the spread of contagion. Don’t assume you | more...

 
Home Loans For Building On Your Own Land

One-Time Close Home Loan Hints

One-Time Close (OTC) loans allow borrowers to build a house on their own lot instead of having to choose from existing properties. You can be a first-time home buyer and still be approved for a One-Time Close construction loan, also known as Single-Close loans or Single-Close construction mortgages. If you have never examined your options on the real estate market, it’s easy to assume you aren’t financially qualified for a construction loan. After all, that sounds like a very big undertaking, doesn’t it? Having a house built for you? That may sound like something that other people might qualify for, but the fact is that FHA and VA OTC loans have the same requirements as any other FHA or VA mortgage. These loans are designed to be more affordable, and that | more...

 
How FHA Loan Limits Work

Save Money! The Benefits Of Housing Counseling Before You Start House Hunting

Saving money is usually done to prepare for a home loan, but did you know there is a simple trick to saving money on mortgage expenses? It basically involves being a more informed borrower so you don’t mistakenly choose options that cost you more unnecessarily. Getting the right home loan for your needs can help you maximize your real estate dollar, but you’d be surprised at how many people don’t know the options they have where home loans are concerned. A Freddie Mac report indicates that housing counseling and/or good financial education is a key benefit when you start the journey toward buying real estate. Knowing which loans are best for your needs and which ones to avoid is key. The Freddie Mac report, a “Generation Z Study”, concludes that | more...

 
Buying A Home With An FHA Loan: Should You Skip The Home Appraisal?

Do You Need To Apply For An FHA Mortgage?

Do you need to apply for a home loan to buy real estate in 2020? FHA mortgages feature a low minimum down payment, allow seller contributions to closing costs, and even permit down payment assistance from approved sources. What does it take to apply for an FHA mortgage? You will need proof of income, tax records, and bank statements. Borrowers also need to have a credit history of some kind, even if non-traditional. FHA loan rules allow non-traditional credit, but lender standards will be very important. FHA Loan Approval Requirements FICO scores between 500 and 579 for a 10% down payment, or FICO scores at 580 or higher for the lowest down payment of 3.5%. You will also need 24 months of employment history as a general rule, and you | more...

 
Reverse Mortgage And Foreclosure Relief Scams: What You Need To Know

FHA Cash-Out Refinance Loans: Common Questions

Do you know what to expect when you want to refinance your mortgage in order to convert part of your home’s value into cash? Is there a difference between cash-out refinance loans in Illinois and California? How much money will you get in cash? These and other questions are important to answer in advance. Are FHA Cash-Out Refinance Loans The Same In All Housing Markets? No. All housing markets differ. And that’s a theme you’ll see repeated in this article; if you are applying for an FHA cash-out refi loan in an area with rapidly increasing property values, you may discover your home is worth far more than in a housing market that has experienced a plateau in those rising values. Why Does My Lender Require An Appraisal? Property values | more...