August 18, 2019

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Articles Tagged With: FHA Lenders

FHA Loan Rules For Second Residences

FHA Loan Rules For Second Residences

One thing you will read often about FHA single-family home loans? They are only intended for owner-occupied residences. So why do some borrowers hear of some homeowners being approved for FHA loans for a second house? There is a provision in HUD 4000.1 that allows an FHA mortgage for a “second” primary residence, as well as a provision for what the FHA and HUD term “secondary residences” under certain conditions. The FHA loan rules say secondary residences are defined as follows: “Secondary Residence refers to a dwelling that a Borrower occupies in addition to their Principal Residence, but less than a majority of the calendar year. A Secondary Residence does not include a Vacation Home. “ FHA loan approval may be possible for a secondary residence when the following applies: | more...

 
Four Questions About FHA Home Loans

Four Questions About FHA Home Loans

FHA home loans, like any other mortgage loan transaction, can seem complicated at first. Especially for first-time home buyers who have never applied for a mortgage before. What questions should you ask your lender about this process before you fill out loan paperwork? FHA Home Loan Questions To Ask Your Lender: What Interest Rates Are Available To Me? FHA loan interest rates are determined by several factors, one of which being your credit score. Your lender will need to know your credit score or approximate credit score to give you an idea of the interest rates available to you, so make sure you bring that information to the lender before you ask. FHA Home Loan Questions: What’s The FHA Loan Limit For The Housing Market You Want To Buy Your | more...

 
Will My Home Loan Application Be Approved?

Will My Home Loan Application Be Approved?

Will my FHA home loan be approved? That is a common question for some borrowers who worry that their credit isn’t good enough for a home loan, and for borrowers who may have adverse credit information in their credit history. There is no single answer to this question since much depends on the borrower’s credit history, their patterns of credit use, debt ratios, and other factors. But in general there are some areas you can review to determine whether or not an FHA home loan is in your future. Will My Home Loan Be Approved? Occupancy Matters If you seek an FHA mortgage for a house that you (or at least one borrower obligated on the mortgage) do not intend to occupy as your primary residence, you will not be | more...

 
FHA Home Loan Questions: Appraisals

FHA Home Loan Approval Myths

There are plenty of myths about home loan approval, but for first-time home buyers looking for an FHA mortgage, some of those myths are more prevalent than others. What you don’t know about FHA home loans can hurt you-it’s best to know as much as possible going into the home loan process, which is another reason why it’s best to take your time preparing for a home loan. Rushing into the process can cost more money than taking your time. FHA Home Loan Myths: The FHA Has Separate Requirements For First-Time Home Buyers FHA home loans are open to all qualified borrowers with FICO scores in a certain range for the lowest down payment. FHA loan rules do not make any distinction between a first-time buyer and an experienced home | more...

 
Home Flipping and FHA Loan Rules

Home Flipping And FHA Mortage Loans: The Rules

A 2019 CoreLogic report states that home flipping, the process of purchasing, renovating, and putting a house back on the market in a short period of time and often at a substantial markup, is at it’s highest levels in about eight years. The CoreLogic report states, “…since the Great Recession, flippers have been increasingly good at acquiring properties at a discount, either because the properties were legally, financially or physically distressed”. Some borrowers may be tempted to flip homes, and others may wish to purchase a flipped home. What does the FHA home loan program’s rulebook say about this practice? HUD 4000.1 states that “eligibility of a Property for a Mortgage insured by FHA is determined by the time that has elapsed between the date the seller has acquired title | more...

 
HUD Approves California Housing Discrimination Settlement

FHA And HUD Announce Home Loan Policy Changes

The Department of Housing and Urban Development has announced policy updates and changes that have been added to the FHA Single Family Home Loan Program Handbook, HUD 4000.1. According to an FHA/HUD press release, these are the first changes and updates to the handbook since late 2016. “With today’s update, FHA is recommitting to the industry that it will continue to maintain and enhance the SF Handbook so that it becomes a single, comprehensive source of policy guidance for lenders and other stakeholders doing single family business with FHA” according to the press release. The updates, posted March 27, 2019, include a set of “technical changes for consistency and clarity” as well as FHA home loan program policy updates. These updates affect how the lender may handle certain issues associated | more...

 
FHA Loan Down Payment And Closing Costs

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...

 
FHA Refinance Loans For Non-FHA Mortgages

FHA Refinance Loans For Non-FHA Mortgages

Did you buy your first home with the help of a real estate agent but without the benefit of an FHA mortgage? When you compare online mortgage rates you will notice that the websites publishing these interest rates listing FHA loans with mortgage interest rates than conventional equivalents. While it’s true that your FICO scores and other financial qualifications will play an important part in the rate you are offered, when it’s time to refinance you may find an advantage with FHA mortgages, and not just in the interest rate department. FHA Refinance Loans For Non-FHA Mortgages The FHA refinance loan options a non-FHA borrower has include cash-out refinancing, the equivalent of such a loan but with no cash back, and FHA rehabilitation mortgages known as FHA 203(k) rehab refinance | more...

 
Plan Ahead For Your First Home FHA Loan

Plan Ahead For Your First Home FHA Loan

You can never start planning too early when it comes to buying your first home. There are a lot of variables to take into account when planning your FHA home loan including the nature of your home loan itself. FHA Home Loans: Different Loans For Different Needs The first-time home buyer who wants to buy real estate that needs repairs will apply for a different FHA home loan than those who want to have a home built for them from the ground up using an FHA One-Time Close construction loan. The FHA fixer-upper loan is known as an FHA 203(k) Rehabilitation mortgage and can be applied for as either a new purchase loan or a refinance loan. The type of FHA loan you will need for mobile homes/manufactured housing is | more...

 
FHA Home Loans: Solar And Wind Technology

Is Now The Right Time To Buy Your First Home?

Is now the right time for a first-time home buyer to look at real estate listings and consider buying that first home? Is now a good time for those who have owned property before to examine their FHA mortgage loan options? In both cases, the answer may be yes. Recent headlines and reports by companies like Zillow and CNBC indicate rising optimism in the housing market in the first quarter of 2019; inventory is increasing and mortgage loan applications have gone up recently, too. Ask any real estate agent about the state of their market and you may learn that now is a good time to explore your home ownership options. Why choose an FHA mortgage in a climate like this? The low down payment requirement is a good start-you | more...