Articles Tagged With: FHA Lenders

If Your Home Was Damaged In A Federally Declared Disaster Area

January 23, 2023

FHA Refinance Loans For Your First Home

Why should first-time home buyers start thinking about their FHA refinance loan options sooner instead of later? It’s not because you are actively planning to refinance, but there are circumstances which may make you reconsider your refi loan options. As a millennial home buyer, first-time homeowner, or any other type of borrower, unforeseen events or situations may have you re-thinking your long-term financial plans. There are FHA refinance loan options for first-time home buyers and new homeowners, but some are more appropriate for certain needs than others. FHA Refinance Loans For Upgrades, Repairs, And Home Improvements If your home is damaged in a storm, you experience a fire or flood, or need to repair your roof, an FHA 203(k) rehabilitation loan is the refinance you should ask a participating FHA | more...

December 17, 2022

FHA One-Time Close Construction Loans: Five Facts You Should Know

By Bruce Reichstein

You don’t have to purchase someone else’s house–you can use an FHA construction loan to build your dream home to your specifications using plans you approve. The FHA One-Time Close construction loan makes it easier by eliminating the two-loan process, consolidating the construction loan into a single application, a single approval process, and a single closing date. Construction Loan Fact One: Multiple Options FHA One-Time Close mortgages are not the only option; there are several different types of One-Time Close loans, also known as single-close construction loans. There’s the FHA version, but also a USDA construction loan for those who demonstrate financial need, and a VA construction loan version for those with qualifying military service. And these construction loans are available for any financially qualified borrower who meets program standards. | more...

October 19, 2022

FHA Home Loan Approval And Debt Ratios

By Joe Wallace

How is FHA home loan approval affected by your debt ratio? Your credit qualifications including FICO scores and credit history are very important factors in home loan approval, but the amount of debt you carry is also a factor. Your participating FHA lender must evaluate your monthly debt versus your monthly income to determine if you can realistically afford the mortgage. How does the lender do this? The rules governing this process are found in the FHA loan handbook, HUD 4000.1. It begins by stating that the lender is required to “determine the Borrower’s monthly liabilities by reviewing all debts listed on the credit report, Uniform Residential Loan Application (URLA), and required documentation”. The lender must review all monthly financial obligations but some things may not necessarily be included in | more...

July 6, 2022

Will My FHA Home Loan Application Be Approved?

By Joe Wallace

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...

June 29, 2022

Finding The Best FHA Lender

By Joe Wallace

Which bank has the best FHA loan options? Experienced borrowers know the answer to this question already; the best FHA lender is the one willing to work with your FICO scores, the type of home loan you need, and offers you the right rates. But if you are asking the question, “Which bank has the best home loan?” you want answers that are more specific. How do you find a lender who can help? If you are searching online, you might try looking for the specific type of home loan you seek. Are you looking for an FHA One-Time Close construction loan? Searching with that specific phrase will help. But it can also pay to search more specifically than that; try looking for “FHA Construction Loans in Texas” in Google. | more...

February 10, 2022

HUD Announces Fair Housing Settlement In Las Vegas Discrimination Complaint

By Bruce Reichstein

Fair housing laws are sadly necessary, even in the 21st century. While some may labor under the misguided notion that American society has evolved away from the need for the Fair Housing Act, the Department of Housing and Urban Development continue to investigate Fair Housing Act violations. One of the most recent? HUD announced in February 2022 that a conciliation agreement had been reached the agency and Las Vegas landlords accused of housing discrimination against people with disabilities. According to a HUD press release, the agreement was reached between “Las Vegas landlord, Anwar Malik, and Malik’s property manager, Ahmad Sharif-Yazdi, to resolve allegations of discrimination brought by a prospective tenant with a disability”. The alleged discrimination in this case was a refusal to rent property based on the applicant having | more...

February 9, 2022

Do You Need To Fix Your Credit Before You Buy A Home?

By Joe Wallace

There are plenty of third parties who promise to fix your credit for you, for a price. But did you know you can do your own type of credit repair without having to pay or coordinate with anyone else? You should definitely try working on your own credit before you try to pay someone else to do it for you. But how is it done? The first thing to remember is that you need TIME. Don’t assume you can fix your credit scores and loan repayment history while you’re working with your loan officer to get your FHA mortgage application approved. You will need to start working on your credit far earlier than that, as it takes time for credit reports to notice the work you’re putting in (on-time payments, | more...

February 3, 2022

Buying A Condo Unit With An FHA Loan

By Joe Wallace

The FHA Single-Family Home Loan program offers condominium loans in addition to its other single-family home loan options. This surprises a small number of house hunters who wrongly assume that FHA home loans are need-based loans or that condo units don’t qualify for an FHA mortgage. They do. But there are some important things to know about the FHA Condominium Loan option–the first is that since 2019, there have been different rules about how condo loans are processed. Once upon a time you could not get an FHA condo loan if the condominium project was not on or added to the list of FHA-approved projects. Now, you may be allowed to buy a condo unit in a project that is NOT on the FHA’s list provided that the condo unit | more...

the importance of credit for home loan approval

January 13, 2022

Refinance Loan Issues To Consider

By Joe Wallace

Are FHA refinance loans only permitted to refinance existing FHA mortgages? The short answer is that it depends on the loan you wish to refinance and why. Some FHA refi options can be used for any mortgage loan, while others are only for existing FHA mortgages. The First Thing You Should Know FHA mortgages are not need-based loans and neither are most refinance options under the FHA Single-Family Home Loan program. FHA loans have no income limit, no household income caps, and are not specifically targeted at a first-time borrower. If you have a stable income, have been in the job market for more than a year (two years or better is considered ideal), and have 12 months or more of on-time payments, you may be able to qualify for | more...

January 11, 2022

HUD Announces Disaster Relief For Counties In Washington State

By Joe Wallace

The U.S. Department of Housing and Urban Development has announced federal disaster relief for certain counties in Washington State affected by natural disasters late in 2021. The following counties have been declared federal disaster areas: Clallam Skagit Whatcom That is in addition to federal disaster areas for the Lummi Nation, Nooksack Indian Tribe, and Quileute Tribe in Washington. The relief is intended to “supplement state, tribal, and local recovery efforts in the areas affected by flooding and mudslides” from November 13 to November 15 in 2021. If you live in any of the affected counties or tribal areas mentioned above, contact your loan officer immediately and ask your lender about the following relief and foreclosure prevention remedies for those with FHA mortgages: Immediate Foreclosure Relief In federal disaster areas, there | more...