Articles Tagged With: FHA Lenders

October 29, 2021

How To Get An FHA Mortgage Loan As A First-Time Home Buyer

How can a first-time home buyer qualify for an FHA mortgage loan? To use an FHA mortgage you do NOT have to be a first-time buyer, but if you ARE one you may qualify for state or local down payment assistance programs in your area and it’s a good idea to explore those options if they are open to you. If you are looking for a starter home, a home to grow into, or you want to have a home built especially for you (using an FHA One-Time Close construction mortgage loan), your FHA loan options are impressive. How To Qualify For An FHA loan As A First-Time Home Buyer Plan ahead and start early for your home ownership journey. Start at least a year in advance…that’s the best advice | more...

October 27, 2021

How You Can Use An FHA Home Loan

By Joe Wallace

Do you need to know what you are allowed (or NOT allowed) to do with an FHA mortgage? If you want to purchase a home with an FHA loan, you can buy a fixer-upper, a typical suburban home ready to move into, or even build your home from the ground up on your own lot using an FHA One-Time Close construction mortgage. But there are some things you are not allowed to do with an FHA home loan. Let’s look at the “can” and “cannot” angles to see what’s possible with an FHA mortgage. You CAN Purchase A Multi-Unit Property With An FHA Mortgage FHA home loans are for properties with one to four units. FHA home loan limits are larger for homes bigger than a single unit. Some borrowers | more...

October 13, 2021

FHA Streamline Refinance Tips

By Bruce Reichstein

Are you interested in a lower interest rate on your home loan? What about a lower monthly payment? Or perhaps you are in an adjustable-rate mortgage and are looking for a way out before your next rate adjustment? These are all motivations to refinance. You’ll read plenty online about what it means to apply for an FHA Streamline refinance, but what do you need to know aside from the things EVERY home loan website talks about? Yes, FHA Streamline Refinance loans are for existing FHA borrowers only. Yes, FHA Streamlines normally require the borrower to get a tangible benefit from the loan like a lower rate, a lower monthly payment, etc. Yes, FHA Streamlines have no FHA-required credit check or appraisal requirement. And yes, the lender is free to require | more...

October 1, 2021

FHA Mortgage Relief Announced For Vermont Disaster Areas

By Bruce Reichstein

In many cases, the FHA and HUD make announcements about disaster relief after tropical storms, hurricanes, forest fires. But you don’t have to experience a Category 3 hurricane to be severely affected by weather; one excellent example of this comes with the HUD announcement of federal disaster assistance for parts of the State of Vermont that were in the path of severe storms and flooding at the end of July 2021. On September 29, 2021, there was a Presidential Major Disaster Declaration for two Vermont counties–Windham and Bennington. Thanks to that Presidential declaration, HUD has offered an automatic 90-day foreclosure moratorium for those two counties–this affects those with FHA mortgages, “commenced on the date of the Presidential major disaster declaration, and foreclosures of mortgages to Native American borrowers guaranteed under | more...

September 28, 2021

FHA And HUD Announce New Foreclosure Relief Measures For Those Recently Affected By COVID-19

By Joe Wallace

The Department of Housing and Urban Development has announced new COVID-19 relief measures for those with FHA mortgages. This news comes on the heels of a previously issued FHA Mortgagee letter, ML2021-19, “Extension of the Foreclosure-Related Eviction Moratorium and Expiration of the Foreclosure Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency” which contained the following statement: “HUD’s foreclosure moratorium is set to expire on July 31, 2021, and HUD is not extending that moratorium further”. That statement is true for many; the FHA and HUD have added more help but it is intended for those who have experienced recent financial difficulty because of COVID-19. For those who have already taken advantage of this help, the loan forbearance offered borrowers a chance to save their homes even during the prolonged | more...

September 21, 2021

Should I Make Two Mortgage Payments Each Month?

By Joe Wallace

Why do some borrowers–those applying for FHA loans or otherwise–choose to make bi-weekly payments on a mortgage? That is, why do some choose to pay two mortgage payments each month? Paying ahead on an FHA home loan is not a new idea nor is it a bad one. There are those who pay more on their home loans each month to gradually whittle down the amount they owe on the loan so that payoff comes earlier. And there are several ways to do that, as we’ll explore below. Unlike some other types of loans, FHA mortgages do not come with a pre-payment penalty and you cannot be billed extra for early payoff of the FHA loan amount. The multiple ways to pay ahead and pay down your mortgage earlier than | more...

September 13, 2021

Home Loan And Home Ownership Tools From HUD

By Joe Wallace

Are you a first-time home buyer trying to get good advice on how to prepare for a home loan? Are you interested in an FHA Reverse Mortgage, but not sure about where to find approved housing counseling for an FHA Home Equity Conversion Mortgage (HECM)? Or perhaps you are a current homeowner with an FHA mortgage trying to avoid foreclosure? In every case, the FHA and HUD have housing counseling resources you can use to make more informed decisions about purchasing, refinancing, or saving your home. Did you know that the HUD official site has a page dedicated to housing counseling resources? You can find it at their official site: The HUD Office of Housing Counseling As the official site reminds, “HUD sponsor housing counseling agencies throughout the country that | more...

September 2, 2021

Advice For Homeowners Affected By Natural Disasters in 2021

By Joe Wallace

American homeowners have been hard hit by natural disasters in 2021; everything from forest fires to hurricanes and tropical storms have beset homeowners on both coasts and in many places in-between. Add to that the complications of the COVID-19 pandemic and you get a lot of financial hardship for those who have had to evacuate, and for those who have experienced lost or damaged homes and property. The FHA and HUD have specific disaster-relief policies for those affected by natural disasters; if you have been affected by a storm, fire, or any other type of natural disaster it’s vital to contact your participating lender immediately to discuss your home loan options during the recovery phase. FHA loan rules for those affected by natural disasters may include limited foreclosure moratorium procedures | more...

September 1, 2021

Using Your Home Equity With An FHA Cash-Out Refinance Loan

By Joe Wallace

There are many uses for an FHA cash-out refinance. These FHA refi loans can be used to refinance FHA and non-FHA mortgages alike, and the funds from cash-out refinance loans can be used for any purpose including paying off credit card debt, making home improvements, and even paying for luxury items like cars or boats. But what is the best use of cash-out refinance loan proceeds? Like many similar home loan questions, the answer depends greatly on the financial needs and goals of the borrower. But there are some issues you should consider when deciding what to do with the money you get from an FHA refinance of this type. An FHA cash-out refinance loan is a good option for someone who has built up equity in their property over | more...

August 31, 2021

The Final Month Of The COVID-19 FHA Foreclosure Eviction Moratorium

By Joe Wallace

September 1, 2021 marks the start of a countdown–the final days of the FHA foreclosure eviction moratorium issued to help FHA borrowers avoid loan default and foreclosure during the economic hardship of the global COVID-19 pandemic. There were two FHA-wide orders during the pandemic. One was a prohibition on foreclosures on homes securing an FHA mortgage, and the other was a moratorium on foreclosure-related eviction for those with FHA mortgages who were in the foreclosure process when the pandemic hit. The moratorium on FHA foreclosures ended in July 2021, but the foreclosure eviction ban was extended until the end of September 2021. On July 30, 2021, the FHA and HUD issued an announcement stating as such, which included the following: “Foreclosure-related evictions of persons from properties that were secured by | more...