June 2, 2020

Vimeo Channel YouTube Channel

Articles Tagged With: FHA Loan Application

Budgeting and Saving For Your FHA Home Loan

Budgeting And Saving For Your First FHA Mortgage

When you decide to commit to buying a home or building one from the ground up using a one-time close construction loan, there are expenses you will need to save up for. If you haven’t started making a checklist of items you will need to pay for up front or choose to include in the loan amount, it’s a good idea to start making one as early as possible. Saving for your loan means identifying the expenses you will pay such as closing costs, appraisal fees, the home inspection fee, the FHA Up-Front Mortgage Insurance Premium, and of course the down payment. The down payment, which is a minimum of 3.5% of the adjusted value of the home, is one of the biggest expenses. That is one reason why it’s | more...

 
FHA Appraisal Rules You Should Know Today

FHA Appraisal Rules You Should Know Today

The FHA appraisal is a requirement of the home loan process; it is designed to help establish current market value of a property based on the latest property values, the overall condition of the home and property, etc. An appraisal is NOT the same as the separate, borrower-funded home inspection. Appraisals are nowhere near as in-depth as inspections and the results of the appraisal should not be mistaken for a home inspection. Appraisals are required for all forward mortgages. Recent changes to appraisal rules in 2020 in response to social distancing required by the COVID-19 novel coronavirus pandemic make the process operate differently than before temporarily. In March of 2020, the FHA and HUD issued a Mortgagee Letter announcing situational changes to the appraisal requirements that included the ability to | more...

 
Thinking about buying your first home?

Thinking About Buying Your First Home?

As a first-time home buyer, you might think your home loans are limited to a certain type of property, a certain price range, or other limitations. But did you know that with FHA mortgages, first-time borrowers who qualify may be able to apply for condo loans, construction loans, and even loans to buy and rehab a fixer-upper property. There are myths about FHA mortgages that hinder some borrowers or prevent them from exploring FHA loan options altogether. One such myth is that FHA mortgages are ONLY for first-time home buyers or that there is a first-time buyer advantage for loan approval. Not true. Another myth is that FHA mortgages are only for low-income people or those with a demonstrated financial need. This is also not true. There are no income | more...

 
Home loans and your credit scores

Planning Your Home Loan

The planning stage of your home loan is extremely important. This is where you will determine what kind of home you might want, the price range you can afford, and how much down payment you need to save up to make. One big choice you face in the planning process? Decisions about issues related to long-term occupancy of the home, whether you plan to sell within a short or long amount of time and how you should arrange your financing to accommodate those needs. What kind of arrangements? Some borrowers don’t apply for a fixed-rate mortgage. They know they are not keeping the home for the long-term and choose to take advantage of lower interest rates offered in the introductory period of an FHA Adjustable Rate Mortgage (ARM) instead of | more...

 
Mortgage Industry Seeks Federal Relief For Borrowers

FHA Mortgages For First-Time Borrowers In 2020

What makes FHA home loans a great option for first-time home buyers? Anyone purchasing their first real estate, working with a realtor, and getting their credit ready for a home loan for the first time should know about the FHA mortgage program and it’s lower interest rates and flexible income requirements. FHA Loan Guidelines Are More Flexible It’s true that FHA mortgages require a borrower to have two years of employment history. But that history requirement does not have to be with a single company or employer.  Borrowers should know that some frequent job changes are acceptable to FHA lenders, but overall your employment record is reviewed on a case-by-case basis when necessary. You may want to explain any unusual job circumstances to a loan officer up front to see | more...

 
Build on your own lot. Construction loan basics

Build A House On Your Own Land With An FHA Mortgage

Some house hunters decide to stop looking at existing construction homes and start thinking about building a house for themselves from the ground up. Other people know from the start of their homeownership journey that they want to build and not buy an existing home. FHA home loan rules in HUD 4000.1 include guidelines for lenders who want to help these borrowers. The section of the rulebook titled “Building on Own Land” tells lenders how to proceed with a construction loan including maximum loan amounts, who can act as the general contractor on the project, and more. Are you interested in having a house built for you on your own lot? Not interested in having to choose from existing construction housing? Building on your own land may be the right | more...

 
Do You Need Down Payment Help?

Do You Need Down Payment Help?

Saving for your down payment early is a great idea, and doing so can be easier when you have a clear goal in mind. But how much IS that down payment and when should I start doing the math? Some people are intimidated by the idea of saving up for and making the down payment. Even those who are disciplined and used to cutting corners for a bigger goal can need some outside help to find the down payment money down needed to buy a home. FHA Loans = Lower Money Down FHA mortgages have lower down payment requirements than conventional loans, especially if you want to avoid Private Mortgage Insurance on a conventional mortgage (20% is usually required in such cases). State agencies and other entities operating at the | more...

 
Income Rules For FHA Loan Approval: What You Need To Know Today

FHA Purchase and Refinance Loan Interest Rate Trends And Your New Home

FHA home loans have a low minimum required down payment of 3.5%, which makes them perfect for both experienced homeowners and first-time homebuyers alike. With an FHA mortgage it’s possible to purchase or refinance a fixer-upper (with an FHA 203(k) rehab loan), buy or refinance a condo, mobile home, existing construction houses, and you can even apply to have a home built for you on your own lot with an FHA One-Time Close construction loan. As we head into the second month of 2020, we are reminded that 2019 was the best year for mortgage loan interest rates in almost a decade and the trends that kept rates low last year continue to exert some influence as new issues also conspire to push mortgage rates lower. At least in the | more...

 

Apply For An FHA Loan In 2016

If you are considering any type of home loan in 2016, be sure to explore your options with FHA mortgages, refinancing, or reverse mortgages. FHA loans offer a variety of advantages over conventional mortgages including lower interest rates (based on your financial qualifications), built-in protections for the buyer, and more. FHA New Purchase Loans There are many options with an FHA mortgage for single-family homes. New purchase loans include the option to add extra funds to the loan for energy-efficient upgrades or improvements. You can also consider purchasing a fixer-upper using an FHA rehab loan where funds are made available to repair/upgrade the property to FHA minimum standards. The loans mentioned above are intended for owner-occupied residences and would be not be available for investment properties. An FHA new purchase | more...

 
VA One Time Close Construction Loan

Build On Your Own Land: The FHA One-Time Close Construction Loan

The FHA One-Time Close construction loan allows a borrower to build a home from the ground up, including loan applicants who want to build on their own land with an FHA construction loan. What do borrowers need to know about the FHA One-Time Close loan? To begin, this type of FHA home loan is available to all qualified borrowers who want to build approved properties; the first-time home buyer is just as welcome to apply for an FHA construction loan as an experienced borrower. For this type of loan, the time you would spend house hunting will be spent contracting with a builder (who must be a licensed general contractor), working with floor plans, and planning the construction of the home rather than going out to search for an existing | more...