December 10, 2019

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Articles Tagged With: FHA Loan Approval

Higher FHA Home Loan Limits For 2020

Higher FHA Home Loan Limits For 2020

In 2019, the FHA and HUD announced higher loan limits, giving borrowers in most counties additional borrowing power to purchase, build, repair, or refinance an owner-occupied home. The uptick in FHA loan limits for 2019 led some to believe that it might be possible to see another year of higher loan limits, while others speculated that higher limits may not be a trend, but simply a typical course correction for home loan limits. Regardless of which camp 2020 borrowers were in back then, it seems there is another year to contemplate higher loan limits; the Department of Housing and Urban Development has released the FHA loan limits for 2020 and they are indeed higher in most areas. The HUD announcement discussing the overall increase in the FHA loan limit for | more...

 
Applying For A Home Loan In 2020

Applying For A Home Loan In 2020

Are you thinking about buying or building a home in 2020? Prepare for your dream home early and get ready to start the path to homeownership in the new year. Save Early What kind of expenses should you anticipate when saving for your home loan? It’s not just the down payment you’ll need to save for–here is a list of common home loan expenses: Title insurance Appraisal costs Pest inspection fees Origination fees Discount points Credit report fee Survey fee Property taxes Mold abatement (where applicable) Document prep Compliance inspections You will also want to save early for unexpected costs including contingencies where the appraised value of the property is lower than the asking price. Some borrowers like the home so much they are willing to pay the difference in | more...

 
Who Qualifies For FHA Loans?

Who Qualifies For FHA Loans?

Whether you’re interested in building a house from the ground up on your own lot or you need a mobile home or condo unit, there is an FHA home loan for you. Who qualifies for these mortgages and why? FHA Loans For First-Time Home Buyers FHA mortgages are open to first-time homebuyers without perfect credit. You can apply for an FHA home loan even with past credit mistakes; the best thing to do is to review your past credit and make sure your home loan application is turned in once you have a full year of on-time payments on your credit record. First-time borrowers should know an FHA mortgage, even an FHA One-Time Close construction loan is within their reach thanks to low 3.5% down payment requirements and the ability | more...

 
FHA Loan Rules And Your Personal Information

FHA Loan Rules And Your Personal Information

HUD 4000.1, also known as the FHA Single-Family Lender’s Handbook, guides the lender through the entire FHA loan process including how your application data must be processed. In the same way FHA loan rules have a lot to say about where a borrower’s down payment money comes from and verifying the sources of those funds, FHA loan rules also govern how the lender can gather your financial data. For example, did you know your credit scores and other data must be given to the lender from approved sources and that the information cannot come from you even if it’s sealed and hand-delivered? Did you know that HUD 4000.1 does not permit the borrower to handle or transmit other kinds of information to the lender, too? Sourcing counts in both down | more...

 
Home Loans After A Bankruptcy

Home Loans After A Bankruptcy

Are you interested in a new home loan but are worried about a past negative credit event such as a bankruptcy? Borrowers sometimes have many questions about FHA mortgages and bankruptcy. One of the most common scenarios asked about include borrowers who are about to be discharged from their bankruptcy and are contemplating a home loan. With low credit scores and a recent bankruptcy, what is a borrower to do in order to become eligible for a home loan once more? In such cases, you need to know the FHA loan rules in HUD 4000.1 which require a minimum waiting time or seasoning period before a borrower can apply for an FHA mortgage once more. The waiting time begins at the time the bankruptcy is discharged. Note that it does | more...

 
Home Loan Approval: Why FICO Scores Matter

Home Loan Approval: Why FICO Scores Matter

If you want to buy a home, you will need to become well-read about credit, credit scores, and how your credit report affects your ability to apply for a mortgage loan. There are three major credit reporting agencies, Equifax, TransUnion, Experian. The fact that there are three agencies is one good reason why credit experts encourage borrowers to check their credit reports as early as possible prior to applying for an FHA mortgage or any other major line of credit. One credit report could have discrepancies another one does not reflect, etc. A borrower should always know what their lender is going to see on the report before the application is completed. FICO scores are indeed an important part of FHA loan approval, and borrowers should respect FICO scores and | more...

 
Do You Need A Co-Signer For An FHA Mortgage?

Do You Need A Co-Signer For An FHA Mortgage?

Some house hunters are worried they may not be able to qualify for a home loan on their own and feel the need to add a co-signer. Other borrowers are buying a home with someone else (often significant others or spouses) and need to have more than one name on the mortgage. FHA home loans (yes, refi loans too) allow one borrower or multiple borrowers. The key to understanding how loan approval works for an FHA mortgage is to remember that all parties to be obligated on the mortgage loan must be able to financially qualify. FHA Borrowers And Co-Borrowers FHA loan rules instruct the lender that to be considered eligible for an FHA home loan or refinance loan, “…all occupying and non-occupying Borrowers and co-Borrowers must take title to | more...

 
Types Of Homes You Can Buy Or Build With An FHA Mortgage

Types Of Homes You Can Buy Or Build With An FHA Mortgage

What types of home can you purchase or build with an FHA mortgage? For the purposes of this article, we are talking about the status of the property rather than the property type. It’s true that FHA loans are available for condo units, mobile homes, and manufactured homes, and you can also use an FHA One-Time Close construction loan to build a home from the ground up on your own land. You can use an FHA mortgage to buy or build a single-unit home or you can purchase a property with as many as four living units. But FHA home loans also take into account the status of the property as an existing construction home, new construction, etc. The list of property types includes: Proposed Construction where no concrete or | more...

 
FHA Home Loan Rules For Construction Loan Escrow Accounts

FHA Home Loan Rules For Construction Loan Escrow Accounts

Do you need a construction loan to build on your own land? The FHA One-Time Close construction loan can help you do just that; this mortgage features one loan application and closing date to build your house, and you aren’t required to pay more than the usual low 3.5% down payment for qualified borrowers. When using a construction loan, the borrower will need to use an escrow account to make the payments for labor, materials, and other construction costs. But there are rules that govern how these “draws” are to be made; HUD 4000.1 contains those rules, which include the following instructions to the lender: “At closing, after funds are disbursed to cover the purchase of the land, the balance of the mortgage proceeds must be placed in an escrow | more...

 
HUD Announces Fair Housing Act Violation Settlement With Oglethorpe Square Apartments, GA

HUD Announces Fair Housing Act Violation Settlement With Oglethorpe Square Apartments, GA and Gene B. Glick Company, Inc.

The Department of Housing and Urban Development has announced a settlement in a housing discrimination case involving Oglethorpe Square Apartments of Savannah, Georgia, and Gene B. Glick Company, Inc., of Indianapolis, Indiana. Housing discrimination creates unfair conditions for those who need to rent or buy a home and thanks to the Fair Housing Act there is recourse for those who experience discrimination at any stage of the housing process (see below for information on how to report housing discrimination). Many times, the only people who have the power to stop further violations of federal law are the victims of the discrimination; without reporting the illegal activity, it can go on uncontested for a long time. It’s hard to believe that in the 21st century we must still read about the | more...