Articles Tagged With: FHA Loan Approval

May 15, 2020

FHA Extends Coronavirus Policies

The Federal Housing Administration has issued a press release announcing an extension to coronavirus-related mortgage relief for American borrowers with FHA home loans. One major feature of that extension? More time on the FHA eviction and foreclosure moratorium issued on FHA mortgages. That moratorium now lasts until June 30, 2020. This applies to homeowners with “FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages” according to the HUD official site. Until these measures expire, FHA lenders are directed to: Also extended? The length of time for FHA’s temporary policies regarding exterior-only appraisals and “desktop appraisals” for FHA mortgages. FHA loan officers are still able to use “alternatives for lenders to re-verify a borrower’s employment, and for appraisers to conduct desktop or exterior-only appraisals” which also are now | more...

May 14, 2020

FHA Appraisal Rules You Should Know Today

By Bruce Reichstein

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...

Construction Loans For First-Time Home Buyers

May 12, 2020

Building A Home As A New Borrower

By Bruce Reichstein

At press time, many portions of the United States are considering some kind of return to business as usual in the wake of lockdowns and coronavirus containment measures. For better or worse, some portions of the country are opening more than others and this will likely include real estate markets and house hunting as progress is made. And that means some first-time home buyers will be exploring their options soon. Did you know that even as a first time borrower, you may be eligible for a One-Time Close construction loan that allows the borrower to build a home on their own lot rather than buying someone else’s property? One-Time close loans are available for VA borrowers, FHA loan applicants, even USDA borrowers. These loans do require some additional legwork and | more...

May 11, 2020

Buying A House In The Era Of COVID-19

By Joe Wallace

Who buys a house during a global pandemic? The answer to that question may surprise you at first, but a quick look at the official site for the Department of Housing and Urban Development and it’s clear that there’s a demand, and with good reason. Some Americans not only consider buying or renting a new home during COVID-19, but some actually have no choice but to seek new housing. This could be due to any number of factors including illegal evictions, loss of income, job changes that require relocation, natural disasters, changes in family size, changes in marital status, many reasons. And those people create a demand that must be met, even during a national emergency. Granted, not all home loans during this time are out of necessity, but the | more...

May 7, 2020

Thinking About Buying Your First Home?

By Joe Wallace

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...

Build on your own lot. Construction loan basics

May 1, 2020

FHA Construction Loan Facts: What You Need To Know

By Joe Wallace

There are many options available when you are searching for a house to buy. The first set of choices often involves the type of home loan you want to apply for–believe it or not there is no one-size-fits-all mortgage. If you want to purchase a condo with an FHA mortgage, for example, there is a specific loan and procedures for that. But what if you want to have a house built for you from the ground up? This is also an option, even for first-time home buyers. You can apply for a conventional one-time close construction loan, but you’ll be applying for conventional loan interest rates and terms; an FHA One-Time Close construction loan has a 3.5% down payment requirement, which is lower than you may be offered on a | more...

FHA One Time Close Construction Loan Option

April 30, 2020

The FHA One-Time Close Mortgage Option

By Bruce Reichstein

Borrowers looking at their FHA home loan options don’t have to feel limited to purchasing an existing construction property; there is a way to apply for an FHA mortgage that lets you have a home built to suit from the ground up. These FHA new construction home loans are referred to as Construction-To-Permanent mortgages or, more recently, FHA One-Time Close construction loans. One-Time Close construction loans are good for borrowers who want a home that is just right, and are not in a hurry to get into their new home. The trade-off for having just the right property built for you is the time it will take from planning to move-in. The process will take more time, but it is definitely worth it to those who choose this type of | more...

What Credit Score Is Needed For An FHA Mortgage?

April 24, 2020

FHA Home Loan Approval Rules And Income Verification

By Joe Wallace

Can all of your income be used to qualify for an FHA mortgage? If you need to buy a home soon, it’s important to understand home loan approval rules, especially in times of economic uncertainty. There are some forms of income that don’t qualify to be counted as “verifiable income” for the purpose of establishing the borrower as a good candidate for loan approval. There is specific criteria for the kinds of earnings you can use to qualify, and specific criteria for the types of earnings that the lender cannot count as part of your monthly predictable pay. Understanding those income rules is very important, especially now. Many Americans are receiving unemployment, government stimulus checks, and other financial resources. But not all money can be used toward your verifiable income, | more...

April 23, 2020

FHA Loan Down Payments: What You Need To Know Today

By Bruce Reichstein

When the time is right to explore your FHA home loan options, there are some things you need to know about down payments that can help you better prepare for the loan process. FHA home loans have strict rules about the source of your down payment funds and you will be required to document those sources no matter where your down payment money is sourced from. Here are the basic rules for FHA down payments: A down payment is required 100% of the time for new purchase FHA loans; Your down payment amount may be affected by your credit scores; You will be required to pay a minimum of 3.5% if your credit score meets FHA and lender standards; all others will be required to pay a minimum 10% down. | more...

April 22, 2020

Mortgage Scams During COVID-19: Borrower Beware!

By Joe Wallace

The Federal Trade Commission warns mortgage borrowers to beware of scams that prey upon homeowners in trouble during the coronavirus outbreak. The FTC Chairman, Joe Simons, was quoted in an FTC press release advising borrowers about the FTC’s role in prosecuting scam artists taking advantage of Americans who have been affected by COVID-19. “The FTC is ready to assist businesses that may seek guidance about compliance obligations on consumer protection issues during this unprecedented time,” Simons said in the press release. If you have been contacted by a third party about coronavirus financial relief and suspect a scam artist at work, report coronavirus-related scams at ftc.gov/complaint. What should consumers do to protect themselves from coronavirus mortgage scams? The first step is simply to recognize that if you have not initiated | more...