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Articles Tagged With: FHA Loan Requirements

Fair Housing Month

July 8, 2016

FHA Loans Versus Conventional Loans

By Joe Wallace

Here’s the Scoop on Conventional Loans from FHA.com on Vimeo. What are the differences between FHA home loans and conventional loans? There are several, some features of mortgage loans can vary depending on the lender, and state law may also affect how your home loan is handled depending on circumstances, but there are a few very important general differences to keep in mind when comparing FHA loans to conventional loans. The first difference is the basic nature of the loan itself. Conventional loans are not backed by the government, unlike FHA home loans where the FHA guarantees a portion of the loan to make it more attractive to the lender to issue credit. In the event that a borrower defaults on an FHA loan, the lender and the FHA have | more...

 

July 5, 2016

FHA Loans For Military Members

By Joe Wallace

There are a variety of reasons why a military member would consider buying a home with an FHA mortgage, including the desire to own a home instead of renting in a crowded military rental market. While it’s true that VA home loans are available for military members as part of their benefits, some may choose the FHA option instead. What should a military member know about FHA mortgages and refinance loans? The first thing some borrowers need to know is that, yes, it is possible to refinance a VA mortgage into an FHA mortgage loan. FHA refinance loans permit the refinancing of non-FHA mortgages for cash-out refinancing and “non-streamline” refinance options. You do not have to use your existing lender to refinance into an FHA mortgage, instead a borrower is | more...

 

June 23, 2016

FHA Loan Questions: Self Employment

By Joe Wallace

A reader asks, “I am working on getting an FHA loan and my lender asks that I provide W2s. I am self employed via my own business as well as had a regular job how will this affect my loan being that i have no W2 and that my taxes were done via 1099 and 1040 forms for myself and my business?” In cases like these, the lender will require whatever tax documentation that is available to show proof of income. For self employed borrowers, the lender may also require additional documentation such as profit and loss statements, business plans, and other items that may be required. Lender standards will apply so FHA loan rules and minimums are only part of the equation. FHA loan rules in HUD 4000.1 do | more...

 
Mortgage Loan Rate Trends

June 23, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates are moving higher. On Wednesday afternoon it was the fourth straight day of higher movement for rates, and depending on investor reaction to the Brexit referendum in Britain on Thursday we could be in for a continued upward trend. The Brexit referendum naturally does not have any direct effect on mortgage loan rates, but how investors react to this overseas economic news can and likely will push rates in one direction or another. There is also the possibility (however remote) that other breaking news or economic data could take attention away from Brexit drama. It’s something that has happened before, but could it happen with such a major event as the Brexit decision? In any case, there are some industry pros who are convinced that rates | more...

 

June 9, 2016

More FHA Mortgage Loan Questions and Answers

By Joe Wallace

Do you have questions about FHA home loans? We get many requests for information in the comments section of this blog, and a good number of those questions are frequently asked, indicating the need to have more discussions on such topics. Buying a home may seem intimidating at first, but there is a process involved that follows certain basic steps towards completion. Let’s examine some of them: How do I start planning for an FHA home loan? The key to getting ready for an FHA loan application is to give yourself time. It’s recommended that potential home loan applicants start getting ready at least 12 months before actually filling out an application, and there are several good reasons for that. One is that it takes time to check and verify | more...

 

June 6, 2016

Questions And Answers About FHA Refinance Loans

By Joe Wallace

Refinancing a home loan can be just as big a decision as the original purchase of the home itself. It’s always a good idea to take extra time to plan, budget, and save up for any major loan, and a refinance loan is no exception. If you are considering your options for a home loan refinance, there are likely a number of questions you need answered as you prepare for the new loan. Here is a list of some common questions about FHA refinance loans that can help you get ready for your application. What refinance loan options are available from the FHA? FHA refinance loan options include cash-out and non-cash out refinancing. You can also apply for an FHA Streamline Refinance loan which uses your original application data in | more...

 

June 3, 2016

June Is National Home Ownership Month

By Joe Wallace

HUD announced National Home Ownership Month this week, and the entire month of June will include special efforts to raise awareness of how “homeownership enhances lives and contributes to thriving communities we call home” according to a HUD press release. ‘Dare to Own the Dream’ is the theme of this year’s campaign, “reinforcing the long-held belief that owning a home remains one of the cornerstones of the American Dream”. According to the press release, a lot of things have changed in the eight years of the Obama administration. “…the nations housing market was in free-fall, unemployment was rising and many families were left feeling trapped and anxious about their mortgages. He immediately took action to address these issues and to protect the middle class. The steps he took helped millions | more...

 

May 18, 2016

Preparing For Your FHA Loan: Important Questions To Ask

By Joe Wallace

Are you in the planning stages for an FHA loan? Considering your refinance loan options? Regardless of which choice you’re making (new purchase or refinance) there are some important questions to ask yourself when preparing to apply. The first of those is one of the most important. “Am I giving myself enough time to prepare?” Some borrowers need more preparation time than others. If you don’t have 12 months of on-time payments on all financial obligations, for example, you should definitely take the time to make sure you bring that to the bargaining table. Lenders will be looking for that 12 months-or-better reliability to establish your creditworthiness. Some borrowers need more time to save up for certain closing costs and, in the case of new purchase FHA loans, the required | more...

 
What Is An FHA Loan Limit?

May 17, 2016

FHA/HUD Appraisal Standards Part II

By Joe Wallace

In our previous blog post we discussed FHA loan appraisal standards and answered a reader question about what it means for FHA/HUD standards to include the term “whenever feasible” in relation to certain features such as city utilities (versus wells or cisterns, for example). Further clarification of the FHA and HUD position on minimum property standards is available from the HUD official site (www.HUD.gov), which includes the following background information: “Until the mid-1980’s, HUD maintained separate Minimum Property Standards for different types of structures. Since that time, HUD has accepted the model building codes, including over 250 referenced standards, and local building codes, in lieu of separate and prescriptive HUD standards.” But, the official site adds, there is an important difference when it comes to the FHA/HUD standards versus other | more...

 

May 12, 2016

FHA Loan Rules On Down Payment Assistance, Gift Funds

By Joe Wallace

We’ve gotten several questions recently about FHA loan rules for down payment assistance programs and related topics. While we’ve addressed issues like this before, it never hurts to revisit topics like these, especially since the FHA transitioned from its previous single family home loan rule books into the single, comprehensive HUD 4000.1. In the past, certain types of down payment assistance grant programs such as NewSong, Grant America, and Nehemiah operated by providing what was known as “seller provided down payment assistance”. In 2008, President Bush signed an act that prohibits such assistance, so all seller-provided down payment funds were no longer possible. But there are state and local programs that do provide some type of down payment assistance. If these programs meet FHA guidelines and requirements, a borrower may | more...