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Articles Tagged With: FHA Loan Rules

FHA Loans

FHA Loan Program Rule Changes: Flood Insurance Coverage

Some borrowers want to buy homes in the desert, some want to buy homes that are located in areas prone to flooding. But not all flood zones are the same; some feature an elevated risk of flooding and if you buy a home with an FHA loan in certain flood zone hazard areas you are typically required to carry special flood insurance. But new changes to the FHA home loan program make it possible for homeowners to seek private flood insurance instead of the one FHA-approved option previously available. Prior to the new rule the only insurance option possible was through the National Flood Insurance Program. In the final quarter of 2022, the Department of Housing and Urban Development announced that starting in December the FHA loan program allows homeowners | more...

 
FHA Home Loan

FHA Loans In 2023: Changes In The Housing Market

Some market watchers are asking the question–is it possible we will see house prices fall in 2023? Indicators from Federal National Mortgage Association or Fannie Mae point to a cooling-off period for home prices next year. Earlier in 2022, Fannie Mae forecasted home price growth at over four percent in 2023; those numbers have since been revised. The expectations in the last three months of 2022 now tell a different story: Fannie Mae now expects home price declines of as much as 1.5% in the coming year. What created the 2022 seller’s market in the first place? Rising equity, a shortage of housing inventory, and high demand were all contributing factors. And as mortgage rates started approaching 7%, the motivation to buy seems to be tapering but it may take | more...

 
Mortgage Trends

Credit Score Rule Changes For Mortgage Loans

On October 24, 2022, the Federal Housing Finance Agency (FHFA) announced its approval for participating lenders to use both the FICO 10T and the VantageScore 4.0 credit score models by Fannie Mae and Freddie Mac. These options would replace the previous use of “traditional” FICO score model Fannie and Freddie lenders use to approve the loans.  Why are we discussing Fannie and Freddie in an article about FHA home loans? There is a possibility that this move could wind up affecting other lending programs, especially if more borrowers choose Fannie Mae and Freddie Mac loans as the result of the changes. Other government loan programs may follow suit in the future, and in the case of FHA mortgages, some changes are already underway. These changes do not happen overnight. There | more...

 
FHA Home Loan

Important Features To Consider When Shopping For A New Home

Are you new to house hunting? There are things to look for when considering homes to buy with an FHA mortgage. These are features that often may enhance the home and make it more efficient. Once you are used to shopping around for a home, you can establish a checklist to remind you as you review each property. Ceiling Fans Not all homes come with ceiling fans. Are you buying a home in a warmer or more humid climate? A lack of ceiling fans can be a drawback; homes that do not have them installed might have other issues such as mold or mildew, but this will depend greatly on how the individual house was maintained. Exterior Lighting Exterior lights can provide additional safety, and not just to prevent burglaries | more...

 
Planning To Buy A Home? Credit Resources You Need

Buying A Home When Interest Rates Are High

Are you considering your FHA home loan options? You aren’t alone if you’re considering the option of waiting to buy until mortgage rates drop from current highs. How high have the rates gone? In the closing days of October 2022, the New York Times reported interest rates hit the 7% range for the first time since 2002. Do you worry that such high rates are here to stay? You couldn’t be blamed for thinking it’s a safer bet to hold off on buying a home right now. The Fannie Mae Housing Forecast for 2022 includes the possibility that mortgage loan interest rates might settle into the four percent range sometime at or near the second quarter of 2023. If that becomes a reality, could we see an increase in interested | more...

 
FHA loans

Is There An FHA Home Equity Loan?

A home equity loan is one using the equity in your home for the loan’s collateral. What is equity? It’s defined as the current value of the property minus what you still owe on the existing mortgage loan. Does the FHA offer a home equity loan? On paper, the FHA does offer a loan that allows you to get cash back at closing time like a home equity loan but the two aren’t really the same thing. Here’s why. For a home equity loan a borrower typically gets loan funds in a lump sum with a fixed interest rate, similar to an FHA Cash-Out Refinance. Borrowers who default on a home equity loan may face foreclosure the same as a cash-out loan. And both loans have other things in common–especially | more...

 
Is your credit ready for an FHA loan?

House Hunting Advice For First-Time Home Buyers

When you start making plans to work with a realtor, there are some very good things to consider ahead of time. Checklists, online mortgage calculators, and other home-buying tools are only some of the things you’ll want in your house-hunting toolkit when you are ready to become a homeowner. Decide What Your Priorities Are For Your New Home Before filling out FHA home loan paperwork, and long before you decide which real estate agent to work with, you should have an idea of what your main priorities are for your new home. Do you need a home located near a certain school or type of school? Are you looking for someplace quiet and residential and nowhere near a shopping mall, gas station, or movie theater? Some priorities are more important | more...

 
Mortgage Trends

FHA Home Loans And Rising Interest Rates

Many potential borrowers wonder why mortgage loan interest rates are rising? While it may be true that FHA rates may be lower than some conventional mortgage loans, in a rising mortgage rate environment even government-backed mortgages will see rate increases. Why do rates go up in terms of overall cause-and-effect? Mortgage loan interest rates can rise for a number of reasons including changes in market conditions, investor reaction to those changes, breaking news at home and abroad, and government financial policy changes. All of these can directly or indirectly affect rates. At the end of September 2022, there was an increase in interest rates bringing them to the highest levels some have seen in years. The cause of these recent increases? You can thank an increase in the Federal Funds | more...

 
Who is eligible for an FHA Home Loan?

Why Choose An FHA Mortgage?

You may have heard that the FHA loan program features a low minimum down payment, lower credit requirements, plus the ability to apply for extra loan funds to add energy-saving improvements to the home you are buying with an FHA loan. This is accomplished using a program called the FHA Energy Efficient Mortgage. FHA home loans, which are NOT for first-time home buyers only, are offered to all financially qualified applicants. These home loans, unlike some of their USDA counterparts, are not need-based and do not feature income restrictions. FHA mortgages are government-backed loans, which means there is an arrangement between the lender and the federal government that reduces the risk to the lender. This is why FHA lenders can offer you lower down payments and more competitive interest rates | more...

 
HUD

HUD Announces Fair Housing Case Settlement

Did you know that Fair Housing laws are designed to protect you once you start owning or renting a home and not just while you are house hunting? You might not realize that sexual harassment can be a violation of the Fair Housing Act if happens in the context of seeking or owning a home. Has someone sexually harassed you as the employee of a lender, property management company, realtor, or appraiser? If you have, you may have grounds for a complaint with the Department of Housing and Urban Development. One example of this comes thanks to a recent settlement between HUD and California apartment owners/property managers. HUD has announced a conciliation agreement with respodnents including Perris Family Apartments, LLC., Coachella Valley Housing Coalition, Hyder Property Management Professionals, and an | more...