Articles Tagged With: FHA Loans

FHA Home Loan Rules For Construction Loan Escrow Accounts

October 4, 2021

Five Things You Should Know About FHA Mortgages

Many people still have misconceptions about the FHA home loan program. They might think they “earn too much money” to be a successful applicant (not true, FHA home loans are not need-based loans) or think that they would not qualify because they want to build a home instead of buying an existing construction house. (Also not true, FHA loans include those for building a home instead of buying one). What are the facts about FHA home loans you need to know in order to make a better-informed decision about your loan choices? FHA Loan Fact: FHA Mortgages Are For Any Financially Qualified Borrower Unlike the USDA home loan program, which DOES feature need-based mortgages to those who fall under the income guidelines for that loan program, FHA mortgages do NOT | more...

September 27, 2021

Buying A Condo With An FHA Mortgage

By Bruce Reichstein

Are you interested in buying a condo unit with an FHA home loan? It’s an option some borrowers don’t realize they have–some make assumptions about the FHA home loan program and the availability of loans for condo units. But the fact is that an FHA mortgage can be used to purchase a condo the same as any suburban home though there are some considerations to remember when making this type of purchase. FHA condo loans feature the same basic qualifying terms as other FHA mortgages for mobile homes, suburban homes, etc. This type of FHA mortgage is, like all other FHA mortgages, open to first-time buyers AND those who have owned a home before (even in the last three years). You will be approved for the FHA condo loan based | more...

FHA Mortgage Loan Issues: "Identity Of Interest"

September 24, 2021

Home Loans After Chapter 13 Bankruptcy

By Joe Wallace

Those looking for home loans in the wake of a Chapter 13 bankruptcy often get conflicting messages about when, how, and even whether they can apply. Circumstances and causes of bankruptcy may vary, but borrowers often ask the same kinds of questions about what their options are after the proceedings are done. A typical version of such questions may go like this: “I had a bankruptcy that was discharged and I was told I needed to wait two years before I can apply for an FHA loan. But other sources say I have to wait longer. What is the reality? How long do I have to wait to apply?” What follows is advice about how long you might have to wait but keep in mind that the clock starts ticking | more...

September 15, 2021

How To Avoid A Mortgage Closing Scam

By Joe Wallace

The government’s consumer watchdog agency, the Consumer Financial Protection Bureau (CFPB), has a page dedicated to warning house hunters about home loan closing scams. According to CFPB documents,FBI warnings about home scams include attempts to “phish” your personal information with the purpose of tricking a potential borrower into diverting the payment of closing costs and down payment to a destination that is NOT your lender. In a single year alone, these mortgage closing scams cost almost one billion dollars. Want to know how you can keep this from happening to you? Scammers trying to pull these types of phishing attacks target people in the mortgage industry–they find legitimate email addresses and “spoof” them, making the email appear to be from a real address. But the email is full of hacking | more...

August 26, 2021

FHA Refi Loan Rules You Need To Know

By Joe Wallace

Thinking about refinancing your home loan? With an FHA mortgage, you can refinance a conventional, VA or another non-FHA mortgage as well as an existing FHA home loan. Refinancing is great for many reasons but for some borrowers specifically want a refi loan to get a more affordable mortgage with lower payments or a lower interest rate. Some must refinance to catch up on a mortgage after missing payments; some may need to consider a refinance option in order to prevent their home from going into default and foreclosure in such cases. So for our purposes here, we are not discussing FHA cash-out refinancing options as these loans have rules specifying how much equity is needed in the home to cash out and some borrowers may have to wait longer | more...

August 24, 2021

What One Credit Reporting Agency Says To Do About Your Credit Scores

By Joe Wallace

Your credit report and credit score are important factors in home loan approval. So what advice do the credit reporting agencies like Equifax, Experian, and TransUnion say you should do when planning to apply for a home loan? Knowing what credit score advice these three agencies offer is important–it’s good to think like a lender when applying for a large line of credit, and it is even better to think like the credit reporting agency in terms of what to do to prepare your credit ahead of your loan. What does Experian say about getting your credit ready for a home loan? Their official site reminds consumers that credit scores are a very important aspect of home loan approval. But those scores do NOT tell the entire story. Experian reminds | more...

August 13, 2021

HUD and FHFA Announce Historic Partnership

By Joe Wallace

The Department of Housing and Urban Development has announced a major partnership with the Federal Housing Finance Agency (FHFA) to further the cause of fair housing and the enforcement of the federal law known as the Fair Housing Act. The FHFA is an important agency–it serves as the “primary regulator” for federal home loan banks. According to HUD.gov, FHFA has “broad statutory authority to supervise the regulated entities, including authority to monitor and gather information and conduct supervisory examinations, and enforce compliance with applicable law.” FHFA is responsible for oversight of: Fannie Mae Freddie Mac Federal Home Loan Banks The two agencies have agreed to a Memorandum of Understanding which has both HUD and FHFA working to “enhance” the enforcement of Fair Housing Act laws. This is intended to help | more...

FHA Fixed-Rate Mortgages Versus Adjustable Rate Mortgages

June 30, 2021

The End Of National Homeownership Month

By Joe Wallace

The month of June is National Homeownership Month, and now that the month is over, the FHA and HUD are reminding potential FHA borrowers about government initiatives to encourage homeownership, prevent discrimination, and enable first-time homebuyers to consider purchasing a new house. The HUD official site announced at the end of June that there are more initiatives coming to improve free access to housing and further prosecute violations of the Fair Housing Act. According to a press release on HUD.gov, this process began in the first days of the Biden Administration with the newly-sworn-in President of the United States issuing a memorandum to the Department of Housing and Urban Development “to address discrimination in our housing market”. Since those earliest days, HUD has issued a proposed rule “on countering housing | more...

September 16, 2020

New FHA Home Loan Guidelines Announced

By Joe Wallace

The FHA and HUD have written permanent new COVID-19-related loan approval guidelines for those who need to apply for an FHA mortgage but come to the home loan application process with a previous mortgage forbearance. Ever since the coronavirus emergency came to the United States, the FHA and HUD have offered borrowers mortgage relief, and now that relief and measures similar to it won’t be a liability for those who need to apply for a new FHA mortgage. Other forms of coronavirus relief have been temporary but not this time. The new rules announced by the FHA are announced as a permanent modification to FHA loan rules that instruct the lender on how to approve new mortgage loan applications for borrowers who have applied for home loan forbearance in the | more...

September 15, 2020

Is A Property Eligible for an FHA Mortgage Loan If It Has Asbestos?

By Bruce Reichstein

Borrowers interested in purchasing older properties using an FHA insured mortgage could face several challenges depending on the nature of the property. For example, some buildings insulated or otherwise constructed with asbestos products could pose a health hazard. FHA rules include minimum property requirements for safety, which address situations like these. Is a property eligible for an FHA loan if it has asbestos in it?