Articles Tagged With: FHA Loans

August 6, 2024

Credit Repair And FHA Mortgages

Resolving outstanding debts and making timely payments can gradually boost your credit score. The Consumer Financial Protection Bureau recommends creating a budget and prioritizing debt repayment to regain financial stability. It’s also vital to monitor your credit reports aggressively at least 12 months before applying for a home loan. Knowing your rights when dealing with credit repair companies is essential. The Credit Repair Organizations Act (CROA) ensures transparency in credit repair services and prohibits deceptive practices. When it comes to home loans and your credit, lenders consider your FICO scores and review your payment history and overall credit record. It’s important to understand that FICO scores don’t necessarily reflect your entire credit story. To have a successful home loan application, maintain good payment habits for 12 months and avoid missed | more...

Rehab Refinance Loans, reverse mortgages

July 23, 2024

Pros and Cons of Refinancing Versus Reverse Mortgages

By Joe Wallace

As we age, sound financial decisions become increasingly crucial. For many seniors, leveraging home equity is a key consideration, and there are two important options to know in this area. Two FHA loan products can help you access home equity. One has an age requirement (the reverse mortgage) and one does not (refinancing.) Those two options are FHA reverse mortgages and FHA refinancing. Each option has its pros and cons, which is vital for making an informed decision. Reverse mortgages offer seniors a way to boost monthly cash flow. They eliminate required monthly payments, providing significant financial flexibility. Additionally, they offer lump-sum payouts, which can help cover home repairs, medical expenses, or other significant costs. However, reverse mortgages have drawbacks. The most notable is the gradual depletion of home equity. | more...

July 11, 2024

FHA 203(k) Rehab Loan Program Updates

By Joe Wallace

Changes are coming for those interested in remodeling a home with an FHA rehab loan. The Department of Housing and Urban Development, along with the Federal Housing Administration, have updated policies associated with the FHA 203(k) Rehabilitation Mortgage Insurance Program. These changes were implemented to modernize the program and make it a more helpful tool for individuals and families seeking affordable financing options for home renovation or rehabilitation projects. The FHA 203(k) program offers two loan variations: a “standard” 203(k) for major remodeling projects that may or may not include work on load-bearing walls. A “limited” 203(k) is available for smaller projects and for what the FHA determines to be “non-structural repairs.” Several fundamental changes have been made to aspects of the FHA 203(k) program. First, the total rehabilitation costs | more...

July 1, 2024

Comparing Home Loan Offers

By Joe Wallace

Are you planning to buy a new home? You can find the right home loan by applying a similar process you use to find the right house. In fact, shopping around for the right mortgage loan is just as important as shopping around for the right house. If you are considering an FHA mortgage to buy, renovate, or build a home, you’ll want to make the same kind of informed decisions about the lender and the loan. Comparing lenders and loans is the way to do that. But there are some tips you can follow to make that process more streamlined. Research Multiple FHA Lenders While on paper, FHA loan terms and conditions such as FICO score requirements seem to be standardized, the FHA minimum FICO score requirements are just | more...

June 25, 2024

What To Look For When House Hunting

By Joe Wallace

If you are looking for your first home, there are areas of every house you should consider including in your mental checklist of features to look at during a real estate open house or a private viewing of a sale property. What follows is not a complete list but a great place to start when looking for potential deal-breaker problems lurking in the house you want to purchase with an FHA mortgage. The Condition Of The Walls And Ceiling Homes that have been flooded or experienced significant plumbing issues could have signs of water damage in areas like the basement, stairs, and walls throughout the house. Look for stains, patches of wall that don’t quite match the others, warped wood, poorly closed doors, etc. Staining and the smell of mold | more...

June 18, 2024

FHA Loan Options: What To Ask The Lender

By Joe Wallace

If you have never purchased a home and aren’t sure where to begin, you’ll find plenty of advice about what to do, but some steps are more important in the early stages of the process than others. One common loan planning step is to compare multiple financial institutions to see who offers the most competitive rates and terms. Some borrowers are tempted to skip this step or truncate it. But that’s not a good idea. The home loan process should always include comparing multiple lenders, but if you’ve never tried that before, here are some things you should know that may help you save valuable time in the planning process. Choose The Right Loan For You Decide early what type of home loan is best for your situatiuon. Remember that | more...

June 13, 2024

Buying A Home: How To Inspect A House

By Joe Wallace

Borrowers should always pay a licensed pro to inspect a home as a condition of buying a house. But before paying for that important service, the borrower has to look at multiple homes to find the right one to make an offer on. That process can be daunting for some first-time home buyers. What do you need to look for in a home’s physical condition to decide whether to buy? Inspecting The House In some cases you can learn by looking and researching later. When reviewing the basement, do you see cracked walls? A bit of research reveals that may be a symptom of a foundation problem, which is a serious issue. Another red flag is evidence of “excessive moisture” in the crawl space where applicable. Pooling water in the | more...

June 11, 2024

What To Ask When Buying A Home With An FHA Loan

By Joe Wallace

If you want an FHA loan to buy a home, it is always a good idea to compare lenders, real estate agents, and other service providers who serve the housing industry. When comparing, there are important questions to ask each provider to learn more about whether they are right for you. How Long Have You Worked In This Field? The answer will vary depending on the inspector, real estate agent, or lender and when doing so but there are trade-offs to consider for newcomers to the business. A more experienced lender or real estate agent likely understands more complex issues related to your home loan and can deal with them more efficiently than a “noob.” That said, newcomers aren’t always the liability you might assume they are, especially if they | more...

Getting An FHA Mortgage After Bankruptcy

June 5, 2024

Buying Older Real Estate With An FHA Mortgage

By Joe Wallace

Interested in buying an old house? A fixer-upper? Does the house you fell in love with need extensive repairs to make it worth owning? FHA loans include options for older homes and fixer-uppers. We cover some key points below. FHA Loan Options Are More Flexible Than You Might Think There’s no single FHA mortgage option. You can’t use one loan to buy any property type that is allowed. There are just too many different options and needs that must be taken into account in the housing market. Want to build a home from the ground up? There’s an One-Time Close FHA construction loan for that. Want to buy an old property and rework it into a newly renovated home? There are FHA loan options for that choice, too. If you find | more...

May 17, 2024

Conventional Loans Versus FHA Mortgages

By Joe Wallace

What’s the major difference between FHA mortgage loans and conventional loans? Actually, there are several, but the first and most basic difference is that an FHA mortgage is guaranteed by the government. A conventional loan is not. The government’s backing of an FHA mortgage makes the loan less of a risk to the financial institution offering you a line of credit to purchase your home. And because the loan is backed by the government, FHA mortgages feature lower down payment requirements than many conventional mortgages. You may find conventional loans requiring 10 or even 20 percent down, whereas an FHA mortgage for qualified borrowers with FICO scores of 580 or above may qualify for maximum financing. That means a down payment requirement of only 3.5% of the adjusted value of | more...