August 20, 2017

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Articles Tagged With: FHA Mortgage Loan

How Soon Can I Sell My Home After My FHA Loan Closes?

How Soon Can I Sell My Home After My FHA Loan Closes?

How soon can a borrower sell the home purchased with an FHA mortgage loan? The answer depends greatly on circumstances, but there are a few things to keep in mind. FHA home loans are intended for owner-occupiers, not investment property, so borrowers will need to keep that in mind when learning about the requirements and restrictions on an FHA mortgage in this area. In general, the FHA loan rules in this area are directed at the buyer’s side of the transaction. Owners are not prevented from offering property for sale, and FHA loan rules generally favor a home owner’s ability to freely sell property without restriction. But if you want to sell your property to someone looking to buy with certain types of mortgage loans backed by the government (like | more...

What does my FHA lender look for in my credit report?

What Is An FHA Loan?

What is an FHA loan? Simply put, an FHA loan is a kind of home loan that is guaranteed by the FHA and issued by a participating lender. Only FHA-approved participating lenders may offer FHA home loans, and the FHA itself does not lend money to home loan applicants. What The FHA Loan Program Can Do For You FHA loans can help you purchase a new home. These homes can be already built, but qualified borrowers also have the option to apply for FHA loans to pay for a home to be constructed from the ground up. Such loans are generally for what is known in the industry as “stick built” housing, which means a home that is constructed on-site rather than a manufactured home which is shipped in sections | more...

What is an FHA loan down payment?

What Is An FHA Loan Down Payment?

What is an FHA loan down payment? Simply put, your down payment on a home loan is an investment paid up-front which is separate from other loan expenses. The original idea behind making a down payment likely had something to do with the idea that a borrower who has invested a serious portion of cash up front on the home purchase has a greater interest in paying their mortgage, not defaulting on the loan, and being a successful home owner. FHA loan rules which govern the down payment are found in HUD 4000.1, the FHA loan handbook, and have plenty to say about the amount and sourcing of an FHA mortgage loan down payment. What Is An FHA Loan Down Payment? The FHA loan handbook describes the down payment, also | more...

Why should I refinance with an FHA mortgage loan?

Who Should Get An FHA Loan? Part Two

Who should get an FHA Loan? There are many reasons why you might want to explore your FHA loan options, and not all of them involve the need to purchase a new home. FHA loans are for both house hunters and those who are looking to refinance. The options you choose will depend on your financial needs and goals. FHA Loans Are For Refinancing, Too FHA refinance loans are an excellent choice for those who want to refinance. FHA loans can refinance existing FHA mortgages, but also non-FHA loans such as VA or conventional mortgages. Refinancing into an FHA mortgage has an even bigger advantage if you are currently in a non-FHA mortgage with an adjustable rate. You can refinance into a fixed-rate FHA home loan and get the benefit | more...

FHA loans

Happy Independence Day!

Today we pause from our usual schedule of writing about all things related to FHA home loans and refinance loans. We celebrate the 4th of July holiday with you today and will return tomorrow with our regular schedule of news and information about FHA mortgage loans. Have a safe and fun holiday, and thank you for reading!  

Where Can I Refinance An FHA Loan? Part Two

Where Do You Get An FHA Loan?

When you’re ready to apply, where do you get an FHA loan? There are plenty of misconceptions about the FHA home loan process, which usually get cleared up fairly quickly once you begin working with a participating FHA lender. But in the planning and saving stages of the loan, it’s good to know the facts about FHA loans, where to get them, and how they work. FHA Loans Are Offered By Participating Lenders Not all lenders participate in the FHA loan program, some are not permitted to participate, and some may not be certified by the FHA yet. Borrowers who need an FHA mortgage will need to find an active, participating lender who can qualify or prequalify the borrower for a mortgage loan. Participating lenders advertise their affiliation with the | more...

Low Down Payment FHA Loans

Low Down Payment FHA Loans

What is the key to low down payment FHA loans? The answer might surprise you, especially if you’re a first time home buyer. Getting a mortgage loan means (in most cases) that the borrower must budget and save for a down payment, but the amount of that down payment can vary quite a bit depending on the lender. For conventional loans you may find down payment requirements between five and 20 percent. But with FHA home loans, that amount can be as low as 3.5% of the adjusted value of the property. For FHA loan applicants who have FICO scores that may be considered “marginal”, that down payment requirement may be adjusted to 10%. Why the higher down payment? FICO scores. Believe it or not, your credit rating can be | more...

Mortgage Loan Rate Trends

FHA Mortgage Rates: Trending Slightly Higher After Recent Lows

Since our last report, we’ve seen mortgage rate trends push rates to lows we haven’t seen since the Christmas holiday season but the start of the new week has seen those rates creep slightly higher. Even with the minor upward movement, gone are the previously reported ranges of rates, replaced by single-digit best execution numbers some industry pros are urging borrowers to take full advantage of in situations where locking/floating is being considered. 30-year fixed rate conventional mortgages are reported, at the time of this writing, at the very bottom of the four percent range best execution. That means an extremely well-qualified conventional borrower could find rates as low as 4.0%. FHA mortgage loan rates are still below the four percent threshold, coming in at a best execution 3.75%. Best | more...

What Is An FHA Loan Limit?

FHA Loan Application Data: What You Should Know

The FHA single family loan program rule book, HUD 4000.1, has a variety of rules and instructions to the lender on how FHA loan application information is to be handled and processed. You might not think those rules affect you as an applicant, but some of the rules do pertain to how the lender must collect the borrower’s information and the approved sources of that information. Your credit scores and other data must be given to the lender from approved sources. Did you know that HUD 4000.1 does not permit the borrower to handle or transmit certain kinds of information to the lender? Your loan officer is responsible for making sure she gets the information from the proper sourcing. According to HUD 4000.1: “Mortgagees must not accept or use documents | more...


An FHA Loan For A Flipped Home?

Is a flipped home eligible for an FHA mortgage? That’s what one reader wanted to know this week. “What are the rules for buying properties that have been ‘flipped’ meaning an investor/homeowner has purchased the property did some updates and are now attempting to sale the property.” “Are there any sort of timing requirements (i.e. a buyer cant buy before 6 months after seller has purchased property)? Also, is there any sort of maximum markup on the price the investor is attempting to sale for on the property?” FHA loan rules in HUD 4000.1 are clear on this issue. According to page 146 of HUD 4000.1, “A Property that is being resold 90 Days or fewer following the sellers date of acquisition is not eligible for an FHA-insured Mortgage.” There | more...