October 22, 2017

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Articles Tagged With: FHA Mortgage Loan

What do I need to know about applying for an FHA loan?

What Do I Need To Know About Applying For An FHA Loan?

What do I need to know about applying for an FHA loan? There are a variety of things you should know before you fill out FHA mortgage loan application paperwork. FHA Loan Residency Requirements You do not have to be a United States citizen to apply for an FHA mortgage loan. The only requirement is that the applicant must be in the U.S. legally and have documentation to prove it. Resident aliens and non-resident alien loan applicants will be required to document their status but would not be turned down for an FHA mortgage loan on the basis of not being a citizen. FHA Loan Credit Requirements For maximum financing, FHA loan rules say FICO scores of 580 or better are required. However, lender standards may be higher-check with your | more...

 
What are the interest rates on FHA mortgage loans?

What Are The Interest Rates On FHA Mortgage Loans?

What are the interest rates on FHA mortgage loans? This is a question that can be tough to answer because there are variables involved. Some of those variables are with the lender, but some are associated with the borrower. FHA Interest Rates Are Not Set By The FHA One very important aspect of FHA loans to be mindful of; the FHA and HUD do not set or regulate the interest rates on FHA mortgage loans, refinance loans, or loan assumptions. Interest rates will be negotiated between the lender and the borrower. FHA Mortgage Loan Interest Rates Are Not The Same For All Borrowers FHA loan interest rates, like other mortgage loan rates, are determined in part by market forces, but also by the borrower’s financial qualifications. The greater credit risk | more...

 
FHA Mortgage Rules For Homes In A Flood Zone

FHA Mortgage Rules For Homes In A Flood Zone

In a previous blog post we discussed some of the FHA loan rules for purchasing homes that may be located in flood zones. According to the FHA loan handbook, homes in certain types of flood zones or Special Flood Hazard Areas are not eligible for FHA mortgages (including but not limited to SFHA Zone A, a Special Flood Zone Area, or Zone V). But other properties may be eligible. FHA loan rules for homes that are in a flood zone but are still eligible for an FHA mortgage vary depending on the type of property. Let’s examine the rules for each: Proposed or New Construction Homes HUD 4000.1 says of these properties: “If any portion of the dwelling, related Structures or equipment essential to the value of the Property and | more...

 
Can I buy a manufactured home with an FHA loan?

Can I Buy A Manufactured Home With An FHA Mortgage?

Can I buy a manufactured home with an FHA loan? That is a question on the minds of many who are interested in purchasing a mobile home or manufactured home. What are the FHA loan rules for these properties? For starters, It IS possible to buy a mobile home or manufactured home using an FHA mortgage. Not all participating FHA lenders offer these loans (that’s up to the discretion of the lender) so you will need to find a lender who offers this type of FHA mortgage. Secondly, the homes themselves must meet FHA loan standards and other requirements in order to qualify for the mortgage. What are the FHA loan rules for mobile and manufactured home loans? One of the most basic areas addressed in the FHA loan handbook | more...

 
Can I get an FHA home loan if I owe back taxes?

Can I Get An FHA Home Loan If I Owe Back Taxes?

Can I get an FHA home loan if I owe back taxes? The answer to this question depends on more than one factor, the most important being whether or not the borrower is delinquent on the taxes owed. In general, borrowers who come to the home loan process with delinquent accounts will find it difficult to get loan approval. Borrowers should expect to come to the FHA home loan process with a minimum of 12 months of on-time payments for all financial obligations. That said, disputed accounts and/or issues connected to identity theft may have different requirements (police reports, documentation of the issues, etc.) When it comes to taxes, FHA loan rules emphasize the requirement to be in a satisfactory payment arrangement with the creditor and a minimum period of | more...

 
FHA Loans And Natural Disasters: What You Should Know

FHA Loans And Natural Disasters: What You Should Know

FHA home loans can be affected by natural disasters such as Hurricane Harvey. Whether you have experienced damage to your property due to high winds, flooding, or other issues, once that damage has been done you will need to deal with your mortgage lender, your insurance company, and other agencies. Some borrowers may need financial relief in the form of loan forbearance, foreclosure avoidance or other measures. The FHA loan handbook, HUD 4000.1, has a section heading titled “Loss Mitigation” which is all about foreclosure avoidance and options borrowers may have to save their homes. Those options include what happens after a natural disaster, starting with a 90-day moratorium on foreclosures based on circumstances outlined below: “FHA-insured Mortgages secured by Properties located in Presidentially-Declared Major Disaster Areas (PDMDA) will be | more...

 
Can I buy a condo unit with an FHA mortgage?

What Happens To FHA Loans Not Endorsed Prior To A Natural Disaster?

In our previous blog post, we examined FHA loan rules for properties that were in the process of being purchased (but had not closed the deal) before a natural disaster struck. What happens when an FHA home loan is not endorsed by the lender prior to the disaster? The answer may first depend on whether or not the location of the home is in a federal disaster area or not. The following information applies only to homes located in a federally declared major disaster area-according to HUD 4000.1, the FHA loan handbook: “All Properties with pending Mortgages or endorsements in Presidentially-Declared Major Disaster Areas (PDMDA) must have a damage inspection report that identifies and quantifies any dwelling damage. The damage inspection report must be completed by an FHA Roster Appraiser | more...

 
What if my home was damaged in a natural disaster?

What If My Home Was Damaged In A Natural Disaster?

What if my home was damaged in a natural disaster? This is an important question. The answers, depending on circumstances, may affect FHA borrowers and non-FHA borrowers alike. The FHA and HUD official site discusses a variety of remedies for those who have experienced a natural disaster. Some of the most important advice? Contact your lender, your insurance agent, and FEMA as soon as possible after the disaster to make arrangements regarding FHA loan forbearance, foreclosure avoidance, and federal assistance. For borrowers with conventional mortgages, different options and requirements may apply. It is not safe to assume that any of the above is automatic-in most cases help must be applied for, especially where FEMA is concerned. Borrowers should also not allow themselves to be pressured into quick insurance settlements. You | more...

 
Why is peeling paint an issue for the FHA appraisal?

Are FHA Appraisals The Same As Home Inspections?

Are FHA appraisals the same thing as home inspections? We’ve fielded a few reader questions this week about this issue, and it is very important for borrowers to fully understand why they should budget and save for the optional home inspection in addition to an FHA appraisal (which is not optional). FHA appraisals are NOT the same as home inspections. Appraisers and home inspectors will approach the same property with different intentions and procedures. The FHA appraisal will never give a borrower an informed look at the home the way the home inspection is designed to; the shortest way to address this issue is to state that appraisals are for lenders, home inspections are for borrowers. Even if a property makes it all the way through the appraisal process with | more...

 
Can I buy a condo unit with an FHA mortgage?

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...