December 10, 2018

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Articles Tagged With: FHA Mortgage Loans

FHA Cash Out Refinance In 2019

FHA Cash Out Refinance In 2019

There are many uses for an FHA cash-out refinance loan in 2019. Are you considering paying down student loan debt? Taking equity out of your home in cash for use to to home improvements, or to make a down payment on a new vehicle? FHA loan rules don’t restrict how you can use the funds from your cash out loan. FHA Cash-Out Refinance Loans In 2019 Some borrowers may be concerned about the rising home loan interest rates of 2018, but interest rate trends go in cycles and some mortgage experts are looking to the new year for some corrections or a slowing of interest rates going up based on the notion that further increases might damage consumer confidence. That would encourage the Fed to avoid more rate hikes at | more...

 
FHA Home Loans And Occupancy: What You Can And Cannot Do

FHA Home Loans And Occupancy: What You Can And Cannot Do

If you are buying an existing construction home with an FHA mortgage, or having one built for you using an FHA One-Time Close construction loan, you will notice some common requirements for these mortgages; one such requirement involves the borrower’s use of the property once the loan has closed. FHA new purchase mortgages, also known as forward mortgages, are intended for those who wish to occupy the home as their main address, or “primary residence”. Some borrowers may be confused by this requirement because they assume you can buy and rent out a home using an FHA mortgage without intending to occupy it. But the reality is that FHA mortgages actually require occupancy by at least one person obligated on the home loan, so how is it possible to purchase | more...

 
FHA home loans for families

FHA Home Loan Basics: Who Qualifies?

Are you looking for a home loan? Do you want to buy a home with a mortgage loan in 2019? The FHA Single-Family Home Loan program offers a wide variety of options for qualifying borrowers, but some future home owners make the wrong assumptions about FHA mortgages. How much do you know about this important home loan option? FHA Home Loans Are For Any Financially Qualified Borrower Regardless Of Past Home Ownership If you have applied for a home loan in the past, owned a home before, or are a current home owner, you are not excluded from consideration for an FHA mortgage under the rules of the FHA program. This is true of all FHA mortgages including One-Time Close construction loans, FHA condo loans, and FHA mortgages for multi-unit | more...

 
FHA Home Loans: Should I Buy A House Or A Condo?

FHA Home Loans: Should I Buy A House Or A Condo?

One of the big choices facing some FHA home loan applicants is whether to concentrate on buying a suburban-type home or a condo unit. FHA home loans for condo unit purchases are definitely available from participating lenders willing to offer them; what are the differences between an FHA home loan for a condo or other types of properties? FHA Condo Loan Rules: The FHA Approved Condo Projects List FHA loan rules in HUD 4000.1 require all condo units secured by an FHA mortgage to be on or added to an FHA approved condo project list. Your lender can help work with you on a condo project to get it added to the list, assuming the project meets FHA loan requirements. If you want to search for an already-approved condo project | more...

 
FHA Reverse Mortgage Policy Changes Explained

FHA Reverse Mortgage Policy Changes Explained

In a recent blog post we discussed recent changes to FHA Reverse Mortgage loan policies. Here are some explanations of some of those policy changes and how they affect mortgage loan processing for FHA Home Equity Conversion Mortgages, also known as reverse mortgages. Evidence of Current Hazard Insurance FHA reverse mortgages require the lender to verify the existence of hazard insurance where required and to make sure that insurance is current, not delinquent. According to the 2018 HECM policy updates, participating FHA lenders who issue reverse mortgages are now allowed to accept alternative documentation of hazard insurance: “In lieu of a current hazard insurance declaration page, HUD will accept a document from the hazard insurance provider (i.e., hazard insurance company underwriting the property and responsible for paying a claim) on | more...

 
Getting A New FHA Loan After Selling Your Home

Getting A New FHA Loan After Selling Your Home

A lot of the advice you read about home loans in general, and FHA mortgages in particular, is aimed at the first-time home buyer. But what happens after that first-time buyer becomes a home owner, eventually sells the property, and wants to purchase another home with an FHA loan? Buying another home after selling your old one will seem very familiar in many ways, but when you purchase again after selling (or choose to sell and purchase at the same time) you will need some extra supporting documentation. Your FHA lender is requires to verify your income and debts the same way as with the original mortgage. But having purchased a home, and paid it off via the sale of the property (or even simply paying off the old mortgage | more...

 
FHA Loan Rules For Presidentially-Declared Major Disaster Areas

FHA Loan Rules For Presidentially-Declared Major Disaster Areas

In September of 2018, the FHA and HUD issued a reminder to lenders and FHA loan servicers regarding official policy for dealing with loans in presidentially-declared major disaster areas. A document labelled FHA INFO #18-40 states that for both forward loans and FHA reverse mortgage loans, certain guidance applies once the federal disaster area declaration has been made. The guidance begins with a definition of the disaster area declaration, explaining that it is made when “natural or other events are of such severity that it is beyond the combined capabilities of state and local governments to respond”. When this is invoked by the president, FHA loan guidance to participating lenders includes the following: FHA Loan Foreclosure Moratorium FHA loan rules include a 90-day moratorium on foreclosures following the declaration of | more...

 
FHA One-Time Close Construction Loans In 2019

FHA One-Time Close Construction Loans In 2019

Why should borrowers consider applying for an FHA One-Time Close (OTC) Construction Loan to build a home in 2019? There are several reasons why having a home built for you from the ground up rather than purchasing an existing construction property might be appealing. FHA One-Time Close mortgages are construction loans that have a single application and closing date; they require the use of escrow and the borrower can either purchase land to build on or use the land already owned. What are the motivations for using an FHA OTC? FHA One-Time Close Construction Loans have lower down payment guidelines, equity in the land owned could be used toward the FHA down payment requirement where applicable, and the borrower makes no mortgage payments during the construction phase of the loan. | more...

 
FHA Home Loan Approval Questions

FHA Home Loan Approval Questions Part One

FHA home loan approval is a process that requires your lender to review your credit history, employment history, and many other factors before deciding to approve or deny a home loan application. There are many questions about this process, and the more answers you have before yo start filling out applications, the better. The answers in this blog post pertain to FHA loan basics, but also rules for self-employed borrowers and those earning commission income. FHA Loan Approval Basics: What Do I Need To Know? The lender will pull copies of your credit report and review your payment history for the 12 months leading up to the mortgage loan application. FHA loan rules are similar to other home loan requirements in this area; coming to your FHA mortgage application process | more...

 
Buying Real Estate With An FHA Mortgage Loan In 2019

What Happens If I Pre-Pay My FHA Mortgage?

What happens if you pre-pay your FHA mortgage? FHA home loans are known for having no pre-payment penalty but there may be certain steps the borrower is required to take in order for such pre-payments to be used as intended. The date of your FHA loan may make an important difference in how you are to proceed; it’s best to discuss pre-payment options with your loan officer ahead of time to learn what, if any, additional lender requirements may exist above and beyond the FHA loan standards we’re discussing here. What follows is NOT lender policy but the FHA loan rules. Lender requirements may add to or further develop these FHA guidelines. FHA Home Loan Rules For Pre-Payment On Mortgages Closed On Or After January 21, 2015 FHA loan rules | more...