August 20, 2017

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Articles Tagged With: FHA Mortgage Loans

What Kind Of Home Can I Buy With An FHA Mortgage?

What Kind Of Home Can I Buy With An FHA Mortgage?

What kind of home can you buy with an FHA mortgage? The answer isn’t what some people expect, likely due to a misunderstanding of the FHA loan program, who it is intended for, and why it exists. A good example of this? The assumption that FHA mortgages are primarily for first-time home buyers or the economically disadvantaged. Such assumptions are not true. FHA loans are for any financially qualified applicant, which means you don’t have an income threshold to meet, there are no restrictions on those who have purchased homes before, and there is no income maximum. What kind of home can you purchase with an FHA mortgage? FHA loans permit the purchase of homes which are primarily residential, have no restrictions of resale, and which meet FHA minimum standards | more...

 
Where can I get an FHA loan?

Where Can I Get An FHA Loan?

Where can I get an FHA loan? There are plenty of options when you are ready to begin your journey to become a home owner-you can apply in person, or get pre-qualified or apply online. How does it all work? Who Offers FHA Home Loans? FHA mortgages are offered by participating lenders who have been approved by the FHA to offer FHA mortgages, refinance loans, FHA Reverse Mortgages, and rehab loans. The FHA itself does not loan the money for you to purchase your home. The FHA may require the lender, depending on circumstances, to work with the FHA to approve certain home loans, but many FHA lenders have earned the right to offer loans “unsupervised”, meaning they have met standards that permit them to make decisions on loan approval | more...

 
FHA 203(k) Fixer-Upper Loans: What About The Appraisal?

FHA 203(k) Fixer-Upper Loans: What About The Appraisal?

When you buy a home with an FHA mortgage, it must be appraised to insure the property meets minimum FHA standards. A home to be purchased with an FHA mortgage must be code-compliant, it must not be too close to high voltage lines or high pressure gas pipelines, and there are specific requirements for property located near know natural disaster zones. All of these requirements protect buyers and lenders alike, but there are certain instances where a property would never pass the FHA appraisal, yet borrowers seek mortgage loans for these properties anyway. Consider the borrower who needs a home loan to do rehab or repair work on an existing structure that badly needs it. And what about the borrower who wants to purchase a fixer-upper home, or a property | more...

 
How soon can I sell my home? FHA loan rules.

How Soon Can I Sell My Home? FHA Loan Rules Part Two

How soon can I sell my home? In our previous blog post on this subject, we examined the FHA loan handbook, HUD 4000.1, and what it has to say about how quickly you can sell a property purchased with an FHA mortgage once the loan has closed. In general, FHA loan rules don’t have much to say about what the owner of record does with the property (with regard to selling it) once it has been purchased and occupied as per FHA loan requirements. The spirit of the FHA loan rules seems to be that the owner should be free to sell without restriction. But FHA loan rules do have something to say about buying a home shortly after it has been purchased from another. There are restrictions on “flipping”, | more...

 
What are the differences between FHA loans and conventional mortgages?

What Are The Differences Between FHA Mortgages And Conventional Loans?

What are the differences between FHA loans and conventional mortgages? That’s a very good question, and one that has a multi-faceted answer. Borrowers could find that with careful planning, the amount of mortgage debt with an FHA mortgage is lower than with some conventional equivalents. The most basic difference between FHA mortgages and conventional home loans is that conventional loans are not backed in any way by the United States government, while FHA loans are guaranteed with government funds. This makes FHA loans easier to get since there is less risk to the lender. FHA loans differ from conventional loans in a variety of other ways, as we’ll examine here. Lower Interest Rates Interest rates on FHA mortgage loans are lower than conventional mortgages. You can easily verify this by | more...

 
How Do FHA Loan Appraisals Work?

How Do FHA Loan Appraisals Work? Part Two

FHA loan appraisals are a big part of the FHA loan approval process. Without the appraisal, your home loan application cannot move forward. The FHA appraiser compares the home you want to buy with an FHA loan to similar properties on the market and reviews the condition of the home to make sure it meets FHA minimum standards. Once the value of the home has been established, your lender can determine what your FHA loan amount should be, factoring in the amount your required down payment, plus the amount of any extras you choose to have financed into the loan (such as the Up Front Mortgage Insurance Premium). The FHA appraiser will visit the property-there is a requirement that the appraiser be physically present-to look at the home inside and | more...

 
Where can I apply for an FHA loan?

Where Can I Apply For An FHA Loan?

Where can I apply for an FHA loan? Borrowers who are at the start of their home loan journey might not realize that not all home loans are created equally, that not all types of mortgages are offered by lenders, or what it means to get pre-qualified for a mortgage. What you should know to start is that FHA mortgages are not the same as conventional home loans. That is why not all lenders offer FHA mortgages. The FHA home loan program has requirements which must be met in order to be an approved FHA lender. When you find a participating lender offering FHA mortgages, you should know that these lenders have taken steps to meet FHA requirements, standards, and have received plenty of guidance on what is acceptable under | more...

 
How Do FHA Loan Appraisals Work?

When Is An FHA Loan A Good Idea?

When is an FHA loan a good idea? The answer depends on what you’re looking for from a home loan. Some borrowers are exactly right for an FHA mortgage, others may need another alternative. Is an FHA loan right for you? FHA Loan Occupancy Requirements Most FHA single family home loans require occupancy. The lender will ask you to certify in writing that you intend to occupy the property as your primary residence and not as a vacation home or other occasional occupancy type situation. Borrowers are free to purchase homes with up to four units and rent out the unused living units, but at least one borrower must occupy the home as her or his primary residence (usually within two months of loan closing). So if you are looking | more...

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

Who Qualifies For FHA Loans?

Who qualifies for an FHA mortgage loan? There are lots of misconceptions about this-some people think FHA mortgage loans are only for first-time home buyers, others might wrongly think FHA loans are only for people who can’t afford a conventional mortgage. But the truth is much different-FHA loans require borrowers to financially qualify, but there are not restrictions on who can apply when it comes to past home ownership, “maximum income” or other factors. FHA Loans Are For First-Time Home Buyers AND Those Purchasing Homes Again That’s correct. FHA mortgage loans don’t, under the basic rules of the program itself, favor first time home buyers with different terms than those who are purchasing another home. Second, or even third-time home buyers can get the same benefits of an FHA mortgage | more...

 
Who should get an FHA loan?

Who Should Get An FHA Loan?

Who should get an FHA loan? There are a variety of options with FHA mortgages, and depending on your financial goals and needs, you may find an FHA mortgage is the right choice for you, especially if you are interested in lower interest rates, and a more competitive down payment requirement. FHA Loans Are For Those Who Need A Lower Down Payment You should get an FHA mortgage loan if the idea of paying as much as 10% down doesn’t work for you. FHA mortgage loans require a minimum 3.5% down payment, which is based on the adjusted value of the property you are purchasing. It is important to know that your credit history will play an important part in determining your down payment in some cases; borrowers who have | more...