October 26, 2020

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Articles Tagged With: FHA Mortgage Loans

The FHA One-Time Close Construction Loan: An Option In 2020

FHA Implements New Construction Loan Rule Changes

The FHA has announced rule modifications for its new construction loans. On October 22nd, 2020, the FHA and HUD issued a Mortgagee Letter detailing modifications made in 2018 and 2019 which have resulted in a need for further alterations of the rules for New Construction loans. Some of the changes end requirements for “Early Start Letters” and other requirements, others make provisions for “alternative inspections” as we’ll discover below. The FHA/HUD official site states there are also changes to the maximum financing policy for FHA New Construction loans. Effective immediately–lenders can choose to wait on implementing these modified rules until January 4, 2020, but have the option to start using the new rules now if they so choose) the following modifications are being added to HUD 4000.1: Eliminating Early Start | more...

 
Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

Does FHA Offer Adjustable Rate Mortgages?

Does FHA offer adjustable rate mortgages? When you shop around for a participating FHA lender, be sure to ask about this type of FHA loan, sometimes known as an FHA ARM. Not all participating lenders may offer an FHA adjustable rate mortgage, but for those working with a lender that does, it is important to know some basics about the mortgage and how FHA loan rules govern the adjustments in the interest rates. Borrowers who apply for an FHA ARM loan must sign a disclosure statement that outlines the terms and conditions of the mortgage. The rules that govern FHA ARM loans are found in HUD 4000.1, and those rules begin with a definition of what the FHA considers to be an ARM loan. “An Adjustable Rate Mortgage (ARM) refers | more...

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

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

What kinds of homes can be purchased with an FHA mortgage loan? You can build a home from scratch using an FHA Construction mortgage, but may people want to buy existing property and what kinds. Eligible Property Types For FHA Mortgages FHA loan rules in HUD 4000.1 state clearly that certain kinds of property are permitted and certain kinds are not. These rules on eligible property types that can be purchased with an FHA mortgage loan are found in HUD 4000.1, and include the following guidance you should know: “FHAs programs differ from one another primarily in terms of what types of Properties and financing are eligible. Except as otherwise stated in this SF Handbook, FHAs Single Family programs are limited to one- to four-family Properties that are owner-occupied Principal | more...

 
FHA Loan Down Payment Rules

FHA Loan Down Payment Rules

One of the biggest worries for some borrowers interested in buying or building a home? The down payment. At the time of this writing, there are only two zero-down payment mortgages offered nationally by participating lenders offering government-backed mortgages; the VA mortgage and certain USDA single-family home loans. USDA home loans are need-based mortgages with income caps and purchase price limits; VA mortgages are only for those with qualifying military service and certain surviving spouses of those who have died as a result of military service. For FHA mortgages, there is no need-based requirement and you do not have to be a veteran OR a first-time home buyer to apply for an FHA mortgage. FHA loans are offered to all who financially qualify with no income limits. FHA down payment | more...

 
Build on your own lot. Construction loan basics

FHA Construction Loan Facts: What You Need To Know

There are many options available when you are searching for a house to buy. The first set of choices often involves the type of home loan you want to apply for–believe it or not there is no one-size-fits-all mortgage. If you want to purchase a condo with an FHA mortgage, for example, there is a specific loan and procedures for that. But what if you want to have a house built for you from the ground up? This is also an option, even for first-time home buyers. You can apply for a conventional one-time close construction loan, but you’ll be applying for conventional loan interest rates and terms; an FHA One-Time Close construction loan has a 3.5% down payment requirement, which is lower than you may be offered on a | more...

 
Credit Requirements For Your FHA Home Loan In 2020

Mortgage Scams During COVID-19: Borrower Beware!

The Federal Trade Commission warns mortgage borrowers to beware of scams that prey upon homeowners in trouble during the coronavirus outbreak. The FTC Chairman, Joe Simons, was quoted in an FTC press release advising borrowers about the FTC’s role in prosecuting scam artists taking advantage of Americans who have been affected by COVID-19. “The FTC is ready to assist businesses that may seek guidance about compliance obligations on consumer protection issues during this unprecedented time,” Simons said in the press release. If you have been contacted by a third party about coronavirus financial relief and suspect a scam artist at work, report coronavirus-related scams at ftc.gov/complaint. What should consumers do to protect themselves from coronavirus mortgage scams? The first step is simply to recognize that if you have not initiated | more...

 
Buying a House In the Era of COVID-19

Facts About FHA Mortgage Loans

FHA home loans and refinance loans are complex, and the less you know about how the process works, the harder it can be to make sense of your loan. What you don’t know about home loans can make a big difference in the price you pay, the terms you accept, and more. FHA Loans: Credit Checks Are Very Important Credit counts. How much do you want to pay in interest and money up front for the down payment? Your credit score affects the cost of your loan. How can you get financially ready for your home loan application? Do not begin the FHA loan application process with fewer than 12 months of on-time payments. You should make on-time, every time payments on all financial obligations with no late or missed | more...

 
Buying a House In The Era of Corona

Is It Safe To Go House Hunting During The Coronavirus Outbreak?

Is the housing market is in “disarray” in the wake of the coronavirus? Some think so, sharing stories of lenders refusing new loans, mortgage rates moving contrary to their traditional patterns in the presence of influences that normally tend to put upward or downward pressure on those rates, etc. And then there’s the coronavirus itself, bringing cancellations, disrupted travel plans, and slow sales due to reduced demand. But even with all this, house hunting and real estate sales continue. But what can a home loan applicant do when they are afraid of catching coronavirus (however justified those fears may or may not be) or even just the garden-variety flu? Technology provides the answer for some in the form of the virtual real estate tour. Virtual tours can take the form | more...

 
FHA/HUD

HUD Announces Settlement In California Fair Housing Discrimination Case

The Department of Housing and Urban Development (HUD) has announced a conciliation agreement in a California Fair Housing complaint alleging housing discrimination against those with children. Oberhauser Trust and its leasing agent, First Core Group, Inc. (doing business as Keller Williams Realty, in Glendale, California) were named in a complaint alleging denial of housing for a father of two; according to the HUD official site, this case was brought to the agency’s attention after the father was denied housing. According to a HUD press release, “…a father of two and his father-in-law filed a complaint alleging that the father was denied the opportunity to rent a condominium because he has two young daughters who would be living with him part-time.” The complaint alleges that an application to rent a condo | more...

 
Buying a House In The Era of Corona

Low Home Loan Interest Rates: How Long Will They Last?

Mortgage loan interest rates and the coronavirus–how low can they go? COVID-19 and coronavirus headlines have, via investor reaction to the headlines and the situation in general, greatly affected mortgage loan interest rates, pushing them to lows not seen in quite some time. Investors are putting more funds in safer investments, which can serve to put downward pressure on mortgage loan interest rates. The rates have fallen to incredible lows in 2020; not many expected rates to fall THIS low and some homeowners are scrambling to refinance and take advantage of lower rates and less costly monthly payments. Some borrowers might feel as if maybe they owe it to themselves to try to buy or refinance with mortgage rates as low as they are now; 3.25% for FHA and VA | more...