March 30, 2020

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Articles Tagged With: FHA Mortgage

HUD Announces Settlement In California Fair Housing Sexual Harassment Case

HUD Announces Settlement In California Fair Housing Sexual Harassment Case

Some renters and house hunters are not aware that sexual harassment from someone at any stage of the housing process can be considered a violation of federal law. Did you know that the Fair Housing Act forbids landlords and others involved in the housing industry from sexually harassing those in search of housing (bought or rented)? A recent settlement announced by the Department of Housing and Urban Development highlights this issue. According to HUD, the agency recently approved a conciliation agreement, “requiring Ronoel Romero, Blanca Romero, and Mario Prudencio, the owners and manager of a Bakersfield, California, apartment complex, to pay $14,500 to several female residents”. The required payment is part of the settlement. Fair Housing Act laws forbid housing providers from sexually harassing tenants. The prohibition includes “creating a | more...

 
Closing Day On Your FHA Home Loan

Closing Day On Your FHA Home Loan

What do you need to know about closing day for your FHA home loan? There is plenty of advice out there including the idea that you should not schedule loan closing AND moving trucks on the same day. But why? Because there are some variables that could delay your closing day, and you don’t want to get stuck juggling TWO rescheduling needs instead of just one (to say the least). Closing Day Delays Your closing day could be rescheduled for any number of reasons–there could be an issue with the title, your appraisal could come in too low, you may pay for the home inspection only to find that there are problems with the home not covered by the appraisal. Some issues are merely delays. Others could develop into a | more...

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

FHA Construction Loans Versus USDA Construction Loans

Why would borrowers choose to build a home on their own land using an FHA One-Time Close construction loan (which requires a down payment of 3.5%, minimum) instead of a no-money-down USDA home loan? There are several reasons why an FHA mortgage might be the better choice depending on circumstances, even with a required minimum down payment. That down payment is far less than some conventional loans require. USDA Mortgage or FHA Home Loan? USDA construction loans offer an advantage to eligible borrowers thanks to their zero down payment requirement. But a USDA mortgage is need-based, and these loans (even construction loans) have a household income cap. USDA loan rules state that in some cases, borrowers who have assets higher than the USDA limit “…may be required to use a | more...

 
Four Things to Remember About Home Loans and Credit Scores

How Much Is My Down Payment With An FHA Mortgage?

Many buyers want to know how much their FHA loan down payment requirement is. The answer is not as easy as quoting a percentage since there are variables that can affect the amount of the down payment you will be required to make. FHA Loan Down Payment Basics There is no fixed dollar amount for the down payment-each transaction will have its’ own required down payment amount based on the calculation below. The lowest down payment you can make with an FHA mortgage is 3.5% of the adjusted value of the home. There are circumstances where a higher down payment is required because a borrower’s FICO scores don’t qualify them for maximum financing. In those cases, FHA loan rules dictate that where a borrower’s FICO scores are between 500 and | more...

 
Refinance Loan Applications Spike In March 2020

Myths About FHA Refinance Loans

There are plenty of misconceptions about refinancing real estate. If you have a house you want to refinance, it’s good to learn what you can and cannot do with an FHA refinance loan before you start shopping around for a lender. And you WILL want to shop around. FHA Refinance Loan Myths: You Have To Keep Your Original Lender You are free to refinance you home with another lender offering more competitive terms, rates, or perks for borrowing with that financial institution. FHA Refi Loan Myths: You Have To Refinance Into A Fixed-Rate Mortgage Borrowers can choose an FHA Adjustable Rate Mortgage (ARM) at refinance time if the lender offers such a loan. Not all participating lenders will, which is another reason to shop around for the right lender for | more...

 
FHA Home Loan Limits: Facts You Should Know In 2020

Preparing For A Home Loan As A New Borrower

Preparing for a new home loan requires time. Before you start looking at real estate listings, talking to sellers, or begin filling out loan paperwork, you will need to take several steps ideally started at least a year before you begin house hunting. Begin Saving For Your Down Payment And Other Expenses Now There are appraisal fees, home inspection expenses, possible flood zone determination costs depending on location, closing costs, and the down payment to think about. Start saving as early as possible for these expenses. Start Checking Your Credit Reports Now If you find any items on your credit report that need to be disputed, the process can take many months. Don’t wait until later to take this step, the time you save will be critical later. You do | more...

 
Home Buying And Your Credit

First-Time Home Buyer Advice: How To Buy Your First Home With Less Cash Up Front

First-time home buyers often need to save as much cash up front on the transaction as possible. There are ways you can prepare for your FHA home loan in the planning stages that can help you buy your first home with less out-of-pocket costs. Do you know what they are? First-Time Home Buyers Should Work On Lowering Credit Card Balances Very Early Whenever Possible One very important factor in qualifying a borrower as a good credit risk when buying a first home? The amount of debt the first-time borrower carries versus the amount of monthly income. Your debt ratio is just as important as FICO scores, and the lower your debt ratio, the better off you will be when the lender goes to approve or deny the home loan application. | more...

 
FHA One-Time Close Construction Mortgage Basics

FHA One-Time Close Construction Loan Rules

What do borrowers need to know about FHA One-Time Close construction loans? There are two very important areas to keep in mind. One involves the lender’s specific requirements to qualify for this single-close construction loan, and the other involves FHA loan rules. The two are not always identical and this is something to be aware of when going into the loan application process. FHA One-Time Close mortgages are different than existing construction loans because the home must be designed, built, and paid for from the ground up and there are varying time frames under which this will be done. Purchasing an existing construction home means getting to move in much more quickly, but the trade-off is that you are purchasing someone else’s home rather than having one built especially for | more...

 
HUD Announces Million Dollar Settlement With Bridgeport Housing Authority Over Disability Discrimination Claims

HUD Announces Charges In New Jersey Housing Discrimination Case

There are many types of housing discrimination, and the Department of Housing and Urban Development actively pursues complaints of Fair Housing Act violations. The most recent was announced on the HUD official site in a press release titled, “HUD Charges New Jersey Condo Association with Discriminating Against Resident with Disabilities”. According to the press release, HUD’s allegations include charges that the the condo association “only allowed the resident, who is sight and hearing impaired, to use the service door instead of the main entrance to the development or the common areas when accompanied by her assistance animal.” The press release says there are other allegations, one being that the condominium association charged the resident’s daughter a fee “because she walked her mother’s assistance animal in the development’s common areas”. It | more...

 
Can I Buy A Rental Property With An FHA Mortgage?

Can I Buy A Rental Property With An FHA Mortgage?

Can I buy a rental property with an FHA mortgage? This is a question borrowers ask when they are considering trying to use the property they buy with their new mortgage to earn income or even help pay the mortgage itself. Is this possible under FHA home loan rules? FHA Mortgage Loan Rules: You Must Occupy The Property You Purchase With An FHA Mortgage Most FHA single family home loans include an occupancy requirement, which means if you intend to rent a property you purchase with an FHA loan, it must be a single-unit or multi-unit home that you intend to occupy. FHA loans technically permit mortgages for properties with up to four living units. Your participating FHA lender may or may not offer home loans for multi-unit properties, so | more...