August 20, 2017

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Articles Tagged With: FHA Mortgage

Can my seller pay some of my closing costs?

Can My Seller Pay Some Of My Closing Costs?

Can my seller pay some of my closing costs? The basic answer is, “yes, within certain limits.” FHA loan rules permit certain expenses to be negotiated between buyer and seller, including the contribution of allowed costs. How does it work? FHA Loan Rules For Interested Party Contributions HUD 4000.1, the FHA loan handbook, defines “interested parties” as “sellers, real estate agents, builders, developers or other parties with an interest in the transaction”. HUD 4000.1 states that such interested parties are permitted to offer payments on “origination fees, other closing costs and discount points” within the bounds of FHA loan rules (more on that below), state law, and lender standards. What Payments Can An Interested Party Contribute? HUD 4000.1, page 232, states that an interested party or parties may contribute towards | more...

 
What is an FHA appraisal?

What Is An FHA Appraisal?

What is an FHA appraisal? It’s one of the most important parts of your home loan process when purchasing property with an FHA mortgage. The appraisal is a mandatory review of the property to help the lender establish the fair market value of the home while making sure the property meets minimum FHA requirements. But there’s more to the appraisal, as we’ll learn. The FHA Appraisal Is A Tool For Your Loan Officer Appraisals are not intended to help or inform the buyer as to the condition of the property. Some mistake the FHA appraisal for a home inspection, assuming that the FHA will “approve” or “reject” a home based on its’ condition. The appraisal process is NOT a home inspection. Borrowers who choose not to pay for a home | 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...

 
Where do you get an FHA construction loan?

Where Do You Get An FHA Construction Loan?

Where do you get an FHA construction loan? Borrowers who don’t want to purchase an existing construction property (one that has been previously owned) or a new construction home (one that is brand new and has not been owned or occupied previously) will definitely be interested in learning where to get an FHA construction loan to buy a single family home. The short answer is that an FHA construction loan is definitely possible under FHA loan program guidelines, but you will need to find a participating FHA lender willing to issue you the loan. Not all FHA lenders offer construction loans so you’ll have to shop around if your first choice in a financial institution doesn’t offer this type of FHA mortgage. There are two kinds of FHA construction loans. | more...

 
What Can I Rehab With An FHA 203(k) Mortgage?

What Am I Allowed To Rehab With An FHA 203(k) Mortgage?

In our last blog post, we discussed what is permitted under the FHA 203(k) rehab mortgage loan. Borrowers are allowed to apply for a new purchase loan or an FHA refinance loan under the 203(k) program, which the FHA loan handbook describes as being used to do the following: – rehabilitate an existing one- to four-unit Structure, which will be used primarily for residential purposes; – rehabilitate such a Structure and refinance outstanding indebtedness on the Structure and the Real Property on which the Structure is located; or – purchase and rehabilitate a Structure and purchase the Real Property on which the Structure is located. According to HUD 4000.1, “Structure” is defined as, “a building that has a roof and walls, and stands permanently in one place that contains single | more...

 
Can my seller pay some of my closing costs?

How Do You Get An FHA Construction Loan?

How do you get an FHA construction loan? This question isn’t as simple as it sounds, but those who want to have their new home built for them instead of purchasing existing construction properties will find that FHA mortgages for new construction are possible with a bit of extra effort. The first step toward getting an FHA construction loan is to find a participating FHA lender willing to offer them. Not all FHA lenders will offer construction loans, so you’ll need to shop around to find the right lender for you. There are two basic types of FHA construction loans-a “traditional” construction loan, and an FHA One-Time Close loan. Your participating lender may offer one, or both types-it’s best to discuss this as early in the process as possible since | more...

 
What does my FHA lender look for in my credit report?

What Is An FHA Loan?

What is an FHA loan? Simply put, an FHA loan is a kind of home loan that is guaranteed by the FHA and issued by a participating lender. Only FHA-approved participating lenders may offer FHA home loans, and the FHA itself does not lend money to home loan applicants. What The FHA Loan Program Can Do For You FHA loans can help you purchase a new home. These homes can be already built, but qualified borrowers also have the option to apply for FHA loans to pay for a home to be constructed from the ground up. Such loans are generally for what is known in the industry as “stick built” housing, which means a home that is constructed on-site rather than a manufactured home which is shipped in sections | more...

 
Can I Get A Second FHA Appraisal?

What Is An FHA Streamline Refinance Loan?

What is an FHA streamline refinance loan? This type of refinance loan option is intended for borrowers who have existing FHA mortgages and want to refinance into a lower interest rate or monthly payment. Streamline refinance loans allow the borrower to apply with no FHA-required appraisal or credit check. Your lender may require one or both, but the FHA allows the option to apply without such requirements. That’s a unique feature-FHA streamline refi loans allow the lender to use the borrower’s existing credit and appraisal data to approve the loan. This type of borrowing can be a major advantage for the home owner who has financial goals that include lower monthly payments. How Streamline Refinance Loans Work The FHA loan handbook, HUD 4000.1, describes streamline refinancing as follows: “Streamline Refinance | more...

 
What can I add to my FHA mortgage loan?

What Is An FHA Construction Loan?

The FHA single family loan handbook tells us that FHA home loans are for a variety of different types of purchases including existing construction, “new construction” which means a home recently built but never occupied by an owner, and “proposed construction” loans which allows the buyer to apply for a loan to fund both the construction phase and the “permanent” phase of the mortgage. How do FHA construction loans differ from new purchase loans? Aside from the obvious (new purchase loans for existing construction move faster than construction loans do thanks to the lack of a construction phase for the existing construction loan) there are some important considerations to think about when contemplating your construction loan options. Is An FHA Construction Loan Right For Me? If you need to get into | more...

 
What is an FHA loan down payment?

What Is An FHA Loan Down Payment? Sources Of Down Payment Funds

What is an FHA loan down payment? We examined the basics in our last blog post, but one important issue related to down payment funds? Their source. FHA loan rules state that the lender must verify the source of all funds to be used in the down payment. Not all sources are eligible to be used; FHA loan rules have strict guidelines about how and where such funds may be derived. For example, while borrowers are permitted to get down payment help from outside sources, none of those sources may have a financial stake in the outcome of the transaction. So your seller may not directly provide down payment funds, and any other contributing party cannot get reimbursement from anyone involved in the transaction. Down Payment Source Funds: The Official | more...