April 23, 2018

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Articles Tagged With: FHA Mortgage

FHA Refinance Home Loans: Getting Ready

FHA Refinance Home Loans: Getting Ready

Do you know what you need to get ready for an FHA refinance home loan application? There are several areas you can prepare in before it’s time to sign the loan application paperwork. Check Your Credit Reports-EARLY FHA refinance loans should be treated in the same way your original home loan application was handled in terms of checking credit, avoiding new lines of credit before and during the refinance loan process, and trying to lower your debt ratio before the application. Decide The Right Refi Loan For You Your preparations for the new loan may depend greatly on the type of FHA refinance loan you are looking for; cash-out, no cash out, Streamline Refinancing, rehab refi loan, etc. How are these loans different? There are too many aspects to discuss | more...

 
FHA Home Loan Down Payment Sources: Retirement Funds and More

FHA Loan Down Payment Sources: Retirement Funds

We’ve been discussing FHA home loan down payment sources and the rules that govern them. FHA mortgage loan rules in HUD 4000.1 have strict requirements when it comes to the sourcing of down payments; since most FHA forward mortgages require a down payment, the rules in this area are very important to know ahead of your loan application. FHA Loan Down Payment Source Rules: Retirement Funds FHA loan rules permit the borrower to use retirement funds as a source of down payment money. According to HUD 4000.1: “The Mortgagee may include up to 60 percent of the value of assets, less any existing loans, from the Borrower’s retirement accounts, such as IRAs, thrift savings plans, 401(k) plan, and Keogh accounts, unless the Borrower provides conclusive evidence that a higher percentage | more...

 
Where can my FHA loan down payment come from?

Where Can My FHA Loan Down Payment Money Come From?

Where can my FHA loan down payment money come from? It’s an important question to ask, and some borrowers might not understand the difference between closing costs that are not part of the down payment compared to what is allowed to be counted toward it. FHA Loan Down Payment Requirements For most forward FHA mortgages, the down payment requirement includes a minimum of 3.5% of the adjusted value of the home. Some FHA home loans such as refinance mortgages don’t require a down payment; FHA rehab loans for those in Federally declared disaster areas are not required by the FHA to make a down payment regardless of whether the rehab loan is a forward mortgage or a refi. Is My Up Front Mortgage Insurance Premium Part Of My Down Payment? | more...

 
FHA Home Loans For New Construction, Existing Construction Homes

FHA Home Loans For New Construction, Existing Construction Homes

FHA home loans are available for a variety of different types of property. You can use an FHA mortgage to buy a typical home in the suburbs, a condo, a town home, mobile or manufactured homes, etc. FHA home loans are also for properties classified in one of several ways; existing construction, new construction, proposed or under construction, etc. What do these terms mean and how does the property type affect the FHA home loan? In some cases the nature of the property may dictate whether a builders’ warranty must be provided. New construction homes, for example, must include a 10-year warranty. This is true for all property types that fall under the FHA definition of new construction property including proposed construction homes, under construction homes, and those that have | more...

 
What You Can Buy With An FHA Mortgage

What You Can Buy With An FHA Mortgage

Do you know what you can buy with an FHA mortgage? The answer may surprise you if there’s an assumption that only typical suburban houses are available for purchase with an FHA loan. Know your options long before you start the planning stages of your new loan-you will be glad you did. What You Can Buy With An FHA Home Loan In essence, the FHA loan program is strictly designed for home buying, for properties with as many as four living units. You cannot use an FHA loan as a personal loan, to purchase a home without (or that will not be affixed to) a permanent foundation. You can use an FHA loan to buy a home, but not a vacation home or other property that will not serve as | more...

 
HUD Announces Additional Hurricane Recovery Efforts In Houston

HUD Announces Additional Hurricane Recovery Efforts In Houston

The Department of Housing and Urban Development has announced a Fair Housing agreement with the City Of Houston designed to enhance hurricane recovery efforts there. According to a press release at the FHA/HUD official site, HUD and the city reached, “a joint agreement designed to expand housing choice and mobility for lower income residents, including those experiencing homelessness and victims of Hurricane Harvey.” The agreement includes a new requirement for the City of Houston to adopt “multifamily priorities and a policy for objectively evaluating federally supported affordable housing developments in all areas of Houston; to seek to invest additional funds in homeless assistance programs, and; to encourage more landlord participation in Houston’s housing voucher program”. “Today, we announce a positive agreement that works to expand housing options for lower income | more...

 
What Goes Into Your FHA Mortgage Payment?

What Goes Into Your FHA Mortgage Payment?

What goes into your FHA mortgage payment? It’s easy to assume that you’re paying principal and interest, divided by the number of months you are obligated to on the mortgage note. But is that really all that goes into your monthly mortgage bill? The short answer is no, there’s more to it than that. FHA Loan Rules For Debt-To-Income Ratios HUD 4000.1, the FHA single family home loan handbook, has instructions for the lender to help determine a borrower’s credit-worthiness. The lender doesn’t just calculate the amount of your income versus how much debt you have going out on a monthly basis-that debt ratio has to be calculated with and without the mortgage payment to see what percentage of your monthly income is taken up by debt. The formula is | more...

 
More FHA loan options for new and returning borrowers

FHA Home Loan Fact And Fiction

FHA home loan fact and fiction; do you know what’s true and what’s not about your FHA home loan options? There are plenty of misconceptions about getting an FHA home loan including the all-time number one-the idea that FHA loans are ONLY for first-time home buyers. That is definitely NOT true. FHA loans are for any financially qualified borrower regardless of their previous home ownership status. FHA home loan fictions also include the idea that you can only purchase a typical suburban home with an FHA mortgage; this is also not true as FHA loans can be approved for mobile homes, condo units, mixed-use property that is primarily residential, town homes, and multi-unit homes. The truth about FHA home loans is that borrowers are allowed to buy “real property” with | more...

 
FHA Rehab Loans: The Limited 203(k) Option

FHA Rehab Loans: The Limited 203(k) Option

FHA 203(k) rehab loans include an option for smaller, less ambitious rehab projects. Borrowers who want a home loan to do rehab or repair work but don’t want to do a large project might assume FHA loan funds are not available, but this is not true thanks to the FHA Limited 203(k) Rehab Loan option. What Is The FHA Limited 203(k) Rehab Loan? HUD 4000.1, the FHA loan handbook, describes the FHA Limited 203(k) mortgage as being good for “minor remodeling and non-structural repairs”. The rules for this loan state that the total rehabilitation cost may not exceed $35,000. The good news? There is no minimum repair cost for this type of rehab loan. Ineligible Projects For FHA Limited 203(k) Mortgages HUD 4000.1 features a list of things 203(k) funds | more...

 
FHA 203(k) rehab loans: who does the work?

FHA 203(k) Rehab Mortgages: Who Does The Rehab Work?

When it comes to FHA 203(k) rehab loans, many borrowers want to know who does the work? Can the borrower hire a contractor, is the borrower required to do the work themselves? What are the rules? The guidelines for the FHA 203(k) rehab loan program are found in HUD 4000.1, which states that certain standards are in place when trying to select the contractors to do the labor. For starters, this type of loan requires that the borrower use the services of a 203(k) loan consultant. “The Mortgagee must select an FHA-approved 203(k) Consultant from the FHA 203(k) Consultant Roster in FHAC. The Mortgagee must not use the services of a Consultant who has demonstrated previous poor performance based on reviews performed by the Mortgagee. The Consultant must inspect the | more...