April 18, 2021

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Articles Tagged With: FHA Mortgage

FHA Home Loan

Planning Your First Home

Your first home loan might seem intimidating, but there are some things you can do to help reduce those feelings of being overwhelmed by unfamiliar details. The key is to start early and plan ahead; before you fill out loan application paperwork, consider making your planning phase for the loan last year or more. This takes some immediate pressure off borrowers to save up for the down payment and closing costs. It also provides more adequate time to work on your credit, and cut the amount of monthly debt you carry. What other things can first time home buyers do to help themselves in the months leading up to the home loan application? Home Loan Planning Means Knowing Your Housing Market Some borrowers start their home ownership journey without a | more...

 
Reasons To Refinance

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...

 
Construction Loan Advice For New Borrowers

Getting Ready For A Construction Loan in 2021

You can use an FHA One-Time Close construction loan, (or a VA construction loan or even a USDA OTC mortgage) even a first-time home buyer to choose to build a new home on your own land or land you buy in conjunction with the loan. This is an option for those who want a house with designs they have approved instead of buying someone else’s existing property. Getting Your Loan Started Finding a participating FHA lender (or a VA or USDA lender depending on the loan you choose) is an important part of the construction loan process. You should also know that while construction loan mortgages do require higher FICO scores, and need more time before move-in day than a typical home purchase loan, the end results are well worth | more...

 
Planning To Buy A Home? Credit Resources You Need

FHA And HUD Announce Streamlined Loan Paperwork

The FHA and HUD have in the last year made efforts to streamline and revise aspects of the Single Family Home Loan program to increase the security of the program and make certain certification issues easier for participating lenders. HUD.gov announced it had finalized a revised loan-level certification form which is required as part of the FHA Single Family home loan process. Lenders must submit this form to the FHA for each home loan. What is the revised form? HUD Form 92900-A, Addendum to Uniform Residential Loan Application, this form is an FHA requirement and must contain signatures from the underwriter or “other lender representatives”, along with the signature of the loan applicant. The revised HUD Form 92900-A may be used by lenders immediately. It is required for all transactions | more...

 
FHA Condo Loan Basics You Should Know

FHA Condo Loan Basics You Should Know

Some borrowers are surprised that you can choose an FHA condo loan; some view condo units as more of a luxury-type housing option or somehow otherwise out of their price range. But FHA home loans include a condo loan option and the FHA official site explains how it works; “Section 203 (b) of the National Housing Act provides authority to insure any mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project.” FHA home loans can be approved for condo units for up to 30-year terms (purchase or refinance) for units in an FHA-approved condominium project OR, as FHA.gov describes, “in a project that is not FHA-approved but meets the Single-Unit Approval requirements”. How does a condo | more...

 
FHA Construction Loan Rule Changes In 2021

FHA Construction Loan Rule Changes In 2021

The FHA One-Time Close construction loan, also known as a construction-to-permanent mortgage or simply as a home construction loan, is an option for home buyers who want to build a home from the ground up. There are USDA versions of this type of loan (with income caps and other need-based restrictions), there’s a VA One-Time Close loan for qualifying military personnel, and there is also the FHA One-Time Close construction loan which features a low 3.5% down payment the same as all other FHA purchase loan options. The FHA and HUD have announced changes to the FHA One-Time Close program in 2021. These changes will formalize certain elements of the program, and change others as we’ll see below. HUD has changed its maximum financing policy and other requirements for New | more...

 
Build on your own lot. Construction loan basics

Build Your Dream Home From The Ground Up With A One-Time Close Construction Loan

You don’t have to buy someone else’s property if you are interested in owning your own home. You can–even as a first time home buyer–build a home from the ground up instead. The FHA One-Time Close mortgage, also available to qualifying military members as a VA construction loan, is a great choice for the right borrowers. But who should consider this type of home loan? Timing Counts FHA Construction Loans and VA One-Time Close mortgages are not good choices for those in a hurry. If you need housing quickly it is best to explore your FHA or VA mortgage loan options for existing construction. If the timing of your loan cannot be changed, you need a house NOW, and you cannot wait, there are good reasons to wait on building | more...

 
2021 HECM Loan Limits

2021 FHA Home Equity Conversion Mortgage Loan Limits

The Department of Housing and Urban Development has published FHA loan limits for the FHA Home Equity Conversion Mortgage (HECM) loan program for 2021. Home Equity Conversion Mortgages, also known as FHA Reverse Mortgages, are offered to financially qualified borrowers age 62 or older who either own their homes outright or are very close to doing so. FHA HECM loans feature no monthly payments; the borrower receives cash from the loan based on terms negotiated with the participating lender; the loan is normally due when the borrower dies or sells the home. The loan may also be declared due in full if the borrower quits using the property secured by the HECM loan as their primary address. Borrowers are required to use escrow to pay property taxes and must follow | more...

 
FHA Home Loan Questions

Common Questions About FHA Mobile Home Loans

FHA home loan options include FHA mortgages for mobile homes. You can buy a mobile home, manufactured home, or modular home using an FHA mortgage and there are many common questions about this type of FHA mortgage option. What Does the FHA Define As A Manufactured Home? The FHA official site describes a mobile home (also known as a manufactured home) as a property built “to the Manufactured Home Construction and Safety Standards (HUD Code) and displays a red certification label on the exterior of each transportable section”. The FHA official site also states that manufactured homes are built “in the controlled environment of a manufacturing plant” and are transported in one or more sections on a permanent chassis. FHA loan rules state that any mobile home must be affixed | more...

 
Why did my mortgage payment increase

Why Did My Mortgage Payment Increase?

Some borrowers discover their monthly mortgage payment has gone up and wonder why. Regardless of whether your home loan is an FHA mortgage, a VA home loan, or a conventional mortgage, there are reasons why you might have experienced an increase in your monthly mortgage payment amount. If you see changes in your mortgage payment that you don’t recognize or understand, the first thing you should do is to reach out to your loan servicer to get more information. Don’t simply accept the change if you don’t understand why it happened; consumer advocacy groups such as the government’s Consumer Financial Protection Bureau remind home owners that sometimes a change in your mortgage payment could be a simple mistake by the lender and one that could be immediately addressed with a | more...