November 16, 2018

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Articles Tagged With: FHA Mortgage

HUD Announces Settlement In New Jersey Housing Discrimination Case

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...

 
Lower Your Monthly Mortgage Payment

Lower Your Monthly Mortgage Payment

Do you need to lower your monthly mortgage payment? There are several FHA refinance loan options to help you do that, and depending on your financial needs and goals you may find that an FHA refinance is exactly what you need to get into that lower monthly obligation. Lower Mortgage Payments Before They Begin Some applying for an FHA home loan have the option of not financing certain up front costs such as the FHA Up-Front Mortgage Insurance Premium. Any expense you add to the loan amount potentially increases your monthly payments. One of the best things you can do when looking for a new home loan is to try to avoid adding more funds to the loan amount if you do not need to. For some, it’s already too | more...

 
FHA Reverse Mortgage Policy Changes Explained

HUD Announces Updated Disaster Policy For Puerto Rico And Virgin Islands Home Owners

In 2017, Hurricanes Irma and Maria devastated many U.S. territories; in the aftermath home owners in Puerto Rico and the Virgin Islands many people are still recovering from the disaster. In August 2018 the Federal Housing Administration (FHA) has announced updates to FHA foreclosure prevention options to allow borrowers with delinquent FHA home loans “easier access to bring their mortgages current without increasing their interest rates or monthly payments” according to HUD.gov. The Federal Housing Administration is also offering a final 30-day extension of its foreclosure moratorium for FHA-insured homeowners in Puerto Rico and the U.S. Virgin Islands. In February 2018, FHA introduced the Disaster Standalone Partial Claim option, intended to help borrowers in the affected disaster areas a way to catch up on pre-disaster mortgage payments without experiencing “payment | more...

 
FHA Mortgage Refinance Checklist

What You Need To Know About FHA Loan Applications And Loan Approval

What should you know about FHA home loan applications and FHA loan approval? Before your home loan gets final approval from the underwriter, it will go through a series of processes including the credit check, appraisal, employment verification, and much more. But FHA home loan approval depends on more than one set of standards, which makes these check and approval processes more complex. To approve your loan, the lender must answer a variety of questions about the borrower’s ability to afford the loan. FHA Loan Approval Questions Your Lender Must Answer There are several areas the lender must have answers in to give you final loan approval: What is the borrower’s current or expected income? What kind of assets does the FHA loan applicant have? What is the FHA borrower’s | more...

 
Credit Scores For An FHA Home Loan: When Low Credit Is Not Bad Credit

Credit Scores For An FHA Home Loan: When Low Credit Is Not Bad Credit

Are you worried about your credit scores for an FHA home loan? When is a low credit score a reflection of bad credit behavior? FHA home loan rules specify that the lender must insure a borrower as a 500 FICO score at the very minimum in order to qualify for an FHA mortgage, but your credit score numbers don’t tell the whole story. It’s true that FHA loan rule minimums for FICO scores do not always reflect the participating lender’s credit score requirements; borrowers are technically eligible for an FHA mortgage with the lowest possible down payment if they are applying with FICO scores at 580 or higher. The lender may require a credit score of 620 or higher for the same applicants. But your FICO scores only make up | more...

 
FHA Home Loans, Appraisals, And Home Inspections

FHA Home Loan Questions And Answers About The Appraisal Process

The FHA loan appraisal process is potentially confusing to a new borrower. If you are serious about purchasing a specific property with an FHA mortgage, the appraisal is an important step in the loan approval portion of your house hunting experience because it tells the lender whether the property is suitable for an FHA mortgage. What Is The FHA Appraisal And What Does It Do? FHA appraisals are performed when you want to purchase a specific property with a home loan. The appraisal is not done for a house you are “just looking” at; this process is reserved for the home you specifically want to buy. An FHA approved appraiser, assigned by your lender, will come to the property and give it a general review. This process is not as | more...

 
FHA Home Loans For 2019

What Does It Mean To Get An FHA Mortgage Loan Case Number?

For those new to the home loan process, or just new to FHA mortgage loans, the question, ‘What Does It Mean To Get An FHA Mortgage Loan Case Number?” is a good one to ask. What is this process and how does it work? It does not matter if you are applying for an FHA 203(k) rehab loan, a typical new purchase FHA mortgage, or even an FHA One-Time Close construction loan; when a borrower is serious enough to start the loan application paperwork the FHA case number process will begin. HUD 4000.1, the FHA Loan Handbook, says an FHA case number is ordered by the lender when there is an active mortgage loan application for the property a borrower wants to purchase. What is required of the borrower to | more...

 
How Do I Know If I Qualify For An FHA Mortgage?

FHA Loan Rules For Property Types

FHA loan rules in HUD 4000.1 spell out the rules for approved property types that can be purchased or built using an FHA mortgage. Some borrowers may not realize they can buy, build, or refinance properties aside from the typical suburban home. The list of property types you can choose from include mobile homes, manufactured housing, condos, town homes, row houses and more. Specifically, HUD 4000.1 lists the following: detached or semi-detached dwellings Manufactured Housing townhouses or row houses individual units within FHA-approved Condominium Projects Borrowers can use an FHA One-Time Close construction loan to build a home, but there are restrictions on the type of dwelling you can build. In general homes built using these loans must be single-family residences and not multi-unit properties; your lender will explain what | more...

 
Getting A New FHA Loan After Selling Your Home

FHA One-Time Close Construction Loans: What’s Required At Closing Time

In addition to the usual requirements to close, FHA One-Time Close / Single-Close construction loans (FHA OTC) have some additional FHA documentation requirements borrowers should anticipate. One Time-Close construction loans are more complex than existing construction loans for a few obvious reasons-when a borrower has a home built from the ground with an OTC loan, builders must be paid, there are escrow requirements and procedures which must be followed, and there are unique requirements for this type of loan. Do you know what additional documentation may be required to close the deal? According to page 446 of HUD 4000.1, the FHA loan handbook, the additional documents to close include (but are not limited to) a construction rider, a disclosure agreement related to final inspections, a fully executed contract between the | more...