March 30, 2020

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Articles Tagged With: FHA

Mortgage Industry Seeks Federal Relief For Borrowers

Mortgage Industry Seeks Federal Relief For Borrowers

The coronavirus pandemic created financial chaos across the globe; America is on the verge of a massive financial bailout for consumers and industry to the tune of $2 trillion or more. States, lenders, and the federal government all have a keen interest in helping homeowners avoid financial crises, loan default, and foreclosure. And now the mortgage industry has rallied to petition the White House for funds to assist homeowners. On March 24, 2020, ran a press release discussing a letter sent to the White House asking for mortgage relief for borrowers including delayed payments and interest. The proposal includes the following benefits: A 90-day delayed payment option for mortgage payments; A proposed one-year loan forbearance period; Payment forbearance protections such as no negative credit reporting or collections; Introducing reduced | more...

What Affects The Cost Of Your Home Loan

What Affects The Cost Of Your Home Loan

Shopping around, haggling over terms, and negotiating your home loan are not unusual practices, but some are not comfortable with trying them. Want an advantage in the home loan process? Learn how to do some low-key bargaining as it can save you money and time over the long haul with your home loan. Negotiating with the seller, for example, could get you extra money (provided by the seller) toward closing costs; up to six percent of the sale price of the home! But haggling isn’t the only factor that can affect the cost of your home loan. The Wuhan virus, discussed in the news as a coronavirus or a “coronavirus outbreak”, affected mortgage loan interest rates and sent them to the lowest levels we’ve seen in some time. The virus, | more...

Myths About One-Time Close Construction Loans

Myths About One-Time Close Construction Loans

You can build a house from the ground up using a One-Time Close construction loan; many borrowers want to take advantage of these types of loans as the government-backed versions of the One-Time Close construction loan feature very low down payment requirements and the same financial qualification rules as other VA or FHA mortgages. One Time Close Myth: I Can’t Afford To Build A Home Instead Of Buying One It’s easy to assume that building a home will cost you more money than buying an existing construction property. But what kind of home do you need? Are you building a house to start a family in? Or are you building a home that you want to retire in? The overall cost of your project will depend on details like these, | more...

HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

HUD Updates Manufactured Housing Policy

The Department of Housing and Urban Development announced a final rule on formaldehyde emissions standards for manufactured homes. These updates clarify issues related to compliance with The Toxic Substances Control Act (TSCA). HUD officials on record recently about the American affordable housing situation, label it a crisis and acknowledging that the “affordable housing crisis can’t be solved by one measure alone” though the issue of conforming with other federal guidelines addressing toxic substances is an important one. HUD updates in policy include revisiting the rules “for the installation of carbon monoxide alarms or detectors; and additional provisions for homes designed for structures attached at the site, including garages and carports” and the HUD final rule on formaldehyde emissions for manufactured homes “aligns HUD’s regulations with other federal guidelines”. HUD’s Office | more...

FHA Announces Modified Appraisal Rules During Coronavirus Outbreak

HUD Announces New Policy On Service Animals

The Department of Housing and Urban Development (HUD) announced updated guidance regarding the use of service animals and emotional support animals as it relates to Fair Housing Act issues. The issue of support animals might not seem to be related to the purchase of real estate with an FHA home loan, not at first. But Fair Housing rules do affect all stages of the house-hunting process including renting a home while you are looking for one to purchase with the help of a realtor, or on your own. The HUD announcement discusses a need for reasonable accommodation in housing for those who need service animals or emotional support animals. The agency has released an “Assistance Animal Notice” designed to help all parties understand how to best comply with Fair Housing | more...

Beware of Escrow Fraud

Need A Home Loan? Beware Of Escrow Fraud

There are common home loan scams that affect house hunters, even those applying for FHA home loans. One such scam–one you might actually encounter in your home buying journey–is called escrow fraud and it can affect even the most experienced homeowner if they are caught at just the wrong moment. Home Loan Scams Can Affect Any Type Of Mortgage Escrow scams are not associated with FHA mortgages alone, any type of home purchased with any type of home loan could be targeted. An important sense of any successful scam is creating a sense of urgency or emergency or a feeling that a big discount might be missed if you stop to consider the options. The scammer wants you to be in a hurry, not thinking critically, and ready to invest | more...


Happy Martin Luther King, Jr. Day

Happy Martin Luther King, Jr. Day 2020! Banks and markets are closed today to observe the holiday and we too feel it’s very important to remember this important day. America owes a great deal to Dr. Martin Luther King, Jr. We are proud to observe this day dedicated to him and pause our regular coverage of FHA news and FHA loan topics to observe the holiday. We resume our usual schedule of posts tomorrow. Thanks for reading!

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...

FHA Loan Interest Rates: How Low Can They Go?

How To Buy A Home In 2020

Need to know how to buy a home in 2020? Making a plan to become a home owner includes budgeting, research, and even sharpening your negotiating skills. Are you ready to start your home loan journey? Shopping Around For A Home AND A Home Loan FHA mortgages allow first-time borrowers and experienced home owners alike to apply for a loan to buy or build a property. But you don’t have to limit your search to one kind of home OR one kind of FHA mortgage. For example, you could apply for an FHA Condo loan to purchase a condominium unit, or you could buy a mobile home or townhouse. FHA mortgage loans allow you to buy properties with as many as four living units, and that could be any number | more...

Buying A Home With A Lower Credit Score

FHA Loans And Buy-To-Let Mortgages

What is a buy-to-let mortgage? These loans, popular in Britain and elsewhere, are basically designed for investment property buyers. They are similar in purpose (not in terms or conditions) to bank statement loans in that both are intended to help investors and small business people. FHA home loans do not include a buy-to-let loan, but those who want to be owner/occupiers can purchase a property with as many as four living units with an FHA mortgage. You can buy a multi-unit home with an FHA mortgage, live in one or more of the units, and rent out the unused units to other tenants. This is completely acceptable under the terms of the FHA Single-Family home loan program. The requirement is that you live in the property yourself. Buy-to-let loans that | more...