July 18, 2018

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Articles Tagged With: FHA

FHA loans

Happy 4th of July 2018!

Today we pause from our regular posts on FHA home loans, FHA refinance loans, and FHA Reverse Mortgages to observe the 4th of July Independence Day holiday. Thank you very much for reading, have a safe holiday and we will resume our regular posting schedule on Thursday July 5th. Thank you for reading!

Am I Required To Use Water Utilities For The Home I Buy With An FHA Mortgage?

Am I Required To Use Water Utilities For The Home I Buy With An FHA Mortgage?

Not all properties are created exactly alike. Some are hooked up to the local utility company for drinking water and septic, while others may rely on wells or other sources. FHA borrowers considering the purchase of a property served by a well often worry that the home won’t meet FHA minimum standards. What do FHA loan rules say about home loan approval for a property served by a well and/or a water purification system? For a start, FHA loan rules do not automatically deny FHA loan approval for properties that have a well or a water purification system rather than being served by a local utility company. That said, HUD 4000.1, the FHA loan handbook, does require that properties purchased with an FHA loan use local water utility systems “wherever | more...

Are You Ready To Buy A Home With An FHA Mortgage?

FHA Home Loans With Non-Occupying Co-Borrowers

Do FHA home loans have rules for transactions with non-occupying co-borrower? The short answer is yes, there are considerations for FHA mortgage loans that feature one or more borrowers who will occupy the property, but also a borrower who will not. These rules are found in HUD 4000.1 and include requirements for the basic transaction-at least one borrower MUST occupy the home to be purchased with an FHA mortgage as a condition of loan approval. This is normally supposed to happen within 60 days of loan closing according to FHA loan rules. Lender standards may also apply. FHA loan rules have some basic requirements for co-borrowers who will not occupy the home, including the following from HUD 4000.1: “To be eligible, all occupying and non-occupying Borrowers and co-Borrowers must take | more...

Can I Use My GI Bill Housing Allowance For An FHA Home Loan?

FHA Loan Rules For Down Payments And Cash To Close

What are the FHA loan rules for down payments and the cash required to close the deal? There are many requirements in this area, but one very important detail exists that borrowers should know that will definitely help them in the early planning and budgeting stages of the mortgage. FHA loan rules require that certain expenses be kept separate from down payment requirements, and that can make a big difference in how you approach the budgeting part of home loan planning. FHA loan rules for both down payments and closing costs require that the sources of these funds be FHA-approved, which means no credit card cash advances, payday loans, or similar types of indebtedness can be a source of the closing costs or down payment. That’s important because those FHA | more...

Can I Use Gift Money For My FHA Home Loan Down Payment?

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...

FHA Home Loans For Manufactured Housing Classified As Condo Projects

FHA Home Loans For Manufactured Housing Classified As Condo Projects

Are there really FHA home loans for manufactured housing classified as condo projects? Believe it or not, the FHA loan rules in HUD 4000.1 state that such loans are indeed available under the FHA mortgage program in addition to FHA One-Time Close construction loans, FHA Rehab loans, and other options. How does the FHA Loan Handbook describe these mortgages? “Manufactured Housing is a Structure that is transportable in one or more sections. It may be part of a Condominium Project, provided the project meets applicable FHA requirements.” FHA loans for manufactured housing, regardless of whether it is part of a condo project or not, must meet certain requirements including size, purpose, and how the home is delivered to the borrower. Specifically, manufactured housing eligible for FHA mortgage loans must be | more...

FHA loans

Happy Memorial Day 2018!

Happy Memorial Day! We pause today from our usual posts about FHA home loans, refinance loans, FHA One-Time Close construction loans and related topics to recognize the sacrifices made by our women and men in uniform. Thank you to all who have served-from those who have gone before to those who are about to enter their first year in uniform in service to our country. We return with our regularly scheduled posts on Tuesday. Thank you for reading, and have a safe and happy Memorial Day 2018. We are glad you stopped by!

FHA Home Loans and Loan-To-Value Limits: Rules You Should Know

FHA Loans, Wells, And One-Time Close Construction Loans

Borrowers who apply for FHA loans may not be clear on whether or not a property served by a well instead of being connected to the local utility is eligible for an FHA mortgage. Is the presence of a well a problem for FHA loan approval? And what about FHA loan standards for FHA One-Time Close construction loans? HUD 4000.1 contains guidelines for these issues including the acceptability of a property served by a well instead of a water utility. Borrowers will be relieved to know that FHA mortgage rules do not automatically rule out a property just because a well is present, but that well must meet both FHA minimum requirements and any applicable health code or other local ordinances. For One-Time Close construction loans, FHA loan rules specify | more...

FHA loans for self-employed borrowers

FHA Loans For Self-Employed Borrowers

Are there FHA home loans for self-employed borrowers? There’s a persistent myth about FHA loans and self-employment; that working for yourself is a serious disadvantage when it comes to home loan approval. What’s the reality? FHA Home Loans Are Available For Financially Qualified Self-Employed Borrowers FHA loan rules in HUD 4000.1 state that being self-employed is an acceptable form of primary income as long as that income meets certain criteria. Borrowers will be required to furnish tax returns, business plans, profit-and-loss statements and other documentation as required by the lender to verify income. It may take some extra time to gather all the required information your lender needs, but you should come to the application or preapproval process knowing how your income has changed over time. Self Employment Minimum Requirements | more...

How Many FHA Mortgages Can I Have?

FHA Construction Loans And Other Government-Backed Mortgages

House hunters looking for government-backed mortgages (as opposed to conventional mortgages which may have higher down payment requirements and other features) have a variety of options to choose from. Are you in the market for an FHA construction loan such as the FHA One Time Close construction mortgage? Do you need to build instead of buy? FHA One Time Close Construction Loans Borrowers who choose the FHA One Time Close mortgage are applying for a single mortgage loan covering both the construction phase and the mortgage itself. These loans are for those who want to build a home from the ground up, and there are additional requirements for these loans regarding escrow, inspections, and when mortgage payments are scheduled to being. One Time Close (OTC) loans from participating FHA lenders | more...