December 4, 2020

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Articles Tagged With: First-time Home Buyer

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...

 
Higher FHA Loan Limits In 2021

Higher FHA Loan Limits In 2021

The FHA and HUD have announced higher FHA forward loan limits for 2021. Most borrowers will experience a higher FHA loan limit depending on their location and other variables. Federal law requires FHA to establish forward mortgage / purchase loan floor and ceiling loan limits each year. These limits are based on the loan limit set by the Federal Housing Finance Agency for conventional mortgages owned or guaranteed by Fannie Mae and Freddie Mac. The national conforming loan limit for 2021 is $548,250. While these limits DO NOT apply until 1 January 2021, you can locate the entire list of FHA loan limits. That list includes areas at the FHA ceiling, areas between the floor and the ceiling at the FHA official site. The National Housing Act and its amendments | more...

 
Who is eligible for an FHA Home Loan?

Steps To Buying A House

Do you know the ten steps to buying a house? Each one can be considered its own phase of your home loan journey and if you want to buy a house with an FHA mortgage, these are the steps you should anticipate: Check your credit score Calculate how much FHA mortgage you can afford Choose a real estate agent (where applicable) Get pre-approved with a participating FHA lender Start house hunting Make an offer on the house you want Schedule a home inspection Secure your financing Purchase a homeowners insurance policy Close your loan and move into your new home Note that the first steps are squarely in the planning stages of your mortgage; you should know the contents of your credit report and your FICO scores long before you | more...

 
FHA loans

The Four Keys To Fixing Your Credit Before Your Home Loan

A lot of borrowers want to buy a home but worry that they have credit problems that might keep them from getting their mortgage loan approved. Any borrower worried in this way should do four important things starting about a year away from the day you want to apply for the loan. What are the four keys to credit repair ahead of your home loan? There are two items in the “Do” category and two items in the “Don’t” category you should consider doing as early as possible before you apply for best results. #1 Credit Repair Hack For Home Loan Applicants The number one credit repair hack any consumer can try begins with knowing the contents of your credit report. It’s that simple, really. And everything else you do | 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...

 
FHA Rehab Loans

FHA Fixer-Upper Loans For Smaller Home Improvement Projects

There is a type of FHA home loan that lets you get a mortgage to simultaneously buy and repair or modify a home. These fixer-upper mortgages are known as FHA 203(k) Rehabilitation Mortgages and this is an option you can also get as an FHA refinance loan. It’s a great alternative to the standard FHA home loan. Any borrower needing to repair, upgrade, or renovate an existing home can apply for this mortgage–you can refinance an FHA or non FHA loan with the FHA 203(k). But some borrowers don’t have ambitious, large-scale work to be done and a “full” 203(k) rehab loan might not be the right loan if you don’t have a huge project to deal with. And fortunately there is a smaller version of the FHA 203(k) Rehabilitation | more...

 
Planning To Buy A Home? Credit Resources You Need

Planning A Mortgage: Credit Resources You Need

Are you planning a home loan? Are you in the budgeting and saving stages of your home loan journey? If so there are some important resources you should explore before you apply for an FHA mortgage. It’s important to give yourself enough time to plan and save for your home loan and that includes paying more attention to and working on your credit. Credit resources can be a huge help in this regard–don’t pass on the chance to improve your FICO scores, get your payment history into good shape, and prevent identity theft or other problems from stopping your mortgage loan in its tracks. The first resource you should consider is the offer made by the FHA and HUD to give free referrals to a HUD-approved housing counselor. You can | more...

 
Bad Credit Home Loans

Bad Credit Home Loans

You’ll find a lot of information on the internet about bad credit home loans. Lists of bad credit-friendly lenders abound, but what do you need to know about these home loans and their alternatives? The first thing to remember is that bad credit is a potential barrier to new credit for a reason–your lender is required to justify the loan and make sure you are a good credit risk. And if your credit scores and credit history show that you haven’t been as reliable about making on-time payments and meeting your credit obligations? Your lender has two options. One is to deny you the loan. This is what usually happens in cases where the lender cannot justify approving your loan due to credit issues. Each lender has their own standards | more...

 
FHA Home Loan Up-Front Costs

FHA Home Loan Up-Front Costs

The amount of planning and saving time you give yourself ahead of your home loan application is very important. Without enough lead time to save for your up front costs and prepare your credit you may fill out an application without being truly ready. And part of being ready is understanding what costs you may be responsible for up front. Do you know what to anticipate needing to have saved for your new loan? There are two important areas to begin with–your down payment, and the FHA Up-Front Mortgage Insurance Premium which is part of your closing costs. Both the down payment and the UFMIP calculations require at least a rough estimate of what the asking price of the home and/or the amount of the mortgage might be; you can | more...

 
FHA Loan Options

FHA Loan Options

Why choose an FHA mortgage? Why not apply for a USDA home loan or a VA mortgage? Aren’t these also government-backed loan programs? Yes, but FHA mortgages are open to any financially qualified applicant, while USDA loans are need-based mortgages for those who meet certain income requirements, and VA loans are not offered to the general public but are offered as a benefit for military service. There is nothing wrong with USDA mortgages or VA home loans. But they aren’t available for just any borrower, where FHA mortgages are offered to the general public. And what about applying for conventional mortgages? These non-government backed home loans have higher FICO score requirements in many cases, as well as higher down payment requirements in cases where the borrower’s credit scores aren’t as | more...