Articles Tagged With: First-time Home Buyer

Build on your own lot. Construction loan basics

July 30, 2026

Build A House On Your Own Land With An FHA Mortgage

Some house hunters eventually stop looking at existing homes and start thinking about building one from the ground up. Others know from the beginning of their homeownership search that they want to build rather than buy. FHA loan rules include guidelines for lenders who want to help these borrowers get financing. The section of the rulebook covering this option is titled “Building on Own Land,” and it tells lenders how to proceed with this type of loan, including maximum loan amounts, who can act as the general contractor, and other requirements borrowers should know about before they start planning. Are you interested in having a house built for you on land you already own, rather than choosing from existing construction? Building on your own land may be the right move, | more...

July 22, 2026

FHA Loans And Surplus Land

By Bruce Reichstein

What do FHA loan rules say about surplus and excess land? For someone shopping for a condo unit, this issue typically won’t come up. But for buyers considering homes in rural areas or on larger lots, excess or surplus land can become an important detail once the appraisal is ordered. FHA guidelines address appraisals where surplus land or excess land may be present, and while the guidance is brief, it outlines what borrowers and appraisers can expect in these situations. The central question FHA rules focus on is how the extra land affects the appraised value of the property, and ultimately, how much of that land the lender can count toward the home’s value for mortgage purposes. What Is The FHA Definition Of Surplus Or Excess Land? FHA guidelines define | more...

July 15, 2026

FHA Loans: New Construction Vs. Existing Construction?

By Bruce Reichstein

What is the real difference between new construction and existing construction on an FHA loan? The distinction affects which appraisal rules apply, what paperwork a lender needs, and how much protection a borrower gets before closing. FHA loan guidelines draw a clear line between the two categories, and knowing where a property falls can help buyers set the right expectations from the start. Existing Construction A property counts as existing construction once it has been fully finished for over a year, or finished for less than a year but already lived in at some point. The appraisal process for existing homes differs somewhat in timing, paperwork, and required forms, but the detail that matters most to a typical borrower is what the appraisal is not meant to do. An FHA | more...

When Is An FHA Loan Better Than A Conventional Loan?

July 6, 2026

FHA Loans And Community Property States

By Bruce Reichstein

One of the most common questions we are asked about FHA mortgages involves state community property laws, non-borrowing spouses, and their credit issues. Does an FHA loan applicant have to include a non-borrowing spouse’s financial information when applying for an FHA mortgage? The answer depends on where the borrower resides and where the property is located. If either is in a community property state, the transaction may be affected because state law can make one spouse responsible for certain debts incurred by the other spouse. For FHA loan purposes, non-borrowing spouse debt generally means debt owed by a spouse that is not also owed by, or in the name of, the borrower. A spouse is not required to become a borrower or co-signer simply because the couple lives in a | more...

April 1, 2026

FHA Loan Options Are Available to Homebuyers?

By Bruce Reichstein

FHA loans remain one of the most popular mortgage options for homebuyers because they offer flexible qualification requirements and low down payment options. Many borrowers know about FHA purchase loans, but fewer realize that the Federal Housing Administration insures several different mortgage programs designed for a variety of financial situations. Whether you’re buying your first home, refinancing an existing mortgage, renovating a property, or accessing home equity, there may be an FHA loan option that meets your needs. Why Do Borrowers Choose FHA Loans? Many borrowers choose FHA financing because qualification requirements are often more flexible than those associated with some conventional loan programs. FHA loans also permit a down payment as low as 3.5% for borrowers who meet program requirements. Another advantage is that FHA allows borrowers to use | more...

January 23, 2026

FHA Loan Rules: Co-Borrowers and Co-Signers

By Bruce Reichstein

Many first-time homebuyers use FHA loans because of their flexible qualification standards. In some cases, a borrower may choose to apply with a co-borrower or a co-signer to strengthen the loan application. FHA loan rules allow both options, but they are not the same, and HUD applies different requirements depending on which role is used. Understanding the difference is critical before applying. FHA Distinction Between Co-Borrowers and Co-Signers FHA guidelines are governed by HUD Single Family Housing Policy Handbook 4000.1, which replaced HUD 4155.1 and is the current controlling authority. Under FHA rules: Co-borrowers (occupying or non-occupying) Take title to the property Are obligated on the mortgage note Must sign all loan and security instruments Share full legal responsibility for repayment Co-signers Do not take title to the property | more...

January 7, 2026

FHA Appraisal Rules On Peeling Paint

By Bruce Reichstein

Does peeling paint cause FHA loan problems? Yes—peeling paint can delay or prevent FHA loan approval, depending on the age of the home and the severity of the condition. FHA appraisal rules treat defective paint as a potential health and safety issue, not merely a cosmetic concern. Why FHA Appraisers Flag Peeling Paint FHA appraisal standards focus on: Borrower safety / Property durability and Loan collateral protection Peeling, chipping, or flaking paint can signal deeper problems and must be evaluated carefully. FHA Peeling Paint Rules for Homes Built Before 1978 Homes built before 1978 fall under federal lead-based paint regulations. If peeling paint is present: The appraiser must require repairs, lead-safe work practices must be used and repairs must be completed before FHA loan endorsement. Sellers must disclose known lead | more...

If Your Home Was Damaged In A Federally Declared Disaster Area

January 2, 2026

FHA Loans For Your First Home Mortgage

By Bruce Reichstein

Why should first-time home buyers start thinking about their FHA refinance loan options sooner instead of later? It’s not because you are actively planning to refinance, but there are circumstances which may make you reconsider your refi loan options. As a millennial home buyer, first-time homeowner, or any other type of borrower, unforeseen events or situations may have you re-thinking your long-term financial plans. There are FHA refinance loan options for first-time home buyers and new homeowners, but some are more appropriate for certain needs than others. FHA Refinance Loans For Upgrades, Repairs, And Home Improvements If your home is damaged in a storm, you experience a fire or flood, or need to repair your roof, an FHA 203(k) rehabilitation loan is the refinance you should ask a participating FHA | more...

January 1, 2026

Higher FHA Loan Limits For 2026

By Bruce Reichstein

Thinking about buying a home but worried you might not qualify for a loan? The Federal Housing Administration (FHA) made changes in 2026 that could help make your homeownership dreams a reality. Bigger FHA Loan Limits in 2026 The FHA increased its loan limits for 2026. This means you can borrow more money to buy a home, which is great news in today’s market. What are the New Limits? For a typical single-family home in most parts of the U.S., the new loan limit is $541,287. But if you’re looking in a high-cost area, like California or the Northeast, the limit may go up to $1,249,125. And it’s not just for single-family homes! The FHA also has options if you’re interested in a duplex or other multi-unit property. These increased | more...

FHA Construction Loan Rule Changes In 2021

December 30, 2025

VA One-Time Close Construction Loans For Veterans in 2026

By Bruce Reichstein

What Is a VA One-Time Close Construction Loan? A VA One-Time Close (OTC) construction loan is a mortgage that finances both the construction of a home and the permanent VA loan in a single closing. Eligible veterans and active-duty service members can build a home with zero down payment, no monthly mortgage insurance, and one set of closing costs. Can Veterans Build a Home with a VA Loan? Yes. Veterans and active-duty military members can use a VA One-Time Close construction loan to build a new home instead of buying an existing one, as long as they meet VA eligibility and lender requirements and use a VA-approved builder. VA One-Time Close vs FHA One-Time Close VA One-Time Close / 0% down payment with full entitlement / No monthly mortgage insurance | more...