Articles Tagged With: First-time Home Buyer

July 8, 2020

Is Home Loan Pre-Approval Now Required?

Borrowers planning to buy a home using an FHA home loan have a lot to contend with when planning and saving for the loan. But now, there is the added complication of the coronavirus outbreak, social distancing is the order of the day and many professions are struggling to do business while reducing risk of exposure to disease. One development some are watching–in addition to revised procedures for appraisals and other measures–there are reports of a trend of sellers requiring borrowers to prove they are serious about the purchase of a property before agreeing to show the home in person. Money Magazine reports this trend of having a pre-qualification requirement–why does this pre-approval issue matter in the age of COVID-19? Low mortgage interest rates have brought more home buyers and | more...

July 7, 2020

How FHA Home Loan Limits Are Set

By Joe Wallace

How does your lender know how much home loan to approve you for when you want to buy a home? Part of that process is learning the official FHA home loan limit in the housing market where you want to buy or build your home. The Federal Housing Administration sets FHA loan limits each year. There is a maximum FHA loan amount that is established in accordance with the National Housing Act. Five Things You Need To Know About FHA Loan Limits Five things you’ll need to remember about FHA purchase loan limits for suburban homes, condo units, having a house built for you on your own lot, etc. are: FHA mortgage loan limits vary by county; Loan limits may be exceeded if you are applying for an FHA Jumbo | more...

July 6, 2020

How FHA Loan Limits Work

By Bruce Reichstein

New home buyers have a lot to learn about the process of applying for and being approved for FHA home loans. The advantages of the FHA mortgage include lower down payment requirements and more forgiving FICO score rules…but how can a new borrower know how much loan they are permitted to apply for? HUD 4000.1, explains how FHA loan limits work. This handbook, a comprehensive guide to the FHA Single-Family Home Loan program, explains how loan limits work: “A Mortgage that is to be insured by FHA cannot exceed the Nationwide Mortgage Limits, the nationwide area mortgage limit, or the maximum Loan-to-Value (LTV) ratio.” These limits are set based on median house prices and are influenced by the home loan limits established by Freddie Mac and Fannie Mae. One Size | more...

July 2, 2020

HUD Announces Fair Housing Grant Awards

By Bruce Reichstein

A person or family looking for a home to buy with an FHA mortgage doesn’t go into the process expecting to be treated to a violation of federal law through discriminatory practices that violate the Fair Housing Act. But many people do encounter such discrimination; the official site of the National Low Income Housing Coalition notes that in 2017 alone 2,249 Fair Housing cases were settled, with more than 400 cases involving a guilty plea from the defendant. Fair Housing Act violations prevent those in need of housing from finding reasonable, affordable homes–discrimination in the housing process is a violation of federal law but unfortunately, there are many who still experience such discrimination whether as a future renter or homeowner. Did you know that Fair Housing laws protect you at | more...

July 1, 2020

Home Loan Interest Rates Hit Historic Lows Again.

By Joe Wallace

The end of the month of June, 2020 saw mortgage loan interest rates hit another historic low–rates hit another all-time low for the fourth time in a single month. As coronavirus issues continue to affect the global economy, economic factors at home and abroad have contributed to an environment favorable for lower rates. FHA Mortgage Loan Interest Rates In June 2020 FHA mortgage rates were listed at 2.50% on the last day of June. Not all borrowers are offered rates this low–your experience will vary depending on FICO scores and credit history. Finance and banking experts have been discussing the idea that as long as coronavirus has a role in what happens to the U.S. economy, we have the potential for continued low mortgage rates. Unfortunately, there is also volatility | more...

June 30, 2020

HUD Extends Modified Exterior-Only Appraisals During COVID-19

By Bruce Reichstein

The World Heath Organization says “the worst is yet to come” with regard to the global coronavirus pandemic; the Department of Housing And Urban Development responded to COVID-19 quarantine measures in March 2020, eliminating a requirement temporarily to suspend in-person or indoor appraisal activity. Those changes temporarily meant FHA appraisals would not be subject to a requirement for in-person appraisals that might run in violation of community social distancing policies. The appraisal policy (as well as modified employment verification requiremets for certain loans). But that was all set to expire (more than once, as we’ll read below) until HUD acted to extend these measures anew. Now, with COVID-19 hot spots in the forefront of American news headlines, HUD has extended the modified appraisal guidelines (as well as employment verification rules)–they | more...

June 29, 2020

HUD Brings Fair Housing Act Charges Against Atlanta Landlords

By Joe Wallace

Have you experienced housing discrimination at any stage in the housing process? Violations of the Fair Housing Act can occur at any stage of your journey to find a new rental home or purchase including home loans, refinance loans, home buying, etc. If you have experienced ANY kind of discrimination while looking for a house or apartment, file a complaint of discrimination with the HUD Office of Fair Housing and Equal Opportunity at (800) 669-9777. You can also file a Fair Housing Act complaint online by visiting How to File a Complaint at the HUD official site. Why? Because Fair Housing violations continue to be an issue in the United States of America, and often the only thing that prevents those who discriminated against YOU to keep violating the law | more...

June 26, 2020

First Time Home Buyers: Improve Your Credit With Credit Monitoring

By Bruce Reichstein

The COVID-19 pandemic has created economic uncertainty for many current and future homeowners. Many borrowers may have experienced financial setbacks during the coronavirus outbreak in America, and the years to come will involve a lot of credit repair and related efforts American consumers will need to get back on track financially. Protecting your credit is more important than ever–do you know what can hurt your FICO scores? Actively monitoring your credit is an important option–there are services that keep track of your credit report and learn about what affects your scores. It may be tempting to use free credit monitoring offers but financial advisors recommend comparing features on free offers versus subscription-based services. You may find that paying a small fee gets you much better options and features for managing | more...

June 25, 2020

Anticipating Closing Costs For Your New Home Loan

By Joe Wallace

Buying a home requires planning and saving. Especially for closing costs, which can include appraisal fees, the home inspection, compliance inspections, and the Up-Front Mortgage Insurance Premium. It takes time to save for these expenses, but some borrowers will pay more up front than others. That is usually due to a combination of factors, but the thing new home loan applicants need to know is that your financial needs and goals will dictate how and when you pay certain closing costs. Did you know you can finance some closing costs and have the home’s seller help you pay for others? Government-backed mortgages like FHA home loans (including FHA One-Time Close construction loans which can help even a first-time home buyer build a home from scratch) make buying or building a | more...

June 24, 2020

Coronavirus And Home Loan Appraisals: What You Need To Know Now

By Joe Wallace

In the age of social distancing, getting a home loan might seem challenging, but the industry has tried to change with the times and there are contact-free closing procedures, online document submission, and alternative appraisal methods in effect. Some of these measures serve as a reminder that a borrower should always pay for the optional home inspection and never rely on any other viewing of the home including the appraisal for that information. Relaxed Appraisals Why? Due to the relaxed requirements for appraisals during COVID-19. FHA appraisers can do some appraisal work as “drive-bys” where the appraiser never steps in the home; some work is accomplished video tours or walkthroughs. The appraiser may never enter the home personally depending on the housing market, local social distancing procedures, the severity of | more...