Articles Tagged With: Fixed Rate Mortgage

August 22, 2019

FHA Home Loans And Interest Rates: What You Should Know About Low Rates

At the time of this writing, what you should know about FHA Home loan interest rates includes the idea that interest rates at the moment are low for FHA mortgages, that the rates are subject to change, and that your credit report will play an important part in the rate you are offered. What do you need to know about FHA home loan interest rates in today’s housing market? FHA Loan Interest Rates Are Currently Very Low Some market watchers are quoting rates as low as 3.25%, and while that mortgage rate assumes a very well-qualified borrower, it is an indication of how low rates have gone in 2019. What’s good for the economy is often bad for mortgage loan interest rates, and the reverse can also be true. With | more...

July 31, 2019

FHA Home Loan Down Payment Rules: Cash To Close Sources

By Bruce Reichstein

FHA home loan down payment rules include requirements for the sourcing of funds used to make that down payment and/or provide cash to close the deal. Down payment funds and sources of cash to close must be properly documented by the lender to insure the cash does not come from unacceptable sources such as non-collateralized loans (payday loans, credit card cash advances, etc.) or in the form of “gift funds” that are not really gifts but have an expectation of repayment. When discussing the permitted sourcing of FHA home loan down payments or cash to close, many borrowers want to know if certain kinds of sources are acceptable to the lender. That can include proceeds from the trade-in of a manufactured home, the proceeds from the sale of real estate, | more...

June 30, 2019

Five FHA Loan Tips About Condo Loans

By Joe Wallace

Some borrowers, especially first-time home buyers, are surprised to learn that FHA loan options include loans to purchase condo units in FHA-approved condo projects. 5. FHA Condo Loans Are For Condos On The FHA Approved List Whether the condo you want to buy a unit in is already on the approved list, or needs to be added to it, the FHA condo loan is available to financially-qualified borrowers who have never owned a home before or are coming back to apply for a new home loan after purchasing in the past. Borrowers who need to have a condo project added to the FHA list will be required to work with a participating FHA lenders who can apply to have the condo project added to it. But there is one important | more...

Homes You Can And Cannot Buy With An FHA Mortgage

June 21, 2019

FHA Home Loan Mortgage Rates

By Joe Wallace

Just as we headed into 2019, the FHA and HUD announced higher FHA loan guaranty limits for the new year, giving most counties a boost in the dollar amount the FHA would back for an FHA mortgage loan. Now, as we read headlines from reputable sources including Marketwatch, about home loan interest rates, it seems like now is a very good time to be a first-time home buyer or a repeat borrower looking to purchase or refinance residential property with an FHA mortgage. One recent Marketwatch article about home loan interest rates includes the blurb. “Rates for home loans were mixed, but stayed near recent lows, even as bond market moves suggest another big step down lies ahead. “ That is according to Andrea Riquier’s June 20th article titled, “Mortgage | more...

Issues That Affect FHA Home Loan Approval

June 4, 2019

FHA Home Loan Approval Myths

By Joe Wallace

There are plenty of myths about home loan approval, but for first-time home buyers looking for an FHA mortgage, some of those myths are more prevalent than others. What you don’t know about FHA home loans can hurt you-it’s best to know as much as possible going into the home loan process, which is another reason why it’s best to take your time preparing for a home loan. Rushing into the process can cost more money than taking your time. FHA Home Loan Myths: The FHA Has Separate Requirements For First-Time Home Buyers FHA home loans are open to all qualified borrowers with FICO scores in a certain range for the lowest down payment. FHA loan rules do not make any distinction between a first-time buyer and an experienced home | more...

Three Questions To Ask About FHA Refinance Loans

March 29, 2019

Five Things You Should Do Before Applying For Your First Home Loan

By Joe Wallace

First-time home buyers should be working on five areas before they apply for a mortgage loan. Are you working with a real estate agent or searching the real estate listings in your local area? Maybe you want to buy a new home in a different area than where you are living now and need to know the ins and outs of the neighborhoods there? Decide What Kind Of Home Loan You Need Having a home built from the ground up is possible with an FHA One-Time Close Construction Loan, but these loans are quite different than an FHA Condo Loan or FHA loans for a mobile home or manufactured home. Knowing the kind of loan you want in advance will help you search for the right kind of lender-some financial | more...

The Confusion Over Closing Costs Versus Down Payment

March 22, 2019

FHA Home Loans For Homes Built Before 1978

By Bruce Reichstein

FHA home loans are offered for a variety of home needs including building a house from the ground up with an FHA One-Time Close construction loan, but there is also an option to use your FHA mortgage to buy an older home that is not considered new construction. In cases where the property is older than 1978, there are some additional rules regarding the potential for lead paint in the residence that all borrowers thinking about buying older property should be aware of. FHA home loan rules in HUD 4000.1 point out that any home built prior to 1978 must include disclosures to the buyer: “…the seller must disclose any information known about lead-based paint and lead-based paint hazards before selling the house, in accordance with the HUD-EPA Lead Disclosure | more...

January 3, 2019

FHA Loan Down Payment Rules For 2019

By Bruce Reichstein

FHA home loan down payment requirements are lower than other mortgages, and depending on circumstances your down payment commitment on an FHA mortgage could be even less thanks to down payment assistance programs and seller contributions to closing costs. FHA Home Loan Small Down Payments Elsewhere on the internet you will find writing about down payment requirements for purchasing a new home, discussing why borrowers are choosing one approach or another regarding the money they put down on the home. Conventional mortgages require private mortgage insurance (PMI) unless the borrower makes a higher down payment. A 20% down home loan transaction is not uncommon in cases where the borrower wants to avoid paying PMI. FHA home loan rules in HUD 4000.1 require mortgage insurance premiums, too, but borrowers looking to | more...

FHA One-Time Close Construction Mortgage Basics

December 21, 2018

Higher FHA Loan Limits For One-Time Close Construction Loans In 2019

By Joe Wallace

The FHA and HUD have announced higher FHA loan limits in most counties for 2019. A small handful (under 200) counties in the entire country will not see higher loan limits, but the rest of the nation will see a higher FHA loan guaranty limit for single family, owner-occupied homes with between one and four units. What does this mean for borrowers interested in an FHA One-Time Close Construction loan in 2019? If you need a home built for you from the ground up instead of buying an existing construction home, the FHA One-One Time Close program is for you. FHA One-Time Close Mortgages Are Different Than Other FHA Mortgages Lender requirements for FHA One-Time Close loans can be more strict than for existing construction loans. Higher FICO scores may | more...

November 1, 2018

Get Out Of An Adjustable Rate Mortgage With An FHA Refinance Loan

By Bruce Reichstein

Are you currently paying on an Adjustable Rate Mortgage (ARM) and concerned about your next interest rate hike? It’s possible to end the uncertainty about your mortgage payments and how the next interest rate increase will affect them by refinancing into a fixed-rate FHA mortgage loan. FHA Refinance Loans Are Available As Fixed Rate Loans You can refinance an existing FHA mortgage or a non-FHA loan such as a VA mortgage, conventional loan, etc. FHA loans are designed to help borrowers get into affordable mortgages using your current income and FICO scores to qualify. If you have an FHA adjustable rate mortgage, you can refinance to an FHA fixed-rate loan using the FHA Streamline Refinance loan program. The main feature of the FHA Streamline refi is that it generally requires | more...