December 10, 2019

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Articles Tagged With: Home Equity Loan

Real Estate, Millennials, And Down Payments

Getting A New FHA Loan After Selling Your Home

A lot of the advice you read about home loans in general, and FHA mortgages in particular, is aimed at the first-time home buyer. But what happens after that first-time buyer becomes a home owner, eventually sells the property, and wants to purchase another home with an FHA loan? Buying another home after selling your old one will seem very familiar in many ways, but when you purchase again after selling (or choose to sell and purchase at the same time) you will need some extra supporting documentation. Your FHA lender is requires to verify your income and debts the same way as with the original mortgage. But having purchased a home, and paid it off via the sale of the property (or even simply paying off the old mortgage | more...

 
Refinancing a Second Home With An FHA Mortgage Loan

Who Qualifies For FHA Loans?

Who qualifies for an FHA mortgage loan? There are lots of misconceptions about this-some people think FHA mortgage loans are only for first-time home buyers, others might wrongly think FHA loans are only for people who can’t afford a conventional mortgage. But the truth is much different-FHA loans require borrowers to financially qualify, but there are not restrictions on who can apply when it comes to past home ownership, “maximum income” or other factors. FHA Loans Are For First-Time Home Buyers AND Those Purchasing Homes Again That’s correct. FHA mortgage loans don’t, under the basic rules of the program itself, favor first time home buyers with different terms than those who are purchasing another home. Second, or even third-time home buyers can get the same benefits of an FHA mortgage | more...

 
Will FHA Loans Let Me Rent Out My Home?

Refinancing Your FHA Mortgage

There are many reasons why people refinance a home loan. Some do it to lower their interest rates, others may wish to cash in on the equity built up in the home over time. Still others might want to do upgrades or repairs to the home but don’t want to pay all the costs out-of-pocket. The reasons you refinance may vary, and for that reason there are a variety of choices when it comes time to consider an FHA refinance loan. Lower Interest Rates The FHA streamline refinance option lets borrowers apply for a loan using their original loan application data. There is no FHA requirement for a new credit check or appraisal. (Your lender may require one or both.) FHA streamline refinance loans must result in a tangible benefit | more...

 

FHA HECM Loans: A Reader Question

FHA refinance loans include the FHA HECM loan option for qualified borrowers. A reader asked us a question recently on HECM loans; “How does the Non-Borrowing spouse prove or show legal ownership of the property to the lender after the last surviving HECM mortgagor has died?” The reader is referring to an FHA loan rule modification that came out in 2014 about the deferral period for FHA Home Equity Conversion Mortgages that involve a surviving, non-borrowing spouse. Mortgagee Letter 2014-07 states: “In the event the last surviving mortgagor predeceases a Non-Borrowing Spouse, the due and payable status will be deferred for as long as a Non- Borrowing Spouse continues to meet all the qualifying attributes stated in the above section. In addition, such Non-Borrowing Spouse must satisfy and continue to | more...

 
When Is An FHA Loan Better Than A Conventional Loan?

Reverse Mortgage Issues: A Reader Question

A reader asks, “I am an inheritor of a reverse mortgage home. I have declared to the bank that I am paying off the loan in cash at 95% of the appraised value. The appraisal came in to my benefit.” “The appraisal is less than two weeks old and the bank has already stated they may not be able to close before the expiration date because of their workload and may require another appraisal. There is over 100 days left before the expiration date.I told them this was unethical. Should I call HUD? Hire a lawyer?” The only legal advice comments we can give out in cases like these is that it’s never a bad idea to consult legal counsel with specific experience in these issues. There are a number | more...

 
Happy Columbus Day 2019

HUD Adds New Housing Counseling Requirements

Housing counseling is an important resource for those who want to apply for a mortgage loan. When borrowers decide to start on the journey to home ownership, there can be many areas they are unsure about. That’s one reason why it can be helpful to contact the FHA directly at their toll-free number (1-800 CALL FHA) to request a referral to a local, HUD-approved housing counselor to get expert advice and help in areas related to budgeting for a mortgage payment, credit issues, the home loan process and more. In some cases, certain types of counseling are actually required as a condition of FHA loan approval; this is true for FHA Home Equity Conversion Mortgages (HECM), where all borrowers must attend counseling to insure they understand the nature of HECM | more...

 

Higher FHA Loan Limits For 2017 Announced

The FHA official site has announced higher FHA loan limits for 2017. According to a press release on the official site, The Federal Housing Administration (FHA) today announced the agency’s new schedule of loan limits, and due to an increase in housing prices, most areas in the country will see a slight increase in loan limits in 2017 These loan limits are effective for case numbers assigned on or after January 1, 2017, and will remain in effect through the end of the year. The announcement includes word of a higher FHA national loan limit “ceiling”, which is set to increase to $636,150, up from 2016s $625,500 limit. The “floor” is also scheduled to increase in 2016 to $275,665, which is up from the previous years $271,050. Recent changes in | more...

 
HUD Announces Expanded Disaster Relief Options

FHA Announces 2017 HECM Limits

The FHA official site has been updated recently to include 2017 loan limits for Home Equity Conversion Mortgages, also known as FHA HECM loans or FHA reverse mortgages. According to the press release at www.FHA.gov, “The Federal Housing Administrations (FHA) Home Equity Conversion Mortgage (HECM) loan limits for Traditional HECM, HECM for Purchase, and HECM-to-HECM refinances are governed by the maximum claim amount limitation in sections 255(g) and 255(m) of the National Housing Act, which contains cross-references to section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act”. The FHA updates HECM loan limits annually, and those updates are effective for the new calendar year; limits may be subject to change depending on legislation, FHA requirements, or other legal factors that may apply before or after the existing year’s update | more...

 
HUD Announces Important Change To FHA Cash-Out Refinance Loan Program

FHA Reverse Mortgage Counseling

We addressed FHA reverse mortgages in a recent blog post, discussing several aspects of these home equity conversion mortgages. One thing that makes the FHA reverse mortgage program unique from FHA refinance loan options is that these types of loans (also known as FHA HECM loans) are only for qualified borrowers age 62 or older who own or almost own their homes outright. The FHA official site describes HECM loans as follows: “If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage program that enables you to withdraw a portion of your home’s equity. You | more...

 

FHA Refinance Loans and HECM Reverse Mortgages

There are two types of FHA loans borrowers should know about when considering their refinance loan options. One is a traditional cash-out or no cash out refinance loan, the other is a reverse mortgage also known as an FHA HECM loan. HECM stands for Home Equity Conversion Mortgage. The standard refinance loan and FHA HECM options are very different and serve different needs, but depending on the borrower it may be good to be familiar with both. Typical FHA refinance loans involve situations where the borrower typically has an existing mortgage and applies for a new loan that pays off the original mortgage, creating a brand new monthly payment, loan term, etc. Depending on the terms of the loan cash back may or may not happen, but for cash-out refinancing | more...