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Articles Tagged With: Mortgage Closing

Buying A Home with an FHA Loan

Issues That Can Affect Your Home Loan

There are certain problems that crop up with home loan applications that can make it difficult for a mortgage lender to approve a loan application. We have written many articles about credit scores, debt payment history, and the amount of debt you carry, and how these issues affect your ability to get home loan approval. But what about the lesser-known issues? The Nature Of The Property Counts Some property types have restrictions from either the lender or under FHA loan rules. Those rules are found in HUD 4000.1. Did you know that no mobile home built before  June 15th, 1976 can be approved for an FHA mortgage? No home may be sold under the FHA loan program for commercial purposes. That means the home purchased with an FHA loan can’t | more...

 
FHA Home Loan

Planning Your First Home

Your first home loan might seem intimidating, but there are some things you can do to help reduce those feelings of being overwhelmed by unfamiliar details. The key is to start early and plan ahead; before you fill out loan application paperwork, consider making your planning phase for the loan last year or more. This takes some immediate pressure off borrowers to save up for the down payment and closing costs. It also provides more adequate time to work on your credit, and cut the amount of monthly debt you carry. What other things can first time home buyers do to help themselves in the months leading up to the home loan application? Home Loan Planning Means Knowing Your Housing Market Some borrowers start their home ownership journey without a | more...

 
FHA loans

HUD Updates Coronavirus Home Loan Guidelines For Loan Closing

The FHA and HUD have issued guidelines for mortgage loan closing procedures that may be affected by coronavirus lockdown measures, quarantine, and other issues related to the COVID-19 pandemic. Many home buyers were caught by surprise by coronavirus issues and there are many home loans that are affected. The Department of Housing and Urban Development issued initial policies in March, 2020, but updated them in mid-April to include provisions in several areas designed to help facilitate FHA home loans during the outbreak. FHA Loan Rules On Title insurance The FHA and HUD issued guidance on loan servicing issues designed to address situations in counties where recording offices are not operational during the national emergency. The FHA/HUD official site answers the following question related to such scenarios: “Will FHA accept title | more...

 
Buying a House

FHA Loan Rules And Mortgage Closing Costs

FHA home loan rules for mortgage closing costs include a requirement that down payment funds come from approved sources, but there are plenty of other guidelines for the money you’ll need to pay at closing time. There are three basic categories when it comes to your home loan closing costs, some of which are subject to change. Some costs are fixed, and some can be increased by the lender depending on whether or there is a change in circumstances that affects the borrower’s credit rating, if there is a change in the down payment, or even the type of home loan (see below). When And How Closing Costs May Change There are certain rules that allow your lender to alter your closing costs. Under the right circumstances, those costs may | more...

 
Mortgage Loan Approval

FHA Loan Closing Cost Rules

FHA home loan closing cost rules affect your home loan no matter if you are buying a mobile home with an FHA loan or having a house built on your own land using an FHA One-Time Close construction loan. Closing cost rules for FHA home loans have two “lanes” (our term, not a bit of industry jargon) where the rules are applied–one is the rules from the FHA Single-Family Lender’s Handbook (HUD 4000.1) and the other are the lender’s own standards and requirements. FHA loan rules and lender standards will both apply. FHA loan closing cost rules begin with the understanding that your down payment and your closing costs are two separate expenses. Your closing costs cannot be used as part of your down payment. FHA loan rules in HUD | more...

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

VA One-Time Close Construction Loan Tips

There are plenty of VA One-Time Close (VA OTC) / Single-Close construction loan tips you should know about-probably as many as for FHA One-Time Close loan or the USDA One-Time Close equivalent. Did you know that the size of your project could affect your ability to get a no-money-down VA home loan? Or that you should discuss the amount of time your VA OTC loan might take with the seller of the land if you are purchasing land and building the home? Know these issues before you apply for best results when you are ready to commit to your VA construction loan. VA One-Time Close Construction Loans / Single-Close Construction Loans Require A Contractor VA loan rules for construction loans require the borrower to hire an outside contractor rather than | more...

 
Mortgage Loan Approval

Setting The Home Loan Closing Date For First-Time Home Buyers

When should a first-time home buyer expect to be able to move into the new home they have purchased with an FHA mortgage? Can you realistically expect to move into your new home on the day scheduled for closing? Believe it or not, the answer might be no. It is in the borrower’s best interest NOT to schedule move-in day at the same time your home loan closes. FHA Loans, Closing Day, And Anticipating Change Do you know what the day of funding is? For home loans, whether for first-time home buyers or experienced borrowers, the day of funding is when the loan funds transfer to the seller from the lender. This should happen before you take your keys the the property. Know the exact date of funding and you | more...

 
Do You Need Down Payment Help?

How Much Should I Put Down On A House?

Thinking about getting pre-qualified or pre-approved for a mortgage loan? FHA mortgages generally require a lower down payment and have more forgiving terms for loan approval, but the amount of money you put down isn’t just guided by your financial qualifications (see below), it also depends on your financial goals. A National Association of Realtors report from 2017 indicates that a large number of people put down less money than you might think to purchase their dream home. Some of the zero-money-down transactions are likely either VA loans (available for qualified veterans and dependent on serving a minimum amount of time in uniform) or USDA loans which also have a zero down payment option. But in some cases you may actually wish to make a larger down payment. Why? In | more...

 
Buying a House

FHA Home Loan Advice: Wait Until After Your Closing Date For New Credit

Why should borrowers wait until after the closing date to apply for new credit? This is a very important issue that FHA borrowers need to be aware of before applying for a new purchase loan, FHA construction loan, or even a refinance loan. What makes the credit issue so important once you have been pre-approved for a home loan and start house hunting? Why should you never apply for new credit once the loan application has been submitted and you await final loan approval and the closing date? Home loans require the lender to check more than once to make sure the borrower is credit-worthy and can afford the mortgage loan. These checks may be automated or may be done manually by the lender depending on circumstances. Just because your | more...

 
FHA Mortgage Loan

What You Need To Know About Closing Your FHA Mortgage

What does an FHA borrower need to know about the closing date for an FHA mortgage? There are several issues to consider, especially when it comes to whether or not your transaction is occurring in a wet funding or dry funding state. Home Loan Closing Dates: The Difference Between Wet Funding And Dry Funding The terms “wet funding” and “dry funding” refer to states where requirements to close may require the loan to actually close and funds be disbursed on the closing date, and states where that does not specifically happen on the closing date. A wet funding state requires completion of the loan on the closing date or in a specified period of time after the closing date procedure. Dry funding means the paperwork for the mortgage is not | more...