If you are in the market to buy a rehab home with the FHA 203K loan, you’ll need to hire a 203K consultant. Yes, it’s another service that you must pay for, but the 203K consultant is there to make the process easier for you. The FHA 203K loan is a long process that requires a lot of paperwork and has many checks and balances. Having that neutral third party there to help you through the process can be a great thing. Looking for Current Mortgage Interest Rates? Click Here. Keep reading to … [Read more...]
Does the Seller Have to Pay for FHA Repairs?
Sellers used to shudder at the thought of an FHA loan. They often knew that the FHA would make them make repairs to the home before the buyer could close on it. Fast forward to today and the FHA still has property requirements that each property must meet, but the seller isn’t required to cover the cost of those repairs. If you’ve avoided FHA loans for this very reason, you’ll want to keep reading to learn more. Looking for Current Mortgage Interest Rates? Click Here. The FHA Minimum … [Read more...]
What’s the Minimum Waiting Period for a FHA Streamline Refinance?
The FHA streamline refinance makes it easy for current FHA loan holders to refinance their loan. All you have to do is provide proof that you can make your current mortgage payments on time and that you benefit from the refinance. If you pass these two tests, you can usually refinance your FHA loan with little documentation. Get Matched with a Lender, Click Here. Before you jump headfirst at the first opportunity to lower your interest rate, though, you should know that you have to wait at … [Read more...]
What are the FHA Rules Regarding Property Flipping?
Property flipping occurs when someone buys a home for a low price, fixes it up, and sells it for a much higher price. While it sounds like a great way to make money, it’s frowned upon in the mortgage industry. In fact, the FHA does not allow the purchase of certain flipped homes. Looking for Current Mortgage Interest Rates? Click Here. We discuss the circumstances below. What Does the FHA Consider Property Flipping? The FHA’s rules are very clear. If a current owner owned the home for … [Read more...]
Buying a Condo? Find out if It’s FHA Approved
FHA financing can help you buy a home with a low down payment. If you buy a condo, though, you’ll have to make sure it’s FHA approved. If it’s not, the process could be delayed. In some cases, you may not be able to secure financing at all. Find out why FHA approval is so important and why you should ask about it first. Why Condos Must be FHA Approved The FHA approves certain condo associations that meet their requirements. If an association doesn’t meet the FHA approved requirements, the FHA … [Read more...]
Defining Net Tangible Benefit in FHA Streamline Refinances
When you do an FHA streamline refinance, there must be something in it for you. This is called the net tangible benefit which is “a reduced combined rate, a reduced term or a change from an ARM to a fixed rate mortgage that results in a financial benefit to the borrower.” The showing of a net tangible benefit is an important, indispensable element in any FHA streamline refinance. Get in touch with a lender here.» Reduction in Combined Rate For starters, the lender is tasked to determine if … [Read more...]
Your Guide to Down Payment Assistance for FHA Loans
With an FHA loan, you can buy a home with as little as 3.5% down for the purchase price. That’s not all, you can seek assistance for your down payment and closing costs. These down payment assistance mechanisms clearly remove any hurdle to homeownership for first-time homebuyers and low- and middle-income households. Interested in getting a loan?» Finding Down Payment Assistance Back in the day, sellers or other parties with interest in the purchase transaction can fund the buyer’s down … [Read more...]
An FHA Mortgage in a Market of Rising Rates
There’s no doubt. Mortgage rates are going to continue its march forward and there’s little to no evidence of it going down. As housing inventory continue to stay in the low, creating an equivalent push of home prices up, it’s becoming harder and harder to find a home, and the mortgage for the needed financing. The question then hangs: what are the best mortgage options available in this climate of rising rates? We say you take a look at FHA loans. If you are a first time home buyer, … [Read more...]
Is an FHA Cash-Out Refinance Possible?
We all know that it is possible to refinance through FHA. What we’d like to know is if a cash-out refinance is allowed. Is it possible to turn a part of your equity into cash through FHA refinance? There are two types of FHA Refinance: through (1) FHA Streamline Refinance, and through (2) FHA Cash-out Refinance. So, the answer is a definite yes. FHA Streamline Refinance is HUD’s way to make refinancing quicker by waiving off certain documentation requirements. This program helps decrease the … [Read more...]
New FHA Mortgage Limits to Take Effect in 2017
The Federal Housing Administration is set to re-calibrate loan limits for the incoming year. Announced this month, this effort addresses the concern of increasing home prices affecting thousands of borrowers nationwide. Report Breakdown In the report released by FHA on December 1, the increases are set to impact 2,948 counties while 286 will sustain the same limits as in 2016. This new rule will take effect on January 1, 2017. $636,150 in 2017 from 2016’s $625,500 for high-cost counties … [Read more...]