mortgages: Game Changing Reasons Why the VA Construction Loan Program is Thriving
- 04/07/21 12:05 AM
Demand for custom built homes is on the rise and many Veterans who are in the market to build a new home are finding out about the VA guaranteed Construction loan program that has been around for years. If you are an eligible Veteran and qualify for a $0 Down VA Home Loan, then you qualify for a $0 Down VA construction loan as well! Not only can these Veteran borrowers select and purchase their desired lot / land, but they can also have a say in the design plans with a home builder of their choice for stick built, modular … (1 comments)
mortgages: The $0 Down VA Construction Loan
- 01/13/21 11:23 PM
In all my years of Mortgage Banking, I have not met or spoken with an eligible veteran who has not heard of the $0 down VA home loan program that is partially guaranteed by the United States Department of Veterans Affairs. This well-deserved home loan entitlement is bestowed upon our Military Heroes who are either active duty or honorably discharged after serving a specified number of days in the armed forces. Kudos to both the public and the military for continuously getting the word out. But what is not widely known is that this $0 down VA home loan can be … (1 comments)
mortgages: Commission Income and FHA Loans
- 10/28/16 12:08 AM
A reader asks, "Can I apply for an FHA loan after just one year of commission based pay with a cosigner?" FHA loan rules require all borrowers to be obligated on the loan to financially qualify, which would include verification of both employment and income. A co-signer or co-borrower may not be able to make up for financial shortcomings of the other borrower(s) on the mortgage loan, but lender standards would apply in this area and it's best to have a conversation with a loan officer about those standards and what may be possible. FHA loan rules for commission income, found in HUD … (1 comments)
mortgages: HUD Announces Fair Housing Protections For Borrowers W/Limited English
- 09/15/16 11:17 PM
It's known as "LEP" or "limited English proficiency, and has been an issue that directly affects legally binding agreements including home loans for as long as there have been such arrangements made in the United States. But now, LEP is being addressed directly through guidance from the Department of Housing and Urban Development, as described in a recent press release on the HUD official site. "The U.S. Department of Housing and Urban Development (HUD) today issued 'Limited English Proficiency' (LEP) guidance that addresses how the Fair Housing Act would apply to claims of housing discrimination brought by people because they do not … (0 comments)
mortgages: Do You Have To Be A Citizen To Get An FHA Mortgage?
- 09/08/16 11:57 PM
One not-so-commonly asked questions about FHA loans is still an important issue to address. Here's a recent reader question on a borrower's ability to be approved for an FHA mortgage without being a U.S. citizen: "Ive just moved to the US from the UK on a K-1 Fiance Visa. Ive been here around 5 months. Just received my work authorization card through the mail, waiting for my social security number now. Ive been working voluntarily since I arrived...would we qualify for an FHA Mortgage Loan? Ive contacted two lenders who have told us that we might be entitled to a loan but … (0 comments)
mortgages: FHA Loans & Appraisal Rules: A Reader Question
- 08/26/16 01:42 AM
A reader asks, "I have been told by my realtor and the lender that an appraisal on a house I own will be on record for 180 days. They said that the appraised value will be on record and no other FHA appraisal can be made during this 180 day period. Is there a master list that other lenders and appraisers cross reference during this six month period? My reading of your blog indicates that if another FHA buyer makes an offer on my property. a different appraisal would need to be performed." HUD 4000.1 does indeed contain language that leads one … (2 comments)
mortgages: FHA Loans and Social Security Income
- 08/09/16 10:55 PM
A reader asks, "I dont understand if I have a 1099 and I have a benefits letter, and the letter that states at the end of the year what I am getting for the following year, why I am being asked or can be asked for something that states I will get social security for 3 years? There is nothing that says social security will give this to me or a name for it." FHA loan rules governing Social Security income are found in HUD 4000.1, page 195 under "Other Sources Of Effective Income". The rules require the lender to make a … (0 comments)
mortgages: FHA Home Loan Questions: FICO Scores
- 01/18/16 01:00 AM
A reader got in touch recently in the comments section to ask a question about FICO scores and FHA home loan applications. "My new wife's credit score is 749 and mine is 620 due to an ugly divorce and transfer several years ago. We make over 287K per year with very little debt. Would we qualify for a loan together with a favorable rate? All debt paid except car loans." This question implies that FICO scores are the deciding factor for an FHA loan approval decision, and while credit scores are very important, they are not the only factor taken into account by … (3 comments)
mortgages: CFPB: Home Loan Changes Coming In October
- 09/27/15 11:16 PM
The Consumer Financial Protection Bureau (CFPB) is a government agency designed to help consumers and protect their interests against fraud and unfair practices. CFPB issued a statement recently about new federal guidelines that will affect the mortgage lending process, making it easier for borrowers to understand the transaction. The agency has announced that starting October 3, 2015, those who apply for "most mortgages" on or after that date, "the stress of shopping for a mortgage will be reduced, as our new mortgage disclosure rule takes effect. The new rule and disclosures ease the process of taking out a mortgage, helping you save … (0 comments)
mortgages: VA Loan Reader Questions: Funding Fee Refunds
- 09/18/12 09:36 PM
A reader asks, “In 2003 I purchased a home using VA loan and the funding fee was applied to my loan. I just found out that I should not have been charged the funding fee since I had a 10% service connected disability (since 2000). To make things worse, I just refinanced few months ago and was charged a funding fee again. Is there any recourse? I was not aware that the funding fee would be exempt if you had a service connected disibily and the bank never told me of any exemption.” Borrowers who find themselves in this situation should … (0 comments)
mortgages: VA Loans, Loan Modification and Lender Participation
- 09/20/11 02:36 AM
Since the housing market crisis of 2008, there have been many programs set up to help borrowers avoid mortgage loan default and/or foreclosure. Some programs apply to those with VA home loans, some are for FHA borrowers and/or conventional home owners, and some may affect people in all three categories. There have been many changes to VA loan policies to help borrowers keep their homes. Some of the changes to VA regulations in 2011 included modifications to “prior approval” rules for lenders which governed when loan officers could approve VA loan modifications without seeking the prior approval of the Department of … (0 comments)
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Bruce Reichstein
FHA / VA One-Time Close Construction to Perm Loans
Demand for custom built homes is on the rise and many Veterans who are in the market to build a new home are finding out about the VA guaranteed Construction loan program that has been around for years. If you are an eligible Veteran and qualify for a $0 Down VA Home Loan, then you qualify for a $0 Down VA construction loan as well! Not only can these Veteran borrowers select and purchase their desired lot / land, but they can also have a say in the design plans with a home builder of their choice for stick built, modular … (1 comments)
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