article thumbnail

All-cash transactions gain traction amid high mortgage rates: Redfin

Housing Wire

Affluent Americans (or investors) are the only ones who can bypass the sting of high mortgage rates by paying all cash. FHA loan usage increases in September As sellers field fewer offers, buyers with FHA loans may have greater luck to close on a home. in April 2023.

FHA loan 441
article thumbnail

Could the assumable mortgage level the playing field?

Housing Wire

In a paper published by the Urban Institute in October, Ted Tozer, the former head of Ginnie Mae , argued that government changes to assumable loans could benefit the market. Servicers can only charge up to $900 to process, underwrite and close a transaction that includes a loan assumption. Tozer suggested “a fee of 1.3%

FHA loan 384
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Can you buy a home with plans to rent on Airbnb?

Housing Wire

You may also be able to use an FHA loan to buy your home, but there are caveats. Since FHA loans are designed for primary residences only, you’ll need to live in the home for at least a year before renting it out. You will also need to move into the home within 60 days of closing on your loan).

FHA loan 466
article thumbnail

How the PLS market is making money on delinquent loans 

Housing Wire

Since then, Lakeview has unveiled two additional PLS offerings involving pools of delinquent FHA loans also securitized via Ginnie Mae. The more recent offerings — Lakeview Trust 2022-EBO2, which closed in late April; and Lakeview Trust 2022-EBO3, set to close in early June — also involve EBO loans, according to KBRA ratings reports.

Loans 397
article thumbnail

The Advantages and Disadvantages of Buying a HUD House

Realty Biz

Thanks to HUD’s FHA loan policies, homeownership is more accessible to many Americans because lenders are given less financial risk when offering loans to buyers. HUD homes are designed for owner-occupant buyers, and real estate investors hoping to purchase one of these properties must meet HUD's eligibility requirements.

FHA loan 103
article thumbnail

New York startup Roam launches assumable mortgage platform

Housing Wire

Tech executive and investor Keith Rabois at venture capital firm Founders Fund led the capital injection. Fannie Mae and Freddie Mac loans – nearly two-thirds of the mortgage market – are not eligible to be assumed. Servicers can only charge up to $900 to process, underwrite and close a transaction that includes a loan assumption.

Mortgages 432
article thumbnail

How to Qualify for an Owner-Occupied Home

Realty Biz

However, many real estate investors can rely on something called an “owner-occupied” home to build rental income as well as save on housing costs. The arrangement is most often used by real estate investors who both live in a property and also provide separate spaces to tenants for rent.

VA loan 76