Articles Published in: November 2010

November 12, 2010

Do FHA Loans Require a Criminal Background Check?

There are many steps to take on the road to home ownership. When applying for an FHA mortgage, some of those steps include furnishing information to help the FHA determine whether an applicant is a good credit risk. FHA requirements include a credit check that includes residency information, employment history and other details to give an accurate picture of an applicant's background as it relates to paying bills on time and maintaining good credit.

November 11, 2010

Does the FHA Require an Escrow Account for FHA Mortgages?

By Joe Wallace

In our last post, we discussed escrow accounts, which a lender may require to be set up in connection with an FHA loan in order to pay mortgage insurance, property taxes and other expenses with no fear of missed payments or penalties for late payments. When a lender sets up an escrow account in the buyer's name for these purposes, they often add the costs of the insurance and other payments into the mortgage, making one simple payment for the buyer. The extra money is placed into escrow and held until it is needed to pay the insurance, taxes or other items.

November 11, 2010

What is an Escrow Account and Why Do I Need One for an FHA Loan?

By Joe Wallace

If you're thinking of buying that first home, you've probably read plenty of real estate articles and brochures with a wealth of new vocabulary. One of these is "escrow". Until applying for an FHA home loan, many people have never needed an escrow account so it's no surprise that "What is an escrow account and why do I need one for an FHA mortgage?" is such a common question.

November 10, 2010

Can Veterans Apply For FHA Loans?

By Joe Wallace

Military veterans eligible to use the VA home loan program have a very important benefit they can use to get affordable housing. So why would a vet consider using an FHA home loan? After all, both VA loans and FHA mortgages offer similar things--a guaranteed loan backed by the government that makes the borrower more attractive to the right lender.

November 10, 2010

What is the Minimum Down Payment on an FHA Loan?

By Joe Wallace

How much is the minimum down payment on an FHA loan for a single family home? It's one of the big questions a buyer should ask when trying to plan a financial future that includes a down payment, closing costs, associated fees and other expenses. When buying a home with an FHA mortgage, some expenses may be included in the financing, but not the down payment.

November 9, 2010

Don’t Pay a Tracer to Track Down An FHA Refund

By Joe Wallace

FHA borrowers with loans acquired after September 1, 1983 may be entitled to a partial refund of their up front mortgage insurance premium. According to the FHA official site, borrowers could be eligible if they paid the UFMIP premium when the loan closed and did not default on their mortgage payments. Refund eligibility is determined by the FHA based on a number of factors including how many months the loan was insured.

November 9, 2010

Does the FHA Owe You a Refund?

By Joe Wallace

FHA loan applicants go into the process expecting to pay money for a down payment, mortgage insurance, closing costs and the typical fees associated with getting an FHA mortgage. What they don't expect is to get money back from the Department of Housing and Urban Development. But in some cases, that's exactly what they'll get.

November 8, 2010

FHA Downpayment Rules

By Joe Wallace

There is a big learning curve to FHA loans and first time home buyers often don't realize there are rules that govern practically every step of the process from who can appraise a home for sale to acceptable sources of money for FHA mortgage down payments and earnest money.

November 8, 2010

FHA Loan Closing Costs and Other Expenses: Who Can Pay?

By Joe Wallace

When a buyer applies for an FHA mortgage to pay for a new home, they're required to pay a variety of fees associated with getting the loan; there are closing costs, fees, and mortgage insurance premiums to consider. In many cases, the seller might try to make the sale of the home more attractive to potential buyers by offering to pay some of these fees including discount points and closing costs.

November 5, 2010

What Are the Minimum Credit Report Requirements for an FHA Loan?

By Joe Wallace

FHA home loans require a credit report in order to determine that an FHA loan applicant meets the minimum credit requirements for the program. FHA requirements include specific information from a credit report. Did you know the FHA has standards for both the information on the credit report AND the credit report itself? Today we