Articles Published in: August 2018

August 8, 2018

Need To Fix Your Credit Before Your FHA Home Loan?

Do you need to work on your credit before applying for an FHA home loan? If you are worried that your FICO scores or credit history might not be good enough to be approved for a home loan, keep reading. Prepare For Your FHA Home Loan Application As Early As Possible One of the most important things you can do to start working on credit repair or just getting ready for the home loan in general is to start looking at your credit reports as early as possible. It will take time to improve a credit rating and credit history-do not delay! The earlier you start working on your credit issues, the better off you will be at loan application time. Work On Your Credit Yourself Yes, you can pay | more...

August 7, 2018

Is An FHA Home Loan Right For You?

By Bruce Reichstein

Is an FHA home loan right for you? An FHA mortgage or refinance loan may be right for borrowers who have plans for the home that meet FHA loan rules, and who meet the FHA and lender credit qualifications required for loan approval. Some potential FHA borrowers or refinance loan applicants might assume by reading the above that FICO score requirements and other credit qualification issues are hard to meet. But FHA mortgage loans and refinance loans have more forgiving FHA requirements than conventional mortgages. Your lender may have standards higher than the FHA loan minimums, but in general these are still more lenient in many cases than conventional mortgages. Are you right for an FHA mortgage? There is a little checklist of questions that can help you figure out | more...

August 6, 2018

Can I Make My FHA Home Loan Down Payment In Cash?

By Joe Wallace

Some borrowers want to know if they can make their FHA home loan down payment in cash. The FHA loan down payment rules that govern single family home loan down payment sources are found in HUD 4000.1. They have specific requirements for the source of all down payment funds for an FHA mortgage. It does not matter whether you are applying for an FHA rehab loan, an FHA new purchase mortgage for existing construction, or whether you want an FHA mortgage to construct a home to suit your needs; a minimum down payment is required above and beyond all other closing costs and expenses related to the mortgage. FHA loan rules state that the lender must verify all down payment funds and make sure they come from approved sources. FHA | more...

August 3, 2018

FHA Loan Down Payment Assistance Rules

By Bruce Reichstein

FHA loan rules governing down payments and down payment assistance are found in HUD 4000.1, the FHA single-family loan handbook. FHA loan rules require both a minimum down payment and also that the down payment comes from an approved source. FHA loan rules permit borrowers to get down payment assistance from third parties, but when down payment help is offered, it must meet the same types of requirements that borrower-provided down payment funds. What are the rules for down payment assistance for FHA mortgages? FHA Home Loan Down Payments Must Be Sourced Properly FHA loan down payment money can come from a borrower’s cash reserves, cashed-in investments, checking accounts, and a variety of other sources. But it cannot come from a payday loan, cash advance, or other restricted sources. The | more...

August 2, 2018

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

By Joe Wallace

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...

August 1, 2018

FHA Home Loan Options You Should Know About

By Joe Wallace

Do you know all your FHA home loan options? There are important choices to make that can affect your monthly payments, the amount of down payment money you bring to the transaction, and even whether your home loan is a fixed rate mortgage or an adjustable rate loan. FHA Home Loan Options: Down Payment Assistance The FHA loan program itself does not offer down payment assistance, but permits contributions of gift funds and down payment help that meets FHA loan rules. Third parties such as government agencies or charitable organizations may be able to help with your down payment if you meet the program’s requirements. Gift funds can come from a relative or other third party but all funds for down payment must be carefully documented and verified by the | more...