Articles Published in: 2018

October 3, 2018

FHA Home Loan Mortgage Rates And Home Loan Planning

What do new borrowers need to know about FHA home loan interest rates? When you are in the planning stages of your mortgage loan you might not know where to start first, but knowing a few important facts about mortgage loan interest rates can be a huge help. FHA Loan Interest Rates Are Not Regulated By The FHA The FHA and HUD do not set interest rates on FHA mortgages or FHA refinance loans. The rates offered to you by your chosen participating lender will be set according to the current market plus variables such as your credit scores. It’s best to shop around for a lender to find the most competitive interest rate. FHA Home Loan Interest Rates Are Subject To Change Mortgage rates change daily. There are several | more...

October 2, 2018

FHA Loan Applications And Your Credit Report

By Bruce Reichstein

When you apply for an FHA mortgage, your lender is required to check your FICO scores and credit history. But do you know what the lender must gather to determine whether or not to approve your mortgage loan? This process is a mystery to some home buyers and knowing what’s involved can help you plan for your mortgage loan long before you ever contact a lender. FHA Loan Requirements For Checking Credit Scores And Credit History The rules that govern this process are found in HUD 4000.1, the FHA Single-Family Loan handbook. It instructs the lender to use a traditional credit report whenever possible-some borrowers may have little to no credit history and a non-traditional credit report may be needed. But in cases where the lender is able to obtain | more...

October 1, 2018

What Is A Home Loan Seasoning Period And Does This Affect My FHA Mortgage Application?

By Joe Wallace

What is a seasoning period and how does it affect an FHA mortgage loan? Simply put, the seasoning period is a required amount of time a borrower may be required to wait before even being allowed to apply for a new loan. Who does the seasoning period concept affect and why? What are the FHA home loan rules for these periods and when are they applicable? FHA Loan Seasoning Periods: The Basics A seasoning period on an FHA mortgage may be applicable for a new purchase loan in some cases, and refinance loans in others. For new purchase FHA home loans, the seasoning period applies most often to those who have had a negative credit event such as a bankruptcy or foreclosure. Bankruptcies and foreclosures require the borrower to wait | more...

September 28, 2018

FHA Home Loan Approval Questions Part Two

By Bruce Reichstein

There are many questions borrowers have about home loan approval and how the lender decides which loans to approve. Knowing more about this process can help you better prepare for it; here are some of the most commonly asked questions about FHA home loan approval. Why Does My FHA Loan Application Get Denied With One Lender But Approved By Another? FHA home loan rules include minimum standards for FICO scores, credit history, and other factors. But these minimums are not the only guidelines that affect home loan approval. Your FHA mortgage loan is also subject to lender standards which will vary from lender to lender but also may be different than FHA loan minimums. FICO scores, employment history, and other factors may vary from the FHA minimums, which is permitted | more...

September 28, 2018

FHA Home Loan Approval Questions Part One

By Joe Wallace

FHA home loan approval is a process that requires your lender to review your credit history, employment history, and many other factors before deciding to approve or deny a home loan application. There are many questions about this process, and the more answers you have before yo start filling out applications, the better. The answers in this blog post pertain to FHA loan basics, but also rules for self-employed borrowers and those earning commission income. FHA Loan Approval Basics: What Do I Need To Know? The lender will pull copies of your credit report and review your payment history for the 12 months leading up to the mortgage loan application. FHA loan rules are similar to other home loan requirements in this area; coming to your FHA mortgage application process | more...

September 27, 2018

Will I Be Approved For An FHA Mortgage Loan?

By Bruce Reichstein

We get many reader questions asking about scenarios they are worried might cause trouble when it’s time to apply for an FHA mortgage. Here are some of the most common questions related to situations that may or may not be an issue when applying for an FHA home loan or FHA refinance loan. I have a FICO score of 500. Can I Qualify For An FHA Mortgage? Technically the answer is yes, if you go by FHA loan standards alone. However, lender standards for FICO scores and loan approval will also apply and the lender’s FICO score requirements are likely to be higher than the FHA loan minimums. Those with FICO scores between 500 and 579 are technically eligible for an FHA loan but they are required to pay 10% | more...

Refinancing a Second Home With An FHA Mortgage Loan

September 27, 2018

Why Isn’t The Mortgage Loan Interest Rate I See On The Internet The Same Offered To Me?

By Joe Wallace

Why do house hunters find FHA home loan interest rates advertised online to be different than the interest rates offered to them by a lender? Many borrowers want to know what the difference in rates will be and why. The answer is that several variables combine when your lender is reviewing your application for a new mortgage. Your interest rate will be offered based in part on those variables. What are some of these variables? FHA Home Loan Interest Rates And Daily Market Conditions FHA home loan interest rates are affected daily by investor behavior, breaking financial news, politics, even natural disasters and holidays. The daily changes in mortgage rates may or may not be passed on to the consumer in the form of an actual higher or lower rate; | more...

September 26, 2018

What Happens If I Pre-Pay My FHA Mortgage?

By Bruce Reichstein

What happens if you pre-pay your FHA mortgage? FHA home loans are known for having no pre-payment penalty but there may be certain steps the borrower is required to take in order for such pre-payments to be used as intended. The date of your FHA loan may make an important difference in how you are to proceed; it’s best to discuss pre-payment options with your loan officer ahead of time to learn what, if any, additional lender requirements may exist above and beyond the FHA loan standards we’re discussing here. What follows is NOT lender policy but the FHA loan rules. Lender requirements may add to or further develop these FHA guidelines. FHA Home Loan Rules For Pre-Payment On Mortgages Closed On Or After January 21, 2015 FHA loan rules | more...

September 26, 2018

FHA Loans And Your Credit Report: Check Ahead Of Time

By Joe Wallace

It’s generally advised for borrowers to check their credit reports a year ahead of time before applying for a home loan. One of the reasons for the early start has to do with the amount of time it could take to dispute items on your report; outdated information, errors, evidence of stolen identity, etc. But when you are pulling your credit report, what should you be looking for? There are plenty of items you should compile a credit report checklist and include in that list. Check The Basics Before Applying For Your FHA Mortgage Or Refinance Loan The first thing to do when pulling your credit report is to make sure all of your vital information is accurate. Your name should be correctly spelled, your Social Security Number should be | more...

September 25, 2018

Five Steps To An FHA Home Loan

By Bruce Reichstein

Buying a new home is a process. Do you need an FHA mortgage to purchase the home you’ve been looking for? There are five things you can start doing now without financially obligating yourself to purchase; these steps will definitely help you get ready for your new home. #5: Determine How Much Loan You Can Afford Before You Apply For Your FHA Mortgage Figuring out how much home loan you can afford isn’t just about how much you can afford NOW, but also down the road in light of future pay raises, upward mobility at work, changes in salary or bonuses, etc. The debt to income ratio you have at the moment may be lower six months into the future-it’s a very good idea to look ahead when planning for | more...