Articles Published in: 2019

January 19, 2019

Are The Same FHA Home Loans Offered To A First-Time Home Buyer As Experienced Borrowers?

There are plenty of misconceptions about the FHA home loan program and first-time home buyers may assume some of them are true. One such misconception is that the FHA home loan program is only for first-time home buyers. Another is that the FHA loan program offers perks for those who are searching for their first home or a starter home. The reality is much different. Three Things First-Time Home Buyers Should Know About FHA Loans FHA Home Loan Facts You Should Remember FHA down payments can be supplemented by a down payment gift from a family member, friend, or employer. These funds must be properly sourced so make sure that your down payment gift is made with a check, deposited into your account, and the payment details are furnished to | more...

January 18, 2019

FHA Home Loan Credit Requirements For First Time Home Buyers

By Joe Wallace

First time home buyers and house hunters should know what the FHA loan requirements are for FICO scores, credit history, and factors that affect home loan approval for first time home loan applicants. Are you buying your first home? Are you looking for down payment assistance help and local first-time home buyer programs? FHA mortgage loan rules are designed to make your first home more affordable. Knowing the requirements before you begin your home loan planning process can save you time and money in the long run. FHA Loan FICO Score Requirements For First Time Home Buyers FHA FICO score requirements for all home loan applicants are identical whether you are purchasing your first home or buying another property after having already owned a home. FHA loan FICO score minimums: | more...

January 17, 2019

Credit Advice For First Time Home Buyers

By Bruce Reichstein

First time home buyers worried about their credit scores and the ability to get approved for a first-time mortgage should take plenty of steps to address those concerns before loan paperwork is filed. It is a very good idea to consider preparing for your mortgage loan a full year ahead of time so you can work on credit issues such as on-time payments, credit card balances, etc. First-Time Home Buyer Credit Advice: Lower Your Credit Card Balances Your credit cards can be an effective tool for establishing credit, but you have to know what the lender looks for in that credit to justify approving the home loan. The older your credit is, the better, but it’s also best to pay down the balances so you are not carrying too much | more...

January 16, 2019

Government First-Time Home Buyer Programs

By Joe Wallace

Many first-time home buyers want to know if there are government programs for those who have never purchased a home before. FHA home loans often get included into this category and it’s true; FHA mortgages are good for those buying a first home. FHA loan limits have increased for two years in a row at the time of this writing, there are lower FHA FICO score requirements and lower down payment requirements for FHA loans that make them a good option to explore when shopping for your first home and your first real estate loan. But FHA mortgages are not specifically intended for first-time buyers. You do not have to be a new house hunter to apply. That said, FHA mortgages for a starter home, first home, or for a | more...

January 15, 2019

First-Time Home Buyer Advice: How To Buy Your First Home With Less Cash Up Front

By Bruce Reichstein

First-time home buyers often need to save as much cash up front on the transaction as possible. There are ways you can prepare for your FHA home loan in the planning stages that can help you buy your first home with less out-of-pocket costs. Do you know what they are? First-Time Home Buyers Should Work On Lowering Credit Card Balances Very Early Whenever Possible One very important factor in qualifying a borrower as a good credit risk when buying a first home? The amount of debt the first-time borrower carries versus the amount of monthly income. Your debt ratio is just as important as FICO scores, and the lower your debt ratio, the better off you will be when the lender goes to approve or deny the home loan application. | more...

January 14, 2019

Buying A First Home Or Second Home With An FHA Mortgage

By Joe Wallace

What should borrowers, especially first-time home buyers, know about buying a home with an FHA mortgage? First time home buyers and second-time home buyers alike have options for an FHA mortgage. The program is not restricted to those who have never owned a home before. FHA loans are also more forgiving in the credit department-FICO score requirements set by the FHA are lower than you may expect. But lower FICO scores may still feel like a big liability for the first time home buyer. You should know that your repayment history is an important factor. If you make 12 months of on-time payments on all financial obligations, you may find the lender more willing to work with a lower FICO score. That’s because it’s easy to get a lower credit | more...

January 11, 2019

On Buying A First Home With An FHA Mortgage

By Bruce Reichstein

First-time home buyers looking for a new home to buy with a mortgage loan might not know all of their options at the time they start looking, but everyone stars house hunting with their own set of assumptions-some are right, and some are not. Some assume that an FHA home loan is made specifically for first-time home buyers, but this is not true-any financially qualified borrower can apply and be approved for an FHA home loan for a mobile home, suburban home, duplex, even condos and multi-unit properties. You read that correctly, FHA home loans can help first-time home buyers purchase multi-unit homes. This is good for those anticipating family growth, and for those who are thinking about becoming landlords and getting income from the unused living units in the | more...

January 10, 2019

Buy And Fix A Home With An FHA 203(k) Rehab Loan

By Joe Wallace

An imperfect home or a property you are sure won’t pass FHA appraisal requirements is not necessarily a lost cause when it comes to FHA mortgage loan approval. You just need to select the right home loan for the property. In the case of a home that is in need of repair, you won’t use the same kind of mortgage that you would if you were interested in a turn-key home. The kind of mortgage you need for a fixer-upper is an FHA 203(k) rehabilitation loan. FHA 203(k) mortgages allow you to buy and renovate a property using a single loan. FHA rehab loans are available as both new purchase loans and refinance loans, so no matter what stage in the home ownership process you are, this option is open | more...

January 9, 2019

FHA Home Loans In 2019: Are Home Price Increases Slowing Down?

By Bruce Reichstein

A CoreLogic Home Price Insights report indicates that home prices increased by more than five percent between November 2017 to November 2018, but the same agency indicates that home prices may slow down in 2019. Could that be beneficial to a house hunter looking to purchase a new home with a mortgage loan? FHA home loan limits have increased in 2019 for the second year in a row, making for an interesting borrowing environment for the first-time home buyer or any other financially qualified loan applicant who seeks an FHA mortgage. The higher home loan limits combined with slowing home prices, with predictions of more houses available in 2019 could offer house hunters more to work with in the new year. FHA home loans are not just available for typical | more...

January 8, 2019

Buying A Home With An FHA Loan After A Short Sale

By Joe Wallace

A short sale is essentially the sale of a home that is still being paid for, where the property sells for less than the amount owed. The lienholder(s) agree to write off the remainder and forgive the deficiency. Borrowers who sell short are often taking measures to avoid foreclosure on the mortgage, but not all of the short sale transactions that happen are on mortgages that have fallen into delinquency. Short sales happen in many circumstances but one common scenario involves a homeowner who is suffering from an underwater mortgage and is trying to cut their losses. Getting An FHA Loan After A Short Sale Is it possible to buy a home with an FHA mortgage loan after a short sale? The short answer is yes. Buying a home with | more...