Articles Published in: March 2022

March 11, 2022

Issues That May Complicate Your FHA Home Loan Application

There is a lot of advice out there about starting early when it’s time to plan and save for your mortgage. When you are preparing for an FHA loan application you naturally want to check your credit, pay your bills on time, and reduce your credit card use. But even when you are busy with taking care of these things, there may be issues that can complicate the home loan process. Knowing these issues can help you navigate them if there is one that applies to you. It’s easy to assume you don’t have a hidden problem waiting to slow do your home loan process, but some of these issues are a surprise to future borrowers and they spend additional time sorting them out. Do You Owe Any Tax Liens? | more...

March 10, 2022

FHA Mortgage Loan Planning: Fixed Or Adjustable-Rate Mortgage?

By Joe Wallace

When you are in the planning stages of an FHA mortgage there are some considerations you’ll want to make about which upfront costs to pay out of pocket and when it is smart to consider financing certain costs. What do you need to know about these decisions? We’ll explore below. Planning your home loan means deciding a number of things including how long you plan to stay in the home. That factor will play an important part in choices like whether to apply for a fixed-rate mortgage (better for long-term owners who don’t plan to sell at some point) or an adjustable-rate mortgage (better for those who know they won’t own the home for a very long time). An adjustable-rate loan typically features an introductory rate that changes at the | more...

March 9, 2022

Your FHA Refinance Loan Options

By Bruce Reichstein

FHA home loans feature a refinance option. There are multiple options to refinance with an FHA mortgage and you can choose to refinance out of a conventional mortgage into an FHA loan, get cash back at closing time, and more. What do you need to know about FHA refinance options? FHA Cash-Out Refinance loans are not the only option to refinance a non-FHA mortgage. You can also apply for a no-cash-out version and get out of your current loan and into a new FHA mortgage. Some choose to do this because they want out of an adjustable-rate mortgage, others choose an FHA loan because they are interested in a lower rate. When you are reviewing your refinance options, it pays to have an idea of your financial goals for the | more...

March 8, 2022

FHA Loan Questions And Answers

By Joe Wallace

There are a lot of myths that are still circulating about FHA home loans. What do you need to know about these loans to separate the facts from the fiction? True Or False? FHA Home Loans Are For New Buyers Only False. Some people mistakenly believe you can only qualify for a mortgage guaranteed by the FHA if you are a first-time homebuyer. This is not true. You must financially qualify for the loan like any other mortgage program but you do not have to be buying a house for the first time. True Or False? FHA Loans Require Mortgage Insurance True. FHA mortgages issued today have mortgage insurance requirements for either 11 years or the full duration of the loan depending on how much you put down, the term | more...

March 7, 2022

Answers To New House Hunter Questions

By Bruce Reichstein

What does it take to qualify for an FHA mortgage? That’s among the most common questions asked about FHA home loans. What is the answer? There are a variety of factors that go into your loan officer’s decision to approve or deny a home loan. Those factors include the number and amount of your monthly financial obligations, your FICO scores, how well you use the credit you have, and other variables. What credit score do you need to qualify? On paper, FHA loan rules say those with FICO scores in the 580 or above range qualify for the lowest down payment possible for an FHA mortgage (3.5%). Lender standards may require a higher FICO score range. Not all borrowers have the same kind of FICO scores. Some may have thin | more...

March 4, 2022

FHA Home Loan Options For New Borrowers

By Joe Wallace

FHA home loan options for new borrowers and first-time homebuyers vary. There’s a misconception that FHA mortgages are only for first-time borrowers, and another misconception is that FHA loans somehow favor first-time borrowers with better rates, terms, or other factors. But the truth is that FHA mortgages are NOT just for first-time homebuyers. You can be approved for an FHA mortgage without being subject to income caps or restrictions. Need-based requirements do not apply for FHA loan approval. And there’s another truth-the FHA loan program itself does not offer more favorable terms for first-time applicants than for anyone else. All applicants who are financially qualified can apply for an FHA loan or refinance loan. That leads to some confusion among borrowers who see lenders offering first-time buyer incentives. The fact | more...

March 3, 2022

What Can I Buy With An FHA Loan?

By Joe Wallace

What is possible with an FHA home loan? If you don’t know all your options, you might be surprised to learn you can use an FHA mortgage to buy a house with as many as four living units, manufactured home or modular home, and even a condominium unit. There are some things you cannot use an FHA mortgage to buy, we’ll examine some housing types below: Suburban Houses, Duplexes, And Townhomes FHA loans can be used to buy a one-to-four unit property in a typical neighborhood that is primarily residential and a house where you plan to live as your home address. A duplex or townhome is eligible for an FHA mortgage if the property meets minimum standards, the same as a single-bedroom home or a condo. Repo Homes And | more...

March 2, 2022

FHA Refinance Loan Terms You Should Know

By Joe Wallace

If you have never applied for a refinance loan and are considering an FHA refinance, you may be unfamiliar with certain industry jargon and loan terms that will come up in the course of your loan application and during the approval process. This article isn’t about what it takes to be approved for an FHA refinance loan, but it will make some aspects of the process a bit less mysterious. Rate And Term Refinance This is a type of FHA refinance option that features no cash back to the borrower, and uses all loan proceeds to pay off the original loan and cover closing costs. These loans can be used to refinance FHA or non-FHA mortgages. FHA Simple Refinance Like the Rate And Term, this refi option is meant as | more...