Articles Published in: 2022

March 7, 2022

Answers To New House Hunter Questions

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...

February 28, 2022

Are You Preparing For An FHA Mortgage?

By Joe Wallace

Getting your credit ready for a home loan application is one of the most important steps in the mortgage planning process. Do you know how to get your credit prepared before the lender pulls your reports and reviews your FICO scores? The first key to doing this right is time. Give yourself at least a year to save and plan for your mortgage. This also gives you enough time to work on your credit and lower the amount of monthly debt you carry. Lowering the balances on your credit cards not only improves your debt ratio, it also potentially enhances your credit card utilization ratio, too. A year of on-time, every time payments for all financial obligations is strongly recommended. This is the most basic credit repair advice you’ll find | more...

February 25, 2022

Down Payment Help For FHA Mortgages

By Bruce Reichstein

Who qualifies to get down payment assistance in order to buy a home? If you are using an FHA mortgage, your downpayment requirement is, at a minimum, 3.5%. And while that isn’t as large a down payment as you would make if you wanted to eliminate private mortgage insurance from a conventional home loan, some may struggle to come up with the money down. Buying a home can be expensive. There are inspection and appraisal fees, there may be pest control services to pay for, title searches, and more. Saving early is the key to making your down payment easier to manage in your budget. But even with saving early, extra help may be needed. That’s where down payment assistance programs can come in to help. But what does it | more...

Five FHA Home Loan Questions To Ask Your Lender

February 24, 2022

FHA Home Loan Issues For Veterans

By Joe Wallace

Veterans interested in buying a home have many choices including a VA home loan, but also FHA loans that function in much the same way as their VA counterparts. While it is true that VA loans require no down payment in most cases but FHA home loans always require one in most cases, some veterans explore their FHA loan options just the same. Some want existing construction loans, others want a One Time Close mortgage to build a suitable home from the ground up. One Time Close mortgages are available in both VA and FHA versions, so military and veteran borrowers have options with either type of mortgage. But some military members and veterans may enter the service after already having purchased a home, or after having assumed an FHA | more...

February 23, 2022

FHA Manufactured Home Loans: Questions And Answers

By Joe Wallace

FHA home loan options include loans for manufactured housing, modular homes, and what some still refer to as “mobile homes”. FHA home loan rules for manufactured housing include age and foundation requirements as well as minimum sizes. If you aren’t sure how to proceed when trying to apply for a manufactured home loan, here are some common questions asked about these types of FHA mortgages. Are FHA Manufactured Home Loans The Same As FHA 203(b) Mortgages? Not exactly. The FHA loan program allows the purchase of a modular home or a manufactured home that is not on a permanent foundation at the time of creation. The manufactured home must be placed on a permanent foundation as a condition of loan approval and the timing of this must be agreeable to | more...

February 22, 2022

FHA Home Loan Rules And Airbnb

By Bruce Reichstein

Is it possible to buy a home with an FHA loan to use as an Airbnb-type venture? Borrowers are eligible to apply for FHA home loans for up to four-unit residences; what do FHA loan rules say about using the home as a rental space? FHA loan rules governing these situations are found in HUD 4000.1. Borrowers may feel encouraged by the notion that owner-occupied properties with up to four units can by purchased with an FHA mortgage, and even more encouraged that the rules actually do address (and permit) borrowers to rent out the unused living potions. However, renting these units out is also subject to FHA loan rules (in addition to lender requirements and state law). What does HUD 4000.1 say about using spaces in your home purchased | more...

February 17, 2022

Planning An FHA Mortgage

By Joe Wallace

When you decide to buy a home, you don’t just walk out and make an offer on a home. There is a planning and saving stage, a house hunting stage, and an application stage of the home buying process. That’s a bit of an oversimplification of how it works, but even as such it shows that there’s a lot to buying a home–the more planning you can do, the better off you will be. One important issue related to the planning stage of the home loan process involves your budget. Figuring out how much home loan you can afford isn’t just about how your finances look today. You will need to look to the future in terms of your job, your income, any raises or promotions that might affect how | more...