Articles Published in: December 2024

December 30, 2024

Down Payment Help For FHA Mortgages

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...

December 19, 2024

Bad Credit And FHA Home Loan Options

By Joe Wallace

The term “bad credit” tends to feel a bit stigmatizing. Borrowers who have had past difficulty with credit have it hard enough trying to recover from the stigma of their previous credit issues without being confronted by those problems every time they want to start working on their credit. Is there such a thing as a bad credit FHA loan that can help people become homeowners and get a fresh start with credit? Technically the answer is, “it depends”, which isn’t very reassuring. But the truth of the matter is, there are FHA standards that technically make the concept of a bad credit mortgage a reality. After all, on paper FHA loan rules state that a borrower with FICO scores in the 500 range could still technically qualify for an | more...

FHA Home Loans And The Biggest Credit Mistake You Can Make

December 16, 2024

FHA Cash-Out Refinance Loan Rules You Should Know

By Bruce Reichstein

What should borrowers know about FHA cash-out refinance loans? If you are thinking of cashing in on the equity built up in your home in 2025, there are some important details to know before you get started. There are a few rules to keep in mind, but some of the most important include how you can use the proceeds of a cash-out refinance loan and the rules the lender follows when verifying the borrower’s eligibility for a cash-out loan. Borrowers may wish to pay off credit card debt with an FHA Cash-Out refinance loan, or use the money to pay off nuisance debt, buy a car, go on vacation, etc. What are the rules for FHA cash-out refinance loans and the money back to the borrower? How To Use FHA | more...

December 9, 2024

Higher FHA Loan Limits Coming in 2025

By Joe Wallace

Thinking about buying a home but worried you might not qualify for a loan? The Federal Housing Administration (FHA) is making changes in 2025 that could help make your homeownership dreams a reality. Bigger FHA Loan Limits in 2025 The FHA is increasing its loan limits for 2025. This means you can borrow more money to buy a home, which is great news in today’s market. What are the New Limits? For a typical single-family home in most parts of the U.S., the new loan limit is $524,225. But if you’re looking in a high-cost area, like California or the Northeast, the limit may go up to $1,209,750. And it’s not just for single-family homes! The FHA also has options if you’re interested in a duplex or other multi-unit property. | more...

December 5, 2024

FHA Refinance Loan Options

By Joe Wallace

No two refinance loan programs are exactly identical–depending on the program and the lender you may find terms and conditions vary. If you need to refinance in 2025, be sure to check the latest updates to the FHA refi programs offered, including loan limits and other variables that may change from year to year. You’ll want to know the most current qualifying requirements for certain refi loan options. For example, where FHA Home Equity Conversion Mortgages are concerned, there is a minimum age you must be (62 or older) to qualify. That is NOT true of FHA Cash-Out Refinancing or FHA Simple Refinance loans. What’s more, FHA refinance loans do not have the same terms and conditions. For example, depending on the participating lender, these refinance loans may allow you to | more...

December 4, 2024

Mistakes First-Time Homebuyers Make

By Joe Wallace

If you are a first-time homebuyer, there are some pitfalls and mistakes you should definitely try to avoid as you enter into the process of planning, saving, and applying for a loan to purchase a new home. If you are thinking of buying a new home in 2025 with higher FHA loan limits, consider the kinds of mistakes some new house hunters make before you commit. What kinds of mistakes do we mean? There is the usual Home Loans 101 type advice you read in every single finance blog ever written–don’t be careless with your credit, don’t apply for new credit while you are trying to apply for a home loan, and don’t start house hunting in earnest without home loan preapproval. But what about some of the less obvious | more...