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Articles in Category: Fixed Rate Mortgage

FHA Home Loan

Bad Credit And FHA Home Loan Options

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 loans

Mistakes First-Time Homebuyers Make

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...

 
FHA Mortgage Loan

Are You Ready To Apply For An FHA Mortgage?

How do you know you are ready to apply for an FHA home loan? And by that question, we mean sending the documents to the lender ready for the approval process. Being ready to submit your financial information and other documents for loan approval means having taken certain steps along the way in the planning and saving stages of your mortgage. To apply for an FHA home loan, you’ll want the following things in the list below, and keep in mind that these are needed before you send in your application: Making an offer on a home and having it accepted is the catalyst for getting the actual application paperwork into the system, but some borrowers pre-qualify for a loan before house hunting.  That causes some confusion at times because | more...

 
FHA loans

FHA Home Loans: Why You Want To Haggle With The Seller

Many first-time home buyers hate the idea of negotiating, haggling, or otherwise trying to adjust the price of the home with a seller. In a seller’s market there’s not much negotiating possible, it’s true. But when conditions are more favorable for the borrower, negotiating may be to your advantage. Why Should A First-Time Home Buyer Be Willing To Negotiate With The Seller? The most apparent reason to haggle with the seller of the real estate you want is to get a lower price. This becomes even more crucial if the appraisal comes back lower than the property’s asking price. The buyer cannot be forced to close the deal in cases where the home’s appraised value is lower than the asking price. The FHA home loan itself will be issued for | more...

 
FHA Home Loans

Considerations For Buying Your First Home With An FHA Mortgage

First-time home buyers looking for their first home and a participating lender to apply for an FHA mortgage loan may not know exactly what they are looking for in a new home at first. As you embark on the home ownership journey, several issues will become more apparent. When planning for your first home loan and preparing your credit to borrow, remember these concerns. Buying A First Home To Accommodate Future Needs Couples looking at their first home should anticipate changes in family size, needs for a hobby room or a dedicated workspace, and room to grow with furniture and other possessions. The one-bedroom house you look at today may be the home you grow out of tomorrow; make sure you anticipate your future needs when looking at designs and | more...

 
FHA mortgages and refinance loans

Repair Your Credit Before Your Home Loan

Interested in applying for an FHA mortgage or a refinance loan? It’s not as easy as finding a lender and applying; you will need plenty of time to save for the expenses of the loan including the down payment and closing costs. But you also need more time in another way; taking a preliminary step as early as possible in your loan process can make the difference between loan approval and rejection. What is that preliminary step? Reviewing your credit report for errors and identity theft evidence. It’s also about working on raising your FICO scores based on the results of your credit report review. All Americans are entitled to a free copy of their credit report once per year, so there is no cost to obtain one. You can | more...

 

Preparing For Your Home Loan

The real estate market is typically in flux, thanks to various factors. In a given week, month, or year, you may encounter market conditions more favorable to you as a buyer or to the seller. When assessing the current real estate market dynamics, learn whether the county you want to buy a home in is a buyer’s market, seller’s market, or balanced market. The nature of the market is typically determined by some variables, including the supply of homes compared to the demand. In a buyer’s market, more homes are available than buyers, giving buyers more negotiating power. In a seller’s market, there are more buyers than homes available. That provides sellers with the advantage. Neither side has a significant advantage in a balanced market because conditions are more “neutral” | more...

 
Do You Need Down Payment Help?

How Much Should I Put Down On A House?

Thinking about getting pre-qualified or pre-approved for a mortgage loan? FHA mortgages generally require a lower down payment and have more forgiving terms for loan approval, but the amount of money you put down isn’t just guided by your financial qualifications (see below). It also depends on your financial goals. Some sources indicate that more people put down less money than you might think to purchase their dream home. Some zero-money-down transactions are likely either VA loans (available for qualified veterans and dependent on serving a minimum amount of time in uniform) or USDA loans, which also have a zero-down payment option. But in some cases, you may actually wish to make a larger down payment. Why? In some cases it’s because a borrower’s FICO scores aren’t high enough to | more...

 
what is mortgage insurance

Comparing FHA Mortgage Insurance to Conventional Mortgage Insurance

There are two types of mortgage insurance: private mortgage insurance (PMI) and Federal Housing Administration (FHA) mortgage insurance. Each has a specific use and purpose and its own price tag, which may vary depending on circumstances. We examine some important facts about each type below. What To Know About Mortgage Insurance Private Mortgage Insurance (PMI) PMI protects lenders if a borrower defaults on a loan with less than a 20% down payment. Lenders consider this insurance necessary for loans that are viewed as higher risk. PMI typically has stricter eligibility criteria than FHA mortgage insurance.  Borrowers often need good credit scores (680 or higher) and a debt-to-income ratio of 43%. The cost varies depending on the borrower’s credit score, down payment amount, loan term, and the insurance provider. It is | more...

 

Is There A Time Limit On FHA Loan Applications?

When FHA loan applicants work on getting a mortgage and closing the deal, sometimes things don’t always go as smoothly or as quickly as planned. In cases where there is a delay for some reason, do FHA loan rules include built-in time limits on how long a borrower and seller can go between loan approval and closing? While a casual glance at the FHA loan rules may not turn up a specific rule that says “FHA loans must be closed in X number of days,” there are several requirements that add up to the need to get an FHA loan accomplished in a timely manner. One is the length of your interest rate lock-in period. Once it expires, you and the lender may need to renegotiate the rate, so it’s | more...