Articles in Category: Fixed Rate Mortgage

June 21, 2021

FHA Mortgage Or USDA Home Loan: Which Is Best For You?

What makes FHA mortgages different than USDA home loans for the same kind of property? Both FHA and USDA mortgages are offered for single-family homes and you can apply for a 30-year fixed rate mortgage under both programs with lower interest rates and more flexible credit requirements than some conventional loans. What makes FHA and USDA mortgages so different? One important factor is who qualifies for each kind of loan. USDA mortgages are intended specifically for low to moderate income borrowers who are looking for affordable housing. USDA mortgages feature price limits and household income limits that will affect the borrower’s overall loan eligibility. FHA mortgages do not feature such restrictions and are for any financially qualified borrower regardless of the upper limit of their household income. USDA loans feature | more...

June 15, 2021

FHA Mortgage Loan Facts

By Joe Wallace

What do you need to know about FHA home loans? Aside from dispelling the common myth that FHA mortgages are only for first-time home buyers or economically disadvantaged house hunters, there are many things you should know about the FHA loan program before you apply. FHA loans differ from other mortgages with their lower credit score requirements, low down payments, and zero penalty for early payoff of the loan. FHA home loans are for any borrower who can financially qualify and you do not need to worry about income limits or other need-based restrictions. There are some things you should know about FHA loans that are universal to all home buying experiences in America. One of those? No matter what your lender, real estate agent, or anyone else says or | more...

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

June 14, 2021

More FHA Mobile Home Loan Advice

By Joe Wallace

Did you know that you do not have to own the lot your new mobile home will be placed on in order to be approved for an FHA home loan? FHA mortgage loans for mobile and manufactured homes permit you to purchase a mobile home, modular home, or manufactured home that will act as your primary residence and that will be attached permanently to an approved foundation. There is more than one type of mobile home loan you can get from a participating FHA lender who offers them. You can apply for an FHA mortgage to buy the mobile home alone, or you can apply to purchase land in conjunction with the mobile home purchase. Your lender may even allow you to apply for a home loan to purchase the | more...

June 3, 2021

Choosing The Right Home Loan

By Bruce Reichstein

Are you considering the purchase of a home? Among the options, you need to consider? The right kind of home loan for the right type of borrower. There are many loan programs out there with a variety of government-backed mortgages to choose from including USDA, FHA, and VA. There are also Fannie Mae and Freddie Mac loans. When exploring those home loan options, some borrowers want the lowest upfront costs possible, which makes sense when a borrower has other goals for that money, and making a down payment would hurt those plans. Some borrowers may need that money at another point, and seek out down payment assistance in the form of grants, loans, etc. One type of home loan that features a low down payment of 3% and allows down | more...

May 26, 2021

FHA Home Loan Mortgage Rates

By Bruce Reichstein

First-time borrowers sometimes ask, what is an FHA home loan mortgage rate? The FHA loan rate is the interest rate you’ll negotiate with the lender on a 15-year or 30-year FHA mortgage. There are some facts you should know about FHA loan rates that will make understanding them much easier. FHA Loan Rates: They Vary By Lender Technically speaking, the mortgage loan interest rate on your loan is something determined by the loan officer, based on current market rates and other factors. Who gets the most competitive FHA loan rates? Those who meet FICO score standards and the lender’s other financial qualifications. But rates, being negotiable, can be bought down using discount points–an option you and the participating FHA lender should discuss as early as possible. Buying discount points makes | more...

May 5, 2021

Comparing Mortgages: Conventional 97 Loans Versus FHA Home Loans

By Joe Wallace

For low down payment requirements, the FHA mortgage is a home loan that has appealed to a vast number of people. It features a down payment of only 3.5% and has many perks such as no penalty for early payoff of the mortgage. FHA home loans are government-backed mortgages, which means lower risk for the lender. That government guarantee means your lender may offer lower FICO score requirements for FHA borrowers–one major benefit of FHA home loans for some is that lower FICO score bar plus the 3.5% down payment requirement. But it isn’t the only low-downpayment home loan option; there is a conventional home loan product called the Conventional 97 with an even lower down payment of three percent. Is this a smarter option than an FHA mortgage? | more...

April 23, 2021

The FHA Home Loan Myth

By Joe Wallace

There is a prevailing myth about FHA home loans that persists to this very day–the idea that FHA mortgages are ONLY for first-time home buyers and/or the economically disadvantaged. FHA home loans are thought to be exclusively for these borrowers, but that is definitely NOT TRUE. FHA home loans are for any financially qualified borrower with FICO scores over 500 (the FHA minimum, not your lender’s minimum standard). Some confuse the FHA loan program with the USDA Single-Family home loan program, which DOES have income limits and is aimed at borrowers who are in financial need. USDA mortgages have a no money down option for qualifying borrowers but the homes purchased with these mortgages must be in USDA-approved areas and feature household income caps. FHA mortgages, on the other hand, | more...

April 19, 2021

Issues That Can Affect Your Home Loan

By Joe Wallace

There are certain problems that crop up with home loan applications that can make it difficult for a mortgage lender to approve a loan application. We have written many articles about credit scores, debt payment history, and the amount of debt you carry, and how these issues affect your ability to get home loan approval. But what about the lesser-known issues? The Nature Of The Property Counts Some property types have restrictions from either the lender or under FHA loan rules. Those rules are found in HUD 4000.1. Did you know that no mobile home built before June 15th, 1976 can be approved for an FHA mortgage? No home may be sold under the FHA loan program for commercial purposes. That means the home purchased with an FHA loan can’t | more...

April 14, 2021

FHA Home Loan Resources For First-Time Buyers

By Joe Wallace

Are you thinking of purchasing your first home? An FHA mortgage can be a great help with its low downpayment requirements, borrower-friendly terms, and the ability to freely sell or transfer ownership of the home if needed. First-time home buyers often aren’t sure where to start gathering resources for their home loans in the planning and saving stages. Here are some of those resources that can help you get started on the journey toward owning your own home. FHA Home Loan Local Down Payment Assistance Programs FHA loans permit down payment grants, and you may be able to find one in your local area using this Downpayment Grant resources list broken down by state. FHA Mortgage Loan Calculators FHA mortgage loan calculators can help you determine a rough estimate of | more...

April 13, 2021

Buy Your First Home With An FHA Mortgage

By Joe Wallace

Do you want to purchase your first home? Borrowers looking for a starter home often turn to the FHA loan program because of its low 3.5% down payment requirement for borrowers with qualifying FICO scores. And thanks to protections for the borrower such as no penalty for early payoff of the loan and the ability to refinance the FHA mortgage into a new FHA loan that can result in a lower mortgage rate or monthly payment when using an FHA Streamline Refinance loan. Qualify For An FHA Mortgage What do you need to qualify for an FHA loan? For best results, at least two years in the job market and FICO scores that are in the 600s or better. FHA loan rules say you can technically qualify for an FHA | more...