Articles in Category: FHA Loan Types

January 10, 2022

Buying Your Very First Home With An FHA Mortgage

If you are buying your first home, published reports say you aren’t alone. In December of 2021, a Marketwatch article noted that in 2021, the number of first-time homebuyers increased from 31% to 34%. That information comes via the National Association of Realtors, which also notes that historically, some 40% of buyers have traditionally been first-timers. Do you need a first home or starter home? Those who buy with FHA mortgages are in a good position to buy thanks to lower down payment requirements–only 3.5% for those who financially qualify. Lower down payments can help in ways some don’t expect–such as having more money to pay closing costs and other expenses related to buying a home. Down payment assistance programs in your local area may be able to offset the | more...

January 6, 2022

Getting A Lower Monthly Payment With An FHA Mortgage

By Bruce Reichstein

If you want a lower mortgage rate, refinancing your home loan can help if the interest rates offered to you at the time are more competitive than what you pay under the original home loan. Lower rates can result in lower monthly payments. There are also options to refinance for the express purpose of getting a lower payment but for some, this issue is complicated by an option known as mortgage recasting. When you refinance, you apply for a new loan to replace the old one. The new loan may be for a shorter term or for the same number of years you committed to originally. If you refinance an FHA mortgage using an FHA Streamline Refinance loan, one of the benefits from doing so can be a lower monthly | more...

January 4, 2022

Buying A Home With An FHA Loan In 2022

By Joe Wallace

Do you want to buy a home in 2022? FHA home loan limits are higher in the new year and there are many different options to choose from with the FHA Single-Family Home Loan program. FHA loans are a popular option for borrowers–especially those who may be newcomers to the job market, those with thin credit or non-traditional credit, etc. When researching your home loan options you will learn that some lenders in your housing market may be participating FHA lenders who may also offer other loan options. This is an advantage as you can compare that lender’s options carefully to make the most informed decision about your mortgage. FHA Loan Downpayments FHA loans feature lower downpayments than you might expect, especially if you have heard the myth that you | more...

December 31, 2021

Things To Consider: FHA Loans In 2022

By Joe Wallace

What do you need to know about home loans in 2022? There are a few things to keep in mind that may affect your planning and choices about a new mortgage or refi loan. Here are some issues to think about going into the new year: FHA Loan Limits Are Higher In 2022 FHA loan limits go up in most markets, but there are some areas where the limits may not necessarily change. Keep in mind that there are high-cost markets AND low-cost housing markets. \Depending on where you are house hunting the limits may be different than what you are used to–it’s a great idea to check the limits ahead of time to get an idea of what to expect. Interest Rates May Rise In 2022 With the Fed | more...

December 30, 2021

Qualifying For An FHA Loan Or Refinance Loan

By Joe Wallace

FHA home loans and refinance loans feature similar requirements in terms of FICO scores, credit history, and responsible credit use. When you want to refinance a home loan, it’s smart to treat the process exactly the same as you did when you applied for your first mortgage where applicable. But not all borrowers have the luxury of taking a year or more to plan and save for the loan. Some must act quickly because their homes have been damaged or destroyed in a natural disaster, or they have a job-related relocation or some other issue that requires a faster approach to the loan. Some borrowers need a new purchase loan; a job relocation or an increase in family size may warrant buying a larger home. Knowing the FHA loan policy | more...

December 23, 2021

FHA Loan Applications In 2022

By Joe Wallace

Are you one of the many house hunters planning on filling out FHA loan applications for 2022? Are you ready to apply? Here are some tips to help you determine how close you might be to the application stage of a new FHA mortgage. Credit Reports Do you know the contents of your credit reports? Do you know your FICO scores? If not, you’ll need some additional time before applying for your home loan to review your credit, see what the lender may see, and determine whether your credit history is free of errors or evidence of identity theft. If your credit report shows erroneous information or if you suspect identity theft based on questionable entries on your report, you will need additional time prior to your FHA loan application | more...

December 20, 2021

FHA Home Loans: Questions To Ask

By Joe Wallace

If you are getting your finances in order and making plans to apply for an FHA home loan, there are some important questions you can ask your lender ahead of time to make your path to homeownership a smoother one. Some people, even when applying as new house hunters, have done enough research ahead of time to ask some of the right questions. But there are some home loan questions with answers that mean a lot more when combined with other information. What do we mean by this? It does not matter if you are looking for an FHA condo loan, a new construction loan, mobile home mortgage, etc. You will definitely want to ask the lenders you compare about interest rates and how much your loan will cost. The | more...

December 16, 2021

Shop Around For An FHA Lender

By Joe Wallace

Why should you shop around for your home loan or refinance loan? Aren’t all mortgages and refinance loans pretty much the same? No, actually, you may find a larger degree of variation among lenders in several ways including what kinds of loan they are willing to offer. Shopping around for a lender is always a good idea even if you are fairly certain you want to continue using your current financial institution to get the new loan or refinance. In the same way you want to shop around for the best-used car dealer you can find, you want to find the lender offering the best deal to you for the money you are spending on closing costs, lender fees, etc. FHA home loans may be standardized in many ways–the types | more...

December 13, 2021

Qualifying For An FHA Loan

By Joe Wallace

Here’s a great example of a common question we are often asked: “How much is the minimum downpayment required for FHA loan? How do I qualify?” The main issue with questions like these is that the question isn’t specific enough to answer to the reader’s satisfaction. Why? Because good credit scores aren’t enough, and lender FICO score requirements, in general, can vary between one financial institution and another. Essentially, what a borrower needs to know when preparing to apply for an FHA mortgage includes (but is not limited to) a list of items. For starters, you DO NOT have to be a first-time homebuyer to qualify for an FHA mortgage. You also don’t have to worry about income caps or household income restrictions for this type of home loan. Some | more...

December 6, 2021

Thinking About A Mortgage Loan?

By Joe Wallace

If you are considering a home loan but aren’t quite ready to commit yet, you are said to be in the planning stages of your mortgage. That planning phase is quite important and should begin as early as possible so you have plenty of time to save money for your FHA mortgage loan down payment (a minimum of 3.5% down is required), your closing costs, and other loan expenses. There are three basic areas you should pay attention to in the planning stages of your home loan–your savings, your debt, and your credit scores. The credit score portion of the process is obvious–if you don’t start monitoring your credit, work actively to reduce your credit usage and get your credit card balances as far below the 50% line of your | more...