Articles in Category: FHA Loan Types

August 24, 2021

What One Credit Reporting Agency Says To Do About Your Credit Scores

Your credit report and credit score are important factors in home loan approval. So what advice do the credit reporting agencies like Equifax, Experian, and TransUnion say you should do when planning to apply for a home loan? Knowing what credit score advice these three agencies offer is important–it’s good to think like a lender when applying for a large line of credit, and it is even better to think like the credit reporting agency in terms of what to do to prepare your credit ahead of your loan. What does Experian say about getting your credit ready for a home loan? Their official site reminds consumers that credit scores are a very important aspect of home loan approval. But those scores do NOT tell the entire story. Experian reminds | more...

August 20, 2021

Buying Your First Home

By Joe Wallace

What kinds of questions should you ask before you make an offer to buy your first home? There are many areas to think about when getting ready to make a big financial commitment like a mortgage. Is Your Financial House In Order? Can you realistically afford the home you are buying? The answer to this question goes further than whether you have enough money after your other monthly expenses to pay your mortgage. For example, having the ability to save for your upfront expenses (down payment and closing costs) is important. But what happens AFTER those fees and expenses are taken care of? It is a good idea to include saving some cash reserves above and beyond your cash to close–having some extra funds to help out in case times | more...

August 11, 2021

Questions To Ask About Your Credit Report

By Joe Wallace

Do you dread the idea of looking at your credit report? Some people delay looking at theirs because they are afraid of what they might see, or afraid they won’t be able to understand what they are reading in their own report. Fortunately, there are some questions you should ask about your credit report that can give you a good start in the right direction–these questions will help you better understand what’s in your report and what a lender looks for when they review yours. When you get your copy of your credit report from Experian, TransUnion, or Equifax, be sure to review the report once “cold”, and then review it again with the following questions: Credit Report Accuracy: Open Accounts? Are the accounts listed in your credit report open? | more...

August 3, 2021

Before You Apply For Mortgage Pre-Approval

By Joe Wallace

A lot of people assume they are ready to apply for any major line of credit at any time. But if you want to apply for mortgage pre-approval, there are some important things you need to ask yourself to determine whether you are truly ready to apply. Where are you at in the current process of planning and saving for a home loan? FHA mortgages, conventional loans, and even some first-time homebuyer downpayment assistance plans require the borrower to make a minimum investment. If you don’t have a down payment saved or have a plan to come up with your down payment and closing costs before seeking a lender, you may not be ready to apply for pre-approval. But what else should you be asking? One of the first things | more...

August 2, 2021

Buying Your First Home With An FHA Mortgage

By Joe Wallace

What do you need to know about buying your first home? If you want to explore your FHA home loan options there are some things to remember–FHA mortgages require a 3.5% down payment, it’s true, but you can apply for local down payment assistance to help offset that expense. A first-time home buyer may have state and local programs open to them that can help. But that’s just one aspect of buying your first home you should be mindful of. Some don’t realize how flexible an FHA mortgage can be. You can select a typical suburban house to buy, but you also have the option to apply for an FHA mobile home loan, an FHA condo loan, etc. One thing to remember about all of these options–FHA loans do not | more...

July 7, 2021

Do You Need An FHA Loan Calculator?

By Bruce Reichstein

The short answer is, “YES”, you DO need an FHA loan calculator. But which one to use? There are multiple types of home loan calculators–they all have important functions. But many seeking FHA loans won’t need to use all of them or even most of them. You might just need a little extra information for planning and saving purposes. The FHA Loan Calculator The FHA home loan calculator uses the numbers you provide about your income, hazard insurance, mortgage insurance, property taxes, the term of your loan, and other information to help you arrive at an estimate of the monthly payments you could be making (principal and interest rate combined) and the maximum loan amount you might qualify for on a 15-year or 30-year loan (estimates only and not a | more...

July 6, 2021

Buy A Fixer-Upper With An FHA Rehab Loan

By Joe Wallace

Do you know what an FHA 203(k) rehab mortgage loan is? This is the loan to ask for from a participating FHA lender if you want to buy a home to renovate instead of purchasing a “like new” home. What You Can Do With An FHA Rehab Loan Borrowers are allowed to apply for a new purchase loan or an FHA refinance loan under the 203(k) program, which the FHA loan handbook says may be used to buy and rehabilitate an existing one- to four-unit Structure, which will be used primarily for residential purposes. It can also be used to rehabilitate / refinance outstanding indebtedness “on the Structure and the Real Property on which the Structure is located” or to purchase and rehabilitate “a Structure and purchase the Real Property | more...

June 29, 2021

Can I Assume An FHA Mortgage?

By Bruce Reichstein

Can I assume an FHA mortgage? That is a question on the minds of those looking to take over an FHA home loan from the original borrower. Loan assumptions are a bit different than a new purchase home loan application, though the borrower must be able to afford the loan in both cases. The short answer is that yes, in most cases with lender participation you may be able to assume an existing FHA home loan from the original borrower. A credit check may or may not be required (see below) depending on circumstances, and lender standards. It’s the lender’s job to determine whether or not the loan assumption will happen-FHA loan rules in HUD 4000.1 permit the assumption of an FHA mortgage, but the process requires the lender’s participation. | more...

June 28, 2021

Start Getting Ready For Your FHA Home Loan

By Joe Wallace

FHA home loan resources abound–you should know about using online mortgage calculators, pre-qualification for a home loan, and the availability of free credit reports to help you in the research and planning stages of your new home loan or refinance loan. Let’s start with those free credit reports–the Consumer Financial Protection Bureau (CFPB), reminds home loan applicants that they are entitled to “a free credit report every 12 months from each of the three major consumer reporting companies (Equifax, Experian and TransUnion)” according to the CFPB official site. Getting your credit report from all three agencies is an excellent way to begin your planning stage of the loan. Get your credit reports a year in advance of your loan application and remember to keep monitoring your credit afterward. This gives | more...

June 25, 2021

Reasons You Might Be Denied A Mortgage

By Bruce Reichstein

There are many reasons why a mortgage underwriter might deny your home loan application. There are some very obvious, Mortgage 101 reasons that you’ll read about in most finance blogs or mortgage loan blogs. Among the most obvious answers? Low credit scores, a borrower with a history of late or missed payments for housing obligations, and homes that do not pass the appraisal process. But what about the not-so-obvious ones? Red Flags For The Lender: Recent Career Changes Could you be denied a home loan if you have recently changed jobs and the switch resulted in you earning less money or moving downward (career-wise) rather than upward? It’s possible, depending on a variety of factors. It’s also possible to be turned down for a mortgage loan if you have recently | more...