Articles in Category: Loan Limits

June 13, 2011

FHA Loans and Your Credit Report

Anyone applying for a new line of credit agrees to submit to a credit check, whether for a new car purchase, a credit card account or an FHA home loan. When it comes to FHA loans, the credit history is identified in FHA literature on home loans as “the most useful guide in determining a borrower’s attitude toward credit obligations and predicting a borrower’s future actions.” Simply put, an FHA loan applicant with a record of on-time payments looks like a good credit risk to the lender. But what about those who have had trouble in the past paying on time? When the lender examines your credit history, it’s not a simple case of saying no because the facts and figures show a history of late payments. According to the | more...

February 10, 2011

FHA 203(k) Rehab Loan Facts

By Bruce Reichstein

The FHA offers a rehab loan known as the FHA 203(k). This program is the FHA's main loan product for rehab and repair loans for single family homes, and according to the FHA official site, "...it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it."

February 9, 2011

FHA Home Loans: The HUD-1 Settlement Statement

By Joe Wallace

Buying a home with an FHA loan involves a process with a set of milestones along the way. The first of set of milestones includes finding a suitable home, negotiating a price, applying and being approved for a home loan and agreeing to the terms and conditions. When it's finally time to close the deal, sign on the dotted line and get ready to take possession of the property, there's another important part of the process--getting a HUD-1 Settlement Statement.

January 28, 2011

How Can I Tell If I Can Afford an FHA Home Loan?

By Bruce Reichstein

Many people dream of home ownership, but the prospect of committing to a monthly mortgage payment is daunting for some. How can you tell if an FHA mortgage is right for you? Fortunately there are many tools online that can help a potential borrower determine whether they're ready to take the plunge...or if their finances need a bit of work first. One of the criteria for a successful FHA loan application is having the right debt-to-income ratio. An FHA borrower must have a debt-to-income ratio that totals no more than 41% in most cases.

January 26, 2011

How FHA Loan Limits Work

By Bruce Reichstein

If you're a first-time home buyer looking to buy a home with an FHA loan, there are quite a few new terms and phrases to get familiar with. Anyone who has priced a home probably knows a lot more about the ups and downs of the housing market when it comes to the value of a particular home in a specific neighborhood...but newcomers to the FHA loan process may wonder if the homes they are viewing are worth the asking price and whether or not they can qualify for an FHA guaranteed loan to meet that asking price. There are several factors that go into the final amount of an FHA home loan. One of those factors is the appraised value of the property--how much the FHA deems the property | more...

January 19, 2011

What is the FHA Definition of a Manufactured Home?

By Joe Wallace

FHA home loans are available for mobile homes, manufactured homes and/or modular homes. How does the FHA define a manufactured home and how is it different than a new construction or existing construction suburban home? Much depends on the status of the manufactured home and how it is assembled. According to the FHA official site, a manufactured home differs from a new construction project in one very important way.

January 18, 2011

Title I Loan Facts

By Bruce Reichstein

There are many options available to FHA borrowers to make improvements on the property they bought with an FHA guaranteed loan. One option is the Title I program, which allows property owners to make "non luxury" improvements to a home, which may include construction of new structures in some cases. As with all other FHA loans and HUD programs, the FHA does not lend the money. It insures Title I loans the same way it does with FHA home loans; the borrower and a participating lender work together on the application and terms. Title I loans are for borrowers with single-family homes, multi-family properties, and manufactured homes.

January 11, 2011

FHA Loans for Fixer-Uppers: The 203(k)

By Joe Wallace

Those shopping for a home with an FHA loan aren't always interested in buying a brand-new property. Some borrowers want to purchase fixer-upper homes at a lower price to save money and invest labor into a home to make it exactly the way they want it. The FHA 203(k) loan program offers qualified FHA borrowers a chance to borrow money to accomplish this. Qualified borrowers must meet a downpayment requirement, which is roughly 3.5% of the purchase price AND repair costs of the property.

December 23, 2010

FHA Mortgages: 30-Year Loans & 15-Year Loans

By Joe Wallace

No two FHA mortgages are the same. House hunters have a variety of terms, interest rates, closing costs and other considerations to think about when applying for an FHA mortgage loan on a particular property; one of the most important decisions is the length of the loan itself. FHA home loans for typical residential neighborhood homes come in 15-year and 30-year terms. There are a variety of compelling reasons to choose both--there is no strong argument for or against either term. It all comes down to what the individual buyer needs and wants from their mortgage. The buyer's perspective determines a great deal when it comes to deciding which to choose. A 30-year loan has buyer paying off more interest than principal in the early days of the FHA mortgage.

December 20, 2010

How Much Do I Have To Make To Qualify For an FHA Home Loan?

By Joe Wallace

How much do I need to make to qualify for an FHA mortgage? That is among the most popular questions about FHA home loans. According to the FHA, there is NO minimum income requirement to apply. That said, the FHA does require a three-year employment record showing steady income during that time. Note that the requirements don't say you must have held the same job for three years, only that the income has been reliable. The fact is, in order to qualify for an FHA home loan, there is no one single determining factor that gets you approved or declined; the FHA examines a combination of factors to determine an applicant's overall credit worthiness and ability to pay the FHA mortgage on time every month.