Articles Tagged With: FHA 203b Mortgage

September 26, 2024

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...

September 25, 2024

FHA Home Loans And First Time Home Buyers

By Joe Wallace

FHA home loans are perfect for many first time home buyers who are looking for low down payment requirements, forgiving credit score guidelines, and a home that features refinance options later down the line for cash-out, rehab and repair, etc. But does a house hunter have to be a first-time home buyer to qualify for an FHA mortgage? The short answer is no. FHA mortgage loans are for any financially qualified borrower, first time buyer or not. That said, first-time home buyers may find an advantage when it comes to local or state down payment assistance programs. FHA mortgages require the down payment to come from approved sources; those sources may include down payment assistance from agencies that provide such funds in accordance with FHA requirements. Down payment assistance must | more...

September 19, 2024

Refinancing Questions To Ask Before You Apply

By Joe Wallace

Are you looking for a refinance loan? Refinancing your home loan can be a smart move for some homeowners, especially in times of falling rates. A 2024 Fed rate cut of half a percent means mortgage loan rates may soon begin coming back down to earth, however gradually that process may be. Potentially lower rates mean more borrowing options, especially in expensive housing markets like New York, California, and Washington, D.C. Smaller housing markets may also benefit. More affordable loans, rising property values (depending on the market), and the ability to pull more cash out of the home in a refi loan situation make applying more attractive. Is your long-term home loan goal to save more money over the term of the mortgage? Or do you need lower mortgage payments | more...

September 11, 2024

Repair Your Credit Before Your Home Loan

By Joe Wallace

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...

August 26, 2024

How Much Should I Put Down On A House?

By Joe Wallace

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...

August 19, 2024

FHA Loan Down Payment Rules

By Joe Wallace

One of the biggest worries for some borrowers interested in buying or building a home? The down payment. At the time of this writing, there are not many zero-down payment mortgages offered nationally by participating lenders offering government-backed mortgages; they include VA mortgages and certain USDA single-family home loans. USDA home loans are need-based mortgages with income caps and purchase price limits; VA mortgages are only for those with qualifying military service and certain surviving spouses of those who have died due to military service. There is no need-based requirement for FHA mortgages, and you do not have to be a veteran or a first-time home buyer to apply for one. FHA loans are offered to all who financially qualify, with no income limits. FHA down payment rules include a | more...

August 15, 2024

Fixing Credit Before Buying A Home

By Joe Wallace

When preparing to buy a house, it’s essential to give yourself plenty of time to improve your FICO scores and ensure a strong history of on-time payments before applying for a mortgage. However, there are other crucial aspects of credit repair to consider. To begin a credit repair journey, it helps to understand how credit reporting procedures work. Credit reports, which are compiled by major credit bureaus like Equifax, Experian, and TransUnion, contain comprehensive records of your credit history. This includes your private data, such as your current and former addresses, Social Security Number, and information on your credit accounts. There may also be information in your credit file from public records. Do you have a bankruptcy in your past? That will show up on your report along with any | more...

June 26, 2024

FHA Home Loan Planning

By Joe Wallace

If you want to buy a house with an FHA mortgage, there are some simple steps to take as soon as possible in the planning and house-hunting stages. There are also a few things to avoid, as we examine below. Budget And Save Money Early Smart borrowers build in some extra funds to cover unexpected costs toward owning a new home. You likely don’t expect the appraisal to include instructions on dealing with evidence of termites or what the FHA calls “wood-destroying pests.” Some wind up paying for or negotiating with the seller to pay for an exterminator. This is just one example of unexpected costs you may need to pay on your way to owning your own home, and adding some extra money just in case is a smart | more...

May 24, 2024

Commonly Asked Questions About Applying For An FHA Home Loan

By Joe Wallace

Are you ready to stop renting and start owning your own home? The FHA home loan program was designed to help borrowers get into affordable homes with a low down payment requirement. FHA loan rules feature more forgiving FICO score standards (lender standards will also apply), and first-time home buyers should know there are down payment assistance programs in many states that can help. What sort of questions are common for FHA home loans? Read below to learn some important details every new borrower should keep in mind. How Long Does It Take To Save And Prepare For A Mortgage Application? Start planning as early as possible. It’s good to give yourself a year or more to review your credit reports, start monitoring your credit, and work on getting your | more...

May 22, 2024

FHA Home Loan Options To Consider

By Joe Wallace

FHA loans have some special features. There are important options to know before you start applying for a home loan. Financing Mortgage Insurance On Your FHA Mortgage Borrowers without a 10% downpayment on their FHA mortgage are required to render a mortgage insurance premium. This is payable for the loan’s lifetime. Those who make a 10% downpayment qualify to have the insurance removed after 11 years. It pays to make the larger downpayment on an FHA mortgage even if you don’t have to. But if you choose to save money upfront on your home loan, you can include the FHA Up-Front Mortgage Insurance Premium (UFMIP) in your home loan amount. Ask your loan officer about this option early. FHA loan rules in HUD 4000.1 require you to pay the entire | more...