Articles Tagged With: FHA 203b Mortgage

May 1, 2023

How Important Is My Credit Score For An FHA Home Loan?

How important is my credit score for an FHA home loan? It’s a question many ask, and it’s important to ask as early in the planning stages of your new home loan as possible. What do you need to know about credit scores and home loan approval? Credit Score Requirements Vary Depending On The Lender You will find that some lenders require certain credit score ranges while others have different standards. That’s a given-no two lenders are exactly the same. But did you know that even within a single financial institution there may be varying credit score requirements depending on the type of loan you seek? For example, FHA One-Time Close construction loans may require a different minimum credit score than an existing construction home loan. There are several reasons | more...

April 14, 2023

Buying Your First Home With An FHA Mortgage

By Joe Wallace

First-time home buyers love hearing about the low down payment requirements for FHA mortgages, and the fact that FHA home loans allow you to apply for a mortgage with a government-guarantee that helps keep mortgage loan interest rates lower on these types of loans. But some other perks aren’t so obvious; did you know that with an FHA mortgage you are permitted to have your seller contribute up to six percent of the home’s price as closing costs? The seller can’t contribute to your down payment but can help with those closing costs. Your ability to use this option may be limited in housing markets where there’s a lot of competition for a small amount of housing inventory, but when there is less competition for individual houses, your ability to | more...

April 10, 2023

Buying A Home With A Lower Credit Score

By Bruce Reichstein

What can you do if you know your credit isn’t perfect but need to buy a home with an FHA mortgage? Actively Work On Your Credit The most effective way to change your credit rating and improve it is also the simplest. Make all payments on time for at least one year before your home loan application. This is the first step toward getting yourself ready to be approved for a mortgage loan. Review Your Credit Report If you don’t know what your credit report says, you are not ready for a home loan. It really is as simple as that. Learn How To Understand Your Credit Report A credit report is essentially a record of how you deal with your financial obligations. One of the leading credit reporting agencies, | more...

March 31, 2023

Make The Most Of Your FHA Home Loan

By Bruce Reichstein

Your home loan choices aren’t limited to the type of home loan available. The marketplace offers FHA, conventional, USDA, VA, and other options. But some of the choices in the FHA home loan program may change how you think about buying a home. Should you build instead of buy? Should you consider a fixer-upper? Or would you rather buy an existing house you can move into right away? FHA Loan Program Options It’s not a simple matter of deciding between whether to have a home constructed on your own lot by applying for an FHA One-Time Close construction loan or choosing the FHA 203(b) loan to purchase an existing-construction home. Borrowers also have the option to choose a fixer-upper home and apply for an FHA 203(k) Rehabilitation loan to pay | more...

March 24, 2023

FHA Loans Compared To Conventional Mortgages

By Bruce Reichstein

If you aren’t sure whether to apply for an FHA loan or a conventional mortgage to purchase or refinance your home, there are some comparisons you can make between FHA and conventional loans. For some, 2023 is a year to make the jump from renting to owning, and if you are thinking about your options, it’s crucial to make informed choices. Don’t pull the trigger on a new loan application without comparing the features of different types of mortgage loans, government-backed and conventional. Even if you decide not to choose an FHA mortgage in the end, making the most informed decision you can is paramount. Down Payments The mortgages with the lowest down payments are USDA loans and VA mortgages, which both feature a zero down option. Some conventional loan | more...

What You Need To Know About Your FHA Home Loan

March 20, 2023

Don’t Buy A House Without A Home Inspection

By Bruce Reichstein

Here’s a common example of a home buyer question that is asked after the purchase of a house with an FHA home loan has closed, the new owners have moved in, and suddenly discover there are serious issues with the property: “I did not get a home inspection when I purchased my house, and now there are problems. Do I have any recourse?” If what is meant by “recourse” involves some form of intervention or relief from the lender or the FHA, the general answer is no–you don’t have any avenues of recourse when buying a home if you choose not to pay for the optional but essential home inspection and choose to rely only on the FHA appraisal instead. An FHA appraisal is NOT a home inspection in spite | more...

What Credit Score Is Needed For An FHA Mortgage?

March 15, 2023

What Are FHA Home Loan Discount Points?

By Bruce Reichstein

If you don’t know what discount points are, you should explore them as an option to lower your mortgage loan interest rate while still in the planning and saving stages of your FHA mortgage. For new purchase loans, including FHA One-Time Close construction mortgages, FHA Condo loans, or FHA Mobile Home loans, discount points may help you save money upfront on your mortgage over the loan’s lifetime. Discount points aren’t for everyone–some borrowers prioritize reducing their upfront costs and these FHA loan applicants won’t be interested in points. Why? They represent a larger upfront and out-of-pocket expense. But for those who want to pay more upfront so they can save money down the line should consider points. What are these home loan discount points? The financial website Investopedia.com defines them | more...

March 13, 2023

How Do FHA Loan Requirements Work?

By Bruce Reichstein

How do FHA loan requirements work? Do you know what you need to qualify for an FHA mortgage loan or FHA refinance loan? There are important details about FHA mortgage loans that can help you make an informed decision about applying for one. We’ll examine them below. FHA Loans: Lower Down Payment Requirements FHA loan down payment rules say you’ll need a minimum 3.5% down based on the appraised value of the home. You won’t be able to get a zero-down payment FHA mortgage unless you are a qualified borrower applying for an FHA 203(h) mortgage for disaster victims in a federally-declared disaster area. 3.5% down is the minimum cash investment required. Some borrowers with low FICO scores may be required to put down 10% depending on their scores, lender | more...

March 6, 2023

FHA Home Loan Down Payments: Do You Need Help?

By Joe Wallace

If you want to apply for an FHA condo loan, an FHA mobile home loan, or even an FHA construction loan, you must anticipate the down payment requirements for these mortgages. At the very minimum, all FHA borrowers must put 3.5% down, with a higher down payment required for those with lower FICO scores. One of the first questions many readers will be asking at this point is likely, “What FICO scores require the higher down payment?” That question is one reason you’re reading this article right now; issues can affect your down payment requirements. It’s not safe to assume that you can simply pay what the FHA loan program rules require–lender standards, state law, and other variables can come into play. One variable is your credit score, and another | more...

February 27, 2023

Anticipating Closing Costs For Your New Home Loan

By Joe Wallace

Buying a home requires planning and saving. Especially for closing costs, which can include appraisal fees, the home inspection, compliance inspections, and the Up-Front Mortgage Insurance Premium. It takes time to save for these expenses, but some borrowers will pay more up front than others. That is usually due to a combination of factors, but the thing new home loan applicants need to know is that your financial needs and goals will dictate how and when you pay certain closing costs. Did you know you can finance some closing costs and have the home’s seller help you pay for others? Government-backed mortgages like FHA home loans (including FHA One-Time Close construction loans which can help even a first-time home buyer build a home from scratch) make buying or building a | more...