Articles Tagged With: FHA Home Loans

January 11, 2018

Does The Age Of The Property Affect An FHA Home Loan?

Does the age of the property affect an FHA mortgage loan transaction? Not all properties are brand new, and in cases where existing construction homes or other property types are being considered for an FHA home loan, age can and often is a factor. Why is this? It depends on the type of home you wish to buy. FHA Home Loans For Mobile Homes, Manufactured Homes FHA home loan rules for mobile homes and manufactured homes carry a requirement that the property be of a certain maximum age. According to HUD 4000.1, the lender is tasked with insuring that the mobile home was built on or after June 15, 1976, “as evidenced by an affixed HUD Certification Label in accordance with 24 CFR § 3280.11”. The rules in this section | more...

FHA Home Loan Credit Score Requirements: FICO Scores And More

January 10, 2018

FHA Home Loan Credit Checklist

By Joe Wallace

There’s more than one kind of checklist that can help you in the FHA home loan process. There’s an overall mortgage checklist that helps people prepare for closing, but what about in the planning stages when you’re trying to review your credit to insure you are as credit-worthy as possible? Making a checklist specifically to review and prepare your credit is a very good idea, and you can get started with the following steps below. Making an FHA Home Loan Credit Checklist There are three very important areas to keep in mind when making a credit checklist; past credit performance, future credit activity, and the possibility of identity theft and/or outdated information on your credit report. Don’t overlook any of these areas, and be sure to develop a strategy for | more...

January 10, 2018

Bad Credit Scores And FHA Home Loans

By Joe Wallace

Bad credit scores and FHA home loans-do you know what the rules are for FHA credit requirements? FHA loan minimums and FHA lender standards may not be exactly the same, so it’s important to remember that the issues we discuss here are based around FHA minimum guidelines and that you’ll need to talk to a participating lender to see what other requirements must be met. Is There A Bad Credit FHA Home Loan? FHA loan rules require a 500 FICO score at the absolute minimum in order to qualify. Those who apply for an FHA loan with credit scores between 500 and 579 are required to make a higher down payment (10% of the adjusted value of the home) than those who apply with FICO scores 580 or higher. Remember, | more...

January 9, 2018

Is U.S. Citizenship Required For An FHA Home Loan?

By Bruce Reichstein

Is United States citizenship a requirement to be considered for an FHA mortgage? The answer may surprise you, but the FHA loan program is designed for a certain amount of flexibility, and the rules in this area are no exception. The rules governing this issue can be found in HUD 4000.1, the FHA loan handbook, which instructs the lender to request specific documentation including a potential borrower’s Social Security Number. According to page 131 of the handbook, “Each Borrower must provide evidence of their valid SSN to the Mortgagee.” FHA Loan Rules For Citizenship And Home Loan Approval According to HUD 4000.1, citizenship is not a prerequisite for FHA mortgage loan approval. However, borrowers will have to provide paperwork showing their status as either resident aliens or non-resident aliens. FHA | more...

January 8, 2018

How Much Can I Borrow With An FHA Mortgage In 2018?

By Bruce Reichstein

How much can I borrow with an FHA mortgage in 2018? There’s no single answer to this question for a variety of reasons, but in general there are things you should know about an FHA mortgage that can help you understand how much you are able to borrow to buy a home. FHA Loan Limits Are Set By County FHA loan limits are broken down by county in each state. You can see a good example of this and learn what the FHA limit for your area is for the current year, but it is important to note that the dollar amounts you see are calculated before add-ons to the loan such as mortgage insurance premius, FHA Energy Efficient Mortgages, etc. In other words, your loan limit is calculated with the | more...

January 3, 2018

Can I Buy A Condo Unit With An FHA Home Loan?

By Joe Wallace

Can I buy a condo unit with an FHA home loan? It’s a common question, and the short answer is yes. But the FHA condo loan rules are a bit different than the rules for purchasing other types of property, so you should know what those differences are before exploring your options. FHA Condo Definition The FHA handbook, HUD 4000.1, has a specific definition of a “condo” that applies to all FHA condo loan transactions for single family home loans. According to page 150, “A Condominium Unit is a Property contained in a multi-unit project that has individually-owned Dwelling units, which may be either attached in one or more Structures or detached from each other, and is primarily residential in use”. FHA Condo Loans For Approved Condo Projects All condo | more...

January 2, 2018

FHA Home Loan Basics For 2018

By Joe Wallace

FHA home loan basics for 2018 include a range of options depending on your financial needs and goals. Do you want to buy a new home or have one built for you with an FHA construction loan? Do you already have a mortgage but want to get into better terms or lower rates? FHA new purchase loans and refinance loan options can help you get closer to your dream of owning your home. FHA Home Loan Options For Purchasing A New Home FHA mortgages can be used to buy properties that meet FHA minimum standards including typical suburban homes but also mobile homes or manufactured housing, condo units, modular homes, and more. FHA mortgages are also available for those who want to have a home built for them from the | more...

December 29, 2017

Get Ready For Your FHA Home Loan In 2018

By Bruce Reichstein

Get ready for your FHA home loan in 2018 with some simple planning, budgeting, and market research. Buying a new home-or having one built with an FHA One-Time Close construction loan-requires some advance planning and saving, but your new home is well worth the effort. How ready are you to apply for a home loan in the new year? Do Some Housing Market Research What are typical house prices in your area? How do those prices match your budget? You can use an online mortgage calculator to help you figure out how much an estimated monthly mortgage payment could be based on the price of the home, interest rate, the amount of your down payment, and other factors. Once you have your estimated monthly mortgage payment, you can decide if | more...

Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

December 26, 2017

What You Should Know About FHA Loan Down Payments

By Joe Wallace

What you should know about FHA loan down payments includes understanding the lender’s requirements for verifying the source of your down payment funds, and the fact that your down payment is not affected by other home loan fees or expenses. What do these things mean? The FHA Loan handbook, HUD 4000.1, has the answers. FHA Home Loan Down Payment Basic Requirements HUD 4000.1 tells the lender that the lowest possible down payment is 3.5% of the adjusted value of the property. This does not apply for HUD-owned “repo” homes also known as HUD REO properties. The rules for these homes includes the possibility of a $100 down payment (lender standards may also apply). The down payment is a condition of loan approval; the only FHA home loan “forward mortgage” for | more...

December 22, 2017

Get Ready For An FHA Mortgage Loan

By Joe Wallace

Do you want to get ready for an FHA home loan in the new year? There are several things you can do now to prepare for your new mortgage loan application and get closer to home loan approval. Know Your Price Range For Buying A New Home Getting ready for an FHA mortgage in the new year means budgeting and saving up for home loan expenses including the FHA loan minimum required down payment. If you don’t know your approximate price range for purchasing a new home, saving up for your down payment may be harder-FHA loan rules state that the minimum amount down is 3.5% of the adjusted value of the property. Knowing your price range can help you determine how much to budget for your down payment. But | more...