Articles Tagged With: FHA Loan Application

July 31, 2017

What Is An FHA Loan Limit? Part Two

What Is An FHA Loan Limit? We’ve been exploring this question-in our previous blog post we looked at the basics of FHA loan limits. According to the FHA/HUD official site, “The maximum mortgage amount that FHA will insure on a specific purchase is calculated by multiplying the appropriate LTV percentage by the Adjusted Value. In order for FHA to insure this maximum mortgage amount, the Borrower must make a Minimum Required Investment (MRI) of at least 3.5 percent of the Adjusted Value.” FHA loan limits are set by the National Housing Act and will vary depending on the housing market. Some areas are low-cost markets, some are high-cost, and others are simply “average”. But what does that mean for the typical FHA loan applicant? The FHA loan handbook, HUD 4000.1, | more...

July 28, 2017

Who Can Qualify For An FHA Loan?

By Joe Wallace

Who can qualify for an FHA loan? The answer surprises some people, thanks to some misunderstandings about who the FHA single family home loan program is for, and who can use it. FHA home loans are for any financially qualified borrower. You don’t have to earn a minimum amount of money, and there is no maximum income limit for FHA mortgages. While it’s true that FHA loans can be less expensive than their conventional mortgage counterparts (in terms of interest rates, no penalties for early payoff, etc.) these loans are not specifically targeted at people who “can’t afford conventional mortgages” or to those with an economic disadvantage. Hence, there’s no maximum income limit. There’s also no preference given by the FHA for first time home buyers, though a particular lender | more...

July 21, 2017

What Is An FHA Loan?

By Bruce Reichstein

What is an FHA loan? Simply put, an FHA loan is a kind of home loan that is guaranteed by the FHA and issued by a participating lender. Only FHA-approved participating lenders may offer FHA home loans, and the FHA itself does not lend money to home loan applicants. What The FHA Loan Program Can Do For You FHA loans can help you purchase a new home. These homes can be already built, but qualified borrowers also have the option to apply for FHA loans to pay for a home to be constructed from the ground up. Such loans are generally for what is known in the industry as “stick built” housing, which means a home that is constructed on-site rather than a manufactured home which is shipped in sections | more...

July 13, 2017

How Do You Apply For An FHA Loan? What You Need To Get Started

By Joe Wallace

How Do You Apply For An FHA Loan? In our last blog post we covered some basics about preparing to apply. You can’t get to the application process without saving up for closing costs, examining your credit, and making sure you come to the application with at least 12 months of on-time payments on your credit history for all financial obligations. Once you are ready to start looking for a home, one of the best things a borrower can do is to get pre-approved for an FHA mortgage. Pre-approval means starting a business relationship with your chosen participating FHA lender. The lender asks for credit information from you, does a preliminary check of the data you’ve provided (as well as looking at your FICO scores, income, etc.) and makes a | more...

July 13, 2017

How Do You Apply For An FHA Loan?

By Bruce Reichstein

How do you apply for an FHA loan? There are several things you can do to get the process started on an FHA home loan, but the first step is to determine if you are ready to fill out the application paperwork. Some aren’t as ready as they think, while others are definitely able to get started right away. Let’s examine what’s needed to come to the application process. Preparation And Savings Preparing for an FHA loan means the doing following things: checking your credit reports so that you see what the lender will see when you fill out your application data, correcting any erroneous entries in your credit report, making sure you have 12 months of on-time payments on all financial obligations before applying, and saving up for your | more...

July 5, 2017

Who Are FHA Loans Good For?

By Bruce Reichstein

Who are FHA loans good for? It’s an excellent question and the answer might surprise you. FHA mortgages are often thought of as “helper loans” due to a misconception that FHA mortgages are specifically for first time home buyers, economically disadvantaged people, or new families. What’s the truth? FHA Loans Are Available To All Financially Qualified Applicants There is no minimum income limit OR “maximum income” cutoff for FHA home loans. A borrower cannot earn “too much money” and be disqualified as a result. FHA home loans are for anyone who meets the minimum FICO score requirements, has a reliable payment history on all financial obligations, and can show that their employment is stable and likely to continue. FHA Loans Are For All Types Of Borrowers Some mistakenly believe that | more...

June 22, 2017

What Is An FHA Loan And Who Qualifies?

By Bruce Reichstein

What is an FHA loan and who qualifies? These are common questions, especially for first-time home buyers looking at all their options from conventional mortgages to FHA loans. What Is An FHA Home Loan? Simply put, an FHA mortgage is a home loan that has been guaranteed by the government, making the mortgage safer for the lender and less expensive for the borrower. The FHA single family home loan program is designed for borrowers who are financially qualified with FICO scores at 580 or better for maximum financing. (Lender FICO score requirements may be higher than FHA minimums.) An FHA mortgage as described here is intended for owner-occupiers and is meant for primary residences. That means that time shares, vacation homes, and other occasional-occupancy properties cannot be purchased with an | more...

How much can I borrow with an FHA refinance loan?

June 12, 2017

How To Apply For An FHA Loan: The Paperwork You Need

By Joe Wallace

In our last blog post we discussed how to apply for an FHA loan including issues related to credit and getting pre-approved for the loan. Getting ready for your mortgage loan application takes time-you need to have 12 months of on-time payments for your financial obligations leading up to the application, and you need to check your credit report to make sure you know what the lender will see at application time. But what is required when you actually start to fill out the paperwork for the mortgage? Credit, Employment, and Tax Data The lender needs a variety of information to approve your mortgage loan. That includes tax paperwork-anticipate the lender asking for at least two years of tax documents and have them ready at application time. Your lender will | more...

June 12, 2017

How To Apply For An FHA Loan

By Joe Wallace

Do you know how to apply for an FHA loan? Getting an FHA mortgage is much like any other type of home loan when it comes to taking the same amount of time to prepare, examine and improve your credit rating, reduce your debt-to-income ratio, and other issues that can help with loan approval. Good preparation is the key to any home loan, even those that have more forgiving credit requirements such as FHA mortgages. Your lender will need to see proof that you are a good credit risk, have a stable and reliable form of income, and have an acceptable amount of debt compared to the amount of income you get each month. So how do you apply for an FHA loan? It is strongly advise that borrowers give | more...

May 22, 2017

Getting Ready For An FHA Mortgage Loan

By Bruce Reichstein

Getting ready for an FHA mortgage loan doesn’t just mean checking your credit report and FICO scores, saving up money for a down payment, and reducing your debt-to-income ratio. It also means making important choices about your home and mortgage needs. Some of these choices may need to be made early in the preparation stage, others may come later depending on the type of home you decide to buy. Are you ready for an FHA mortgage loan? Type Of Home Believe it or not, the nature of the property you buy with your FHA mortgage loan could affect the type of home loan you apply for. A typical suburban home isn’t the same as a mobile home or a condo. The loans for a condo or manufactured home have different | more...