Articles Tagged With: FHA Loan Approval

November 18, 2024

Buy A Condo Unit With An FHA Mortgage

The Federal Housing Administration (FHA) offers many loan programs to make homeownership accessible and affordable for a broader range of borrowers. While the FHA 203(b) loan is a popular choice for single-family homes, the FHA also provides options for those who want to buy condominiums, mobile homes, and fixer-uppers. For condominium buyers, FHA financing is available and those funds may be approved even if the condo project is not on the FHA approved list, depending on circumstances. If you’re interested in a condo in a project that isn’t currently FHA-approved, you can work with an FHA-approved lender to see about having the project added to the approved list. In some instances, if a condominium project isn’t FHA-approved, “single-unit approval” may be possible. This allows an individual unit within the complex | more...

October 1, 2024

Intro To FHA Refinance Loans

By Bruce Reichstein

The Fed announced a substantial rate cut in 2024. That action has more homeowners thinking about their refinance loan options and how they can take advantage of potentially lower rates to come. Refinancing helps some borrowers save money in interest payments over the long term. It can also, depending on circumstances, help you get into a lower monthly payment. Once rates have fallen to the right levels (for some borrowers) these options get more realistic than they have been in the past two to three years. Refinancing can also result in cash back to the borrower once the original loan has been paid off and the associated closing costs dealt with. Not every refinance loan offers this, but FHA loan programs do include cash-out options. If you need to refinance | more...

September 26, 2024

FHA Home Loans: Why You Want To Haggle With The Seller

By Bruce Reichstein

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 18, 2024

FHA Home Loans: How Much Will You Pay Per Month?

By Joe Wallace

How much house can you afford with an FHA loan? If you aren’t sure about the final amount of your monthly mortgage payment as a new house hunter, you aren’t alone. Fortunately, there are things you can do to get an estimate on how much to expect your monthly payments to be. Do The Right Math Don’t make the mistake of doing “the wrong math” for your FHA loan. You should not just use the home’s sale price and possible interest rate to make the calculation. Why? The results you get don’t include other costs you may have to pay each month, and your expectations will be skewed (most likely) to be too low in terms of the actual monthly financial commitment. Home Loan Math Variables The previously mentioned calculation | more...

September 17, 2024

Considerations For Buying Your First Home With An FHA Mortgage

By Joe Wallace

First-time home buyers looking for their first home and a participating lender to apply for an FHA mortgage loan may not know exactly what they are looking for in a new home at first. As you embark on the home ownership journey, several issues will become more apparent. When planning for your first home loan and preparing your credit to borrow, remember these concerns. Buying A First Home To Accommodate Future Needs Couples looking at their first home should anticipate changes in family size, needs for a hobby room or a dedicated workspace, and room to grow with furniture and other possessions. The one-bedroom house you look at today may be the home you grow out of tomorrow; make sure you anticipate your future needs when looking at designs and | 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...

September 10, 2024

Bankruptcy Versus FHA Loan Approval

By Joe Wallace

Declaring bankruptcy, either Chapter 7 or Chapter 13, impacts your credit standing. Though it might be a necessary financial step, it disrupts your normal financial activities, including getting a mortgage. But is declaring bankruptcy the end of your ability to buy a new home? Not necessarily. Thanks to “seasoning periods” a borrower waits out after bankruptcy to be declared fit to borrow to buy a home, bankruptcy doesn’t permanently bar you from buying a home. Before discussing the waiting periods for mortgage loans, let’s differentiate between Chapter 7 and Chapter 13 bankruptcies: Chapter 7 Bankruptcy This involves liquidating your non-exempt assets to pay off creditors. While it provides a quicker resolution, it can negatively affect your credit score for up to a decade. Chapter 13 Bankruptcy This allows those with | more...

September 4, 2024

How FHA Loan Limits Work

By Bruce Reichstein

New home buyers have a lot to learn about the process of applying for and being approved for FHA home loans. The advantages of the FHA mortgage include lower down payment requirements and more forgiving FICO score rules…but how can a new borrower know how much loan they are permitted to apply for? HUD 4000.1, explains how FHA loan limits work. This handbook, a comprehensive guide to the FHA Single-Family Home Loan program, explains: “A Mortgage that is to be insured by FHA cannot exceed the Nationwide Mortgage Limits, the nationwide area mortgage limit, or the maximum Loan-to-Value (LTV) ratio.” These limits are set based on median house prices and are influenced by the home loan limits established by Freddie Mac and Fannie Mae. One Size Fits All? Do FHA | more...