Articles Tagged With: FHA Loan Approval

February 6, 2024

Fees and Services For Your Home Loan

What do first-time home buyers need to remember about buying a home with an FHA mortgage? Many home loan services you need to get to closing day are not centralized and you may have to deal with multiple service providers. It’s good to anticipate the help you’ll need on your home loan journey. We explore some of those services below. Brokers And Agents A real estate agent can help new house hunters find a suitable home. It’s a third-party service you don’t have to use, but many choose to do so to make the process easier on them. A mortgage broker provides a service to those who need a lender. A broker can match you with a participating FHA lender willing to work with you but you are not required | more...

January 31, 2024

How FHA Mortgages Compare To Conventional Loans

By Joe Wallace

How do FHA mortgages stack up to their conventional loan counterparts? Typical down payment issues are the most obvious comparison. The FHA has a 3.5% requirement, and conventional loan requirements vary. There are some important differences to know before you choose which mortgage loan is best for your needs. FHA Loan Best Practices FHA mortgages have two sets of rules. FHA loan program guidelines but also, lender standards like all mortgages. The FHA requires its participating lenders to keep policies that benefit the borrower. One example is the loan rule requiring ZERO penalties for early payoff of the loan. Another perk? The option to refinance later with an FHA no-credit-check streamline refinance loan option. Not all borrowers may want this option (no cash out is allowed) depending on what kind | more...

January 30, 2024

Five Reasons To Buy Your First Real Estate With An FHA Home Loan

By Bruce Reichstein

FHA home loans are a great way to make your first real estate purchase. Are you looking at homes for sale and trying to decide the best mortgage loan for you? If you are a first-time home buyer and feel confused by what your real estate agent finds in MLS listing data while searching for “houses near me”, remember that the FHA mortgage loan option is available to anyone who financially qualifies. If you are talking to a real estate agent, do not forget that FHA loans are not restricted to first-time homebuyers or those who have never owned property. You can own other property and still buy a home as your primary residence using an FHA loan whether you’ve purchased another property or not. #5: FHA Loans Are Guaranteed | more...

January 29, 2024

What You Need To Know About FHA Loan Closing Costs

By Joe Wallace

How much cash to close do you need for an FHA mortgage? Many sources cite a number between 2% and 6% of the purchase price. Borrowers typically need to learn how much home is affordable early in the planning stages. Make these calculations as early as possible to help you save for both the down payment and closing costs. How Much You Can Afford To Borrow? An online mortgage calculator can help you get an idea of how much loan to apply for. Borrowers may be tempted to view that number as being flexible but that can come with a price. Beware of what some call “cost creep.” A little leeway on a service cost, a higher-than-expected expense, and over time it’s possible to find yourself moving outside your budget. | more...

January 24, 2024

Home Loan Applications Rising In Early 2024

By Joe Wallace

Are you considering buying a new home with an FHA loan? Current market trends point to growing interest in existing construction purchases. And that is in spite of a bit of mortgage loan interest rate changes pushing rates higher (in the short term.) That move higher has not discouraged many from their overall impression of a housing market in recovery, however slow the progress may be. Business Insider reports that, at press time, “30-year mortgage rates have averaged around 6.32%,” according to Zillow. The report also notes that the rates are “a bit below” the December interest rate averages, “and more than a full percentage point down from when they peaked in October 2023.” As housing market and home loan interest rate conditions improve, demand for existing construction homes may | more...

January 19, 2024

Who Qualifies For FHA Loans?

By Joe Wallace

Whether you’re interested in building a house from the ground up on your own lot or need a mobile home or condo unit, there is an FHA home loan for you. Who qualifies for these mortgages and why? FHA Loans For First-Time Home Buyers FHA mortgages are open to first-time homebuyers without perfect credit. You can apply for an FHA home loan even with past credit mistakes. The best thing to do is review your past credit and ensure your home loan application is turned in once you have a full year of on-time payments on your credit record. First-time borrowers should know an FHA mortgage, even an FHA One-Time Close construction loan is within their reach thanks to low 3.5% down payment requirements and the ability to get down | more...

January 17, 2024

FHA Home Loan Options In 2024: Build, Buy, Or Wait?

By Joe Wallace

2024 may be the year more people think about owning a home thanks to anticipated lower mortgage rates and more homes for sale. Which option is best for you when finding a new place to live? There’s no one-size-fits-all answer, but some options are more tempting than others. Renting Options If You Aren’t Ready Yet Renting in 2024 may be an option to consider IF you are not quite ready to commit to a home. Borrowers sometimes underestimate how long it takes to get fully ready for a mortgage and if you are just now exploring your credit, lender options, and saving up for the down payment. However, some market watchers believe rental inventory may be lower this year, and there could be more competition for rental properties overall. Are | more...

January 16, 2024

The Rent Versus Buy Question In 2024

By Joe Wallace

Do you look at today’s mortgage rates, the housing market, and current economic headlines and wonder why you should consider purchasing a home in the new year? You aren’t alone. There are several economic factors at work in the American housing market. In 2024, one of those factors has to do with the difference between the cost of renting compared to owning a home. That gap has always been there in one degree or another. However, in the year 2024, that gap seems more attention-worthy. Especially for anyone struggling to decide which makes more sense, renting or owning a home. Compare The Numbers Forbes.com notes that home loan interest rates and home loan prices changed so much in the previous year that there seems to be a widening gap between | more...

January 12, 2024

FHA Loan Rules For Eligible Property Types

By Joe Wallace

FHA loan rules are found in HUD 4000.1, the FHA Single-Family Lender’s Handbook. Those rules include a list of property types you can and cannot buy with an FHA home loan. We examine the types of properties you cannot purchase with an FHA mortgage below. Knowing loan program rules is important if you’re a new house hunter. Do you need a government-backed loan like an FHA 203(b) purchase loan? Or a VA home loan? It’s true that certain restrictions and requirements for conventional home loans are different than the ones for FHA mortgages, but the gist is that house hunters need to know the rules of the home loan they want. For example, do you want to build a home using a One-Time Close construction loan? You may be limited | more...

January 10, 2024

First Time Home Buyers: Improve Your Credit With Credit Monitoring

By Bruce Reichstein

The COVID-19 pandemic created economic uncertainty for many current and future homeowners. And ever since the pandemic ended, financial troubles have continued thanks to inflation, possible recession, and other issues. Many borrowers may have experienced financial setbacks in the aftermath of the coronavirus outbreak in America. Many working to recover from financial problems discover there’s a lot of credit repair and related efforts American consumers must explore to get back on track financially. Protecting your credit is more important than ever–do you know what can hurt your FICO scores? Actively monitoring your credit is an important option–there are services that keep track of your credit report and learn about what affects your scores. It may be tempting to use free credit monitoring offers but financial advisors recommend comparing features on | more...