Articles Tagged With: FHA Loan Approval

September 5, 2023

FHA Home Loans And High Interest Rates

Interest rates on FHA home loans, VA mortgages, and conventional equivalents are higher in 2023. Consider the rates listed in the first five days of September, when the numbers reflected rates between 6% and 7.6%. Those numbers are a serious increase from the record-setting interest rate days of 2020. Looking at just one day, 16 September 2020, we learn home loan interest rates were listed below 3% for qualified applicants. Despite the higher numbers we see in the fall of 2023, some borrowers will not wait for rates to come down. Instead, these borrowers are applying, getting approved, and buying now regardless of rates. Why do some choose to buy now? Are they taking foolish risks with their money? Not in all cases. Some borrowers enter the house-hunting process with | more...

August 28, 2023

How Much Is Your Monthly FHA Mortgage Payment?

By Joe Wallace

When you enter the planning stages for a new home loan, you’ll want to know how to budget for the expenses of your mortgage such as the appraisal fee, down payment, home inspection, etc. But you will also want to know about the monthly mortgage payment–how much it could be, how you need to adjust your personal finances to accommodate the new loan, etc. That’s why one of the most important questions a home loan applicant can ask in the planning stages is, “How much will my monthly mortgage payment be?” It’s easy to assume this is a simple calculation of how much the loan is, divided by how many months the mortgage loan payments are required. But is it REALLY that simple? The truth is that it’s more complex | more...

August 25, 2023

Are You Ready To Close Your FHA Home Loan?

By Joe Wallace

Do you know about the issues that can interfere with your closing day? It does not matter whether you were approved for a conventional, FHA, USDA, or VA mortgage. Some issues are common no matter which loan option you choose. FHA Down Payment Issues Once you have saved the money for your down payment, you are ready to close, or at least that’s what some might be tempted to think. But a key part of the closing process is knowing how that down payment must be paid. Typically you cannot use checks, credit cards, ATM cards, or cash. Borrowers must arrange a wire transfer or a cashier’s check to make the down payment. Discrepancies In Your Closing Disclosure Contact the lender immediately if you find errors or discrepancies in your | more...

August 21, 2023

Buying A Home In Today’s Market

By Joe Wallace

In August of 2023, many news outlets reported a competitive American housing market with high demand and low inventory still influencing the market. Low inventory today could be partly the result of many house hunters purchasing homes while home loan interest rates were low and hanging onto the property for the long haul. There are other factors, but for most home buyers, a central issue is today’s high interest rates and how much that will affect the overall cost of the loan. What do you need to know about home buying in today’s housing market? Refinancing When Rates Fall Do you need to buy now? If you cannot wait to purchase property and aren’t inclined to sell or get a cash out refinance option, there are other ways to reduce | more...

August 17, 2023

FHA Loan Downpayments: What To Know

By Joe Wallace

What do you need to know about the down payment requirements for an FHA home loan? Some of the requirements are simple, but some need a bit of explanation. When you begin saving a downpayment for your home loan, you’ll want to remember the tips provided below. Your Down Payment Is A Separate Expense The amount of your 3.5% FHA loan payment is not affected by what you pay for closing costs and mortgage insurance. None of those expenses count toward your down payment. FHA loan down payments are considered separate. Paying cash upfront for FHA mortgage insurance never results in a dollar-for-dollar reduction in the down payment requirement. Some Are Required To Make A Bigger Down Payment Some FHA borrowers make only the minimum required FHA loan down payment | more...

August 11, 2023

FHA Loan Rules For Borrowers With Non-Traditional Credit

By Joe Wallace

FHA loans have flexible standards regarding the kinds of credit history a borrower brings to the loan application process. By that, we mean that applicants who have non-traditional or even insufficient credit history may be able to get a loan approved depending on the circumstances. Getting a loan with insufficient credit history is harder, but borrowers can call the FHA at 1-800 CALL FHA to get a referral to a local housing counselor who can provide advice. Applying For An FHA Loan With Non-Traditional Credit Borrowers with non-traditional credit or insufficient credit history may be asked to provide additional documentation and paperwork as part of this process. You could be required to furnish tax documents, utility bills, and/or any other recurring payment that could help establish credit history. FHA loan | more...

August 10, 2023

How Long Does It Take To Refinance Into A Lower Mortgage Rate?

By Joe Wallace

In an age of high mortgage loan interest rates, some borrowers don’t have a choice. They have to buy soon and can’t afford to wait out the housing market. Some of these borrowers purchase a home with the goal of refinancing as soon as the rates fall to a better place. At press time in 2023, those rates have NOT fallen to a better place, buying now and refinancing later is an option getting more popular by the day, or so it seems. Planning Ahead Is Key Borrowers approved for FHA mortgages at the higher interest rates available at press time are wise to consider a refinance loan once home loan interest rates have fallen again but they aren’t always sure what the best options are. And more importantly to | more...

August 7, 2023

FHA Loan Reader Questions: Foreclosure Wait Periods

By Joe Wallace

Here is a variation on a common reader question. “I had a foreclosure on my house. What is the waiting period before I qualify for an FHA mortgage?” The first thing to do is call the FHA at their toll-free number, 1-800 CALL FHA, and ask for a referral to an FHA/HUD-approved housing counselor in your local area. A housing counselor can assist in areas like this with advice on how to proceed toward becoming a homeowner once again after a foreclosure, bankruptcy, job loss, or other issues. The answer to the reader’s question varies greatly depending on circumstance, lender standards, and whether or not the home foreclosed upon was purchased with an FHA mortgage. While the FHA loan program does include options for borrowers who have experienced a qualifying | more...

August 3, 2023

Researching Your FHA Home Loan

By Joe Wallace

If you are a first-time FHA home buyer, there are important resources that can help you make smart choices in the earliest stages of the loan. Some of those resources come from your local real estate agent or lender, but more help can come from the FHA itself. Do Some Early Research If you include some time to research home loans in the early stages of being a first-time homebuyer, along the way you’ll likely find some information that sounds good but doesn’t really apply to you. One example comes by way of those financial commentators warning first-time home buyers away from VA and FHA mortgages. Their argument? FHA or VA loans might cost you thousands more than other mortgage loan options. The argument goes something like this. “First-time home-buyer | more...

July 28, 2023

FHA Rehab Loans Versus FHA 203(b) Loans

By Bruce Reichstein

When shopping for real estate, most borrowers are thinking of the kind of mortgage such as the one known as an FHA 203(b). That’s the loan you want when shopping for a house you want to buy as-is; one that meets FHA appraisal standards and requires little to no work on the property to make it eligible for a 203(b) forward mortgage. Then there is another type of home loan option available to FHA borrowers; the FHA 203(k) rehabilitation mortgage, which allows you to buy a fixer-upper and have it brought up to FHA appraisal standards and local code requirements. The FHA 203(k) rehab loan is suitable for both new purchase and refinance applications. Regardless of whether you buy or refinance with an FHA Rehab Loan, you are permitted to | more...