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Articles Tagged With: FHA Loan Approval

FHA mortgages and refinance loans

Seller’s Markets, Buyer’s Markets, And FHA Loans

What does it mean to get an FHA loan when you are in a buyer’s market? What does it mean to use an FHA mortgage in a seller’s market? If you are new to house hunting chances are you’ve heard these terms before, but what do they mean in the context of a house hunt? FHA Home Loans In Buyer’s Markets What does it mean to be shopping for a house in a buyer’s market? The simplest answer is that you have an advantage as a buyer because there may be plenty of homes to choose from with little serious competition from other buyers.  That lack of competition may be because of the supply of available houses for sale. In a buyer’s market, you would still want to get pre-qualified | more...

 
FHA loans

Factors That Affect Your FHA Mortgage Interest Rate

When the Fed meets to set monetary policy, it has the option to raise or lower the nation’s interest rates. That is a move that can directly affect some areas of the finance sector such as credit cards, but it indirectly affects mortgage loan interest rates. The Fed’s actions don’t actually change mortgage rates.  Investor behavior in reaction to the Fed’s announcements, on the other hand, do have the potential to affect mortgage rates. The rate you are offered by the lender tomorrow may be affected by news and developments in the markets today. But that’s not the only factor that can affect the interest rate you are offered. At this stage for many mortgage-focused blogs, a conversation about FICO scores goes right here. It’s true that your credit scores | more...

 
FHA loans

FHA ARM Loans: Good Or Bad Idea?

Why do people choose FHA adjustable-rate mortgages or choose to refinance with one? There are several reasons including the need to get into a lower rate upfront, as part of an overall strategy for buying and selling the home, or to take advantage of changing interest rates. ARM Loan Basics FHA Adjustable Rate Mortgages feature an introductory rate, and that rate expires after a set amount of time, typically one year. The introductory rate can also be set between three and 10 years. After that time period, the rate adjustments begin. Borrowers do better with ARM loans when they have a strategy for dealing with the rate adjustment periods. Do you plan to sell or refinance before the introductory or initial ARM loan rate expires?  That plan works better for | more...

 
Is your credit ready for an FHA loan?

Things To Look For When Buying A House With An FHA Mortgage

Finding the right home to buy with an FHA home loan can be challenging. If you are a first-time home buyer, do you feel intimidated about making a decision on the size and configuration of the house you want to buy? You are not alone.  Fortunately, you can help yourself in this process by making a checklist of features and priorities you can refer to when reviewing each property. This can be a better approach than trying to do it all from memory; you won’t forget to ask the seller or real estate agent about something important if you have it written down in front of you when you take the tour. What To Look For When Buying A Home With An FHA Mortgage: Overall Size That sounds fairly obvious | more...

 
One-Time Close Construction Loan Options For Veterans

Questions To Ask About FHA Construction Loans And 203(k) Rehabilitation Loans

There are FHA mortgages that let you build a home from the ground up on land you already own or purchase in conjunction with the mortgage. These are called FHA One-Time-Close mortgages. There are also FHA loans that can help you buy and renovate a home. These are called FHA 203(k) Rehabilitation loans and they are also available as an FHA refinance option. Both types of loans will require you to use escrow, hire builders, and have custom work done. And if you have never done this before, there are a few things to know going into the process.  Did you know that not all builders are suitable for construction loans? Not every licensed contractor has experience with a large project such as a home renovation, and you will want | more...

 
What is my FHA home loan down payment?

What Is An FHA Loan Rate?

What Is An FHA Loan Rate? The interest rate that is charged on your 15 or 30-year FHA mortgage. There are some facts you should know about FHA loan rates, discount points, and how the rates may vary. FHA Loan Rates Are Set By The Lender Technically speaking, the mortgage loan interest rate on your loan is something you negotiate with your loan officer. Your access to the most competitive FHA loan rates will be determined by your FICO scores and other financial qualifications. The better your FICO scores are, the more competitive the interest rate offered might be. If you are worried about your FICO scores ahead of your home loan application, begin credit monitoring and work to maintain or establish a record of on-time payments for all your | more...

 
FHA Loan Options

Applying For Your FHA Mortgage

After you have gotten all the planning done, and after you have saved for your downpayment and gone house hunting, you’ll come to the place where you are finally ready to apply for a home loan.  What do you need to know about this process and how it works? One of the most important things to decide is how much personal help you might need to apply. There are three basic options that may be open to you depending on the lender. Whether you need to pre-qualify, get pre-approved, or actually begin the application process itself, your lender may take a specific approach to how your loan documentation and application data is submitted. Some lenders take a very hands-off approach, allowing you to apply and submit online without requiring any | more...

 
HUD

June 2022 Is National Homeownership Month

On the last day of May 2022, President Biden issued a proclamation that June 2022 is National Homeownership Month. It’s the 20th anniversary of the observance and the Department of Housing And Urban Development issued a statement about it, reminding us that homeownership has benefits and that equal opportunity and access for all should be the norm in the 21st century. During National Homeownership Month 2022, the FHA and HUD plan a series of events designed to raise awareness of fair housing issues, increase the amount of affordable housing, and make the homeownership process sustainable. “Each June, we mark National Homeownership Month, a time for HUD and FHA to renew our commitment to supporting individuals and families in achieving and sustaining homeownership,” says HUD Secretary Marcia L. Fudge, who was | more...

 
FHA home loans

FHA Loans And Home Equity

How soon do you need to start thinking about home equity? Believe it or not, you start making decisions about equity right away in the planning and saving process of your loan.  How? The amount of money you save for a down payment is a decision that directly affects the amount of the loan you want. The bigger your down payment, the more potential equity you could start out with. Essentially your home’s equity is the difference between the current market value of the home and how much you owe on the mortgage. That’s one reason why a bigger down payment affects your equity–you’ll start out owning the mortgage amount minus that money down. Since the equity in your home is subject to change, it’s important to pay attention to | more...

 
FHA Home Loans

Can An FHA Loan Be An ARM?

There are many choices to make when you want to buy a home. One of those choices is deciding whether a fixed-rate or adjustable-rate mortgage is right for you. FHA home loans come with an adjustable-rate mortgage option that features an introductory rate followed by an adjustment period that may vary depending on what you and the lender agree upon. When you choose an adjustable-rate mortgage, also known as an ARM loan, the introductory rate is typically more competitive than the fixed-rate FHA option. When using an ARM loan, some borrowers have a plan to sell or refinance before the first adjustment or soon thereafter. ARM loans are best for those who have a plan to deal with those adjustments. What follows are the FHA loan rules for FHA ARM loans, | more...