Articles Tagged With: FHA Loan Rules

April 6, 2023

Buying A Home? Questions To Ask

Are you thinking about applying for a mortgage loan? Here are some important questions you should ask yourself before starting a loan application. Preparing for the issues raised below can help you get off to a good start. Have I Saved Enough For Contingencies? There are plenty of costs some borrowers do not anticipate when planning and saving for their FHA mortgage. You should expect title transfer fees, pest inspection costs, and home inspection fees. These are all standard costs associated with buying a home. But there are also fees that are easy to forget about. Will you have to pay any property taxes at closing time? What about compliance inspection that may be needed after appraisal-required corrections are made as a condition of loan approval? How Much Negotiating Can | more...

March 30, 2023

Buying A Home? Ask Your Seller and Lender These Questions

By Joe Wallace

If you are buying your first home, you’ll want to ask some important questions of both the seller of the house and your participating FHA lender. The lender questions should include asking about the option to buy down your interest rate with discount points, and how much your interest rate could be depending on FICO scores and credit history. You should ask the lender about options for both 15-year and 30-year mortgages even if its just to compare the rates and monthly payments. You should also ask what benefits might be available with a higher down payment and how much your lowest down payment might be based on an estimated sale price and your credit. Questions To Ask Your Seller Some people worry about haggling or even questioning a seller. | more...

March 23, 2023

FHA Loan Down Payments

By Joe Wallace

Borrowers have many questions about FHA loan down payment rules, which can be a tricky issue for some in the beginning–do you know what is required for an FHA loan down payment? For starters, the source of your down payment funds will be scrutinized. You can’t provide a down payment from a credit card cash advance or non-collateralized loan. You cannot use payday loans for your down payment. You cannot use funds from third parties, such as friends or family, from these unapproved sources, either. Sources of down payment funds acceptable to the FHA include cash saved by the borrower, certain retirement funds, stocks or other assets that have been cashed in, certain types of gift funds from a relative may be acceptable if the funds meet FHA requirements, etc. | more...

March 22, 2023

FHA Loan Terms Defined

By Joe Wallace

If you are new to the home loan process, there are some vocabulary terms you’ll want to know as you start to plan and save for your FHA home loan in 2023. It pays to do your homework ahead of time in a housing market like the one we’re experiencing now. Every advantage helps. As you start to research your mortgage options and talk to industry professionals, you’ll likely hear or read some technical terms that may be confusing..at first. The farther you get in the home loan process, the more these new terms will become clear and make sense. Here are some terms you will likely learn more about in the coming months. Comparables You may not experience this loan jargon in the earlier part of the home loan | more...

FHA Home Loans And First Time Home Buyers

March 16, 2023

Credit Advice Before Applying For A New FHA Mortgage

By Joe Wallace

Do you know how to get your own credit ready for a major loan application like an FHA mortgage? If you want to discuss your home loan options with a participating lender, you’ll want to have worked on your credit for a significant amount of time before your application or pre-qualification process starts. How much time do you need to get your own credit ready to apply for an FHA mortgage? Many sources say at least one year is ideal, and the credit reporting agencies themselves urge borrowers to take matters into their own hands and begin reviewing credit reports and monitoring credit. The shortest answer to the question, “Am I ready to apply for a mortgage” is, “It depends on how long you’ve been working on your credit.” If | more...

Can I get an FHA home loan if I owe back taxes?

March 10, 2023

FHA Loan Fact and Fiction

By Joe Wallace

An FHA loan comes with a variety of options, including the types of property you can buy (suburban home, townhome, condo unit, manufactured home, etc.) and the types of mortgage you can apply for such as a 15-year term, 30-year term, fixed rate, adjustable rate mortgage, etc. FHA Loan Fact: Applying For An FHA Mortgage With A Participating Lender There are many participating FHA lenders waiting to help you, and while FHA loans are NOT available from a financial institution that does not participate, the number of those who do is quite high. If you need to refinance a conventional loan and your lender is not an FHA lender, you’re free to find one who does and refinance into an FHA mortgage. FHA Loan Fiction: First Time Home Buyers Only? | more...

February 1, 2023

FHA Home Loan Myths Explained

By Bruce Reichstein

There are plenty of myths about FHA home loans. For example, some people STILL believe the FHA home loan program is a need-based mortgage loan offered only to low-income house hunters. This is not true–any financially qualified borrower can apply for an FHA mortgage. There are no income caps or need-based requirements for FHA loan approval. But that’s just the tip of the iceberg. FHA home loans can be used to buy certain property types including condo units and mobile homes. FHA home loans can even be used to have a house built on your own land with a low 3.5% down payment. FHA Loan Myths: First-Time Home Buyers You do NOT have to be a first-time homebuyer to qualify for an FHA mortgage. You can be an experienced homeowner, | more...

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

January 25, 2023

Are You Ready For An FHA Loan Application?

By Bruce Reichstein

Are you ready for an FHA mortgage loan? Buying or refinancing a home with an FHA loan takes planning and preparation, but once you’ve put the time in and gather your information, budget for expenses, and check your credit, the process will be far more understandable and accessible. Are You Ready For An FHA Mortgage Loan Application? You may be ready to fill out your FHA mortgage loan or refinance loan application if you have spent the last year reviewing your credit reports, working on reducing your debt-to-income ratio, and have made sure to have 12 months of on-time payments on ALL financial responsibilities. You are ready to apply if you know what kind of home loan you need and how it will be used. For example, are you interested | more...

The FHA Loan That Helps You Build On Your Own Lot

January 13, 2023

FHA One-Time Close Construction Loan Limits Are Higher In 2023

By Bruce Reichstein

If you want to build a home from the ground up using an FHA One-Time Close Construction Loan, there’s good news for you in 2023. Your buying power has increased thanks to FHA loan limits published at the start of the new year. The Department of Housing and Urban Development issues updated FHA loan limits on an annual basis. The limits vary depending on whether the housing market in a given zip code is considered typical, high-cost, or low-cost. In 2023, the limits for all FHA forward mortgages (including FHA One-Time Close Construction Loans) increased in many areas across the USA. FHA loan limit calculations include a nationwide forward mortgage limit ‘floor’ and ‘ceiling’ for a one-unit property. If you want an FHA One-Time Close Construction Loan in 2023, the | more...

January 10, 2023

Rent Or Buy? FHA Loans Can Help You Own Your Home

By Joe Wallace

Is it wiser to rent or to buy your home? For some borrowers, it makes more sense to make a mortgage payment than to commit to a monthly rental payment. These borrowers should definitely explore their FHA home loan options and compare the cost of renting to the costs of owning. FHA Loans Can Help You To Stop Paying Rent Buying your home with an FHA mortgage means no more waiting for the landlord to repair crucial areas of the home. Homeowners are free to schedule or make their own repairs or upgrades without having to wait for someone else to get around to scheduling those necessary appointments. Buying a home with an FHA mortgage means no more apartment hunting, paying application fees or security deposits, etc. FHA Mortgage Loans | more...