Articles Tagged With: FHA Loan Rules

March 15, 2022

Fixing Your Credit Before Your FHA Home Loan

If you are considering an FHA home loan, you’ll want to begin working on your credit as soon as possible. This is true even if you feel you have good credit–there are issues a lender sees on many credit reports that may complicate the loan approval process. These issues may or may not interfere with your credit score numbers but they could be a factor in the lender’s decision to approve the loan, offer a certain interest rate, etc. If the numbers aren’t the issue, some borrowers want to know what IS the issue? In some cases, there may be errors or information that should be disputed on the report because you don’t want your loan officer making decisions about your loan based on information that isn’t accurate. The credit | more...

March 11, 2022

Issues That May Complicate Your FHA Home Loan Application

By Joe Wallace

There is a lot of advice out there about starting early when it’s time to plan and save for your mortgage. When you are preparing for an FHA loan application you naturally want to check your credit, pay your bills on time, and reduce your credit card use. But even when you are busy with taking care of these things, there may be issues that can complicate the home loan process. Knowing these issues can help you navigate them if there is one that applies to you. It’s easy to assume you don’t have a hidden problem waiting to slow do your home loan process, but some of these issues are a surprise to future borrowers and they spend additional time sorting them out. Do You Owe Any Tax Liens? | more...

March 10, 2022

FHA Mortgage Loan Planning: Fixed Or Adjustable-Rate Mortgage?

By Joe Wallace

When you are in the planning stages of an FHA mortgage there are some considerations you’ll want to make about which upfront costs to pay out of pocket and when it is smart to consider financing certain costs. What do you need to know about these decisions? We’ll explore below. Planning your home loan means deciding a number of things including how long you plan to stay in the home. That factor will play an important part in choices like whether to apply for a fixed-rate mortgage (better for long-term owners who don’t plan to sell at some point) or an adjustable-rate mortgage (better for those who know they won’t own the home for a very long time). An adjustable-rate loan typically features an introductory rate that changes at the | more...

March 8, 2022

FHA Loan Questions And Answers

By Joe Wallace

There are a lot of myths that are still circulating about FHA home loans. What do you need to know about these loans to separate the facts from the fiction? True Or False? FHA Home Loans Are For New Buyers Only False. Some people mistakenly believe you can only qualify for a mortgage guaranteed by the FHA if you are a first-time homebuyer. This is not true. You must financially qualify for the loan like any other mortgage program but you do not have to be buying a house for the first time. True Or False? FHA Loans Require Mortgage Insurance True. FHA mortgages issued today have mortgage insurance requirements for either 11 years or the full duration of the loan depending on how much you put down, the term | more...

March 7, 2022

Answers To New House Hunter Questions

By Bruce Reichstein

What does it take to qualify for an FHA mortgage? That’s among the most common questions asked about FHA home loans. What is the answer? There are a variety of factors that go into your loan officer’s decision to approve or deny a home loan. Those factors include the number and amount of your monthly financial obligations, your FICO scores, how well you use the credit you have, and other variables. What credit score do you need to qualify? On paper, FHA loan rules say those with FICO scores in the 580 or above range qualify for the lowest down payment possible for an FHA mortgage (3.5%). Lender standards may require a higher FICO score range. Not all borrowers have the same kind of FICO scores. Some may have thin | more...

February 28, 2022

Are You Preparing For An FHA Mortgage?

By Joe Wallace

Getting your credit ready for a home loan application is one of the most important steps in the mortgage planning process. Do you know how to get your credit prepared before the lender pulls your reports and reviews your FICO scores? The first key to doing this right is time. Give yourself at least a year to save and plan for your mortgage. This also gives you enough time to work on your credit and lower the amount of monthly debt you carry. Lowering the balances on your credit cards not only improves your debt ratio, it also potentially enhances your credit card utilization ratio, too. A year of on-time, every time payments for all financial obligations is strongly recommended. This is the most basic credit repair advice you’ll find | more...

February 23, 2022

FHA Manufactured Home Loans: Questions And Answers

By Joe Wallace

FHA home loan options include loans for manufactured housing, modular homes, and what some still refer to as “mobile homes”. FHA home loan rules for manufactured housing include age and foundation requirements as well as minimum sizes. If you aren’t sure how to proceed when trying to apply for a manufactured home loan, here are some common questions asked about these types of FHA mortgages. Are FHA Manufactured Home Loans The Same As FHA 203(b) Mortgages? Not exactly. The FHA loan program allows the purchase of a modular home or a manufactured home that is not on a permanent foundation at the time of creation. The manufactured home must be placed on a permanent foundation as a condition of loan approval and the timing of this must be agreeable to | more...

February 16, 2022

The FHA Borrower’s “Secret Weapon” For Closing Costs

By Bruce Reichstein

Do you know about one of the secrets of managing your closing costs for an FHA home loan? We’re talking specifically about seller contributions to your closing costs for your FHA purchase loan–what the seller is permitted to contribute under the rules for your FHA mortgage. Buying a home requires more cash than some borrowers expect–at first. There are appraisals and home inspections to pay for, sometimes a pest inspection may be needed, and you may also have to pay or anticipate paying some taxes, compliance inspection fees, and more. Negotiating with the seller to pay a portion of your closing costs is (believe it or not) fairly common in the mortgage industry. Individual sellers and individual house hunters alike may need some time to get used to this idea | more...

February 7, 2022

What You Should Know About FHA Mortgage Loan Rate Lock Agreements

By Joe Wallace

What should FHA home loan applicants know about the practice of mortgage interest rate lock commitments? This is an important detail of your home loan and it’s best to know how the interest rate lock agreement works ahead of time so you know how and why this part of the mortgage loan process works. What Is An FHA Mortgage Loan Interest Rate Lock Agreement? An interest rate lock protects a borrower from the daily mortgage rate fluctuations that happen naturally due to investor behavior, or other market forces that can change rates. An interest rate lock commitment is not automatic; it must be formally agreed to in writing between the borrower and the lender. An interest rate lock commitment does exactly what it sounds like it does-the lender and borrower | more...

January 28, 2022

FHA Home Loans And First-Time Buyers

By Joe Wallace

Are you considering an FHA mortgage as a first-time homebuyer? There are some important things to remember that can help make your home loan journey better. Consider what follows as things to consider adding to your home loan planning checklist. Monitoring your credit is the first step. If you have not started the planning stages of your home loan yet or are in the earliest stages of that, you’re in a great place to start monitoring and working on your credit. If you are farther along in the process and have not started monitoring your credit, do so as soon as you can for best results. Saving money for your home loan expenses is an important part of the planning phase of your mortgage. You should research real estate blogs | more...