Articles Tagged With: FHA Loan Rules

December 26, 2023

How Much Can You Borrow In 2024?

FHA loan limits increase in many housing markets in the United States in the new year. Higher FHA loan limits typically reflect the state of the housing market in the last year, and 2024 is no exception. We examine the finer points of FHA loan limits below. FHA Loan Limits Are Set Once Per Year Federal law dictates FHA loan limits be established annually using specific types of data to inform the new rates. The National Housing Act contains the guidelines FHA must use to establish loan limits in the new year. FHA and HUD typically announce these limits in the final weeks of the prior year, sometime between November and the end of December. FHA loan limits are set at 115 percent of the median house prices in a | more...

December 22, 2023

FHA Loan Prep Versus Holiday Spending

By Joe Wallace

House hunters who want a home in the new year, have many financial issues to worry about. One seasonal issue is holiday spending, and if you overextend yourself in December it can lead to more than financial stress. Fortunately, there are things you can do to manage credit issues and keep them from being a liability at loan application time. Don’t Allow Missed Payments What makes a late or missed payment can vary depending on the creditor. Do you know the current due dates on your bills? Have you arranged to make a partial payment rather than miss the deadline if you can’t make the full payment? These are all steps that can help you get closer to a loan next year. Consider How You Pay In 2024 Paying with | more...

December 11, 2023

FHA Home Loan Approval Versus Your Debts

By Joe Wallace

In 2024, a successful FHA home loan application means taking some extra time in the planning stages to work on your financials including your credit scores and the amount of debt you carry. Some borrowers don’t view those two issues as being equal…at first. FHA Loan Approval Factors You Should Know Your FICO score range is an important part of the data your lender uses to justify approving your mortgage. But it isn’t the only benchmark. Did you know that to be approved for an FHA mortgage, try to come to the loan application process with a debt ratio of 43% or less? That means your monthly outgoing debt takes up no more than 43% of your monthly income. Managing Your Debt Ratio: How To Get Started The Consumer Financial | more...

December 7, 2023

The 2024 Housing Market

By Joe Wallace

Real estate agencies and finance blogs get into the prediction business at the end of each year, with many publishing articles comparing their expectations for the new year with what happened in the current year. 2024 is no different. One such company, Redfin, predicts that the new year could be a great time to reconsider buying a home as the housing market enters into recovery mode. The End Of The Seller’s Market? Redfin makes a prediction for 2024 many really want to hear. “Home prices will fall because supply will rise more than demand.” The lack of supply caused the seller’s market of 2022, and more housing inventory will begin leveling the playing field, so to speak, between buyers and sellers. In a seller’s market, as the name implies, the | more...

December 5, 2023

How Long It Takes To Be Approved For A Mortgage

By Joe Wallace

Getting approved for a home loan can take a few weeks or months, depending on the borrower and the circumstances surrounding the loan. Receiving the FHA loan funds may take between four weeks and 90 days from start to finish, and there are milestones along the way, such as the appraisal process, which must be passed before loan funds can be released. Here is what you need to know about the time it takes to be approved for a mortgage. A Process With Multiple Stages Your FHA loan has more than one milestone to pass before you reach closing day and accept your keys. There’s the pre-approval stage, the appraisal, any required compliance inspections (where applicable) and getting the loan itself approved. Did you know your lender may check your | more...

November 30, 2023

Avoiding Foreclosure in 2024

By Bruce Reichstein

Do you want to buy or build a home with an FHA loan? When planning and saving, consider what happens after closing day once you accept the keys, schedule the movers, and take possession of your new house. What’s the big issue to remember here? Future borrowers in the budgeting and planning stages must choose how much cash to pay at closing time. And so far out from that first mortgage payment it may feel tempting to save a bit on your out-of-pocket expenses and finance certain closing costs like the FHA loan upfront mortgage premium. There is an issue called “cost creep” that some borrowers may experience. Financing one closing cost might not hurt your bottom line too much. And from there some justify adding even more to the | more...

November 27, 2023

Home Loan Interest Rates Back Away From 8%

By Joe Wallace

In November 2023, mortgage loan rates came uncomfortably close to the 8% range. Since then rates seem to have backed away, with incremental improvement. Is this the time for some house hunters to make their move? The short-term gains mentioned above may benefit anyone ready to make a deal. But what about those who need more time? In such cases, you should not read too much into these rate adjustments until there’s a longer history of consistently lower rates. FHA Home Loan Mortgage Rate Trends Day to day or week to week, home loan rates can alternate between trends moving suddenly higher or lower, but over the long term, such moves won’t mean indicate much until there is a consistency in the rates over a longer period of time. For | more...

November 20, 2023

Home Loan Interest Rates In 2024: Higher or Lower?

By Joe Wallace

Financial pundits are noting that home loan interest rates are unlikely to fall as low as in July of 2020 when the rates moved below 3%. Is it smart to wait to buy a home until well into the new year? Should we expect more of the same higher rates in the new year as we saw last year? FHA Mortgage Rate Predictions For 2024 Business Insider repeats the Fannie Mae prediction for 2024 that rates may reside between 6.4% and 7.1% for 30-year fixed-rate conventional mortgages. FHA and VA mortgage rates are likely to be at or slightly below these numbers. The National Association of Realtors takes a less conservative approach, predicting rates could fall as low as 6.1% in 2024. These are predictions only, and various factors, including | more...

November 17, 2023

FHA Loan Occupancy Guidelines You Should Know

By Bruce Reichstein

Did you know that occupancy is a requirement when you buy a house with an FHA loan? FHA policy for occupancy requires at least one borrower obligated on the mortgage to take up residence in the home as the primary residence. This must happen within a “reasonable time” of loan closing, normally 60 days, unless you make other arrangements with the loan officer. FHA Loan Occupancy Rules For Single-Family Homes HUD 4000.1 is the FHA Single-Family Lender’s Handbook. In that handbook, you’ll find regulations covering occupancy as a condition of FHA loan approval. You won’t be approved for an FHA mortgage if you aren’t planning to use the home purchased with your loan as your primary address. How Will The FHA Know You Occcupy The Home? Loan officers are busy | more...

November 15, 2023

When It’s Time To Close Your FHA Mortgage

By Joe Wallace

Congratulations! You selected a home to buy with an FHA mortgage, your chosen FHA lender has approved your application, and the seller accepted your offer. Getting ready for closing is the next step in that process, and many newcomers ask what happens on Closing Day? Closing day is a huge milestone for both buyers and sellers. The seller moves out and surrenders the property per your sales agreement and the borrower accepts the keys to the home. On closing day, there is an update to the deed to the home, changed to be in the buyer’s name. You will also be expected to sign all the other paperwork needed to take possession of the home. Closing day typically happens within two months of making the deal, but much depends on | more...