Articles Tagged With: FHA Loan

April 26, 2023

FHA Loan Pre-Approval

What is the difference between FHA loan approval and pre-approval for an FHA mortgage? Some borrowers get confused during the initial process because it’s easy to assume that getting through pre-approval means you’ve been fully approved for the mortgage. The reality is that pre-approval is a tool for the borrower and the lender to determine if you’re ready to buy based on your income, debt-to-income ratio levels, the amount of down payment you have saved, etc. It’s the start of the loan process, but it is not a guarantee that you have an FHA mortgage loan yet. Getting pre-approved for an FHA mortgage means using an online mortgage loan calculator or other tool to add up your income, debts, interest rate, etc. The price of the home or an estimated | more...

April 21, 2023

The FHA Section 203(k) Rehab Loan

By Joe Wallace

The FHA 203(k) rehab loan is an important FHA mortgage loan option you should know about–this loan is available as a new purchase loan or a refinance loan you can use to buy and rehab a home at the same time. According to the FHA official site, on a page about the 203(k) rehab loan program, we learn that the 203(k) is aimed at borrowers who need to buy and improve or refinance and improve an eligible property. “When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment.” The FHA says its possible to use 203(k) Rehab loans to save time and | more...

April 20, 2023

Five Things You Should Know About FHA Mortgages

By Joe Wallace

Many people still have misconceptions about the FHA home loan program. They might think they “earn too much money” to be a successful applicant (not true, FHA home loans are not need-based loans) or would not qualify because they want to build a home instead of buying an existing-construction house. This is also not true; FHA loans include those for building a home instead of buying one. They are called One-Time Close construction loans, and feature the same FHA FICO score and down payment requirements as other FHA mortgage options. What are the facts about FHA home loans you need to know to make a better-informed decision about your loan choices? FHA Loan Fact: FHA Mortgages Are For Any Financially Qualified Borrower Unlike the USDA home loan program, which DOES | more...

April 19, 2023

FHA Home Loan Pre-Approval: Issues To Consider

By Joe Wallace

Getting mortgage pre-approval is an important step in the home buyer journey. It indicates to the seller and a lender that you are serious about your home loan and ready to commit to the right property and price. So what should you know about mortgage pre-approval before you apply? Before you start filling out the forms to get pre-approved, there are some basic questions to ask yourself. Getting pre-approved for an FHA home loan means asking yourself how good your credit score is and how high your credit card balances are. It also means looking at your savings and how much you will need to come up with to meet FHA minimum downpayment requirements. It’s best to start asking these questions far in advance of your home loan so that | more...

April 7, 2023

Not-So-Hidden Costs Of Your FHA Loan To Save For

By Joe Wallace

It’s easy to miss an important detail or two when planning and saving up to buy a home. Some obvious expenses include your down payment, FHA loan lender’s fee, property taxes, and escrow. But some things sneak up on first-time home buyers. You’ll want to be ready for both the cost of the services (see below) and the need to pay for the services themselves. For example, did you know that the appraisal and the home inspection are two totally separate costs? Some do, some don’t, at least not at first. Inspections Fees and Appraisal Fees Lenders and real estate agents tend to use the word “inspection” when they really mean “appraisal.” Remember, an appraisal is NOT a home inspection no matter how often the lender calls it one. And | more...

April 5, 2023

FHA Home Loans: A Variety Of Options

By Joe Wallace

There are many different types of real estate available to purchase or refinance with an FHA single family home loan. Did you know that FHA loans are not limited to traditional suburban-type housing? Your options are as diverse as the kinds of real estate you might consider purchasing. For example, while an existing construction suburban home is definitely an option with FHA loans, you can also consider a new construction home. The difference between new and existing construction can be technical; new construction properties have generally been completed for a year or less and have never had an owner. So while you may not be interested in a “build-to-suit” new construction loan, you may be able to get a new construction loan for a property that is already finished but | more...

April 3, 2023

FHA Home Loan Preparations

By Joe Wallace

When you are preparing for an FHA loan, or an FHA refinance loan, what can you do to get ready? How long should it take you to prepare? These are two important questions to answer long before you complete an application for your loan. Generally, it’s best to start saving and budgeting as early as possible before your loan. FHA-required appraisals cost money, as do compliance inspections, flood insurance, and other expenses. At a minimum, borrowers should begin pulling their credit reports and insuring all payments on all financial obligations are made on time, without fail at least 12 months in advance. Depending on the type of home loan, you may need to get credit or home buyer’s counseling. For FHA Home Equity Conversion Mortgages or HECM loans, counseling is required | 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...