Articles Tagged With: FHA Mortgage Loan

What Credit Score Is Needed For An FHA Mortgage?

October 26, 2017

What Are The Property Requirements For An FHA Loan? Part Two

What Are The Property Requirements For An FHA Loan? We’ve been examining that question in our last few blog posts. FHA loan rules specify that a home must meet minimum standards in order to be approved for an FHA mortgage. What are those standards? There are many, which is why a qualified FHA appraiser must review the property to make sure it is suitable for a mortgage. General Requirements FHA loan rules in HUD 4000.1 state that the home must be generally safe, habitable, and must have a remaining economic life for the entire duration of the mortgage. However, not all homes are in the same condition when they are sold as brand new houses and some homes are purchased under the FHA 203(k) or FHA 203(h) rehab loan programs. | more...

October 24, 2017

How Do You Qualify For An FHA Loan?

By Bruce Reichstein

How do you qualify for an FHA loan? Many want to know what it takes to get approved for an FHA mortgage, and you may be surprised to find out that FHA mortgage loans have more forgiving minimum requirements than other types of home loans. Lender standards will apply above and beyond FHA minimums depending on the financial institution and other factors, but in general FHA mortgages are designed to be more affordable and more forgiving where credit qualifications are concerned. Qualifying For An FHA Mortgage To begin, only owner-occupiers are allowed to get FHA loans. You can’t buy an investment property with an FHA mortgage unless you are a non-profit or a government agency (generally speaking). If you intend to purchase property you will live in as your home | more...

October 16, 2017

What Do I Need To Know About Applying For An FHA Loan?

By Bruce Reichstein

What do I need to know about applying for an FHA loan? There are a variety of things you should know before you fill out FHA mortgage loan application paperwork. FHA Loan Residency Requirements You do not have to be a United States citizen to apply for an FHA mortgage loan. The only requirement is that the applicant must be in the U.S. legally and have documentation to prove it. Resident aliens and non-resident alien loan applicants will be required to document their status but would not be turned down for an FHA mortgage loan on the basis of not being a citizen. FHA Loan Credit Requirements For maximum financing, FHA loan rules say FICO scores of 580 or better are required. However, lender standards may be higher-check with your | more...

October 13, 2017

What Are The Interest Rates On FHA Mortgage Loans?

By Joe Wallace

What are the interest rates on FHA mortgage loans? This is a question that can be tough to answer because there are variables involved. Some of those variables are with the lender, but some are associated with the borrower. FHA Interest Rates Are Not Set By The FHA One very important aspect of FHA loans to be mindful of; the FHA and HUD do not set or regulate the interest rates on FHA mortgage loans, refinance loans, or loan assumptions. Interest rates will be negotiated between the lender and the borrower. FHA Mortgage Loan Interest Rates Are Not The Same For All Borrowers FHA loan interest rates, like other mortgage loan rates, are determined in part by market forces, but also by the borrower’s financial qualifications. The greater credit risk | more...

October 9, 2017

FHA Mortgage Rules For Homes In A Flood Zone

By Bruce Reichstein

In a previous blog post we discussed some of the FHA loan rules for purchasing homes that may be located in flood zones. According to the FHA loan handbook, homes in certain types of flood zones or Special Flood Hazard Areas are not eligible for FHA mortgages (including but not limited to SFHA Zone A, a Special Flood Zone Area, or Zone V). But other properties may be eligible. FHA loan rules for homes that are in a flood zone but are still eligible for an FHA mortgage vary depending on the type of property. Let’s examine the rules for each: Proposed or New Construction Homes HUD 4000.1 says of these properties: “If any portion of the dwelling, related Structures or equipment essential to the value of the Property and | more...

Can I buy a manufactured home with an FHA loan?

September 20, 2017

Can I Buy A Manufactured Home With An FHA Mortgage?

By Joe Wallace

Can I buy a manufactured home with an FHA loan? That is a question on the minds of many who are interested in purchasing a mobile home or manufactured home. What are the FHA loan rules for these properties? For starters, It IS possible to buy a mobile home or manufactured home using an FHA mortgage. Not all participating FHA lenders offer these loans (that’s up to the discretion of the lender) so you will need to find a lender who offers this type of FHA mortgage. Secondly, the homes themselves must meet FHA loan standards and other requirements in order to qualify for the mortgage. What are the FHA loan rules for mobile and manufactured home loans? One of the most basic areas addressed in the FHA loan handbook | more...

August 31, 2017

Can I Get An FHA Home Loan If I Owe Back Taxes?

By Bruce Reichstein

Can I get an FHA home loan if I owe back taxes? The answer to this question depends on more than one factor, the most important being whether or not the borrower is delinquent on the taxes owed. In general, borrowers who come to the home loan process with delinquent accounts will find it difficult to get loan approval. Borrowers should expect to come to the FHA home loan process with a minimum of 12 months of on-time payments for all financial obligations. That said, disputed accounts and/or issues connected to identity theft may have different requirements (police reports, documentation of the issues, etc.) When it comes to taxes, FHA loan rules emphasize the requirement to be in a satisfactory payment arrangement with the creditor and a minimum period of | more...

August 30, 2017

FHA Loans And Natural Disasters: What You Should Know

By Bruce Reichstein

FHA home loans can be affected by natural disasters such as Hurricane Harvey. Whether you have experienced damage to your property due to high winds, flooding, or other issues, once that damage has been done you will need to deal with your mortgage lender, your insurance company, and other agencies. Some borrowers may need financial relief in the form of loan forbearance, foreclosure avoidance or other measures. The FHA loan handbook, HUD 4000.1, has a section heading titled “Loss Mitigation” which is all about foreclosure avoidance and options borrowers may have to save their homes. Those options include what happens after a natural disaster, starting with a 90-day moratorium on foreclosures based on circumstances outlined below: “FHA-insured Mortgages secured by Properties located in Presidentially-Declared Major Disaster Areas (PDMDA) will be | more...

Refinancing a Second Home With An FHA Mortgage Loan

August 29, 2017

What Happens To FHA Loans Not Endorsed Prior To A Natural Disaster?

By Joe Wallace

In our previous blog post, we examined FHA loan rules for properties that were in the process of being purchased (but had not closed the deal) before a natural disaster struck. What happens when an FHA home loan is not endorsed by the lender prior to the disaster? The answer may first depend on whether or not the location of the home is in a federal disaster area or not. The following information applies only to homes located in a federally declared major disaster area-according to HUD 4000.1, the FHA loan handbook: “All Properties with pending Mortgages or endorsements in Presidentially-Declared Major Disaster Areas (PDMDA) must have a damage inspection report that identifies and quantifies any dwelling damage. The damage inspection report must be completed by an FHA Roster Appraiser | more...

August 25, 2017

What If My Home Was Damaged In A Natural Disaster?

By Joe Wallace

What if my home was damaged in a natural disaster? This is an important question. The answers, depending on circumstances, may affect FHA borrowers and non-FHA borrowers alike. The FHA and HUD official site discusses a variety of remedies for those who have experienced a natural disaster. Some of the most important advice? Contact your lender, your insurance agent, and FEMA as soon as possible after the disaster to make arrangements regarding FHA loan forbearance, foreclosure avoidance, and federal assistance. For borrowers with conventional mortgages, different options and requirements may apply. It is not safe to assume that any of the above is automatic-in most cases help must be applied for, especially where FEMA is concerned. Borrowers should also not allow themselves to be pressured into quick insurance settlements. You | more...