Articles Tagged With: FHA Mortgage

March 22, 2022

FHA Home Loans And Closing Day Delays

Getting to your closing day can be challenging. There are fees and expenses to pay for, credit checks to submit to, negotiations with the seller, and more. And on top of all those details, there are issues that could slow down your home loan, and may in some cases even affect your closing day. Don’t assume that such issues are always the borrower or seller’s fault. There are many reasons why your closing day could be delayed or otherwise affected by circumstances. What Can Delay Closing Day? Many issues can affect your ability to close the loan. For example, what if the appraisal comes back with corrections or with a value that is lower than the asking price of the home? Those things may or may not require a rethink | more...

March 17, 2022

FHA Home Loan Options You Should Know

By Joe Wallace

How many different FHA home loans are there? Some people assume there is only one loan program addressing a variety of different housing types. In many cases that is true. The FHA 203(b) loan is offered for a variety of different home loans including one-to-four unit homes that you would find in a typical suburban area. But that loan can also be used to purchase a condominium unit, a townhouse, duplex, or mixed-use properties which are primarily residential. Some borrowers want to know if they can use an FHA 203(b) mortgage to purchase a manufactured home or modular home. FHA loans under the 203(b) program are also known as Title II mortgages. The FHA home loan you need to purchase a manufactured home is called a Title I mortgage. FHA | more...

March 16, 2022

Building Credit Before Your FHA Home Loan

By Joe Wallace

If you want to buy a home, especially if you are shopping for a house for the very first time, you may need to build credit in the year or more leading up to your application. First-time homebuyers who do not have a long credit history do well to consider building credit, which is not quite the same thing as repairing credit. That said, the procedures for building and repairing are often similar. One important thing to remember; you don’t need a credit card to build credit. Some credit reporting agencies give you the option of having recurring payments (such as cell phones, utilities, etc.) added to your credit report. These recurring payments can help establish a pattern of reliable payments, and you will need to make arrangements with each | more...

March 15, 2022

Fixing Your Credit Before Your FHA Home Loan

By Joe Wallace

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 9, 2022

Your FHA Refinance Loan Options

By Bruce Reichstein

FHA home loans feature a refinance option. There are multiple options to refinance with an FHA mortgage and you can choose to refinance out of a conventional mortgage into an FHA loan, get cash back at closing time, and more. What do you need to know about FHA refinance options? FHA Cash-Out Refinance loans are not the only option to refinance a non-FHA mortgage. You can also apply for a no-cash-out version and get out of your current loan and into a new FHA mortgage. Some choose to do this because they want out of an adjustable-rate mortgage, others choose an FHA loan because they are interested in a lower rate. When you are reviewing your refinance options, it pays to have an idea of your financial goals for 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...

March 4, 2022

FHA Home Loan Options For New Borrowers

By Joe Wallace

FHA home loan options for new borrowers and first-time homebuyers vary. There’s a misconception that FHA mortgages are only for first-time borrowers, and another misconception is that FHA loans somehow favor first-time borrowers with better rates, terms, or other factors. But the truth is that FHA mortgages are NOT just for first-time homebuyers. You can be approved for an FHA mortgage without being subject to income caps or restrictions. Need-based requirements do not apply for FHA loan approval. And there’s another truth-the FHA loan program itself does not offer more favorable terms for first-time applicants than for anyone else. All applicants who are financially qualified can apply for an FHA loan or refinance loan. That leads to some confusion among borrowers who see lenders offering first-time buyer incentives. The fact | more...