Articles Tagged With: FHA

March 14, 2019

How To Get A Lower Home Loan Interest Rate

Home loan interest rates are a tricky issue, and if you are working with a real estate agent to find your first home, knowing as much as you can about rates going into the home loan application process is a very good idea. How can you get a lower rate when shopping for a home? There are some strategies to consider but many of them involve starting as early as possible in the planning stages. Getting A Lower FHA Home Loan Interest Rate By Shopping Around As you would never buy a used car from the first person you meet selling one, it’s important to shop around for a home loan lender offering the most competitive interest rates and terms. If you are a first-time home buyer, shop around for | more...

March 13, 2019

The Flexible FHA Home Loan

By Bruce Reichstein

First-time home buyers don’t have to put 20% down when shopping for real estate they want to live in as their primary residence. The FHA home loan allows a low 3.5% down and this type of home loan has been described as having loose underwriting standards. Those standards include the FHA minimum credit score of 580 or higher for maximum financing and the lowest down payment, and technically borrowers with FICO scores above 500 are also eligible though with a higher down payment. Lender standards will apply above and beyond these minimums. FHA home loans allow borrowers with lower credit and higher debt ratios to qualify for first-time home buyer loans using compensating factors; a higher down payment, a substantial amount of cash reserves, or other, lender-defined compensating factors. And | more...

March 12, 2019

Why You Could Buy A First Home With An FHA Mortgage

By Joe Wallace

First-time home buyers may not realize the full value of some FHA home loan features, but once you’ve had a bit of experience with real estate and related issues, the FHA loan features that look good to you will do so for important reasons. FHA home loans have several strengths for those looking for a first home. Do you know what they are? FHA mortgages allow down payment gifts from approved sources. Your family, friends, co-workers, or agencies with no financial stake in the outcome of the transaction may provide genuine gifts of down payment money. The seller of the real estate you want to buy can not contribute toward your down payment. But you CAN negotiate with the seller to get up to six percent of the home’s sale | more...

March 11, 2019

First-Time Home Buyer Advice: Get A Home Inspection

By Bruce Reichstein

Some wonder if they have had a home inspection when the FHA appraisal results come back. First-time home buyers should know that a home inspection is something that should be done regardless of the appraisal because the two procedures are quite different. The appraisal is not a tool for the borrower and will not give you an idea of the true condition of the home. The home inspection is the job that needs to be done to give you that information. The FHA itself publishes a pamphlet called “For Your Protection, Get A Home Inspection” which includes this advice; “You have the right to examine carefully your potential new home with a professional home inspector. But a home inspection is not required by law, and will occur only if you | more...

March 8, 2019

FHA Home Loan Down Payment Assistance Rules You Need To Know Now

By Joe Wallace

FHA home loan rules allow down payment assistance for the mortgage for both first time buyers and experienced house hunters alike. There are down payment assistance programs for first-time borrowers, there are down payment gift funds that can be provided by family, friends, or employers…but all of these are subject to FHA loan rules. FHA Home Loan Down Payment Assistance Rules HUD 4000.1 says down payment assistance cannot come from any entity or party that has a stake in the outcome of the home loan sale or the approval of the mortgage loan. That includes: -The seller of the Property; -Any other person or Entity who financially benefits from the transaction (directly or indirectly); or Anyone who is or will be reimbursed, directly or indirectly, by any party included in | more...

March 7, 2019

HUD Announces Housing Discrimination Settlement With Los Angeles County Housing Providers

By Bruce Reichstein

Housing discrimination affects home buyers at every stage of the real estate buying process including those who are in the planning stages of buying a first home and who need an apartment to live in while on the road to becoming a new home owner. HUD has announced a settlement in a Fair Housing Act discrimination case brought against the owners of a Los Angeles County company running a development in Duarte, California. In this case the complaint centers around a housing complex; according to the HUD official site, “The agreement resolves allegations that Downs, LLC and EMNA Management, Inc., the owner and manager of the development, refused to remediate mold at the property as a reasonable accommodation for a couple with disabilities and retaliated against them for asking that | more...

March 1, 2019

FHA Home Loan Facts For First-Time Borrowers

By Bruce Reichstein

First-time home buyers should know about several things going into the home loan process, including their options when it’s time to refinance or consider a new home loan. Are you fully informed about your home loan options with an FHA mortgage? FHA Home Loans For First-Time Buyers Allow Non-Occupying Co-Borrowers A non-occupying co-borrower is someone obligated on the mortgage but who does not intend to live in the property full time. A co-borrower can help you to qualify for the mortgage by paying part of the closing costs and the down payment, but all borrowers applying for the mortgage loan must financially qualify. That means that the credit liabilities of the borrower with the weakest credit cannot be offset by the strengths of the co-borrower. Everyone will be considered on | more...

February 28, 2019

FHA Home Loan Answers For First-Time Borrowers

By Joe Wallace

First-time borrowers have many questions about FHA home loans. Here are some common questions and the basic answers, which should give you plenty to discuss with a lender when the time is right. What do you need to know about an FHA home loan? Can I Earn Too Much Money To Qualify For An FHA Mortgage? FHA loans do not have an income cap and these mortgages are not need-based loans. First-time home buyers may have financial constraints such as a tight budget and a need to save money up front on the transaction, and the FHA loan program is designed to help such borrowers with lower down payment requirements and the ability to finance certain closing costs. Do I Have To Live In The Home I Buy With An | more...

February 25, 2019

FHA Loan Qualifying Credit Scores

By Joe Wallace

FICO scores are a big part of getting your home loan approved as a first time home buyer or repeat borrower alike. One of the first questions someone purchasing their first home with an FHA loan will ask is what FICO scores qualify for the mortgage. And that’s not surprising; FHA loan credit qualifications do specify a minimum FICO score for all borrowers. And believe it or not, it’s the same credit score ranges for both first-time borrowers and those who have purchased real estate before. The FICO score minimums for the lowest down payment are set by the FHA and HUD, with these minimums often being increased by participating lenders based on that financial institution’s standard. So what you read below about qualifying FICO scores is the baseline score | more...

February 22, 2019

Is Now The Right Time To Buy Your First Home?

By Bruce Reichstein

Is now the right time for a first-time home buyer to look at real estate listings and consider buying that first home? Is now a good time for those who have owned property before to examine their FHA mortgage loan options? In both cases, the answer may be yes. Recent headlines and reports by companies like Zillow and CNBC indicate rising optimism in the housing market in the first quarter of 2019; inventory is increasing and mortgage loan applications have gone up recently, too. Ask any real estate agent about the state of their market and you may learn that now is a good time to explore your home ownership options. Why choose an FHA mortgage in a climate like this? The low down payment requirement is a good start-you | more...