Articles Tagged With: First-time Home Buyer

January 23, 2024

Planning & Saving For Your FHA Loan

House hunters need to save cash when planning to buy a house in the new year. Some things have always been on the list but have, in more recent times, become more important to consider while in planning mode. FHA Home Loan Down Payment Issues To Know The down payment issue is non-negotiable for typical FHA loans, money down is required. However, you might be surprised by your options when saving for it. You’ll need to save a MINIMUM 3.5% down payment, but in 2024, you may want to consider making a bigger down payment. It can help you save on interest rates over the loan term. There are variables, including whether or not you choose to finance closing costs, and those are factors to consider and ask the lender | more...

January 19, 2024

Who Qualifies For FHA Loans?

By Joe Wallace

Whether you’re interested in building a house from the ground up on your own lot or need a mobile home or condo unit, there is an FHA home loan for you. Who qualifies for these mortgages and why? FHA Loans For First-Time Home Buyers FHA mortgages are open to first-time homebuyers without perfect credit. You can apply for an FHA home loan even with past credit mistakes. The best thing to do is review your past credit and ensure your home loan application is turned in once you have a full year of on-time payments on your credit record. First-time borrowers should know an FHA mortgage, even an FHA One-Time Close construction loan is within their reach thanks to low 3.5% down payment requirements and the ability to get down | more...

January 16, 2024

The Rent Versus Buy Question In 2024

By Joe Wallace

Do you look at today’s mortgage rates, the housing market, and current economic headlines and wonder why you should consider purchasing a home in the new year? You aren’t alone. There are several economic factors at work in the American housing market. In 2024, one of those factors has to do with the difference between the cost of renting compared to owning a home. That gap has always been there in one degree or another. However, in the year 2024, that gap seems more attention-worthy. Especially for anyone struggling to decide which makes more sense, renting or owning a home. Compare The Numbers Forbes.com notes that home loan interest rates and home loan prices changed so much in the previous year that there seems to be a widening gap between | more...

January 10, 2024

First Time Home Buyers: Improve Your Credit With Credit Monitoring

By Bruce Reichstein

The COVID-19 pandemic created economic uncertainty for many current and future homeowners. And ever since the pandemic ended, financial troubles have continued thanks to inflation, possible recession, and other issues. Many borrowers may have experienced financial setbacks in the aftermath of the coronavirus outbreak in America. Many working to recover from financial problems discover there’s a lot of credit repair and related efforts American consumers must explore to get back on track financially. Protecting your credit is more important than ever–do you know what can hurt your FICO scores? Actively monitoring your credit is an important option–there are services that keep track of your credit report and learn about what affects your scores. It may be tempting to use free credit monitoring offers but financial advisors recommend comparing features on | more...

January 5, 2024

Don’t Make These Home Loan Mistakes

By Bruce Reichstein

Buying a home for the first time is stressful, but there are things you can do as a first-time buyer that will help. Avoid these big mistakes when planning your mortgage. Don’t Change Jobs Before Your Mortgage Closes This advice does not apply to everyone, but it does for those contemplating changing the nature of their employment from having a boss and a traditional workplace to freelance, contract, or per-project type work. There are different FHA home loan rules for non-traditional employment, freelance jobs, commission income, etc. If you were working in a typical job at the start of the home loan application process and are tempted to switch to contract, freelance, or commission work, your job switch could hinder your mortgage loan process. Why? The income rules for those | more...

January 3, 2024

Buying An Older Home With An FHA Loan

By Joe Wallace

FHA home loans come with a myth or two. For example, the notion that only first-time home buyers can get an FHA loan. That is a myth. Also NOT TRUE? The idea that a house can’t be past a certain age to qualify. This myth isn’t as widespread as the first-time home buyer one, but the fact is, only SOME property types have a specific age requirement Manufactured homes have a specific age requirement other FHA loans don’t carry. An FHA-eligible mobile home or manufactured housing must be built after June 15, 1976 or it cannot be purchased with an FHA mortgage. Existing construction properties under the FHA single-family home loan program don’t have that age issue. Age or Remaining Life? The FHA lender’s handbook specifies that all houses purchased | more...

December 29, 2023

Home Buying Facts You Should Know

By Bruce Reichstein

Are you buying a home for the first time? Do you need answers to mortgage loan questions? You aren’t alone. We explore some important issues below. FHA Home Loans For First-Time Home Buyers Feature A Lower Down Payment Lower down payments mean more money freed up to pay closing costs and other expenses related to buying a home. But if you plan on keeping the home for a large portion of the loan term (or the entire loan term), a bigger down payment may be to your advantage. The smaller your principal loan amount, the less you will pay in interest over the lifetime of the loan. Home Loan Appraisals Should Not Be Used By The Borrower To Determine The Condition Of The Home Ask any realtor or lender what | more...

December 27, 2023

What To Ask A Lender When Shopping For A Mortgage in 2024

By Joe Wallace

First time home buyers often have plenty of questions to ask a lender. Below we examine some of the key issues to consider when you compare financial institutions. Shop Around For A Lender And The Right Loan Compare three lenders (more is better) and don’t shortchange yourself when you start the process of shopping around for the right lender. It’s better to take more time and find the right match for you. Remember, you don’t have to use your current lender even if you have other loans with them. Ask About FHA Loan Rates and Terms You want to know these long before you make offer on a house. You’ll want to get an early sense for how much your loan may cost so you can plan your loan. Ask | more...

December 26, 2023

How Much Can You Borrow In 2024?

By Joe Wallace

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 13, 2023

Contingency Clauses To Consider When Buying A Home

By Joe Wallace

Did you know there are ways to protect yourself from buying a home you ultimately decide you do not want? Or ways to make your purchase enforceable only if you sell your current home? You can do this using a contingency clause. These are add-on language to your sales contract specifying the buyer or seller will only proceed with the sale when certain conditions are met. At the FreddieMac official site, we learn, “Contingencies are an expected, normal part of the home buying process, providing both the buyer and the seller a legal way out of the contract if something goes awry.” Consider each of the following options below. One might be very important for your house-hunting journey. Home Sale Contingency Clause If you already own a home, consider using | more...