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Articles Published in: December 2014

FHA Loan Credit Score

What You Need To Know About FHA Home Loans For 2015

If you are interested in an FHA loan in 2015, there are some basics you should know to help you get organized in the new year. Let’s take a look at some of them: For those looking to buy a home with a “new purchase” FHA single-family home loan, it’s a good idea to get familiar with FHA loan guaranty limits for your area. This information is found on the FHA/HUD official site at


FHA Loan Reader Questions: Principal Reduction

A reader asks, “I am owner/occupant of a 4 unit residential apartment Bldg which I built 37 years ago. it was successful until wacancies took over after the crash, I have funded the payments with my cash flow but it is now getting lower and lower and need my 6% reduced to the 3% rates with help i a small principal reduction.” This falls far outside the FHA single-family home loan program. The reader doesn’t indicate in the question whether the original loan was an FHA-guaranteed mortgage or not, but in any case, a borrower who seeks a principal reduction needs to work with the lender to see if this is possible. A refinance loan option may be possible depending on the circumstances and the lender, but again, this is | more...


Happy Holidays!

From all of us here, have a safe and happy holiday! We pause from our usual posts about FHA loans, answering reader questions, and FHA news to celebrate the season. Our regularly scheduled posts will return on Friday. Thanks for reading and we hope your holiday time is filled with joy. –The Staff at FHANewsBlog.com


FHA Announces 2015 FHA Home Loan Guaranty Limits

The FHA and HUD have announced the loan guaranty limits for 2015. FHA Mortgagee Letter 2014-25, which announces 2015 limits and policy for single-family “forward loans” for new purchases, FHA Streamline loans, and Home Equity Conversion Mortgages (HECMs). According to the mortgagee letter, “The minimum FHA national loan limit ‘floor’ is at 65 percent of the national


FHA Loan Limits: A Reader Question

A reader asks, “I only want about 40,000. What kind of credit score would I need? Thanks so much.” In many cases borrowers will typically find that lenders require average credit scores of around 620 or so (or better), but no two lenders operate exactly the same–you may find higher or lower FICO score requirements depending on the lender, the type of home loan, etc. This reader question seems to imply that the borrower wants to get a loan for a specific amount, but it’s important to understand how FHA loan amounts are determined. The FHA loan amount is set based on the sale price or the property, or the appraised value–whichever is lower. The loan amount can also be affected by adding things to the loan such as an | more...


FHA “Personal Loans”? A Reader Question

A reader asks, “My credit scores a 654 i have a car loan at 22000 where i pay 328 amonth and have a debt collecter who ive already payed but still shows on my credit report. Is there any way I can get a 5000 dollar loan?” It sounds like this reader is asking whether the FHA loan program permits a borrower to apply for a personal loan guaranteed by the FHA. Or perhaps the reader is asking if it’s possible to apply for an FHA home loan for an amount far smaller than it would take to purchase a home. In either case, the answer is no. FHA loan rules do not permit the FHA single family home loan program to be used as a personal loan–FHA guaranteed home | more...

FHA Loan Credit Score

FHA Loan Income Requirements: A Reader Question

A reader asks, “I would like to know how can I get a FHA Loan if my husband and me just make 40.000 a year. I went on bankruptcy in Oct 2011. Right now I have no debts, no car loans. I need an answer as soon as possible, we are living place to place, we paid rent on time,but living with more people is difficult. Also we have $10.000 for a downpayment.” FHA loan rules have no specific minimum income requirements for loan approval. FICO scores are used to approve the loan, as is your employment history and the likelihood of your current employment to continue. One of the most important things related to the borrower’s income isn’t the amount of that income, but rather how the income is | more...