June 28, 2017

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Articles Tagged With: FHA Loan

What is an FHA loan and who qualifies?

What Is An FHA Loan And Who Qualifies?

What is an FHA loan and who qualifies? These are common questions, especially for first-time home buyers looking at all their options from conventional mortgages to FHA loans. What Is An FHA Home Loan? Simply put, an FHA mortgage is a home loan that has been guaranteed by the government, making the mortgage safer for the lender and less expensive for the borrower. The FHA single family home loan program is designed for borrowers who are financially qualified with FICO scores at 580 or better for maximum financing. (Lender FICO score requirements may be higher than FHA minimums.) An FHA mortgage as described here is intended for owner-occupiers and is meant for primary residences. That means that time shares, vacation homes, and other occasional-occupancy properties cannot be purchased with an | more...

 
Where Can I Get an FHA Loan?

Where Do You Get An FHA Loan?

When you’re ready to apply, where do you get an FHA loan? There are plenty of misconceptions about the FHA home loan process, which usually get cleared up fairly quickly once you begin working with a participating FHA lender. But in the planning and saving stages of the loan, it’s good to know the facts about FHA loans, where to get them, and how they work. FHA Loans Are Offered By Participating Lenders Not all lenders participate in the FHA loan program, some are not permitted to participate, and some may not be certified by the FHA yet. Borrowers who need an FHA mortgage will need to find an active, participating lender who can qualify or prequalify the borrower for a mortgage loan. Participating lenders advertise their affiliation with the | more...

 

How To Apply For An FHA Loan: The Paperwork You Need

In our last blog post we discussed how to apply for an FHA loan including issues related to credit and getting pre-approved for the loan. Getting ready for your mortgage loan application takes time-you need to have 12 months of on-time payments for your financial obligations leading up to the application, and you need to check your credit report to make sure you know what the lender will see at application time. But what is required when you actually start to fill out the paperwork for the mortgage? Credit, Employment, and Tax Data The lender needs a variety of information to approve your mortgage loan. That includes tax paperwork-anticipate the lender asking for at least two years of tax documents and have them ready at application time. Your lender will | more...

 
apply for an FHA loan

How To Apply For An FHA Loan

Do you know how to apply for an FHA loan? Getting an FHA mortgage is much like any other type of home loan when it comes to taking the same amount of time to prepare, examine and improve your credit rating, reduce your debt-to-income ratio, and other issues that can help with loan approval. Good preparation is the key to any home loan, even those that have more forgiving credit requirements such as FHA mortgages. Your lender will need to see proof that you are a good credit risk, have a stable and reliable form of income, and have an acceptable amount of debt compared to the amount of income you get each month. So how do you apply for an FHA loan? It is strongly advise that borrowers give | more...

 

2017 FHA Loan Home Requirements

What are FHA loan home requirements? How can you tell if a property meets FHA loan minimum standards? These are important questions to ask when planning for your new home loan. FHA loan home requirements are found in HUD 4000.1, the FHA single-family home loan handbook. HUD 4000.1 states that while all homes to be purchased with an FHA mortgage must pass the FHA appraisal process, doing so in no way acts as a guarantee that the home is free of defects. A borrower should understand that the FHA appraisal is for the lender, while a home inspection (optional but extremely important) is for the borrower. In general, FHA loan home requirements include rules which state that the roof must be in good repair, that the electrical and plumbing system | more...

 

FHA Loans And Multi-Unit Properties

FHA home loans are intended for owner-occupiers. The FHA loan occupancy requirement states that the borrower must begin using the home purchased with an FHA loan within a specified time after closing (usually within 60 days) and for a minimum of one year. But FHA loan rules also permit owner-occupiers to buy multi-unit properties. For multi-unit homes, the borrower must occupy at least one unit but is free to rent out the unused spaces in the home to others. FHA loan rules limit the number of units to four in these transactions. If a borrower intends to apply for an FHA loan for a home that has multiple units, it may be tempting to try to convince the lender to factor in any potential income from such rental as part | more...

 

After The FHA Loan Closes: FHA Loan Reader Questions

A reader got in touch recently to ask an FHA loan question about the disposition of the property once the loan has closed. “After receiving the loan, are there any regulations on putting two other mobile homes on the property? They will not be on a permanent foundation. We are currently buying 15 acres of land in Texas.” FHA loan rules are clear about the status of a mobile or manufactured home that is purchased with an FHA mortgage loan-all such property types must meet FHA minimum standards and be affixed to a permanent foundation as a condition of loan approval. However, the FHA Single Family Loan Handbook, HUD 4000.1, does not address the condition of add-ons, improvements, or other modifications that happen after the loan has closed. A borrower | more...

 

Qualifying For An FHA Cash-Out Refinance Loan

Qualifying for an FHA cash-out refinance loan is much the same as qualifying for an FHA “forward mortgage” or typical new purchase loan. Since this type of refinancing involves money back to the borrower, the lender is required to run a new credit check and the usual credit requirements will apply even for those who are repeat customers for a particular lender. Credit Activity When you are preparing for your FHA cash out refinance loan, you’ll need to observe the same rules about credit that you did when you applied for your original mortgage. That means avoiding new credit card applications and other types of credit leading up to your refi loan paperwork. Why? Every time you apply for new credit, a “hard inquiry” is listed on your credit report. | more...

 

Basics Of An FHA Home Loan

Are you interested in an FHA mortgage? If you’ve never applied for an FHA home loan before, there are some basics you should know that will help you make the right choices for the property you wish to purchase. Who Is An FHA Home Loan For? The FHA single-family home loan program is available to all financially qualified borrowers looking to buy property that meets FHA standards. FHA loans are for owner-occupiers looking to purchase a home to live in as their primary residence. There is a residency requirement for FHA mortgages, and FHA single family home loans are not intended for investment properties. You can purchase a home with as many as four units, and the borrower is free to rent out the unused units of the property as | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Pushing Higher

Since our last report, mortgage rate trends have been in the “higher” category. That’s due at least in part, according to our sources, to local political drama which has sent investors moving for safer havens. Those moves often reflect badly on rates, and those hoping for a chance to squeeze more recovery out of current trends likely weren’t counting on breaking news about possible impeachment proceedings over FBI director James Comey and questions of Russian involvement in U.S. politics to influence mortgage rates. But they have, however indirectly. At the time of this writing, 30-year fixed rate conventional mortgage rate numbers have taken an upward turn to 4.0%, best execution. That’s out of a previous range of rates, with 4.0% being the bottom end of the range. FHA mortgage loan | more...