Timely news, information and advice concentrating on FHA, VA and USDA residential mortgage lending.

Vimeo Channel YouTube Channel

Articles Published in: February 2019

FHA loans

FHA Home Loan Answers For First-Time Borrowers

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...


FHA Refinance Loans For Non-FHA Mortgages

Did you buy your first home with the help of a real estate agent but without the benefit of an FHA mortgage? When you compare online mortgage rates you will notice that the websites publishing these interest rates listing FHA loans with mortgage interest rates than conventional equivalents. While it’s true that your FICO scores and other financial qualifications will play an important part in the rate you are offered, when it’s time to refinance you may find an advantage with FHA mortgages, and not just in the interest rate department. FHA Refinance Loans For Non-FHA Mortgages The FHA refinance loan options a non-FHA borrower has include cash-out refinancing, the equivalent of such a loan but with no cash back, and FHA rehabilitation mortgages known as FHA 203(k) rehab refinance | more...

FHA loans

Plan Ahead For Your First Home FHA Loan

You can never start planning too early when it comes to buying your first home. There are a lot of variables to take into account when planning your FHA home loan including the nature of your home loan itself. FHA Home Loans: Different Loans For Different Needs The first-time home buyer who wants to buy real estate that needs repairs will apply for a different FHA home loan than those who want to have a home built for them from the ground up using an FHA One-Time Close construction loan. The FHA fixer-upper loan is known as an FHA 203(k) Rehabilitation mortgage and can be applied for as either a new purchase loan or a refinance loan. The type of FHA loan you will need for mobile homes/manufactured housing is | more...

FHA Home Loan

FHA Loan Qualifying Credit Scores

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...

FHA loans

Is Now The Right Time To Buy Your First Home?

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...

FHA Home Loan

FHA Home Loans And Qualifying Income: Disability Benefits

When you apply for an FHA home loan to buy real estate, your lender will need to verify your income and employment. Some borrowers may wish to submit disability income for consideration but aren’t sure if that income will qualify. FHA loan rules address these concerns; HUD 4000.1 instructs the lender how to verify disability income, and defines how disability income may qualify. According to HUD 4000.1, the lender is required to “verify and document the Borrower’s receipt of benefits from the SSA, VA, or private disability insurance provider. The Mortgagee must obtain documentation that establishes award benefits to the Borrower. “ What Disqualifies Disability Income From Consideration For An FHA Home Loan If the borrower’s disability income has an expiration date within three years from the date of the | more...

FHA Home Loans And The Biggest Credit Mistake You Can Make

Buying A Home With An FHA Mortgage Versus Renting

How much money do you spend renting a home instead of owning one? If you count the security deposit, any applicable pet deposit, and other expenses, the numbers can add up quickly. When you rent a home instead of buying real estate with a mortgage loan, you are also stuck with whatever appliances your landlord has seen fit to install in the home, regardless of quality. You have to live with someone else’s interior design and paint scheme preferences, and chances are the carpet is not what you would have chosen…at all. Renting A Home: Where Are The Long-Term Financial Benefits Compared to Home Ownership? When you rent, you get no equity, no cash-out refinance loan option, and no ability to sell the home at a higher price than you | more...

What Credit Score Is Needed For An FHA Mortgage?

How Does An FHA Mortgage Help A First-Time Home Buyer?

When it’s time to buy that real estate you’ve had your eye on, how can an FHA mortgage help out a first-time home buyer? What do you need to know about FHA loans that can help you make the most informed choices? FHA Loans Offer Lower Credit Requirements Yes, there are conventional home loans you may qualify for with lower FICO scores, but you may face larger down payment requirements, which means more money out of pocket up front. FHA home loans require a 3.5% down payment for those with FICO scores 580 or higher. Lender standards may be higher than this, but the FHA minimums are lower than conventional loans. FHA Loans Allow Certain Closing Costs To Be Financed Ask your lender which closing costs of your specific transaction | more...

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

Before you get FHA home loan approval on that piece of real estate you have your eyes on, your mortgage loan application process will include a credit check. Your lender will need to determine your creditworthiness, and also verify your employment and income. Most borrowers expect this process and thanks to having other kinds of credit applications including credit cards, auto loans, and student loans, have a basic idea of what will happen. But not everyone expects that their initial credit check for the home loan they are applying for will NOT be the last one the lender does before the loan closes. You might not get the down-low on this from your real estate agent or your lender, but this is one of the “secret” things about the home | more...

FHA loans

Happy Presidents’ Day 2019

Happy Presidents’ Day 2019! Today banks and markets are closed, and we pause from our usual schedule of writing posts and giving information about FHA home loans to observe the holiday. We return with our regular content schedule tomorrow. Thank you very much for reading!