Are you thinking about becoming a homeowner in 2020? Some borrowers have an advantage when getting financially ready for their FHA loan application, while others may overlook important areas that need attention long before the loan paperwork is filled out. Preparing early is the key to the most seamless loan process possible.
Are you ready to start exploring your options? Or are you just getting started with your credit reports, debt-to-income ratio, budgeting for the down payment and closing costs, etc.?
Ask Yourself The Right Questions About Your FHA Home Loan
How long have you been planning and preparing for the new loan? This is a very important question–without enough time to sort out potential problems on your credit report (identity theft, outdated information, incomplete or wrong details, etc) or lowering your debt-to-income ratio, you could be cheating yourself out of a better home loan deal.
You will need at least 12 months to save, budget and research for your new home loan, and if you want to build on your own land with an FHA One-Time Close Construction Loan, you may need some extra time to find contractors, architects or house plans, etc..
Do you have a specific neighborhood or city in mind for your new home? What about the size and type of home you want? Condos, mobile homes, and other options are all available from the right participating FHA lender.
Other important questions include how long you plan on staying in the home, and whether or not your future plans include putting that home back on the market before you pay off your mortgage. The answers can affect the type of loan you choose, whether it’s a fixed-rate, Adjustable Rate Mortgage (FHA ARM) or other options.
How Much Do You Know About Your Finances?
Do you know your FICO scores? Those who do not have a big disadvantage and are not truly ready for a home loan.
Your participating FHA lender is required to check your credit history and FICO scores, and while those with scores below 640 may technically qualify for an FHA mortgage under the rules found in HUD 4000.1, lender standards also apply that may affect the range of scores eligible for maximum financing. You want to know what the lender is going to learn from your credit report…before the lender does.
Learn More About VA, FHA, Or USDA One-Time Close / Single-Close Construction Loans Today
Some borrowers are surprised to learn that FHA home loan options include construction loans so you don’t have to buy an existing house but have one built for you from the ground up in stead. Even first-time homebuyers may qualify for these construction loans with the usual FHA FICO score requirements and down payment terms.
We have done extensive research on FHA, VA and USDA One-Time Close / Single-Close mortgage loans and spoke directly to the licensed lenders for most states. These are qualified mortgage loan officers who work for lenders that know the product well.
Each company has supplied us the guidelines for their product. If you are interested in being contacted by one licensed lender in your area, please respond to the below questions to save time. All information is treated confidentially.
Your response to firstname.lastname@example.org authorizes us to share your personal information with a licensed mortgage lender in your area to contact you.
Please note that the One-Time Close / Single-Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multifamily units (no duplexes, triplexes or fourplexes).
1. Send your first and last name, e-mail address, and contact telephone number.
2. Tell us the city and state of the proposed property.
3. Tell us your credit score and/or the Co-borrower’s credit score, if known. 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible veterans? If so, the down payment is $0 up to the maximum VA lending limit for your county. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.