October 17, 2021

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Articles Published in: January 2020

FHA Home Loan Income Rules

Home Loan Approval And Your Income

Home loan approval means submitting your employment and income information to the lender, who must verify the information for accuracy. There are things you can do to help the process work in your favor if you know about certain nuances of the home loan approval process. Important Takeaways From This Article: Know how the lender checks your income data; Study the FHA home loan rules for employment and income, especially if you are self-employed, a commission earner, or a contractor; Know how frequent job changes may affect your loan; Shop around for a loan even if you think you’ve found a good bank; Know How The Lender Operates Some people mistakenly assume that income and employment verification are formalities; they are not. Your lender is required by law to carry | more...

 
Bad Credit Home Loans

Do You Need To Apply For An FHA Mortgage?

Do you need to apply for a home loan to buy real estate in 2020? FHA mortgages feature a low minimum down payment, allow seller contributions to closing costs, and even permit down payment assistance from approved sources. What does it take to apply for an FHA mortgage? You will need proof of income, tax records, and bank statements. Borrowers also need to have a credit history of some kind, even if non-traditional. FHA loan rules allow non-traditional credit, but lender standards will be very important. FHA Loan Approval Requirements FICO scores between 500 and 579 for a 10% down payment, or FICO scores at 580 or higher for the lowest down payment of 3.5%. You will also need 24 months of employment history as a general rule, and you | more...

 
FHA Rehab Loans In 2021

FHA 203(k) Rehab Loan Standards

FHA 203(k) rehab loan standards include a list of things that can be done with a 203(k) rehab loan and a list of ineligible projects. Borrowers should know ahead of time what is allowed and what is not with these FHA rehab loans. FHA Loan Rules For Renovation, Improvements, Add-Ons In general, FHA home loan programs such as the Energy Efficient Mortgage (which can be used in conjunction with an FHA 203(k) loan) and the FHA 203(k) and FHA 203(h) rehab loan feature a list of approved uses for loan proceeds. There’s a prohibition against cash back to the borrower on these transactions except where it is needed to pay for materials and labor; even then a borrower cannot “profit” from the loan. FHA loan rules require escrow accounts to | more...

 
The FHA One-Time Close Construction Loan: An Option In 2020

FHA Construction Loans Versus USDA Construction Loans

Why would borrowers choose to build a home on their own land using an FHA One-Time Close construction loan (which requires a down payment of 3.5%, minimum) instead of a no-money-down USDA home loan? There are several reasons why an FHA mortgage might be the better choice depending on circumstances, even with a required minimum down payment. That down payment is far less than some conventional loans require. USDA Mortgage or FHA Home Loan? USDA construction loans offer an advantage to eligible borrowers thanks to their zero down payment requirement. But a USDA mortgage is need-based, and these loans (even construction loans) have a household income cap. USDA loan rules state that in some cases, borrowers who have assets higher than the USDA limit “…may be required to use a | more...

 
FHA Home Loan

How To Get Ready For Your Home Loan

Need to know how to get ready for an FHA home loan in 2020? There’s plenty of good advice out there, but what about from watchdog agencies like the Federal Trade Commission? Or USA.Gov? Starting early to plan your loan is the best advice, but what happens next? Reviewing your credit, saving up for your expenses for the loan, and learning your options are very important. FTC Credit Advice The FTC has a lot of consumer credit advice, some of which can apply to home loan transactions as well as other types of credit. The FTC official site warns consumers that when trying to get ready for your home loan. it’s best to review your credit reports BUT do not be taken in by third party credit repair agencies that | more...

 
Buying A Home With A Lower Credit Score

Buying A Home With A Lower Credit Score

Some of our most popular blog posts and articles have to do with buying a home with a low credit score. What can you do if you know your credit isn’t perfect but need to buy a home with an FHA mortgage? Actively Work On Your Credit The most effective way to change your credit rating and improve it is also the simplest. Make all payments on time for at least one year leading up to your home loan application. This is the first step toward getting yourself ready to actually be approved for a mortgage loan. Review Your Credit Report If you don’t know what your credit report says, you are not ready for a home loan. It really is as simple as that. Learn How To Understand Your | more...

 
FHA Loan Options

FHA Loans And Your Credit Report

Do you need to fix your credit? Do you need to fix your credit REPORT? Some of our most popular articles here involve what to do about bad credit issues ahead of a home loan application. The usual advice about paying on time and making sure you cut your outgoing debt as much as possible always apply, but there is an equally important step in getting your credit ready for a new loan; checking your credit report for accuracy. How To Get Your Free Credit Report From A Government-Approved Source To order the free credit report you are entitled to by law, visit annualcreditreport.com. You can also call 1-877-322-8228 or download and complete the Annual Credit Report Request Form and mail it in: Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA | more...

 
Build On Your Own Lot

FHA Home Loan Options For 2020

What kind of home loan do you need in 2020? You can build on your own lot with an FHA One-Time Close construction loan, you can apply for an FHA mortgage to purchase a mobile home or manufactured house, and you can even find an FHA mortgage for a fixer-upper property. These loans are not need-based, have no income caps, and feature a low down payment requirement. What kind of home loan do you need? Houses You Can Buy And Occupy Right Away Referred to in the real estate industry as an existing construction home, these properties are sold assuming they meet current appraisal and building code regulations or can be brought into compliance without a great deal of difficulty. Existing construction homes have been built for at least one | more...

 
Planning To Buy A Home? Credit Resources You Need

Do You Want To Buy A House This Year?

Do you want to buy a house this year? There are things you should do to prepare for the loan, and it’s a very good idea to give yourself extra time to get it all done. It’s best to come to the application process with the following steps already accomplished. Check Your Credit Report Get a free copy of your credit reports and start reviewing your FICO scores and details to make sure there are no errors, identity theft, outdated information, etc. You are legally entitled to a free credit report. Use A Mortgage Calculator Using an online mortgage calculator will give you a much better idea of how much home loan you can afford. The online calculator will ask you for the price of the house, the interest rate, | more...

 
tips about FHA loan interest rates

FHA Rehab Loans Versus FHA 203(b) Loans

When shopping for real estate, most borrowers are thinking of the kind of mortgage such as the one known as an FHA 203(b). That’s the loan you want when shopping for a house you want to buy as-is; one that meets FHA appraisal standards and requires little to no work on the property to make it eligible for a 203(b) forward mortgage. Then there is another type of home loan option available to FHA borrowers; the FHA 203(k) Rehabilitation Mortgage, which allows you to buy a fixer-upper and have it brought up to FHA appraisal standards and local code requirements. The FHA 203(k) Rehab Loan is good for both new purchase and refinance applications. Regardless of whether you buy or refinance with an FHA Rehab Loan, you are permitted to | more...