Articles Published in: July 2021

July 30, 2021

What You Need To Know About FHA Home Loan Credit Checks

What do first-time home buyers need to understand about the credit check process for getting an FHA mortgage? There are many variables but one thing you can do to get a better understanding of what it takes to be approved for a loan is to start trying to think like a loan officer–their job depends on making sure that you are a good credit risk. How can you help the lender help you? What you don’t know can hurt you in the journey toward buying that first piece of real estate. Before you begin working with a realtor, you should know several things about the credit check process. Credit is a major part of home loan approval and you want to be able to convince your lender you are ready | more...

July 28, 2021

FHA Loan Limits: Fact and Fiction

By Joe Wallace

When it’s time to commit to buying a home, you’ll need to know what the conforming loan limit for the county where you want to buy the home is for the current year. FHA loan limits in 2021 are determined annually and occasionally there is an update posted during the year when circumstances warrant. That’s one reason to investigate the loan limits early in the new year after they change–you don’t really know if they have changed or not until you check or are told by a lender or other authority what the going loan limits are. Fact: FHA Loan Limits Vary Depending On The Market Some counties are located in high-cost areas and have subsequently higher FHA loan limits than typical-cost or low-cost areas. Some housing markets have loan | more...

July 27, 2021

FHA Loans: Credit Score Tips

By Joe Wallace

What is a good FHA loan credit score? In general, the obvious advice is that you should try to come to the home loan process with as high a FICO score as you can for best results. But not everyone has the advantage of an Excellent credit rating. What do future homeowners need to know about FHA loan requirements and their credit score? To start, you should know that no two lenders are exactly alike and it is a bad idea to assume you will get the same results from all of them. Don’t assume you can’t qualify for a loan–have a loan officer help you determine what kind of mortgage is right for you. FHA Credit Score Tip: Shop Around Why do we say “shop around” when it comes | more...

July 26, 2021

FHA And HUD Announce Streamlined Foreclosure Relief

By Joe Wallace

The FHA and HUD have announced mortgage relief streamlined for those who need assistance as a result of the COVID-19 pandemic. Those with FHA mortgages have a new “FHA COVID-19 Recovery waterfall” which “streamlines and revises FHA’s previous options for struggling homeowners, reduces required documentation, and allows mortgage servicers to provide greater payment reduction for eligible homeowners with FHA-insured Single Family Title II forward mortgages” according to the HUD official site. “This next step in the evolution of FHA’s COVID-19 response is a significant and meaningful way to help those homeowners who will be at a critical point in their recovery in the coming months and transitioning out of forbearance to permanent sustainable payments,” which are the words of FHA Principal Deputy Assistant Secretary Lopa Kolluri, who was quoted in | more...

July 23, 2021

How Early Should You Use A Mortgage Calculator?

By Joe Wallace

The short answer? The moment you think you want to commit to being a home owner, you should consider using an online mortgage calculator. A mortgage calculator can help you plan and save for your mortgage. The use of a mortgage calculator is something most real estate blogs and home loan websites encourage you to use. The most basic, entry-level finance blog advice includes “use a mortgage calculator”. But there are some things to keep in mind about using a mortgage calculator–you want to use one that includes more than just the principal and interest for your loan. If you use one that limits the input to just those two things, you won’t really get an estimate of your monthly mortgage payment. Why? Because you will need to factor in | more...

July 22, 2021

The FHA Streamline Refinance Loan: No FHA-Required Credit Check

By Joe Wallace

FHA refinance loan options are looking more attractive to some borrowers with FHA loan rates still well below the three percent line at press time after some ups and downs in 2021. But the range of options confuses some. What do you need to know about the Streamline FHA Refinance loan option compared to FHA cash-out refinancing or FHA 203(k) Rehabilitation Loan refinancing? Streamline FHA Loan Facts You Should Know First-time applicants may be surprised to learn there is no FHA-require appraisal. Your lender is allowed to require one, but if they choose to process your FHA streamline refinance without one, you’re spared the appraisal fee. Most FHA loans require a credit check and have a set of minimum qualifying scores. What about FHA Streamline? FHA Streamline loans allow your | more...

July 20, 2021

FHA Loan Limits: Things To Know

By Joe Wallace

What does a new borrower need to know about FHA loan limits? For a start, unless you are applying for a VA mortgage loan with 100% of your VA home loan entitlement, you are likely subject to loan limits of some kind whether staying below those limits for a conforming loan or exceeding those limits for a Jumbo mortgage. If you want to know some important things about FHA loan limits, keep reading but one thing that is good to know up front? Conforming loans or loans that are at or below the loan limit for FHA, USDA, conventional mortgages and VA loans for those without 100% of their home loan entitlement will typically feature more competitive interest rates than jumbo loans which may have higher rates due to the | more...

July 19, 2021

FHA Mortgage Insurance Options

By Joe Wallace

There are plenty of things you might need to know about the FHA mortgage insurance premium, but if you are a first-time home buyer there are some aspects about this you should know about as early as possible so you can make the most informed choices possible about your home loan, what to finance, and how much to save. Learn Your Options Getting ready for a home loan means learning which items you have the option of including in the loan amount and how much you will pay over the lifetime of the loan on interest rates on the amount of your loan AND the add-ons you choose to include. And that’s where understanding FHA mortgage insurance becomes very important. One thing some people initially get confused over? Mistaking PMI | more...

July 16, 2021

Why Your Credit Report Matters

By Joe Wallace

Are you new to the mortgage loan process? It’s easy to make certain assumptions, especially where credit approval is concerned. What do you need to know about your credit report? Don’t forget that how you use your credit, how much credit you use, and whether you pay on time are all factors that go into your FICO score calculations. There are several factors that may help you make better choices about how to plan and apply for your mortgage. Credit Report Factors To Consider Your FICO scores, credit card use, plus information about the amount of credit you use per card (up to the credit limit and by how much) are all things your lender will need to see when looking at your report. FICO scores are an important part | more...

July 15, 2021

FHA Loan Interest Rates And FICO Scores

By Joe Wallace

Buying a home means paying attention to your financials–credit scores, debt repayment habits, and credit utilization rates. Paying attention to them as early as possible is an important choice when you are planning your home loan. Don’t put off working on your credit–time is not on your side if you are planning to apply for a home loan in the next 12 months if you haven’t looked at your credit scores, reports, etc. If you want to buy a home with an FHA mortgage, you generally have more forgiving credit qualification guidelines from the FHA, and that’s a great reason to use an FHA mortgage. FICO score issues can be a major worry for some borrowers, but by working on your own credit far ahead of your home loan you | more...