June 27, 2022

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Articles Published in: February 2022

FHA Loan

Are You Preparing For An FHA Mortgage?

Getting your credit ready for a home loan application is one of the most important steps in the mortgage planning process. Do you know how to get your credit prepared before the lender pulls your reports and reviews your FICO scores? The first key to doing this right is time. Give yourself at least a year to save and plan for your mortgage. This also gives you enough time to work on your credit and lower the amount of monthly debt you carry. Lowering the balances on your credit cards not only improves your debt ratio, it also potentially enhances your credit card utilization ratio, too. A year of on-time, every time payments for all financial obligations is strongly recommended. This is the most basic credit repair advice you’ll find | more...

 
FHA loans

Down Payment Help For FHA Mortgages

Who qualifies to get down payment assistance in order to buy a home? If you are using an FHA mortgage, your downpayment requirement is, at a minimum, 3.5%. And while that isn’t as large a down payment as you would make if you wanted to eliminate private mortgage insurance from a conventional home loan, some may struggle to come up with the money down. Buying a home can be expensive. There are inspection and appraisal fees, there may be pest control services to pay for, title searches, and more. Saving early is the key to making your down payment easier to manage in your budget. But even with saving early, extra help may be needed. That’s where down payment assistance programs can come in to help. But what does it | more...

 
Five FHA Home Loan Questions To Ask Your Lender

FHA Home Loan Issues For Veterans

Veterans interested in buying a home have many choices including a VA home loan, but also FHA loans that function in much the same way as their VA counterparts. While it is true that VA loans require no down payment in most cases but FHA home loans always require one in most cases, some veterans explore their FHA loan options just the same. Some want existing construction loans, others want a One Time Close mortgage to build a suitable home from the ground up. One Time Close mortgages are available in both VA and FHA versions, so military and veteran borrowers have options with either type of mortgage. But some military members and veterans may enter the service after already having purchased a home, or after having assumed an FHA | more...

 
FHA Home Loan

FHA Manufactured Home Loans: Questions And Answers

FHA home loan options include loans for manufactured housing, modular homes, and what some still refer to as “mobile homes”.  FHA home loan rules for manufactured housing include age and foundation requirements as well as minimum sizes. If you aren’t sure how to proceed when trying to apply for a manufactured home loan, here are some common questions asked about these types of FHA mortgages. Are FHA Manufactured Home Loans The Same As FHA 203(b) Mortgages? Not exactly. The FHA loan program allows the purchase of a modular home or a manufactured home that is not on a permanent foundation at the time of creation. The manufactured home must be placed on a permanent foundation as a condition of loan approval and the timing of this must be agreeable to | more...

 
FHA loans

FHA Home Loan Rules And Airbnb

Is it possible to buy a home with an FHA loan to use as an Airbnb-type venture? Borrowers are eligible to apply for FHA home loans for up to four-unit residences; what do FHA loan rules say about using the home as a rental space? FHA loan rules governing these situations are found in HUD 4000.1. Borrowers may feel encouraged by the notion that owner-occupied properties with up to four units can by purchased with an FHA mortgage, and even more encouraged that the rules actually do address (and permit) borrowers to rent out the unused living potions. However, renting these units out is also subject to FHA loan rules (in addition to lender requirements and state law). What does HUD 4000.1 say about using spaces in your home purchased | more...

 
First-Time Home Buyer Advice: Get A Home Inspection

FHA Loans and Home Inspections

The difference between an FHA appraisal and a home inspection is a serious issue. Borrowers applying for an FHA mortgage to buy a home are required to have an FHA appraisal to ensure that the property meets minimum standards, but when a home passes the appraisal process or allows the loan to go through as long as required corrections are made, does that mean the property has been inspected and approved by the FHA? Not according to the FHA official site, which says an appraisal is never a guarantee or endorsement of any kind. Borrowers should know the purpose of the appraisal is to establish the home’s fair market value and to make sure that the home meets the minimum standards. But the appraisal is not intended to discover any/all | more...

 
Gathering Your Home Loan Documents And Preparing For The Application

Planning An FHA Mortgage

When you decide to buy a home, you don’t just walk out and make an offer on a home. There is a planning and saving stage, a house hunting stage, and an application stage of the home buying process.  That’s a bit of an oversimplification of how it works, but even as such it shows that there’s a lot to buying a home–the more planning you can do, the better off you will be. One important issue related to the planning stage of the home loan process involves your budget. Figuring out how much home loan you can afford isn’t just about how your finances look today.  You will need to look to the future in terms of your job, your income, any raises or promotions that might affect how | more...

 
FHA Refinance Loans And Current Interest Rates

The FHA Borrower’s “Secret Weapon” For Closing Costs

Do you know about one of the secrets of managing your closing costs for an FHA home loan? We’re talking specifically about seller contributions to your closing costs for your FHA purchase loan–what the seller is permitted to contribute under the rules for your FHA mortgage. Buying a home requires more cash than some borrowers expect–at first. There are appraisals and home inspections to pay for, sometimes a pest inspection may be needed, and you may also have to pay or anticipate paying some taxes, compliance inspection fees, and more. Negotiating with the seller to pay a portion of your closing costs is (believe it or not) fairly common in the mortgage industry.  Individual sellers and individual house hunters alike may need some time to get used to this idea | more...

 
FHA home loans

FHA Mortgage Insurance: What You Need To Know

When you apply for an FHA mortgage, you are required to have mortgage insurance. This comes in the form of an FHA Up-Front Mortgage Insurance Premium which is paid at closing time in cash or financed into the FHA loan amount. You can do one or the other, but you can’t partially finance this premium. That’s the “up front” part. FHA loans require an annual premium paid in monthly installments. This is called a Mortgage Insurance Premium and is not the same as conventional Private Mortgage Insurance.  That is required by conventional lenders for certain mortgages without a 20% down payment or better. Private mortgage insurance is known by the acronym PMI, and some borrowers (even some lenders) use MIP and PMI interchangeably even though they aren’t the same thing. | more...

 
Planning To Buy A Home? Credit Resources You Need

Getting Your Credit Ready For A Mortgage

FHA mortgages generally have more forgiving credit score requirements than some of their conventional counterparts.  If you are thinking of applying for a mortgage you definitely want to start reviewing your credit far in advance of the application–that’s advice we give out here on a regular basis and is fairly “Home Loans 101” type information.  Newcomers quickly learn that starting work on their credit as early as possible is the best move they can make in the planning stages of the loan. But what isn’t so entry-level advice? What some credit reporting agencies advise on managing your credit with or without a home loan to plan for. The implications of this advice are basically that credit is not a “set and forget” type of issue; for best results, you’ll want | more...