Articles Published in: February 2023

February 6, 2023

FHA Loan Credit Score Issues

If you do not know your credit score when you start reading this article, it’s best to plan to pull your credit reports as soon as possible after reading. If you want to get properly ready for a home loan application, you should know your credit score, the contents of your credit report, and whether you need to challenge or correct information on your credit reports. FHA Loan Credit Standards FHA loan rules for credit and FICO scores are minimum requirements. The minimums acceptable to the FHA are a baseline for the lender who may add higher credit score requirements depending on a variety of circumstances. What we’re discussing here are the FHA rules, lender requirements will vary. The FHA “Minimum Decision Credit Score” (MDCS) HUD 4000.1 is the FHA | more...

February 3, 2023

Need A Home Loan? Beware Of Escrow Fraud

By Joe Wallace

There are common home loan scams that affect house hunters, even those applying for FHA home loans. One such scam–one you might actually encounter in your home buying journey–is called escrow fraud and it can affect even the most experienced homeowner if they are caught at just the wrong moment. Home Loan Scams Can Affect Any Type Of Mortgage Escrow scams are not associated with FHA mortgages alone, any type of home purchased with any type of home loan could be targeted. An important sense of any successful scam is creating a sense of urgency or emergency or a feeling that a big discount might be missed if you stop to consider the options. The scammer wants you to be in a hurry, not thinking critically, and ready to invest | more...

February 1, 2023

FHA Home Loan Myths Explained

By Bruce Reichstein

There are plenty of myths about FHA home loans. For example, some people STILL believe the FHA home loan program is a need-based mortgage loan offered only to low-income house hunters. This is not true–any financially qualified borrower can apply for an FHA mortgage. There are no income caps or need-based requirements for FHA loan approval. But that’s just the tip of the iceberg. FHA home loans can be used to buy certain property types including condo units and mobile homes. FHA home loans can even be used to have a house built on your own land with a low 3.5% down payment. FHA Loan Myths: First-Time Home Buyers You do NOT have to be a first-time homebuyer to qualify for an FHA mortgage. You can be an experienced homeowner, | more...