Articles Published in: 2025

June 26, 2025

Home Loan Preparation: Credit Issues

Are you worried about your credit ahead of your home loan application? Do you need to do to prepare your credit before you move forward? There are avenues that can help you get ready for a home loan, including advice and assistance with credit questions. We’ll examine your options in this area below, but first it is important to review some of the most common credit problems that stand in a borrower’s way. Home loan and refinance loan approval is not impossible, but for some borrowers, it’s necessary to take some extra time to work on credit issues. Here are some credit concerns you should pay attention to so you can raise your credit score: Late And Missed Payments This is one of the main reasons consumers are denied loans. | more...

June 25, 2025

FHA Loans: Credit Score Tips

By Joe Wallace

What is a good FHA loan credit score? In general, the obvious advice is to try to come to the home loan process with as high a FICO score as possible 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? First, 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” regarding FICO scores and FHA loans? Borrowers | more...

June 24, 2025

Comparing FHA Home Loan FICO Score Requirements

By Joe Wallace

If you’re thinking about buying your first home, you’ll want to consider your options carefully, compare lenders, and compare loan products. No two home loans are exactly alike, and many borrowers find that some mortgage loan options are better for their circumstances than others. We examine some of the similarities and differences between FHA loan FICO score requirements and other types of home loans. Is an FHA mortgage right for you? Or do you qualify for other options in addition to an FHA mortgage? True or false? Your credit score is usually the first thing lenders check when you’re buying your first home. True! Your credit score is often the first thing lenders check. This highlights the importance of your credit score in the initial stages of applying for a | more...

June 12, 2025

What To Think About When Comparing FHA Lenders

By Joe Wallace

Why do we say choosing the right lender for your FHA home loan is essential? Because no two financial institutions are exactly alike, you may find a lender willing to offer the type of mortgage you need at an affordable interest rate. But until you compare offers, how will you know if you have realistically set your price point and target interest rate? It’s not just whether the lender offers the type of FHA mortgage you need–such as an FHA condo loan or an FHA One-Time Close Construction mortgage. It’s also whether the lender is offering you a competitive interest rate. When rates trend higher, does your selected loan officer reprice the interest rates or up the closing costs instead? If you don’t know, you won’t know how to compare | more...

May 28, 2025

What to Know About Early Payoff of a Mortgage

By Joe Wallace

Paying off your FHA mortgage loan early has financial advantages including saving money on interest that you would have paid if the loan had gone its full 15-year or 30-year term. FHA loans have the advantage of not allowing your participating lender to charge a penalty for early payoff of the mortgage, making it more cost effective to consider. What do you need to know about early payoff? Take our quiz below to see how prepared you are to begin. True or False: Reputable financial advisors universally recommend that every homeowner should prioritize paying off their mortgage early over all other financial goals, including retirement savings and emergency funds. Answer: False. The decision to pay off a mortgage early is a personal one that depends on a wide range of | more...

May 28, 2025

Paying Off Your FHA Home Loan Early

By Joe Wallace

Are you considering paying off your FHA home loan early? How much do you know about the process, how it works, and how to go about it? There’s more than one way to pay off your FHA home loan ahead of schedule. Take our quiz to see how prepared you are to begin the process. True or False: The primary motivation for homeowners to pay off their mortgage ahead of schedule is typically to qualify for a larger loan on a new property. Answer: False. While owning a home outright improves one’s financial standing, the most common primary motivations for early mortgage payoff are to save a significant amount of money on interest payments over the loan’s duration and to achieve the financial freedom of being debt-free sooner. True or | more...

May 27, 2025

How Do I Refinance My Home Loan?

By Bruce Reichstein

Are you planning to buy your first home and wondering about your refinance loan options later down the line? Do you already own a house you need to refinance? Good news: refinancing with an FHA mortgage can help you lower your mortgage payment, get out of an adjustable-rate mortgage, or even renovate your house. What does it take to refinance a home loan with an FHA mortgage? Choose The Refinance Loan You Need There are several FHA refinance loan options. If you need to remodel or repair your home at the same time you refinance, you can apply for an FHA 203(k) rehab loan that provides funds for approved upgrades and improvements. However, the FHA rehab refinance loan (also available as a forward mortgage to purchase a fixer-upper) is not | more...

May 23, 2025

Reasons You May Be Denied A Home Loan

By Joe Wallace

Most borrowers are worried they may be denied a home loan for one reason or another. How much is the average house hunter in danger of getting turned down for a mortgage? That depends on the kind of real estate you are looking for, your recent credit activity, and other factors. In general, it will be harder to get a loan approved if one or more of the following apply to you (see below). You Have A Recent Adverse Credit Action On Your Credit Report You risk being turned down for an FHA home loan or any other major line of credit if you were declined credit, employment or insurance recently. You Have High Credit Card Balances Credit card balances above the 50% line (halfway to your credit limit) are | more...

April 30, 2025

What To Know About FHA Home Loan Down Payments

By Bruce Reichstein

Most home buyers will make some form of down payment, except those using VA mortgages with no money down for qualifying servicemembers, veterans, and surviving spouses. Did you know it’s best to start saving for your down payment at least a year ahead of time? There are also no-money-down USDA loans, which are need-based and have income caps. By comparison, FHA mortgages, with their low 3.5% down payment requirements, are attractive to many house hunters who want to save more money upfront on the mortgage. Do You Really Have To Put 20% Down? Some borrowers may hear stories of borrowers being required to pay 20% down. This would be true in cases where the home buyer wants to avoid mortgage insurance on a conventional mortgage. And while that is not | more...

April 22, 2025

What One Credit Reporting Agency Says To Do About Your Credit Scores

By Joe Wallace

Your credit report and credit score are important factors in home loan approval. So what advice do the credit reporting agencies like Equifax, Experian, and TransUnion say you should do when planning to apply for a home loan? Knowing what credit score advice these three agencies offer is important–it’s good to think like a lender when applying for a large line of credit, and it is even better to think like the credit reporting agency in terms of what to do to prepare your credit ahead of your loan. What does Experian say about getting your credit ready for a home loan? Their official site reminds consumers that credit scores are an important aspect of home loan approval. However, those scores do not tell the entire story. Experian reminds us | more...