Articles in Category: Fixed Rate Mortgage

June 19, 2019

How Much Is My Down Payment With An FHA Mortgage?

Many buyers want to know how much their FHA loan down payment requirement is. The answer is not as easy as quoting a percentage since there are variables that can affect the amount of the down payment you will be required to make. FHA Loan Down Payment Basics There is no fixed dollar amount for the down payment-each transaction will have its’ own required down payment amount based on the calculation below. The lowest down payment you can make with an FHA mortgage is 3.5% of the adjusted value of the home. There are circumstances where a higher down payment is required because a borrower’s FICO scores don’t qualify them for maximum financing. In those cases, FHA loan rules dictate that where a borrower’s FICO scores are between 500 and | more...

June 17, 2019

How To Prepare Your Finances For A Home Loan

By Bruce Reichstein

Do you know how to prepare your finances for a home loan application? There are several areas you should pay attention to before applying for an FHA home loan to buy real estate, and the are all equally important for loan approval. How To Prepare Your Credit Cards For A Home Loan Application Reduce your credit card balances as much as possible before applying for your home loan. Ideally your initial goals should be to get the balances below 50% of your credit limit, but your goal should also definitely include 100% on-time payments for a full year before you fill out a home loan application. How To Prepare Your Student Loans For A Home Loan Application You will, as a first-time home buyer or repeat borrower, hear again and | more...

June 12, 2019

Should Homeowners Turn Into Real Estate Investors?

By Joe Wallace

If you are thinking about buying real estate with an FHA mortgage loan you may have run across some trends in recent times addressing the topic of ordinary home owners becoming real estate investors. Is this something that is possible with an FHA single-family mortgage loan? The first thing you need to know about buying real estate with an FHA mortgage is that FHA single-family home loans are for owner-occupiers only. The occupancy requirement is non-negotiable for a new purchase home loan guaranteed by the FHA. There is no FHA loan rule against buying a multi-unit property and renting out the unused living units. Borrowers are free to do so since you can buy a home with as many as four units with an FHA mortgage. But what you cannot | more...

FHA Home Loan Approval And Your Employment History

June 4, 2019

FHA Home Loan Approval Myths

By Joe Wallace

There are plenty of myths about home loan approval, but for first-time home buyers looking for an FHA mortgage, some of those myths are more prevalent than others. What you don’t know about FHA home loans can hurt you-it’s best to know as much as possible going into the home loan process, which is another reason why it’s best to take your time preparing for a home loan. Rushing into the process can cost more money than taking your time. FHA Home Loan Myths: The FHA Has Separate Requirements For First-Time Home Buyers FHA home loans are open to all qualified borrowers with FICO scores in a certain range for the lowest down payment. FHA loan rules do not make any distinction between a first-time buyer and an experienced home | more...

June 3, 2019

FHA First Time Home Buyer Loans

By Bruce Reichstein

How can the FHA home loan program help first-time home buyers? Some perks of an FHA mortgage are central to the home loan program itself, while others may be offered by lenders as an incentive to use that financial institution for your FHA home loan. FHA Home Loans For First-Time Buyers: Low Down Payments The FHA home loan program requires only 3.5% minimum for borrowers with qualifying FICO scores. FHA loan requirements say FICO scores as low as 580 can technically qualify for the lowest down payment, but you will need to check with a participating lender to see what standards may apply above the FHA minimums. Those with credit scores lower than 580 may still technically qualify for an FHA mortgage loan but at a higher down payment. FHA | more...

Things That Keep You From Getting An FHA Mortgage

April 24, 2019

Which FHA Home Loan Do You Need?

By Joe Wallace

First-time home buyers new to FHA home loans don’t always realize how many different FHA home loan options are available to them. You don’t have to buy a one-bedroom house in the suburbs; FHA mortgages are more flexible and offer many ways for you to find and buy a dream home. FHA Condo Loans Because of a long-time misconception held even today about FHA loans being need-based, having income caps, or intended only for low-income borrowers (none of those things actually apply to the FHA mortgage loan program) some are surprised to learn that there is such a thing as an FHA condo loan. Any qualified borrower (based on income, credit history, employment stability, and other financials) can apply for an FHA condo loan in a condominium project that meets | more...

March 28, 2019

FHA Loans Versus Conventional Home Loans

By Bruce Reichstein

If you are planning to look at real estate listings soon or use the help of a realtor to locate a new home, here are some questions to ask yourself about your new home loan; the answers will help you decide whether to pursue an FHA mortgage, a conventional loan, etc. FHA Mortgage Versus Conventional Home Loans: Compare Down Payments Make sure you know your FICO scores in advance of comparing down payment requirements since the amount of cash you will be required to put down is affected by credit scores when those scores are below a specific cutoff. There is more than one standard for FICO scores in this area-FHA loan minimums and lender requirements. Lender standards will apply no matter whether you are applying for FHA or conventional | more...

March 26, 2019

FHA Home Loans: Why You Want To Haggle With The Seller

By Bruce Reichstein

Many first-time home buyers hate the idea of negotiating, haggling, or otherwise trying to adjust the price of the home with a seller. But haggling has some benefits that can directly affect how much money you pay for the home and NOT just where the general price of the property is concerned. Why Should A First-Time Home Buyer Be Willing To Negotiate With The Seller? The most obvious reason to haggle with the seller of the real estate you want to buy is to get a lower price. And this also becomes more crucial if the appraisal comes back lower than the asking price of the property. The buyer cannot be forced to close the deal in cases where the appraised value of the home is lower than the asking | more...

March 14, 2019

Buying Real Estate With An FHA Mortgage

By Joe Wallace

Buying real estate with an FHA mortgage is easier when you know what is allowed and what is not. The mortgage loan process can be complex at times due to federal law, state and local requirements, lender standards, and the nature of the mortgage you seek. But there are some simple answers to real estate buying questions that can help you use an FHA loan to your best advantage. Can I Buy A Multi-Unit Property With An FHA Mortgage Loan? Yes. FHA home loans are for one-to-four unit properties and you can purchase a townhouse, duplex, mixed-zoning property that meets FHA guidelines, and many other types of homes. Do I HAVE To Be A First-Time Borrower Or First Time Home Buyer To Qualify For An FHA Mortgage? No. Can I | more...

March 13, 2019

The Flexible FHA Home Loan

By Bruce Reichstein

First-time home buyers don’t have to put 20% down when shopping for real estate they want to live in as their primary residence. The FHA home loan allows a low 3.5% down and this type of home loan has been described as having loose underwriting standards. Those standards include the FHA minimum credit score of 580 or higher for maximum financing and the lowest down payment, and technically borrowers with FICO scores above 500 are also eligible though with a higher down payment. Lender standards will apply above and beyond these minimums. FHA home loans allow borrowers with lower credit and higher debt ratios to qualify for first-time home buyer loans using compensating factors; a higher down payment, a substantial amount of cash reserves, or other, lender-defined compensating factors. And | more...