Articles in Category: Fixed Rate Mortgage

FHA home loans versus conventional mortgages

March 28, 2019

FHA Loans Versus Conventional Home Loans

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...

March 1, 2019

FHA Home Loan Facts For First-Time Borrowers

By Bruce Reichstein

First-time home buyers should know about several things going into the home loan process, including their options when it’s time to refinance or consider a new home loan. Are you fully informed about your home loan options with an FHA mortgage? FHA Home Loans For First-Time Buyers Allow Non-Occupying Co-Borrowers A non-occupying co-borrower is someone obligated on the mortgage but who does not intend to live in the property full time. A co-borrower can help you to qualify for the mortgage by paying part of the closing costs and the down payment, but all borrowers applying for the mortgage loan must financially qualify. That means that the credit liabilities of the borrower with the weakest credit cannot be offset by the strengths of the co-borrower. Everyone will be considered on | more...

February 19, 2019

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

By Joe Wallace

Before you get FHA home loan approval on that piece of real estate you have your eyes on, your mortgage loan application process will include a credit check. Your lender will need to determine your creditworthiness, and also verify your employment and income. Most borrowers expect this process and thanks to having other kinds of credit applications including credit cards, auto loans, and student loans, have a basic idea of what will happen. But not everyone expects that their initial credit check for the home loan they are applying for will NOT be the last one the lender does before the loan closes. You might not get the down-low on this from your real estate agent or your lender, but this is one of the “secret” things about the home | more...

February 4, 2019

Questions To Ask Your FHA Lender

By Joe Wallace

There are many questions to ask your participating FHA lender when you are getting ready to purchase a first home or a replacement home. If you are looking at working with a realtor and begin your house hunting process, make sure you create a list of questions for your lender so you can go into the home loan process as informed as possible. Do FHA Home Loans Require Me To Have A Financial Need To Qualify? Your lender will explain that no, FHA home loans are not need-based. There are government-backed need based loans that feature income requirements and maximum income rules; USDA home loans are a good example. But FHA mortgages have no income limit, are not need based, and do not require the borrower to be a first-time | more...

February 4, 2019

FHA Cash-Out Refinance Loans For First-Time Home Buyers

By Bruce Reichstein

There are several important issues centered around FHA cash-out refinance loans. Borrowers who want to cash in on the value of the home will wonder about many aspects of cash-out refi loans. How much money will you get in cash? How long before you can successfully apply for an FHA refi loan once you have purchased your first home? FHA Cash-Out Refinance Loans: Not The Same At Every Lender All housing markets differ and lender standards/requirements will also vary. When it comes to the differences in housing markets, those applying for an FHA cash-out refinance loan in an area with rapidly increasing property values may discover your home is worth far more than originally thought. The reverse may be true in areas that are leveling off or are experiencing changes | more...

FHA Home Loans For First-Time Home Buyers

February 1, 2019

FHA Loans For First-Time Home Buyers

By Joe Wallace

If you are in the market for a first home or a starter home for a new family, there are many options to keep in mind that an FHA home loan can help you with. Which one of these FHA mortgage loan options is right for you? FHA 203(b) New Purchase Home Loans For First-Time Buyers And Return Borrowers If you are interested in a typical suburban home for your first house hunting adventure, the FHA 203(b) Mortgage is the right one for your needs. These home loans are for existing construction properties that don’t need extensive repairs and are intended for those who plan to own and occupy the home as their primary residence. FHA 203(k) Rehabilitation Loans For Fixer-Upper Homes The FHA 203(k) rehab loan is the one | more...

FHA Home Loans For Homes Built Before 1978

January 30, 2019

Considerations For Buying Your First Home With An FHA Mortgage

By Joe Wallace

First-time home buyers looking for their first home and a participating lender to apply for an FHA mortgage loan with may not know exactly what they are looking for in a new home-at first. As you go on the home ownership journey there are several issues that will become more apparent as you go. When planning for your first home loan and preparing your credit to borrow, keep these concerns in mind. Buying A First Home To Accommodate Future Needs Couples looking at their first home should anticipate changes in family size, needs for a hobby room or a dedicated work space, and room to grow with furniture and other possessions. The one-bedroom house you look at today may be the home you grow out of tomorrow; make sure you | more...