May 11, 2021

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Articles in Category: Fixed Rate Mortgage

FHA loans

Home Loans: When To Get Pre-Approved

When should a house hunter choose to get pre-approved for a home loan? It’s a common question many borrowers ask. But there can be some confusion over this question because some use the term “prequalify” interchangeably with “pre-approval”. But these two terms actually mean different things. Getting prequalified for a home loan is something you do early in the house hunting stages. You are not ready to make any offers yet but you want to let sellers know you are not window shopping. Prequalification means the borrower has filled out some basic paperwork with a lender while in the house-hunting process. It is not loan approval and borrowers still, at this stage, have a ways to go before loan approval happens including filling out basic loan application paperwork (not pre-qualification | more...

 
Do You Need Down Payment Help?

Comparing Mortgages: Conventional 97 Loans Versus FHA Home Loans

For low down payment requirements, the FHA mortgage is a home loan that has appealed to a vast number of people. It features a down payment of only 3.5% and has many perks such as no penalty for early payoff of the mortgage. FHA home loans are government-backed mortgages, which means lower risk for the lender. That government guarantee means your lender may offer lower FICO score requirements for FHA borrowers–one major benefit of FHA home loans for some is that lower FICO score bar plus the 3.5% down payment requirement.   But it isn’t the only low-downpayment home loan option; there is a conventional home loan product called the Conventional 97 with an even lower down payment of three percent. Is this a smarter option than an FHA mortgage? | more...

 
Is your credit ready for an FHA loan?

First-Time Home Buyer Tools You Should Know

Are you buying a home for the first time? Are you buying a home after a long gap in home ownership? There are some consumer tools you should know about that can help you get closer to owning your dream home. And not all these tools are for the planning and saving stages of the loan. For example, when house hunting, if you find a home you want, do you know how much your monthly mortgage payment will be? You can use online mortgage calculators that can help. But that’s a common mortgage tool–what about other options? Credit Issues Borrowers who need to work on their credit might be surprised to learn that they can repair their own credit AND get advice on improving credit on a do-it-yourself basis. Did | more...

 
FHA Appraisal Refunds?

The FHA Home Loan Myth

There is a prevailing myth about FHA home loans that persists to this very day–the idea that FHA mortgages are ONLY for first-time home buyers and/or the economically disadvantaged. FHA home loans are thought to be exclusively for these borrowers, but that is definitely NOT TRUE. FHA home loans are for any financially qualified borrower with FICO scores over 500 (the FHA minimum, not your lender’s minimum standard). Some confuse the FHA loan program with the USDA Single-Family home loan program, which DOES have income limits and is aimed at borrowers who are in financial need. USDA mortgages have a no money down option for qualifying borrowers but the homes purchased with these mortgages must be in USDA-approved areas and feature household income caps. FHA mortgages, on the other hand, | more...

 
Buying A Home With A Lower Credit Score

Issues That Can Affect Your Home Loan

There are certain problems that crop up with home loan applications that can make it difficult for a mortgage lender to approve a loan application. We have written many articles about credit scores, debt payment history, and the amount of debt you carry, and how these issues affect your ability to get home loan approval. But what about the lesser-known issues? The Nature Of The Property Counts Some property types have restrictions from either the lender or under FHA loan rules. Those rules are found in HUD 4000.1. Did you know that no mobile home built before  June 15th, 1976 can be approved for an FHA mortgage? No home may be sold under the FHA loan program for commercial purposes. That means the home purchased with an FHA loan can’t | more...

 
FHA Home Loan

Planning Your First Home

Your first home loan might seem intimidating, but there are some things you can do to help reduce those feelings of being overwhelmed by unfamiliar details. The key is to start early and plan ahead; before you fill out loan application paperwork, consider making your planning phase for the loan last year or more. This takes some immediate pressure off borrowers to save up for the down payment and closing costs. It also provides more adequate time to work on your credit, and cut the amount of monthly debt you carry. What other things can first time home buyers do to help themselves in the months leading up to the home loan application? Home Loan Planning Means Knowing Your Housing Market Some borrowers start their home ownership journey without a | more...

 
FHA Appraisal Refunds?

FHA Home Loan Resources For First-Time Buyers

Are you thinking of purchasing your first home? An FHA mortgage can be a great help with its low downpayment requirements, borrower-friendly terms, and the ability to freely sell or transfer ownership of the home if needed. First-time home buyers often aren’t sure where to start gathering resources for their home loans in the planning and saving stages. Here are some of those resources that can help you get started on the journey toward owning your own home. FHA Home Loan Local Down Payment Assistance Programs FHA loans permit down payment grants, and you may be able to find one in your local area using this Downpayment Grant resources list broken down by state. FHA Mortgage Loan Calculators FHA mortgage loan calculators can help you determine a rough estimate of | more...

 
Buying a House In the Era of COVID-19

Buy Your First Home With An FHA Mortgage

Do you want to purchase your first home? Borrowers looking for a starter home often turn to the FHA loan program because of its low 3.5% down payment requirement for borrowers with qualifying FICO scores. And thanks to protections for the borrower such as no penalty for early payoff of the loan and the ability to refinance the FHA mortgage into a new FHA loan that can result in a lower mortgage rate or monthly payment when using an FHA Streamline Refinance loan. Qualify For An FHA Mortgage What do you need to qualify for an FHA loan? For best results, at least two years in the job market and FICO scores that are in the 600s or better. FHA loan rules say you can technically qualify for an FHA | more...

 
FHA Loan Rules And Your Personal Information

Why Loan Applications Are Denied

What makes a borrower worthy of home loan approval? A history of on-time payments, a low debt ratio, and good credit scores all work together to get you home loan approval. But what gets you denied a mortgage? Reasons For An FHA Loan Rejection Your lender is required justify approving a home loan. There are three things the lender will review (among others): Verify that you have sufficient income for the monthly mortgage obligation; Determine that the borrower can afford existing debt and the new mortgage payments Ensure the applicant has a history of responsible credit use. What factors contribute to the lender’s decision when reviewing these three areas? We’ll explore them below. Credit Scores Matter On paper, FHA loan rules allow loan approval for borrowers with FICO scores between | more...

 
FHA Loan

Low Down Payment Home Loans

Many potential homeowners are intimidated by the idea of saving up for a down payment. But there are resources available that make getting your down payment money together easier including down payment grants and low down payment mortgages like the FHA home loan program. What do you need to know about low down payment loans? FHA Home Loan Down Payment Rules FHA loans only require a 3.5% down payment for borrowers who qualify with FICO scores at 580 or better (FHA standards. Lender standards will also apply) . Where Does Your Down Payment Money Come From? FHA loans say you can pay your own down payment or get help with a down payment grant or gift funds. FHA loan rules require the source of your down payment funds including gift | more...