Articles in Category: Fixed Rate Mortgage

December 2, 2020

Steps To Buying A House

Do you know the ten steps to buying a house? Each one can be considered its own phase of your home loan journey and if you want to buy a house with an FHA mortgage, these are the steps you should anticipate: Check your credit score Calculate how much FHA mortgage you can afford Choose a real estate agent (where applicable) Get pre-approved with a participating FHA lender Start house hunting Make an offer on the house you want Schedule a home inspection Secure your financing Purchase a homeowners insurance policy Close your loan and move into your new home Note that the first steps are squarely in the planning stages of your mortgage; you should know the contents of your credit report and your FICO scores long before you | more...

November 27, 2020

FHA Fixer-Upper Loans For Smaller Home Improvement Projects

By Joe Wallace

There is a type of FHA home loan that lets you get a mortgage to simultaneously buy and repair or modify a home. These fixer-upper mortgages are known as FHA 203(k) Rehabilitation Mortgages and this is an option you can also get as an FHA refinance loan. It’s a great alternative to the standard FHA home loan. Any borrower needing to repair, upgrade, or renovate an existing home can apply for this mortgage–you can refinance an FHA or non FHA loan with the FHA 203(k). But some borrowers don’t have ambitious, large-scale work to be done and a “full” 203(k) rehab loan might not be the right loan if you don’t have a huge project to deal with. And fortunately there is a smaller version of the FHA 203(k) Rehabilitation | more...

November 26, 2020

Happy Thanksgiving 2020

By Bruce Reichstein

Happy Thanksgiving 2020! We pause from our usual schedule of writing about FHA home loans and answering reader questions to observe the November holiday. Thank you very much for reading, our regular posting schedule returns on Friday.

November 23, 2020

Bad Credit Home Loans

By Joe Wallace

You’ll find a lot of information on the internet about bad credit home loans. Lists of bad credit-friendly lenders abound, but what do you need to know about these home loans and their alternatives? The first thing to remember is that bad credit is a potential barrier to new credit for a reason–your lender is required to justify the loan and make sure you are a good credit risk. And if your credit scores and credit history show that you haven’t been as reliable about making on-time payments and meeting your credit obligations? Your lender has two options. One is to deny you the loan. This is what usually happens in cases where the lender cannot justify approving your loan due to credit issues. Each lender has their own standards | more...

November 19, 2020

FHA Loan Options

By Joe Wallace

Why choose an FHA mortgage? Why not apply for a USDA home loan or a VA mortgage? Aren’t these also government-backed loan programs? Yes, but FHA mortgages are open to any financially qualified applicant, while USDA loans are need-based mortgages for those who meet certain income requirements, and VA loans are not offered to the general public but are offered as a benefit for military service. There is nothing wrong with USDA mortgages or VA home loans. But they aren’t available for just any borrower, where FHA mortgages are offered to the general public. And what about applying for conventional mortgages? These non-government backed home loans have higher FICO score requirements in many cases, as well as higher down payment requirements in cases where the borrower’s credit scores aren’t as | more...

November 17, 2020

HUD Says November Is Fraud Awareness Month

By Joe Wallace

The Department of Housing and Urban Development is observing the month of November as Fraud Awareness month. The agency’s official site states, “During November Fraud Awareness Month, HUD is highlighting the many resources available to help combat fraud.” What kind of resources are available to borrowers and potential borrowers? One of them is a video titled, “What Does Fraud Mean To You?” The HUD official site also includes links to resources such as a global occupational fraud report. What should consumers beware of and raise the awareness of when it comes to fraud associated with mortgages and refinance loans? There are a variety of critical areas that should be paid attention to–much will depend on what stage of home ownership you are at. Are you a first-time home buyer? A | more...

November 16, 2020

Rehab Refinance Loans, Effects Of The Pandemic, And Interest Rates

By Joe Wallace

At the time of this writing, FHA mortgage loan interest rates are still below the three percent line–best execution FHA mortgage loan rates for purchase loans are at 2.40%. The fact that we’re reporting on FHA loan interest rates below three percent makes some a bit more motivated to explore their refinance loan options. Some want to refinance their mortgages to get more affordable monthly mortgage payments. In the wake of COVID-19 furloughs and layoffs earlier in the year there were also falling mortgage rates AND government stimulus checks along with mortgage loan forbearance and other options for those trying to weather the economic impact of the pandemic. But not everyone wants to refinance in 2020 to save money–some need repairs to their property, others want to get out of | more...

November 13, 2020

FHA Home Loan Resources

By Joe Wallace

If you are thinking of applying for an FHA home loan or an FHA refinance loan, there are some important resources you should know about in the planning stages. These resources can help you prepare for your loan application, give you information about estimated mortgage payments, and help you located FHA loan limit information for your county. The first thing a potential home buyer should know about is the ability to contact the FHA to get a referral to a HUD-approved housing counselor who can help you understand the mortgage loan process, what it means to start preparing your credit for a home loan, and more. You can contact the FHA directly by calling 1-800 CALL FHA to request your referral. Another important resource? Online listings of FHA loan limits | more...

November 10, 2020

Information You Need To Pre-Qualify Or Get Pre-Approved For A Mortgage

By Joe Wallace

When you go to explore your home loan options, there are two steps you’ll take to get things started and moving forward. One is getting pre-qualified for the loan using some basic (but important) information about your income, credit history, and other variables. The other step is to get pre-approved, which is a more involved process that requires more information building on what you previously submitted in the pre-qualification process. What kind of information does a potential borrower need for these applications? It helps to think like a lender when dealing with questions like these; your loan officer needs information to establish your employment and income history, your patterns of credit use, the size of the loan you need, etc. For pre-qualifying, which is something you can do in your | more...

November 9, 2020

FHA Home Loan Income Rules You Should Know

By Bruce Reichstein

FHA loans, like all mortgage loans, have rules governing the borrower’s income. Your lender is required to verify your income to make sure it is stable and reliable. The lender is also required to ensure you have a minimum amount of job experience; a year or less is not enough for your total amount of time in the job market. What do you need to know about FHA loan income rules? There are a few important factors. For example, if you have been working a job where you are paid a salary and you are switched to commission income, your lender will require a minimum amount of time earning the new type of income (commissions) before it may be counted to qualify for the new loan. There are also rules | more...