May 19, 2022

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Articles in Category: Graduate Payment Mortgage

Apply For An FHA Loan In 2016

If you are considering any type of home loan in 2016, be sure to explore your options with FHA mortgages, refinancing, or reverse mortgages. FHA loans offer a variety of advantages over conventional mortgages including lower interest rates (based on your financial qualifications), built-in protections for the buyer, and more. FHA New Purchase Loans There are many options with an FHA mortgage for single-family homes. New purchase loans include the option to add extra funds to the loan for energy-efficient upgrades or improvements. You can also consider purchasing a fixer-upper using an FHA rehab loan where funds are made available to repair/upgrade the property to FHA minimum standards. The loans mentioned above are intended for owner-occupied residences and would be not be available for investment properties. An FHA new purchase | more...

Can I get an FHA loan after bankruptcy?

FHA Loan Rules For Bankruptcy: Chapter 7 and Chapter 13

We’ve had a number of reader questions in our comments section recently asking about scenarios for loan approval that involve bankruptcy and related issues. Can a borrower get a new FHA loan following a bankruptcy? Under what conditions? FHA loan rules in HUD 4000.1 address this issue with separate entries for Chapter 7 and Chapter 13. According to the FHA loan rule book, Chapter 7 requires the lender to observe the following: “A Chapter 7 bankruptcy (liquidation) does not disqualify a Borrower from obtaining an FHA-insured Mortgage if, at the time of case number assignment, at least two years have elapsed since the date of the bankruptcy discharge. During this time, the Borrower must have: – re-established good credit; or – chosen not to incur new credit obligations.” HUD 4000.1 | more...

Happy Columbus Day 2019

FHA Loan Facts And Fiction: First Time Home Buyers

First time home buyers come to the FHA loan process with many questions. There are some long-held misconceptions about FHA mortgages that borrowers should know long before they fill out a loan application. Let’s examine some of them. One myth about FHA loans, and one of the most common, is that the FHA itself lends money to loan applicants. This is not true. Instead, the borrower must find a participating FHA lender, who has been certified by the FHA to issue home loans under the FHA single-family loan program. Another misconception has to do with the nature of the FHA loan program itself, which offers affordable home loans to all qualified applicants regardless of their status as a home buyer. That means that first time home buyers and those who | more...


Conventional Loans Versus FHA Mortgages

What’s the major difference between FHA mortgage loans and conventional loans? Actually there are several, but the first and most basic difference is that an FHA mortgage is guaranteed by the government, where a conventional loan is not. The government’s backing of an FHA mortgage makes the loan less of a risk to the financial institution offering you a line of credit to purchase your home. And because the loan is backed by the government, FHA mortgages feature lower down payment requirements than many conventional mortgages. You may find conventional loans requiring 10 or even 20 percent down, where an FHA mortgage for qualified borrowers with FICO scores at 580 or above may qualify for maximum financing. That means a down payment requirement of only 3.5% of the adjusted value | more...

Fair Housing Month

FHA Loans Versus Conventional Loans

Here’s the Scoop on Conventional Loans from on Vimeo. What are the differences between FHA home loans and conventional loans? There are several, some features of mortgage loans can vary depending on the lender, and state law may also affect how your home loan is handled depending on circumstances, but there are a few very important general differences to keep in mind when comparing FHA loans to conventional loans. The first difference is the basic nature of the loan itself. Conventional loans are not backed by the government, unlike FHA home loans where the FHA guarantees a portion of the loan to make it more attractive to the lender to issue credit. In the event that a borrower defaults on an FHA loan, the lender and the FHA have | more...


How Much Can I Borrow With An FHA Mortgage Loan?

One of the most common questions about FHA loans is, “How much can I borrow?” The answer to that question is a lot easier to get by using an online mortgage calculator to factor in the length or term of the loan, interest rate (estimated), estimated property taxes and other details. Some of the information you need to calculate how much you can borrow depends on circumstances. The interest rate, for example, is determined in part by what rates are on offer currently based on market conditions and other factors but also by your credit history and FICO scores. The better your FICO scores are, the better the interest rates. The borrower and the lender negotiate interest rates on FHA mortgages, they are not set or regulated by the FHA | more...

What Is An FHA Loan Limit?

FHA Loan Pre-Approval

What is the difference between FHA loan approval and getting pre-approved for an FHA mortgage? Some borrowers get confused during the initial process because it’s easy to assume that getting through pre-approval means you’ve been fully approved for the mortgage. The reality is that pre-approval is a tool for the borrower and the lender to determine if you’re ready to buy based on your income, debt to income ratio levels, the amount of down payment you have saved, etc. It’s the start of the loan process, but it is not a guarantee that you have an FHA mortgage loan-yet. Getting pre-approved for an FHA mortgage means that you’ve used an online mortgage loan calculator or other tool to add up your income, debts, interest rate, etc. The price of the | more...


FHA Loan Reader Questions: Buying A Home “Under False Pretenses”?

A reader asks, “I was trying to get answers on what to do if you have brought an house under false pretenses… There’s alot of issues with the house that wasn’t disclosed in the property disclosure form.” FHA home loans require an appraisal as a condition of loan approval. The appraisal establishes the fair market value of the home, but it also insures the home for sale meets FHA minimum property requirements. However, passing the FHA appraisal process is not a stamp of approval from the FHA nor is it a guarantee that a home is free from defects. Borrowers are strongly encouraged by the FHA and by real estate experts to pay for a home inspection prior to committing to the sale of a property. The home inspection, when | more...


Where Do I Go for an FHA Insured Home Loan?

First time home buyers often don't know where to start when it comes time to find that first home. Locating properties for sale isn't challenging--there are plenty of for sale signs in or near practically every neighborhood and even more to browse in the local papers and online real estate listings. But finding the home is only part of the challenge. Where does a buyer find a suitable lender? A buyer who wants an FHA home loan might not know where to start looking to find a lender. Conventional borrowers have it easier--any suitable bank with the right terms will do.


How to Shop For an FHA Home Loan

Applying for an FHA loan is, in the minds of some borrowers, the beginning of the process. But when you fill out an application for an FHA insured mortgage, you should actually be ending one process and starting another. One of the most important aspects of getting an FHA loan is finding the right lender and the most favorable terms. But how should an FHA borrower do that? Some go into their FHA loan research thinking the only real data needed is a list of interest rates on offer and calculating the monthly payment amounts is enough.