Articles in Category: FHA Requirements

June 25, 2025

FHA Loans: Credit Score Tips

What is a good FHA loan credit score? In general, the obvious advice is to try to come to the home loan process with as high a FICO score as possible for best results. But not everyone has the advantage of an Excellent credit rating. What do future homeowners need to know about FHA loan requirements and their credit score? First, you should know that no two lenders are exactly alike, and it is a bad idea to assume you will get the same results from all of them. Don’t assume you can’t qualify for a loan–have a loan officer help you determine what kind of mortgage is right for you. FHA Credit Score Tip: Shop Around Why do we say “shop around” regarding FICO scores and FHA loans? Borrowers | more...

May 28, 2025

What to Know About Early Payoff of a Mortgage

By Joe Wallace

Paying off your FHA mortgage loan early has financial advantages including saving money on interest that you would have paid if the loan had gone its full 15-year or 30-year term. FHA loans have the advantage of not allowing your participating lender to charge a penalty for early payoff of the mortgage, making it more cost effective to consider. What do you need to know about early payoff? Take our quiz below to see how prepared you are to begin. True or False: Reputable financial advisors universally recommend that every homeowner should prioritize paying off their mortgage early over all other financial goals, including retirement savings and emergency funds. Answer: False. The decision to pay off a mortgage early is a personal one that depends on a wide range of | more...

May 27, 2025

How Do I Refinance My Home Loan?

By Bruce Reichstein

Are you planning to buy your first home and wondering about your refinance loan options later down the line? Do you already own a house you need to refinance? Good news: refinancing with an FHA mortgage can help you lower your mortgage payment, get out of an adjustable-rate mortgage, or even renovate your house. What does it take to refinance a home loan with an FHA mortgage? Choose The Refinance Loan You Need There are several FHA refinance loan options. If you need to remodel or repair your home at the same time you refinance, you can apply for an FHA 203(k) rehab loan that provides funds for approved upgrades and improvements. However, the FHA rehab refinance loan (also available as a forward mortgage to purchase a fixer-upper) is not | more...

May 23, 2025

Reasons You May Be Denied A Home Loan

By Joe Wallace

Most borrowers are worried they may be denied a home loan for one reason or another. How much is the average house hunter in danger of getting turned down for a mortgage? That depends on the kind of real estate you are looking for, your recent credit activity, and other factors. In general, it will be harder to get a loan approved if one or more of the following apply to you (see below). You Have A Recent Adverse Credit Action On Your Credit Report You risk being turned down for an FHA home loan or any other major line of credit if you were declined credit, employment or insurance recently. You Have High Credit Card Balances Credit card balances above the 50% line (halfway to your credit limit) are | more...

April 30, 2025

What To Know About FHA Home Loan Down Payments

By Bruce Reichstein

Most home buyers will make some form of down payment, except those using VA mortgages with no money down for qualifying servicemembers, veterans, and surviving spouses. Did you know it’s best to start saving for your down payment at least a year ahead of time? There are also no-money-down USDA loans, which are need-based and have income caps. By comparison, FHA mortgages, with their low 3.5% down payment requirements, are attractive to many house hunters who want to save more money upfront on the mortgage. Do You Really Have To Put 20% Down? Some borrowers may hear stories of borrowers being required to pay 20% down. This would be true in cases where the home buyer wants to avoid mortgage insurance on a conventional mortgage. And while that is not | more...

April 18, 2025

Before You Fill Out FHA Home Loan Forms

By Joe Wallace

Are you ready to apply for an FHA mortgage? You’ll want to make sure you have done a few important preliminary steps before you submit an application. The most basic thing to start with is knowing what type of home loan you need. If you plan to buy a condo unit your FHA loan will be a different variety than if you need to buy a manufactured home, for example. That may sound like some of the most basic home loan advice out there, but what is not so basic is knowing that there are nuances for some of these loans you need to know. A condo unit must typically be part of a project that is on or added to the approved list for FHA loans. But did you | more...

April 9, 2025

Preparing For An FHA Mortgage Loan

By Bruce Reichstein

Applying for an FHA home loan doesn’t happen overnight–it takes time to plan, budget, examine your credit, and save money for the fees and expenses associated with an FHA mortgage. If you’re new to the home buying process and don’t know where to start, a good place to start is to get an idea of how much home you can afford with your present income, debts, and financial obligations. Do you want to know how much you can borrow and how much your payments might be? You can use an online mortgage loan calculator to estimate these amounts. Remember that the amount of the loan you might qualify for and the mortgage payment you can afford may be two different things altogether, which is why many web-based tools include multiple | more...

March 31, 2025

Are Military Members Eligible For FHA Mortgages?

By Joe Wallace

One common question about FHA loans involves whether or not military members are eligible to apply. Depending on circumstances, some military members may choose FHA mortgage options over VA loan benefits. What do FHA loan rules tell lenders about veterans and currently serving members of the U.S. military? HUD 4000.1 contains the rules that apply in these cases. One reason some might mistakenly assume military borrowers might not qualify for FHA mortgages is the FHA’s occupancy rule for new purchase loans and refinances. But FHA loan rules include the following on occupancy for military applicants: “Borrowers who are military personnel, who cannot physically reside in a Property because they are on Active Duty, are still considered owner occupants and are eligible for maximum financing if a Family Member of | more...

March 27, 2025

Why You Should Monitor Your Credit As A First-Time Home Buyer

By Joe Wallace

Are you a first-time home buyer interested in buying or building a home? New borrowers should monitor their credit for signs of identity theft, erroneous information, and outdated credit data; doing so improves your chances at home loan approval by ruling out issues that may be related to credit report problems that are not your fault. In 2025, monitoring these issues is more critical than ever. Some future homeowners already pay strict attention to their credit, but not everyone does. And they should–credit monitoring should play a crucial part of your preparation stages before applying for an FHA mortgage. The principles we discuss here can protect you when applying for any big loan, including cash-out refinancing. Regular Monitoring Eliminates Surprises Later Regular updates about your credit report reduce the chances | more...

February 18, 2025

FHA Home Loan Approval Versus Your Debts

By Joe Wallace

In 2025 a successful FHA home loan application means taking some extra time in the planning stages to work on your financials including your credit scores and the amount of debt you carry. Some borrowers don’t view those two issues as being equal…at first. FHA Loan Approval Factors You Should Know Your FICO score range is an important part of the data your lender uses to justify approving your mortgage. But it isn’t the only benchmark. Did you know that to be approved for an FHA mortgage, try to come to the loan application process with a debt ratio of 43% or less? That means your monthly outgoing debt takes up no more than 43% of your monthly income. Managing Your Debt Ratio: How To Get Started The Consumer Financial | more...