October 23, 2017

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Articles in Category: FHA Requirements

How many times in my life can I get an FHA loan?

How Many Times In My Life Can I Get An FHA Loan?

How many times in my life can I get an FHA loan? If you are buying your first home, this is a question you might not ask until later. But it’s a good idea to know what your options are should you need to sell your first home later and begin a new house hunt. Understanding FHA Loans Knowing that FHA home loans are intended for owner-occupiers who want to use their property as their home address and primary residence helps a lot when trying to understand FHA loan rules. If you don’t plan to use the property you want to buy as your home, you won’t be able to use an FHA single-family home loan to purchase it. There are certain exceptions for government agencies and non-profit groups, but | more...

 
How Does FHA Deal With A Borrower’s Financial Hardship?

How Does FHA Deal With A Borrower’s Financial Hardship? Part Two

How does FHA deal with a borrower’s financial hardship? That is a question we began addressing in a previous blog post, starting with an examination of the FHA attitude toward things like public assistance income, credit counseling programs, etc. In general, FHA loan rules do not allow borrowers to have public assistance income held against them as a liability, and participating in a credit counseling program is not grounds for denying an FHA mortgage loan. All income, including public assistance, must meet FHA loan standards for dependability and the likelihood of that income continuing. But just because the income is from public assistance, Social Security, etc. does not mean that income is not a valid means of financially qualifying for an FHA mortgage. Borrowers With Temporary Reductions of Income One | more...

 
How does FHA deal with a borrower’s financial hardship?

How Does FHA Deal With A Borrower’s Financial Hardship?

How does FHA deal with a borrower’s financial hardship? That is an important question, and the answers may surprise some who expect the same types of financial qualifications from FHA mortgages as from conventional loans. What is the reality? Basic FHA Loan Financial Requirements FHA loan FICO score minimums are 580 and higher for maximum financing and the lowest down payment. Lenders may have higher requirements, but the FHA minimum FICO score allows those who wouldn’t be considered for a conventional mortgage. Debt-to-income ratio requirements for FHA mortgage loans (which may vary depending on FICO scores) will vary some among lenders, too but you’ll find that your total payments must not (generally speaking) exceed 43% of your monthly income. How Does FHA Deal With Financial Hardship? Depending on the nature | more...

 
How do FHA refinance loan requirements work?

How Do FHA Refinance Loan Requirements Work?

How do FHA refinance loan requirements work? There are myths and misconceptions about FHA refinance loans; knowing how they really work can help you decide if an FHA refinance loan is right for you. FHA Loans Are Available From Participating Lenders You will need to find a lender that participates in the FHA loan program to get an FHA refinance loan. You do NOT have to use your original lender to refinance into an FHA mortgage. More on that issue below. FHA Refinance Loan Requirements For Non-FHA Loans Yes, you can refinance a non-FHA home loan into an FHA mortgage. Refinancing non-FHA loans can be accomplished with FHA cash-out loans or no cash-out loans. You do not have to use your original lender to refinance from a non-FHA mortgage to | more...

 
How do FHA loan requirements work?

How Do FHA Loan Requirements Work?

How do FHA loan requirements work? Do you know what you need in order to qualify for an FHA mortgage loan or FHA refinance loan? There are important details you should know about FHA mortgage loans that can help you make an informed decision about applying for one. FHA Loans Feature Lower Down Payment Requirements FHA loan down payment requirements include a minimum 3.5% down based on the adjusted value of the home. You won’t be able to get a zero-down payment FHA mortgage unless you are a qualified borrower applying for an FHA 203(h) mortgage for disaster victims in a federally-declared disaster area. 3.5% down is the minimum cash investment required. Some borrowers with low FICO scores may be required to put down 10% depending on their scores, lender | more...

 
What is a rate and term refinance?

What Is An FHA Rate And Term Refinance?

What is an FHA rate and term refinance? This refinance loan is different than FHA cash-out refinancing or reverse mortgages. The rules that cover FHA rate and term refinancing are found in the FHA loan handbook, HUD 4000.1, and explains how this type of mortgage differs from the rest. What Are FHA Rate And Term Refinance Loans? HUD 4000.1 defines an FHA rate and term refinance loan as follows: “Rate and Term refers to a no cash-out refinance of any Mortgage in which all proceeds are used to pay existing mortgage liens on the subject Property and costs associated with the transaction.” Who Is Eligible To Apply For An FHA Rate And Term Refinance Loan? HUD 4000.1 explains that “at least one Borrower” named on the original home loan as | more...

 
Can I Buy Another House With An FHA Loan?

Can I Buy Another House With An FHA Loan?

Can I buy another house with an FHA loan? It’s a question on the minds of many, especially those who might be concerned that NOT being a first-time home buyer might disqualify them from the FHA loan option. Is this true? FHA Loans Are Not Just For First-Time Home Buyers FHA mortgage loans are designed to be an affordable option for anyone who is financially qualified to be approved for a home loan. That means that you do not have to be a first-time home buyer, you don’t have to be “in need” to qualify, and you don’t have to worry about an income limit for FHA mortgages. FHA loans are approved on the basis of a borrower’s creditworthiness and ability to afford the loan. There is no maximum income | more...

 
What are the interest rates on FHA mortgage loans?

What Are The Interest Rates On FHA Mortgage Loans?

What are the interest rates on FHA mortgage loans? This is a question that can be tough to answer because there are variables involved. Some of those variables are with the lender, but some are associated with the borrower. FHA Interest Rates Are Not Set By The FHA One very important aspect of FHA loans to be mindful of; the FHA and HUD do not set or regulate the interest rates on FHA mortgage loans, refinance loans, or loan assumptions. Interest rates will be negotiated between the lender and the borrower. FHA Mortgage Loan Interest Rates Are Not The Same For All Borrowers FHA loan interest rates, like other mortgage loan rates, are determined in part by market forces, but also by the borrower’s financial qualifications. The greater credit risk | more...

 
Am I Eligible For An FHA Loan Even Though I Have Had Credit Problems?

Am I Eligible For An FHA Loan Even Though I Have Had Credit Problems?

Am I eligible for an FHA loan even though I have had credit problems? Borrowers often worry their credit scores or credit history aren’t good enough to qualify for an FHA mortgage loan, but what is the reality? What do FHA loan rules say about credit and your ability to borrow? FHA Loans For Borrowers After Bankruptcy FHA home loans are possible for those who have a bankruptcy on their credit history, but there is a mandatory waiting period and the duration of that wait depends on the nature of your filing. The mandatory waiting period begins when the bankruptcy is discharged, NOT when it is initially filed. FHA Loans For Borrowers After Foreclosure, Deed-In-Lieu Of Foreclosre, Or Short Sale Borrowers with foreclosure or short sale activity on their credit | more...

 
Can I get an FHA loan after a short sale?

Can I Get An FHA Mortgage After A Short Sale?

Can I get an FHA loan after a short sale? Many have asked this question, unsure of the FHA loan rules for transactions in the wake of a negative credit event such as a foreclosure, bankruptcy, or short sale. To begin, we should address the basic definition of a short sale and what that means for a potential FHA borrower. What Is A Short Sale? A short sale involves a transaction where a property is sold to avoid foreclosure, often at a loss. It is referred to professionally as a “pre-foreclosure sale”. FHA loan rules in HUD 4000.1 specifically define the short sale transaction as follows: “Pre-Foreclosure Sales, also known as Short Sales, refer to the sales of real estate that generate proceeds that are less than the amount owed | more...