March 7, 2021

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Articles in Category: FHA Requirements

Buying A Home With A Lower Credit Score

FHA Loans: The Credit Check

FHA loan rules in HUD 4000.1 give instructions to the lender on how to establish an FHA borrower’s creditworthiness. FHA loan rules tend to be more flexible on credit issues than their conventional equivalents, but borrowers are still required to financially qualify. Are you looking for a condo loan, a mobile home loan? There’s an FHA loan for that. Do you want to build a house on your own land with an FHA construction loan? Some don’t realize the credit requirements in the FHA Lender’s Handbook are identical. For construction loans, borrowers should expect slightly higher credit requirements from the lender. But on paper, FHA loan rules make no distinction between different loan types and the minimum FICO score needed to qualify for maximum financing. One area that is also | more...

 
Getting Ready For Your Home Loan

FHA Home Loan Approval And Your Finances

Do you need to buy a home with an FHA mortgage? Or refinance your existing loan? There are some financial issues to be mindful of going into a new loan application–don’t let a lack of information derail your mortgage loan process. Mortgages and refinance loans don’t have one-size-fits-all solutions; in the same way you have many housing choices there are also many different kinds of mortgage loan circumstances. When your loan application comes in, the lender has to make sure the loan will be a good credit risk. To be approved, your application requires your tax returns, bank statements, and other financial data. The lender reviews these ahead of loan approval. And some issues can create more problems for the lender than others at first. For example, what happens if | more...

 
Reasons To Refinance

FHA And HUD Announce More COVD-19 Relief Measures

In the earliest weeks of the Biden Administration, the federal government has taken decisive steps to further address the economic impact of the COVID-19 pandemic. The latest of these measures is designed to reduce the need for in-person loan servicing in certain areas and also to give more time to home owners who may need to request help with their home loans. The latest waivers allow mortgage services to continue “in a manner that allows for safe social distancing to help combat the COVID-19 pandemic” according to the FHA press release. The waivers address aspects of any home loan in some cases, but are specifically aimed at certain types of loans in others. HECM borrowers will find the latest waivers help them in particular. “President Biden has made it clear | more...

 
FHA Mortgage Loan Issues: "Identity Of Interest"

FHA Home Loan Rules For Second Homes, Vacation Homes

Investing in a vacation home is tempting for many. Some borrowers don’t want a vacation home but need a second home because of changes in job requirements, family size, or other factors. Do borrowers have the option of purchasing a vacation home or a second home with an FHA mortgage? FHA loan requirements for loan approval include a rule stating that the home be used as the primary residence; occupancy is a condition of loan approval for an FHA single family forward mortgage loan. You must be plan to use the house you buy with the FHA mortgage as your main address, and in cases where there’s an increase in family size or a change in job location. But a vacation property? Not permitted under the rules in HUD 4000.1 | more...

 
Higher FHA Loan Limits In 2021

Higher FHA Loan Limits In 2021

The FHA and HUD have announced higher FHA forward loan limits for 2021. Most borrowers will experience a higher FHA loan limit depending on their location and other variables. Federal law requires FHA to establish forward mortgage / purchase loan floor and ceiling loan limits each year. These limits are based on the loan limit set by the Federal Housing Finance Agency for conventional mortgages owned or guaranteed by Fannie Mae and Freddie Mac. The national conforming loan limit for 2021 is $548,250. While these limits DO NOT apply until 1 January 2021, you can locate the entire list of FHA loan limits. That list includes areas at the FHA ceiling, areas between the floor and the ceiling at the FHA official site. The National Housing Act and its amendments | more...

 
FHA loans

The Four Keys To Fixing Your Credit Before Your Home Loan

A lot of borrowers want to buy a home but worry that they have credit problems that might keep them from getting their mortgage loan approved. Any borrower worried in this way should do four important things starting about a year away from the day you want to apply for the loan. What are the four keys to credit repair ahead of your home loan? There are two items in the “Do” category and two items in the “Don’t” category you should consider doing as early as possible before you apply for best results. #1 Credit Repair Hack For Home Loan Applicants The number one credit repair hack any consumer can try begins with knowing the contents of your credit report. It’s that simple, really. And everything else you do | more...

 
FHA Home Loan Questions

Common Questions About FHA Mobile Home Loans

FHA home loan options include FHA mortgages for mobile homes. You can buy a mobile home, manufactured home, or modular home using an FHA mortgage and there are many common questions about this type of FHA mortgage option. What Does the FHA Define As A Manufactured Home? The FHA official site describes a mobile home (also known as a manufactured home) as a property built “to the Manufactured Home Construction and Safety Standards (HUD Code) and displays a red certification label on the exterior of each transportable section”. The FHA official site also states that manufactured homes are built “in the controlled environment of a manufacturing plant” and are transported in one or more sections on a permanent chassis. FHA loan rules state that any mobile home must be affixed | more...

 
FHA Options

Prepare Now For Your Refinance Loan In 2021

Are you excited by the historic low interest rates that happened in 2020 and have your eye on a refinance loan in the new year come 2021? Do you need a lower mortgage payment? Perhaps you would like a lower interest rate on your current home loan? Some borrowers have different needs–some feel stuck in adjustable rate mortgages and want to refinance into a fixed-rate mortgage loan instead. These scenarios can be addressed with an FHA refinance loan and if you’re thinking about applying in 2021 its best to become as familiar as you can with the types of refinance options open to you when it’s time to refinance a non-FHA mortgage or an existing FHA home loan. Consider An FHA Refinance Loan In 2021 The same kinds of preparations | more...

 
Planning To Buy A Home? Credit Resources You Need

Planning A Mortgage: Credit Resources You Need

Are you planning a home loan? Are you in the budgeting and saving stages of your home loan journey? If so there are some important resources you should explore before you apply for an FHA mortgage. It’s important to give yourself enough time to plan and save for your home loan and that includes paying more attention to and working on your credit. Credit resources can be a huge help in this regard–don’t pass on the chance to improve your FICO scores, get your payment history into good shape, and prevent identity theft or other problems from stopping your mortgage loan in its tracks. The first resource you should consider is the offer made by the FHA and HUD to give free referrals to a HUD-approved housing counselor. You can | more...

 
FHA Home Loan

FHA Home Loan Up-Front Costs

The amount of planning and saving time you give yourself ahead of your home loan application is very important. Without enough lead time to save for your up front costs and prepare your credit you may fill out an application without being truly ready. And part of being ready is understanding what costs you may be responsible for up front. Do you know what to anticipate needing to have saved for your new loan? There are two important areas to begin with–your down payment, and the FHA Up-Front Mortgage Insurance Premium which is part of your closing costs. Both the down payment and the UFMIP calculations require at least a rough estimate of what the asking price of the home and/or the amount of the mortgage might be; you can | more...