May 11, 2021

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Articles in Category: FHA Requirements

FHA Home Loan

What You Need To Know About FHA Jumbo Loans

How much home loan can you apply for successfully? The answer, depending on the housing market and other variables, might surprise you. It’s one thing to apply for a home loan that meets or is lower than the annual county limit established by the Federal Housing Finance Agency (FHFA). Those loans are easier to qualify for because they can be purchased or guaranteed by Fannie Mae and Freddie mac. They are known as conforming loans. But what about those who seek loans that are priced higher than that per-county limit? The answer itself is simple–borrowers can apply for a loan that exceeds county limits. These higher loans are called jumbo mortgages. Borrowers who qualify for them can get a home loan that’s higher than the county limit. But before you | more...

 
Buying a House In The Era of Corona

Can I Make A Home Loan Down Payment With Bitcoin?

What can consumers who own Ethereum or other cryptocurrencies do with these funds? There are many platforms for buying and selling virtual currencies themselves, and more shopping options open up for Bitcoin and other crytpo all the time. Some house hunters who are invested in cryptocurrencies are wondering whether it is possible to make a down payment on a home with Bitcoin or other virtual cash. The answer to the house buying question depends on the nature of the transaction–for example, an arrangement between a seller and a buyer involving Bitcoin may be possible if all parties can agree. But what about when a lender gets involved? If you have a situation where a buyer wants to use Bitcoin or other virtual currencies to make a down payment on an | more...

 
Why did my mortgage payment increase

FHA Home Loan Rules For Income: VA Benefits, Disability

Home loan approval depends on a variety of factors–your credit score, history of on-time payments on your financial obligations, and your income. Where your paycheck is concerned, FHA loan rules say the income must be verifiable and likely to continue in order to be counted for purposes of approving your FHA mortgage. FHA home loan rules in HUD 4000.1 say that certain benefits may be counted as verifiable income–the rules allow the use of disability benefits to financially qualify for the loan. But there are borrowers who worry their disability income won’t be counted for the purposes of the loan. In cases where such income meets FHA standards, the borrower likely has nothing to worry about. Those standards are found in HUD 4000.1 and start with a basic definition of | more...

 
FHA and HUD

FHA Condo Loan Rules That Affect Your Mortgage

Some house hunters are surprised to learn that FHA home loans are possible for condo units. There is an assumption that FHA loans are only for first-time home buyers looking for starter homes, but ANY financially qualified applicant can apply to buy a single unit home, a multi-unit property, or a condo unit. FHA condo loans are similar in many ways to other purchase loans for suburban homes, but you should know the differences in buying and owning a condo versus other property types. FHA Condo Loans And The Condo Project Approval List FHA loans have requirements for condos or condo units–these usually must be on or added to the FHA approved list. Borrowers may look for an approved condo project using a tool on the FHA official site or | more...

 
FHA Home Loan Resources

Home Loan Application Documents: What You Need To Know

There is documentation required to process your home loan application. Do you know what your home loan or refinance loan transaction requires of you? The lender requires tax documents, information about the sources of your down payment, access to your credit reports, and more. But there are rules about who provides these documents, and you’ll need to be aware of them when gathering your paperwork. FHA Loan Rules On Documentation Some of the information your lender needs comes from you personally. What does this include? Your photo identification, and proof of legal residence in the USA (which may be required where applicable). FHA loan rules say you do not have to be a citizen to be approved for an FHA mortgage, but you must have documentation that shows your status | more...

 
FHA Loan Limits: Where To Find Them

FHA Refinance Loans: Maximum Loan Calculations

How much can you get to refinance your home loan? Much depends on the nature of the refinance loan you seek–cash out, no cash out, simple refinance, FHA Streamline refinance loans, etc. What is the maximum loan-to-value ratio for an FHA refinance loan? FHA Refinance Loans Have Maximum Loan-to-Value Ratios FHA loan rules vary depending on the nature of the refinance loan. For example, appraisal-required cash out refinance loans? Cash-out refi mortgages guaranteed by the FHA feature an 85% loan-to-value ratio. Simple refinances have a maximum mortgage loan-to-value ratio of 97.75 percent for Principal Residences and 85 percent for HUD-approved Secondary Residences. Streamline Refinances For owner-occupied Principal Residences the “maximum Base Loan Amount” for Streamline Refinances is the lesser of the outstanding principal balance of the existing Mortgage as of | more...

 
FHA Condo Loan Basics You Should Know

What Can Kill An FHA Home Loan?

Those who want a home loan have to prepare for the new loan application in several ways–financially, through saving up for the down payment and closing costs, and with credit prep. That can mean working on your record of on-time payments, lowering your overall debt amounts, and avoiding new credit in the meantime. When applying for any large line of credit, there are some things that can stop your loan dead in its tracks. If you want a home loan and are worried about being approved for a home loan, add these issues to your mental not-to-do checklist and make sure you know how to avoid them. Avoid New Debt Your lender pulls your credit when you apply for your home loan–most people know that. But not as many know | more...

 
Is your credit ready for an FHA loan?

Preparing Your Finances For An FHA Mortgage: Debt

The debt-to-income ratio is a calculation that your lender will use to determine the amount of your monthly financial obligations compared to the amount of income you have. The debt-to-income ratio is an important tool for the lender. The more income you have compared to outgoing payments every month the better, your lender needs to justify you as a good credit risk. So how do borrowers with a lot of debt deal with this problem? This is an important factor because if the ratio is too high yor lender can’t justify the loan. Borrowers should learn what the FHA considers to be “debt” and what things are not automatically counted as part of your debt ratio in order to view their finances the way the lender will. FHA Home Loans | more...

 
Do You Need Down Payment Help?

FHA Home Loan Down Payments

Most home buyers will make some form of down payment, with exceptions for those using VA mortgages with no money down for qualifying servicemembers, veterans, and surviving spouses. There are also no money down USDA loans but these 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 up front 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 the only down payment option offered in such cases the mere idea of | more...

 
Mortgage Loan Approval During Coronavirus

Pre-Purchase Home Loan Advice

Looking for a home loan that’s affordable and doesn’t require 20% down? The FHA loan program has something for you. Some are surprised to learn that FHA mortgages are not limited to those in financial need like certain USDA mortgages, and they are not restricted to first-time home buyers. FHA Loan Options Are Diverse You can buy much more than a typical suburban home. Options include getting a condo unit with an FHA mortgage, building a home on your own lot from the ground up using an FHA One-Time Close construction loan, or you can refinance your existing mortgage. That mortgage can be an FHA or non-FHA mortgage using an FHA loan. No matter what kind of home loan you need–a purchase loan, a rehab loan, a refi loan–there are | more...