February 21, 2019

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Articles in Category: Closing Costs

Buying A Home With An FHA Mortgage Versus Renting

No Down Payment FHA Loans?

Are there no down payment FHA loans? Some borrowers feel the pinch when trying to save up for closing costs, inspections, and the required minimum investment FHA loan guidelines say are mandatory for all FHA loans. Why do some people mistakenly believe FHA home loans are available for no money down? Partially because they are mistaking FHA loans for the VA home loan program which does offer a zero down option. But that’s not the only reason. Some borrowers may have heard that others may have taken advantage of state or local down payment assistance programs, resulting in a reduced down payment expense for the borrower. These programs are not available via the FHA or HUD, and you will need to find any down payment assistance in your housing market. | more...

Five Reasons Lenders May Deny Your Home Loan Application

FHA Loan Down Payment Rules You Should Know

FHA loan down payment rules you should know include requirements for source funds, and what contributions by “interested parties” mean for a borrower’s minimum cash investment. FHA loan rules for down payments are found in HUD 4000.1, which has a lot to say about how much should be put down for a new purchase home loan transaction, and where that money can come from. FHA Loan Rules For Down Payments: FICO Score Requirements Did you know that your FICO score can affect how much down payment you are required to make on your mortgage loan? FHA loan rules specifically require a minimum credit score of 580 or higher to qualify for the lowest down payment of 3.5% (of the adjusted value of the home). 580 is the FHA minimum; your | more...

FHA Cash-Out Refinancing Loan Occupancy Requirements

What Can I Add To My FHA Mortgage Loan?

What can I add to my FHA mortgage loan? There are several options for things you can add to the loan, but it’s important to remember that cash back to the borrower for new purchase home loans is not permitted except as a refund. But you are permitted to add funds to the mortgage loan to cover certain expenses you wish to finance into the home loan. What follows is information on FHA loan program rules only. Your chosen participating FHA lender may have additional requirements above and beyond what is mentioned here. FHA Loan Funds For Energy Efficient Mortgages If you are buying or refinancing a home loan with an FHA mortgage, you have the option to apply for additional loan funds that will be used for approved energy-efficient | more...

Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

FHA Home Loan Down Payment Rules You Should Know

FHA home loan down payment rules you should know include the minimum amount down, acceptable sources of down payment funds, and how other closing costs and associated expenses related to your down payment requirements. Do you know how your chosen FHA lender will calculate your down payment? Knowing before you apply can help plan and save for this and other required closing costs. FHA Loan Down Payments: A Minimum Required Investment FHA loan rules in HUD 4000.1 refer to the down payment as a minimum required investment (also referred to as an MRI for short), not to be confused with the borrower’s Total Required Investment, described in HUD 4000.1 as: “Total Required Investment refers to the amount the Borrower must contribute to the transaction including the Borrower’s downpayment and the | more...

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

How Much Will My FHA Home Loan Be?

How much will my FHA home loan be? That is a question many borrowers want to know, and the answer can be more complicated than just taking the sale price of the home and doing the math. FHA home loan maximum amounts are determined by factors including the maximum FHA loan guaranty for the housing market you are buying the home in, your credit history, the amount of your down payment, and more. The final amount of your FHA mortgage loan is affected by your down payment, the FHA loan limit in your area, and other factors. FHA Home Loan Limits FHA home loan limits are not the same in all housing markets. Some parts of the country are considered low-cost areas and have a lower FHA loan guaranty limit | more...

How Much Will My FHA Appraisal Cost?

FHA Loans And Cash Back At Closing

FHA loans and cash back at closing-many borrowers want to know if they can take cash out on an FHA mortgage loan and the answer isn’t as simple as yes or no. FHA home loan rules allow cash back as a routine part of the transaction for FHA Cash-Out Refinancing and for FHA Home Equity Conversion Mortgages (HECM) also known as FHA Reverse Mortgages. In general terms, the borrower is not permitted cash back on “forward mortgages” used to buy property rather than refinance it. A borrower is permitted to have an escrow account for certain mortgage loans that allow payouts to contractors or for the purchase of materials, supplies, and other required items for renovation, upgrades, or construction. But that isn’t the same thing as cash back to the | more...

Considerations For Buying Your First Home With An FHA Mortgage

Can Disaster Relief Grants Be Used As Money To Close An FHA Loan?

Can disaster relief grants be used as money to close an FHA mortgage loan? In the wake of the many natural disasters in 2017, many home owners in Texas, California, Puerto Rico, and other affected areas want to know what their options are to recover, rehab, repair, or replace their homes. FHA loan rules require the lender to verify the source of all funds used as a down payment on FHA mortgage loans; down payment money (also known as a Minimum Required Investment or MRI) cannot come from unsecured loans, gifts with an expectation of repayment, or other unapproved sources. The FHA loan handbook, HUD 4000.1, have rules for down payments that are sourced in whole or in part by disaster relief grants. But what does the FHA consider to | more...

Five reasons to buy your first real estate with an FHA home loan.

Buying Land With An FHA Loan

There are several reasons why a house hunter looking for a home to purchase with a VA mortgage might want to buy a piece of land. In times when the housing market is favorably inclined towards new construction loans, some buyers might want a government insured loan for a proposed construction or new construction purchase; others might want to buy a piece of land for a manufactured home or mobile home.

What is my FHA home loan down payment?

How Much Is My FHA Home Loan Down Payment?

What is my FHA home loan down payment? It’s an important question to ask as early as possible in the home loan planning process. You will need to save up for an FHA loan down payment and there are a few variables that will factor in when it comes time to calculate that down payment. Do you know what they are? FHA Home Loan Down Payments Are Not A Fixed Amount The dollar amount of the required FHA loan down payment is not standardized for all home loans. Borrowers should know that the down payment is calculated based on several factors including the adjusted value of the property, credit scores, and lender standards. FHA Home Loan Down Payments Have A Minimum Requirement The lowest down payment a borrower is legally | more...

Questions To Ask About Buying A Home With An FHA Mortgage

Can I Get An FHA Loan Without A Down Payment?

Can I get an FHA loan without a down payment? That’s a question some ask after learning that some conventional mortgages require a minimum of 10% down, sometimes as high as 20% down. Is there such a thing as a no-money-down FHA mortgage loan? Down Payment Rules For FHA New Purchase Loans and Construction Loans All FHA forward mortgages (what you apply for to purchase a home) require a minimum down payment of 3.5% of the adjusted value of the property. There is one exception, and that is for FHA 203(h) rehab loans for disaster victims in federally declared disaster areas. The FHA 203(h) rehab loan requires NO down payment UNLESS it is used in conjunction with an FHA 203(k) rehab loan (which is for general use and not limited | more...