May 22, 2019

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Articles in Category: Credit Issues

FHA Loan Credit Advice

FHA Loan Credit Advice

First-time home buyers and experienced home owners alike sometimes need help understanding what it takes to be approved for a major line of credit like an FHA home loan. What does it take to financially qualify for the mortgage and get on the road to home ownership? Buying real estate with an FHA mortgage means making a serious investment of time and money. And that usually begins with budgeting, saving, and working on your credit. Preparing your credit a year in advance or more is a very good way to prepare for the home loan application process. Why? Your lender needs to see at least 12 months of on-time payments on ALL financial responsibilities prior to your applying for the home loan. Anything less than this can hurt your chances | more...

 
FHA Home Loans: Things To Do, Things Not To Do

FHA Home Loans: Things To Do, Things Not To Do

FHA home loans, like all mortgages, represent a major investment for a borrower. There are things you should do in the FHA home loan process to get closer to loan approval, and there are things you should definitely NOT do as a new home buyer. Do you know what they are? FHA Loans: DO Work On Your Credit As Early As Possible Your FICO scores will determine the interest rate you are offered and the amount of the down payment required. It’s best to examine your credit report at least a year ahead of your loan application to make sure you have plenty of time to work on credit issues. FHA Home Loans: DO NOT Run Up More Debt Prior To Your Home Loan Opening new credit cards, adding more | more...

 
FHA Credit Score Eligibility: FICO Scores You Need To Qualify For A Loan

FHA Credit Score Eligibility: FICO Scores You Need To Qualify For A Loan

How low can your credit score go before you are not eligible for an FHA home loan? Borrowers get confused on this point but there is an easy way to remember what it takes to qualify for an FHA mortgage when it comes to the FICO score numbers. There are two requirements-that is what confuses many first-time home buyers. They hear that FHA home loan rules say one thing, and assume that is the final word on the matter. But it’s not. FHA loan rules state that borrowers with credit scores starting at 500 or better are technically eligible for an FHA home loan. Those with FICO scores between 500 and 579 are required by the FHA to make a 10% down payment. Those with FICO scores at 580 or | more...

 
FHA Loans After Bankruptcy

FHA Loans After Bankruptcy

Yes, it is possible to get a home loan following a bankruptcy with an FHA mortgage loan. Some borrowers, including first-time home buyers, assume that after a Chapter 7 or Chapter 13 bankruptcy filing that it is impossible to get a new home loan. Others assume you must wait seven years or longer to apply for a new home loan. What’s the reality? Chapter 7 and Chapter 13 Bankruptcy The most important thing about getting a new loan after bankruptcy is when you apply, and following that the most important issues include whether or not your bankruptcy has been discharged or not. FHA home loans are possible but only after the bankruptcy has been discharged, not after they have been initially filed. The FHA Home Loan Seasoning Period After a | more...

 
Different Types Of FHA Home Loans For First-Time Buyers

Different Types Of FHA Home Loans For First-Time Buyers

There are many different choices for home loans, and first-time home buyers should know their options before they decide on which loan to apply for. Do you know the difference between a rehab loan and a construction mortgage? Or a condo loan versus a mobile home loan? FHA One-Time Close Construction Mortgages These loans, also known as FHA Construction-to-Permanent loans, offer a single loan and closing date for borrowers who want to have a house built for them rather than buying an existing property. FHA construction loans can be more complex that loans for existing real estate but for many the additional effort is worth it to have a home that is built especially for them. First time home buyers can apply for these loans the same as any other | more...

 
Fact And Fiction About FHA Home Loan Approval

FHA Home Loan Approval And Undisclosed Debt

Some first-time home buyers are tempted to leave information off of credit applications, hoping that the lender won’t find out or that the omitted information will get lost in the details of the loan. But this is not a good strategy; FHA home loan rules in HUD 4000.1 anticipate such issues and there are instructions to the lender accordingly. Leaving out crucial information including certain debts may jeopardize FHA home loan approval. FHA Loan Rules For Undisclosed Debt In a situation where the borrower fails to disclose debts and the lender discovers them by other means, HUD 4000.1 instructs the loan officer as follows for undisclosed debt that does not involve another mortgage: “When a debt or obligation (other than a Mortgage) not listed on the mortgage application and/or credit | more...

 
FHA Home Loan Income Limits Do Not Exist

Buying Versus Renting A Home

What is the advantage of applying for an FHA mortgage to buy your home versus renting one out and declining to become a first-time home buyer? There are many differing opinions on this subject, so it seems like a good idea to simply list some facts about owning and renting a home that could help you choose which is better. Depending on your financial needs and goals, you may decide that owning is a far better option. Renting Means Accepting The Landlord’s Interior Decoration Skills Or Lack Of Them Home owners have the option to paint, wallpaper, remodel, and reconfigure their home at any time. Renters have to get permission first AND put the home back in its’s original paint scheme when the rental period is finally over. Naturally you | more...

 
Home Flipping and FHA Loan Rules

How To Get A Lower Home Loan Interest Rate

Home loan interest rates are a tricky issue, and if you are working with a real estate agent to find your first home, knowing as much as you can about rates going into the home loan application process is a very good idea. How can you get a lower rate when shopping for a home? There are some strategies to consider but many of them involve starting as early as possible in the planning stages. Getting A Lower FHA Home Loan Interest Rate By Shopping Around As you would never buy a used car from the first person you meet selling one, it’s important to shop around for a home loan lender offering the most competitive interest rates and terms. If you are a first-time home buyer, shop around for | more...

 
FHA Loans After Bankruptcy

FHA Loan Qualifying Credit Scores

FICO scores are a big part of getting your home loan approved as a first time home buyer or repeat borrower alike. One of the first questions someone purchasing their first home with an FHA loan will ask is what FICO scores qualify for the mortgage. And that’s not surprising; FHA loan credit qualifications do specify a minimum FICO score for all borrowers. And believe it or not, it’s the same credit score ranges for both first-time borrowers and those who have purchased real estate before. The FICO score minimums for the lowest down payment are set by the FHA and HUD, with these minimums often being increased by participating lenders based on that financial institution’s standard. So what you read below about qualifying FICO scores is the baseline score | more...

 
FHA Loan Approval: Credit Check Facts

FHA Loan Approval: Credit Check Facts

First-time borrowers and experienced house hunters alike often wonder if their credit is good enough to be approved for a new mortgage loan. Do you know the facts about credit and FHA home loan approval? FHA Credit Score Standards May Vary From Your Lender’s Requirements The FHA home loan program’s FICO score standards are the minimum requirement. FHA loan rules say that any borrower with a FICO score of 500 or higher is eligible to apply for an FHA loan. Lender standards may be higher than this, which is one reason why it’s best to start working on your credit early-long before you apply for a home loan. FHA Credit Requirements Can Be More Forgiving FHA loan rules in HUD 4000.1 say that it is not impossible to get a | more...