Articles in Category: FHA Guidelines

January 8, 2019

Buying A Home With An FHA Loan After A Short Sale

A short sale is essentially the sale of a home that is still being paid for, where the property sells for less than the amount owed. The lienholder(s) agree to write off the remainder and forgive the deficiency. Borrowers who sell short are often taking measures to avoid foreclosure on the mortgage, but not all of the short sale transactions that happen are on mortgages that have fallen into delinquency. Short sales happen in many circumstances but one common scenario involves a homeowner who is suffering from an underwater mortgage and is trying to cut their losses. Getting An FHA Loan After A Short Sale Is it possible to buy a home with an FHA mortgage loan after a short sale? The short answer is yes. Buying a home with | more...

December 27, 2018

FHA Loans For Single Homeowners

By Joe Wallace

Data from the 2017 American Community Survey, conducted by the U.S. Census Bureau, suggests that single women homeowners own 22 percent of American homes compared to single men’s 13 percent. These stats may not mean much to the typical first-time home buyer, but it’s an interesting bit of data that could indicate a growing trend in home ownership. Single home owners in general-men or women-can benefit greatly from an FHA loan with the lower down payment requirement and more forgiving credit score minimums. It’s easy to assume you might not qualify for a home loan as a single person, but is that the reality? Single men and single women, as demographics, are not as simple as the labels imply. Some may be single parents, some may have roommates or cost-sharing | more...

Home Buying, FHA Loans, And Mortgage Trends

December 12, 2018

Questions To Ask About Buying A Home With An FHA Mortgage

By Joe Wallace

Thinking of buying a home with a mortgage loan? FHA mortgages have options you should think seriously about-and not just for the purposes of buying the home and moving in. What Options Do I Have To Make A Lower Down Payment On My FHA Loan? This question is best answered depending on why it’s asked; are you in need of lower out-of-pocket expenses for your mortgage or do you need to know what FICO scores will let you qualify for a lower down payment? Down payment assistance programs may be available from third-party agencies in your housing market. As long as these down payment programs meet FHA standards and state law, an FHA borrower may apply for them. The FHA itself does not offer down payment assistance. Borrowers may also | more...

November 30, 2018

Buying A Home With An FHA Loan: Should You Skip The Home Appraisal?

By Joe Wallace

When buying a home with an FHA mortgage, should you skip the home appraisal? Some buyers may wonder about this, especially in light of talk in late 2018 about whether the current real estate appraisal system should be kept or if appraisals should only be required of homes of a certain value or higher. According to data released by the National Association of Realtors, one big cause of home loan closing delays? Appraisal issues. The question remains; should borrowers skip the home appraisal? Borrowers Are Not Permitted To Skip The Appraisal Process FHA loans and other real estate lending require an appraisal as a mandatory part of the process. In spite of what you might see in headlines, borrowers and sellers cannot opt out. However, some borrowers may be thinking | more...

November 23, 2018

Buying A Home During The Holiday Season With An FHA Mortgage

By Joe Wallace

Are you interested in buying a home during the holiday season? Are you looking to weigh your options or are you seriously interested in making an offer? Many published reports on mortgage loan blogs are discussing this during the holiday season, but what do you need to know about house hunting options, hiring well-connected real estate agents, and deals during the December holiday shopping season? FHA Home Loans Aren’t Just Available For Pristine Homes You will read a lot of advice online this year about hiring a good real estate agent to help you narrow down your search, about pocket listings that sellers use to keep their homes from being flooded with window shoppers instead of serious buyers, etc. But one important thing to keep in mind about searching for | more...

November 19, 2018

FHA loans: A Mortgage For First-Time Home Buyers

By Joe Wallace

While it should be pointed out that FHA mortgage loans are not restricted to those who have never owned a home before, it’s also good to note that FHA mortgages are an excellent choice for first time buyers since they won’t be required to buy homes with 20% down. Low- and no-downpayment mortgages are obviously an advantage to the first time home buyer; how does an FHA mortgage help these borrowers? Verify Your FHA Loan Eligibility All mortgage loans have eligibility standards; FHA, Fannie Mae and Freddie Mac, rural housing loans guaranteed by the USDA or even the 100% loans offered to qualifying veterans (VA loans) guaranteed by the Department of Veterans Affairs all have financial eligibility requirements. And all of these loans have minimum program guidelines that may or | more...

November 9, 2018

FHA Mortgage Loan, Dropping Home Prices, And Your Appraisal

By Joe Wallace

You may read articles discussing home prices moving lower on real estate blogs or lending websites; when house prices move from one part of a cycle to another there is sometimes confusion related to the valuation of a home. Why would an FHA borrower looking at a house in a neighborhood or housing market with prices trending in one direction get back an FHA appraisal indicating that the home the buyer wants isn’t valued in the same way? Higher or lower, why does one home get valued “as expected” when another one does not? There are a set of variables at work in the appraisal process that include not only the age/condition of the home, but also how other houses stack up against the one you want to purchase with | more...

November 5, 2018

How Do I Know If I Qualify For An FHA Mortgage?

By Bruce Reichstein

How do you know if you qualify for an FHA mortgage? There are several minimum requirements you should know, but keep in mind that we are not discussing an individual lender’s standards (which will vary depending on the lender) but the FHA Single Family Home Loan program’s basic rules. When you talk terms with a participating FHA lender, you can discuss what additional requirements may apply with that financial institution. The Basics FHA home loans are for financially qualified borrowers regardless of their status as first time buyers or experienced home owners. There is no minimum or maximum income dollar amount specified for FHA home loan approval. Borrowers may be eligible even if they have a bankruptcy or foreclosure in their history as long as good credit has been re-established | more...

October 29, 2018

Will I Need To Fill Out IRS Form 4506-T To Buy A Home With An FHA Loan?

By Joe Wallace

When you fill out FHA home loan paperwork to purchase a home, your lender may ask you to complete IRS Form 4506-T, Request for Transcript of Tax Return. What is the purpose of this form and how does it affect your FHA loan? What Is IRS Form 4506-T Request for Transcript of Tax Return? The official site of the Internal Revenue Service says that the purpose of this form is twofold. One use is so that a transcript may be ordered free of charge, and the other use is to give permission to a third party (in this case, your participating FHA lender) to receive the transcript instead. Why Does My FHA Lender Need My Tax Information? The lender is charged with verifying the borrower’s income and employment as part | more...

October 23, 2018

Getting A New FHA Loan After Selling Your Home

By Bruce Reichstein

A lot of the advice you read about home loans in general, and FHA mortgages in particular, is aimed at the first-time home buyer. But what happens after that first-time buyer becomes a home owner, eventually sells the property, and wants to purchase another home with an FHA loan? Buying another home after selling your old one will seem very familiar in many ways, but when you purchase again after selling (or choose to sell and purchase at the same time) you will need some extra supporting documentation. Your FHA lender is requires to verify your income and debts the same way as with the original mortgage. But having purchased a home, and paid it off via the sale of the property (or even simply paying off the old mortgage | more...