September 27, 2020

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Articles in Category: FHA Loan Basics

getting ready for an FHA home loan

Common Questions About FHA Home Loan Interest Rates And More

FHA home loan interest rates remain at historic lows in July 2020; FHA and other government-backed mortgages feature rates below the three percent range at press time. Some borrowers see all-time loan interest rate headlines and want to know how they can access such low rates. What do you need to know about home loan interest rates? To start, you should be aware that your credit scores play a part in determining the interest rate you may be offered by a participating FHA lender. How Important Is My Credit Score? For determining your mortgage loan interest rate? Very important. That’s one reason why there is so much advice on line about preparing your credit ahead of a mortgage loan application. Whether you want to buy, build, rehab, or refinance, start | more...

 
What Kind Of House Can I Buy With An FHA Mortgage?

FHA Cash-Out Refinance Loans: What You Need To Know Today

Are you looking at the current low mortgage loan interest rates and wondering about your cash-out refinance loan options? If you are a homeowner looking for an FHA cash-out loan, you should know that you don’t have to have an existing FHA mortgage to refinance a loan with an FHA cash-out loan. No matter which type of home loan you are looking to refinance, there are rules and requirements you should know–some refinance loan options are better than others depending on the purpose of your loan. Rehab And Refinance For example, some borrowers want to rehab a home while refinancing it–there is a separate FHA refi loan for that purpose, though the loan proceeds from the FHA 203(k) Rehabilitation Refinance loan can only be used for approved purposes where cash-out | more...

 
Five tips about FHA loan interest rates

Five Tips About FHA Mortgage Loan Interest Rates

FHA mortgages feature lower interest rates than conventional mortgages thanks to being backed by the U.S. government. Those who qualify for the lowest down payment save money over the lifetime of their mortgages thanks to the lower rates, but how do you qualify for the lowest rate possible for your specific purchase? Here are some important tips about mortgage loan interest rates you should know in the planning stages of your new home loan. Credit Scores And Interest Rates Are Connected That statement does not pertain to the overall interest rate offered to all borrowers. Your lender will offer you a mortgage loan rate based on that current going rate, but affected by your credit scores and other financial information. The best advice for borrowers who are worried that their | more...

 
Buying a House In The Era of Corona

Low Home Loan Interest Rates: How Long Will They Last?

Mortgage loan interest rates and the coronavirus–how low can they go? COVID-19 and coronavirus headlines have, via investor reaction to the headlines and the situation in general, greatly affected mortgage loan interest rates, pushing them to lows not seen in quite some time. Investors are putting more funds in safer investments, which can serve to put downward pressure on mortgage loan interest rates. The rates have fallen to incredible lows in 2020; not many expected rates to fall THIS low and some homeowners are scrambling to refinance and take advantage of lower rates and less costly monthly payments. Some borrowers might feel as if maybe they owe it to themselves to try to buy or refinance with mortgage rates as low as they are now; 3.25% for FHA and VA | more...

 
Why Buy A Home In 2020?

Why Buy A Home In 2020?

There are many reasons why it’s smart to think about looking for a forever home in 2020; owning instead of renting, the ability to freely customize your living space, being able to apply for cash-out refinancing to convert part of your home’s value into cash, and never having to wait for a landlord to fix a problem in the home. But in 2020 there’s another reason to consider owning a home soon; a Zillow.com report indicates that 2020 is going to be a good year for home values depending on the housing market. The Zillow Home Price Expectations Survey from the 4th quarter of 2019 includes data that indicates U.S. home values may grow by 2.8% in 2020. Rising or hot-again housing markets in the new year include Austin, Texas | more...

 
Thinking about buying your first home?

Home Loan Approval And Your Income

Home loan approval means submitting your employment and income information to the lender, who must verify the information for accuracy. There are things you can do to help the process work in your favor if you know about certain nuances of the home loan approval process. Important Takeaways From This Article: Know how the lender checks your income data; Study the FHA home loan rules for employment and income, especially if you are self-employed, a commission earner, or a contractor; Know how frequent job changes may affect your loan; Shop around for a loan even if you think you’ve found a good bank; Know How The Lender Operates Some people mistakenly assume that income and employment verification are formalities; they are not. Your lender is required by law to carry | more...

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

Do You Need To Apply For An FHA Mortgage?

Do you need to apply for a home loan to buy real estate in 2020? FHA mortgages feature a low minimum down payment, allow seller contributions to closing costs, and even permit down payment assistance from approved sources. What does it take to apply for an FHA mortgage? You will need proof of income, tax records, and bank statements. Borrowers also need to have a credit history of some kind, even if non-traditional. FHA loan rules allow non-traditional credit, but lender standards will be very important. FHA Loan Approval Requirements FICO scores between 500 and 579 for a 10% down payment, or FICO scores at 580 or higher for the lowest down payment of 3.5%. You will also need 24 months of employment history as a general rule, and you | more...

 
Mortgage Loan Interest Rates: What You Need To Know About Trends

Mortgage Loan Interest Rates: What You Need To Know About Trends

What should borrowers know about mortgage loan interest rate trends? Especially when those trends are pushing rates toward historic lows? It’s a very good idea to be aware of the forces that affect mortgage rates; understanding how they work is a step toward making a more informed purchase as a house hunter or first-time home buyer. Interest Rate Trends Are Affected By The Economy What is good for the economy is often bad for mortgage loan interest rates, and vice versa. You will see rates pushing higher when there is good economic news, and rates trend lower when there is bad economic news. Except when they don’t. The thing to remember about mortgage loan rates is that no single factor affects them; it’s a combination of things and sometimes interest | more...

 
FHA Loan Limits For High-Cost and Low-Cost Areas

FHA Appraisal Rules You Need To Know

Are you a first-time home buyer? Are you looking into your FHA home loan options and not sure what the appraisal process is all about? The FHA appraisal is a tool for the lender to determine the home’s fair market value and a way to make sure a property meets MINIMUM standards. No matter what you might hear (and some mistakenly call the appraisal an “inspection”) the appraisal will not tell you the true condition of the home. Even the FHA and HUD themselves warn borrowers to pay for the optional home inspection (which is technically not a requirement, but then again, neither is test-driving your car before you buy it). And what should borrowers know about the FHA appraisal process? The appraisal’s most important feature for some borrowers is | more...

 
What Kind Of House Can I Buy With An FHA Mortgage?

Questions A First-Time Home Buyer Should Ask The Seller

First-time home buyers and those who have purchased a home before but haven’t had to explore housing markets in a while should make a list of questions to ask the seller of a home placed on the real estate market. Sometimes it’s not the answer to the questions as much as the way the seller answers those questions-your ability to ask important questions in those cases is important, but so is paying attention to how the questions get answered. For example, the question, “Has the roof ever been replaced or repaired?” may get you a direct answer; “No, nothing has ever gone wrong with the roof”. But if the seller hesitates or offers a less-than-forthcoming answer, such as, “I don’t remember anything going wrong with the roof” or “No, the | more...