January 19, 2018

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Articles in Category: FHA Loan Basics

What Is The Interest Rate For FHA Refinance Loans?

What Do I Need To Know About Applying For An FHA Mortgage?

What do I need to know about applying for an FHA mortgage? The answers to this question can help any potential home loan applicant go into the process better prepared and ready to begin the journey toward home ownership. Preparing For An FHA Mortgage Loan Takes Time The average preparation time for an FHA loan can be up to a year or more, depending on the borrower. Why does it take so long to plan for an FHA loan? Part of the prep time involves saving up for the fees and expenses of the loan including appraisals, compliance inspection fees, and the required minimum down payment. Borrowers should expect to pay a minimum of 3.5% of the adjusted value of the home as a down payment; this is required above | more...

 
What Can I Buy With An FHA Home Loan?

What Can I Buy With An FHA Home Loan?

What can I buy with an FHA home loan? There are many options available including town homes, condos, mobile homes, manufactured homes, and more. But there is also a list of things you cannot use an FHA mortgage loan to purchase, and that’s good to know going into your search for the right home for you. For example, FHA mortgages cannot be used to purchase any property you don’t intend to live in as your primary residence. FHA home loans are only for properties you will live in as your home address. FHA home loans can be used to purchase homes with a single living unit, but can be used to buy property with as many as four living units. That means that a borrower could potentially buy a four | more...

 
FHA Home Loan Basics In 2018

FHA Refinance Loan Options

Are you considering your FHA refinance loan options in 2018? There are several different options to choose from depending on your financial needs and goals. What do you want to do with an FHA refinance loan? Lower Your Monthly Mortgage Payments There are FHA refinance loan options that can help lower your interest rate or monthly payments, depending on circumstances. Some borrowers with non-FHA loans want to refinance into an FHA mortgage because of potentially lower interest rates. This is often done with an FHA no-cash out refinance loan option. Whether you will get lower monthly payments on an FHA no-cash out loan depends on several factors including your credit scores, the current amount you are paying on a home loan, and whether you choose to finance certain expenses associated | more...

 
How Do You Get A One-Time Close FHA Construction Loan?

How Do You Get A One-Time Close FHA Construction Loan?

How do you get an FHA construction loan? If you want to have a new home built from the ground up (as opposed to buying an “existing construction” home that already exists), an FHA new construction loan is possible. The FHA One-Time Close construction loan makes it much easier with a single application and closing for the entire project. Other types of construction loans feature TWO closing dates and a more complex process. FHA One-Time Close mortgages simplify the construction loan by wrapping the entire loan process up with a single application and loan approval. Not all FHA lenders offer construction loans, so you’ll need to shop around to find the right lender for your needs. There are two basic types of FHA construction loans-a “traditional” construction loan, and an | more...

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

Do FHA Loan Requirements Change Each Year?

Do FHA loan requirements change each year? This area can be a bit confusing because some aspects of the FHA loan program have changed in recent years, and some things are updated on a yearly basis. But the basic structure of the FHA loan program including FICO score minimums, appraisal rules, and occupancy requirements? These do not change from year to year. Do FHA Loan Rules Are In HUD 4000.1 Change Annually? HUD 4000.1 is the FHA Single Family Home Loan Handbook. It contains all the basic rules and requirements for FHA home loans. It lists the FICO score requirements, loan repayment history rules, debt-to-income ratio guidelines and other issues that affect FHA loan approval. These requirements do not change from year to year, but are subject to revision based | more...

 
FHA Home Loan Rules For Salary, Hourly, Part-Time Income

Do First Time Home Buyers Have Different FHA Loan Requirements?

Do first time home buyers have different FHA loan requirements? This question is tricky because it’s easy to forget that there are FHA loan requirements but lender standards, state law, and other factors will also have a say in how your home loan is handled. What follows is a discussion about FHA loan program requirements-you may find that your chosen participating lender has additional rules and procedures which also must be followed. FHA Home Loans Are Not Just For First-Time Home Buyers The FHA home loan program is not specifically designed for one type of borrower. That means that borrowers across a diverse range of home owning experience, income brackets, and careers may be eligible for an FHA mortgage, refinance loan, or reverse mortgage. The fact that you have owned | more...

 
FHA Loan Rules For Income Verification: Part-Time Employment Income

Are There Any Employment Documentation Rules For FHA Loans?

Are there any employment documentation rules for FHA loans? Borrowers are naturally curious about how the lender must verify employment, and that curiosity may turn to concern if the borrower isn’t confident that his or her job history is enough to qualify for the FHA loan minimum requirements. What do FHA loan rules tell the lender to do when it is time to confirm your employment for FHA loan purposes? How FHA Loan Employment Verification Works The lender is required to independently verify your employment, which means getting documentation that does not come from any “interested party” associated with the loan. You may give your lender the contact information for your employer, but you cannot provide the required information the loan officer needs to move forward with the loan application. | more...

 
Are There Any Income Documentation Rules For FHA Loans? Part Two

Are There Any Income Documentation Rules For FHA Loans? Part Two

Are there any income documentation rules for FHA loans? We have been examining this question, referring to the FHA loan handbook (HUD 4000.1) to see what the lender must do when reviewing a borrower’s income. The lender must calculate the applicant’s debt-to-income ratio using only verifiable income, and there are specific procedures your loan officer must use to do this. Those procedures can vary depending on the nature of your income. Are you salaried, hourly, commission, or contract? Depending on your payment arrangements, the lender must calculate the income accordingly. FHA Loan Applicants With Hourly Income HUD 40001. tells the lender that for hourly income, the loan officer must determine whether the hours of employment vary or not. If they do not vary, the lender can use the current rate | more...

 
What should I know about FHA home loans?

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

What kind of house can I buy with an FHA loan? Many first time home buyers want to know if FHA mortgages can be used to buy certain kinds of property including condos, duplexes, mobile homes, etc. FHA mortgage loans are flexible enough to purchase many different types of houses depending on the housing market, the lender, and local market standards. Not all FHA lenders will offer all the FHA loan types available to them, so it’s good to ask early if the property type you are interested in is an option. FHA Loans For Typical Suburban Homes The most obvious type of home loan is definitely available for purchase with an FHA mortgage. A suburban home can be existing construction, new construction, or built to suit. FHA loan requirements | more...

 
Get ready for an FHA home loan in 2018

What Are The Property Requirements For An FHA Loan?

What are the property requirements for an FHA loan? There are standards listed in the FHA loan handbook, HUD 4000.1, that all buyers should know. The ability to purchase a home with an FHA mortgage is determined by your credit rating, debt to income ratio, employment, and related factors. But the ability to purchase a specific home will also include standards for the property itself; standards which must be met by the home as-is, or brought into compliance as a condition of loan approval. Basic FHA Loan Property Requirements: Location According to HUD 4000.1, the home must be located within the continental United States, its’ protectorates or territories. A home is eligible to be considered for an FHA loan if it is located in one of the following areas listed | more...