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Articles in Category: FHA Loan Basics

FHA Loans

Budgeting For Your Home Inspection, Appraisal, and Compliance Inspection

When you plan to buy a home with an FHA loan you should be thinking about how much you will need to save for expenses paid upfront, such as appraisals and inspections. You may not, as a first-time home buyer, have the experience to anticipate all expenses you need to pay in the coming months. But there are typical costs you can plan and save for. Home Inspection Costs Did you know there’s no fixed price for home inspections? There are no national cost guidelines or restrictions for this service; home inspection costs will vary based on the housing market and inspections are paid for by the borrower independently of the rest of the home loan process. Home inspections may cost somewhere between $300 and $500 depending on location. Your | more...

 
FHA loans

Housing Market Improvements And Your FHA Home Loan in 2023

Are you looking at 2023 and considering your home loan options to buy a house with an FHA mortgage? There is news from the housing sector that could mean improved conditions for a home loan in the new year.  While it’s true that changes in the housing market don’t happen overnight, some mortgage blogs and news outlets are reporting that the typical time houses spend on the market is increasing. Thats a good sign considering how competitive the housing market was last summer. Is this the only indication that conditions may be improving for house hunters? Demand for houses seems to be falling and home loan interest rates are showing signs of gradual improvement. This could make 2023 a much better time to shop for a house than the summer | more...

 
Is your credit ready for an FHA loan?

House Hunting Advice For First-Time Home Buyers

When you start making plans to work with a realtor, there are some very good things to consider ahead of time. Checklists, online mortgage calculators, and other home-buying tools are only some of the things you’ll want in your house-hunting toolkit when you are ready to become a homeowner. Decide What Your Priorities Are For Your New Home Before filling out FHA home loan paperwork, and long before you decide which real estate agent to work with, you should have an idea of what your main priorities are for your new home. Do you need a home located near a certain school or type of school? Are you looking for someplace quiet and residential and nowhere near a shopping mall, gas station, or movie theater? Some priorities are more important | more...

 
FHA Home Loan

Why You Should Not Apply For An FHA Home Loan And Other Credit At The Same Time

Plenty of websites, books, and financial podcasts warn about managing your credit properly during the home loan application process. One bit of advice from many of these sites? Don’t apply for a car loan at the same time or just before a home loan. Don’t apply for any new credit during this time for best results. Why? There are several reasons, one of the most important? That your debt-to-income ratio is negatively affected by any new line of credit and a home loan lender will be required to consider that when deciding whether or not to approve your mortgage loan. The minimum payment required each month on the car loan will be factored in with the rest of your debt, and if you significantly change your debt ratio during the | more...

 
Home Loan

Finding The Best FHA Lender

Which bank has the best FHA loan options? Experienced borrowers know the answer to this question already; the best FHA lender is the one willing to work with your FICO scores, the type of home loan you need, and offers you the right rates.  But if you are asking the question, “Which bank has the best home loan?” you want answers that are more specific. How do you find a lender who can help? If you are searching online, you might try looking for the specific type of home loan you seek. Are you looking for an FHA One-Time Close construction loan? Searching with that specific phrase will help. But it can also pay to search more specifically than that; try looking for “FHA Construction Loans in Texas” in Google. | more...

 
Is your credit ready for an FHA loan?

Things To Look For When Buying A House With An FHA Mortgage

Finding the right home to buy with an FHA home loan can be challenging. If you are a first-time home buyer, do you feel intimidated about making a decision on the size and configuration of the house you want to buy? You are not alone.  Fortunately, you can help yourself in this process by making a checklist of features and priorities you can refer to when reviewing each property. This can be a better approach than trying to do it all from memory; you won’t forget to ask the seller or real estate agent about something important if you have it written down in front of you when you take the tour. What To Look For When Buying A Home With An FHA Mortgage: Overall Size That sounds fairly obvious | more...

 
FHA home loans

FHA Loans And Home Equity

How soon do you need to start thinking about home equity? Believe it or not, you start making decisions about equity right away in the planning and saving process of your loan.  How? The amount of money you save for a down payment is a decision that directly affects the amount of the loan you want. The bigger your down payment, the more potential equity you could start out with. Essentially your home’s equity is the difference between the current market value of the home and how much you owe on the mortgage. That’s one reason why a bigger down payment affects your equity–you’ll start out owning the mortgage amount minus that money down. Since the equity in your home is subject to change, it’s important to pay attention to | more...

 
FHA Loan

Paying Your FHA Loan Off Early

Some of the big differences between an FHA mortgage and conventional loans involve more forgiving credit qualifying requirements, as well as a lower down payment. There is also an FHA loan rule that requires that the borrower have the ability to freely sell or transfer the property in any way he or she sees fit once the mortgage loan has closed and the borrower has started using the home as their primary residence.  But there’s another important difference between some conventional mortgages and FHA loans. Did you know that under the FHA loan program you cannot be penalized or charged for early payoff of the loan? In years past, this guidance was found in HUD 4155.2 Chapter Three, which had a section describing what the FHA terms, “prepayment”. And while | more...

 
FHA Loans

Mortgage Scams: Homeowner Beware!

Have you been contacted by a third party offering to refinance your FHA home loan? During the worst of the COVID-19 outbreak, there were reports about home loan scammers trying to trick people into applying for refinance loans, mortgage relief, and foreclosure avoidance measures that weren’t what they were advertised to be. Some fell prey to these scams, while others relied on “best practices” to help them avoid being fooled into thinking they might be dealing with a legitimate third party offering help.  What are these best practices and how can you save your home from loan default and/or foreclosure or simply refinance your existing home loan without getting swindled? The first key is the nature of the contact with you, the homeowner. Did you initiate it or did it | more...

 
FHA loan

FHA Home Loans And Closing Day Delays

Getting to your closing day can be challenging. There are fees and expenses to pay for, credit checks to submit to, negotiations with the seller, and more. And on top of all those details, there are issues that could slow down your home loan, and may in some cases even affect your closing day.  Don’t assume that such issues are always the borrower or seller’s fault. There are many reasons why your closing day could be delayed or otherwise affected by circumstances. What Can Delay Closing Day?  Many issues can affect your ability to close the loan. For example, what if the appraisal comes back with corrections or with a value that is lower than the asking price of the home? Those things may or may not require a rethink | more...