Articles in Category: FHA Loan Basics

October 10, 2023

Common FHA Home Loan Questions

Got questions about the FHA home loan journey? You are not alone. Many first-timers and experienced house hunters have questions about FHA mortgages. Here are some of the most popular. When reviewing these answers, don’t forget that some issues related to FHA loan approval are circumstantial. Your loan application is typically handled on a case-by-case basis, so it’s smart to assume your circumstances may be unique depending on what the issue is. It always helps to talk to a participating FHA lender. How Much Do I Need To Save For An FHA Home Loan? Expect a downpayment minimum of 3.5% of the sale price of the home. You should also expect to save between 2% and 6% of the total loan amount for closing costs. If you want to know | more...

Home Buying, FHA Loans, And Mortgage Trends

October 2, 2023

Money, Planning, And Your FHA Mortgage

By Joe Wallace

Some borrowers need help getting ready for the unexpected during the home-buying process. The unexpected can come in the form of a seller deciding they no longer want to sell the property, the borrower losing a job while the loan is on the way to closing day, or other issues. But more mundane, unexpected things crop up along the way, such as certain fees and expenses situationally related to buying a home. Not all borrowers have to pay them, but when circumstances require it, paying for unexpected contingencies like compliance inspections or hazard insurance may require you to be more creative with your finances. Do you have a contingency plan for those compliance inspections, pest control, hazard insurance, or initial property taxes that need to be settled before the home | more...

September 26, 2023

Who Gets Involved In Your FHA Home Loan?

By Joe Wallace

Buying a home with an FHA loan involves more than just three people; the buyer, the seller, and the participating lender’s loan officer. Third parties are typically involved in your transaction as you make your way to closing day and home ownership. Who are these third parties and why do you need to know them? They can include title companies, home inspectors, pest control, and real estate agents. Knowing the service providers are in your area is key since you will need to compare services and prices before you commit. Title Search For The House You Want To Buy A title search is a crucial step in the home buying process. Don’t buy a home without a title search as you need that process to tell you if there are unresolved | more...

September 22, 2023

Before You Buy Your First Home

By Joe Wallace

Are you a first-time home buyer? The house hunting process is one that is best approached with some planning, and you will find plenty of advice online about what to do ahead of your loan application. But what about what NOT to do? There are fairly obvious things not to do. Nobody should apply for a car loan while buying a home, for example. You should not quit your current job, or make major financial changes while trying to convince a lender you are an acceptable risk for a home loan. But what about the other things to avoid when buying your new home? Don’t Take The First House You Really Like Some borrowers get emotional about the first property they find that they could see themselves owning. If you | more...

September 21, 2023

FHA Home Loan Questions, FHA Home Loan Answers

By Joe Wallace

First-time home buyers looking for an affordable home loan often turn to the FHA mortgage. The low downpayment requirement for those who financially qualify is an option worth looking into. Many first-time FHA borrowers have questions. Here are some of the most frequently asked. Do FHA Borrowers Need A Real Estate Agent? A real estate agent is not a requirement when you buy a home with an FHA mortgage. That said, many prefer to work with a real estate agent or realtor since they can be helpful for those who don’t know the local area and to those who need help finding a home near the right services. Some house hunters are simply are not comfortable navigating the purchase of a home and in such cases a real estate agent | more...

August 18, 2023

What To Ask An FHA Lender

By Joe Wallace

First-time home buyers examining their FHA home loan options might wonder where to start when it is time to shop around for the right lender. Here are some important questions to ask when you compare banks and home loan options. What Are My Home Buying Options? Approved Property Types Are you looking for a unique type of home like a tiny house? If you seek an unusual property type you’ll need to see whether such a home is approved or acceptable to the lender. Some financial institutions won’t issue loans on unconventional property types, others may have caveats to know before you agree. In general, FHA mortgages are better for more conventional housing types such as condos, townhomes, and manufactured houses. You will have a better chance of finding a | more...

FHA Home Loans And First Time Home Buyers

July 24, 2023

FHA Lender Requirements and Bank Policies

By Joe Wallace

Here is a variation on a typical question we are frequently asked. “I applied for a loan and was told I must submit proof of filing a tax extension for a previous tax year. I was told by my loan officer that I need to show proof of an extension to be approved to close. Is this correct?” There are two critical issues in a situation like this to remember. One is how FHA loan rules work and how lender policies work. The FHA loan program is a voluntary one for financial institutions. Not all lenders participate, but those who do have to meet FHA loan standards and observe FHA guidelines for the loan program. Most financial institutions have their own guidelines above and beyond FHA loan program regulations. If | more...

June 8, 2023

FHA Loans And The State Of The Housing Market in 2023

By Joe Wallace

In the last 12 months, many have speculated about the state of the housing market. We all wonder about when an expected recovery might happen and how quickly we can start reaping the benefits. Before we launch into speculation about the future of FHA loan mortgage rates, it’s a good idea to discuss expectations and how to plan ahead for buying your future home. When Is It The Right Time To Buy A Home? Are you in the planning and saving stages of your home loan? If you are, there’s no reason to speed up that process. just because you expect things to improve in the next quarter of 2023. The same is true for those about to move out of the planning and saving part of the process. If | more...

June 2, 2023

FHA Home Loan Pre-Approval And Mortgage Loan Approval

By Bruce Reichstein

If you are considering an FHA home loan it is a smart idea to get pre-approved for a home loan before you start house hunting. If you are new to the home loan process, you might not be sure what the difference is between FHA loan approval and getting pre-approved for an FHA mortgage. What is that difference? Getting through the initial pre-approval application does not mean you’ve been fully approved for the mortgage. But it IS an important tool for soon-to-be homeowners. Home loan pre-approval is a tool for both borrower and lender to determine if you’re ready to buy based on your income, debt to income ratio levels, the amount of down payment you have saved, etc. Think of pre-approval as the start of the loan process, but | more...

May 25, 2023

Do FHA Loan Payments Increase Over Time?

By Joe Wallace

Could the monthly amount due on an FHA mortgage increase over time? If you want a fixed-rate mortgage, that may seem like a silly question. After all, isn’t the idea behind a fixed-rate home loan to provide predictability and stability in the payments? The short answer is yes, but there are still factors that could change the total amount of mortgage-related expenses over time. Depending on circumstances, the amount you owe each month may change depending on variables such as changes in your insurance, property taxes, and homeowner’s association fees. Adjustable Rate Mortgages Your monthly mortgage payment will change if you have an Adjustable Rate Mortgage or ARM loan. An ARM loan features an introductory period with a (typically lower) “teaser” rate, but once that introductory period ends? The home | more...