March 23, 2019

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Articles in Category: FHA Requirements

Home Loan Credit Problems: Unresolved Borrower Debt

Signs You Are Not Ready To Apply For A Home Loan

How does a first-time buyer know they are ready to apply for a home loan? There are some instances where a first-time borrower is definitely NOT ready, do you know what they are? You Don’t Know Your FICO Scores If you don’t know what your FICO scores are, you aren’t truly prepared to apply for a home loan. You need to know what the lender will know when she reviews your credit report. If you apply without knowing your scores, you risk wasting time and money. You Haven’t Reviewed Your Credit Report In The Last Months Leading Up To Your Credit Application If you don’t know what your loan officer will see when your credit report is pulled, you aren’t ready to apply for a loan. Evidence of identity theft, | more...

 
Why You Could Buy A First Home With An FHA Mortgage

FHA Home Loan Answers For First-Time Borrowers

First-time borrowers have many questions about FHA home loans. Here are some common questions and the basic answers, which should give you plenty to discuss with a lender when the time is right. What do you need to know about an FHA home loan? Can I Earn Too Much Money To Qualify For An FHA Mortgage? FHA loans do not have an income cap and these mortgages are not need-based loans. First-time home buyers may have financial constraints such as a tight budget and a need to save money up front on the transaction, and the FHA loan program is designed to help such borrowers with lower down payment requirements and the ability to finance certain closing costs. Do I Have To Live In The Home I Buy With An | more...

 
FHA Home Loans and Help With Down Payments

FHA Home Loans and Help With Down Payments

First-time home buyers looking for real estate to buy with an FHA loan may be intimidated by the notion of saving up for and making any kind of down payment, let alone a percentage of the appraised value of the home. But it’s important to remember that borrowers have options with FHA mortgage loans that can help offset the down payment. A Wall Street Journal report from January 2019 discusses “the bank of Mom and Dad” as one of the most influential factors in home buying. Did you know that according to the Wall Street Journal, approximately 26% of the FHA loan transactions included financial help from parents? The Bank Of Mom And Dad can be a powerful factor in buying a first home. But some first-time home buyers aren’t | more...

 
Plan Ahead For Your First Home FHA Loan

Plan Ahead For Your First Home FHA Loan

You can never start planning too early when it comes to buying your first home. There are a lot of variables to take into account when planning your FHA home loan including the nature of your home loan itself. FHA Home Loans: Different Loans For Different Needs The first-time home buyer who wants to buy real estate that needs repairs will apply for a different FHA home loan than those who want to have a home built for them from the ground up using an FHA One-Time Close construction loan. The FHA fixer-upper loan is known as an FHA 203(k) Rehabilitation mortgage and can be applied for as either a new purchase loan or a refinance loan. The type of FHA loan you will need for mobile homes/manufactured housing is | more...

 
FHA Home Loans And Qualifying Income: Disability Benefits

FHA Loan Qualifying Credit Scores

FICO scores are a big part of getting your home loan approved as a first time home buyer or repeat borrower alike. One of the first questions someone purchasing their first home with an FHA loan will ask is what FICO scores qualify for the mortgage. And that’s not surprising; FHA loan credit qualifications do specify a minimum FICO score for all borrowers. And believe it or not, it’s the same credit score ranges for both first-time borrowers and those who have purchased real estate before. The FICO score minimums for the lowest down payment are set by the FHA and HUD, with these minimums often being increased by participating lenders based on that financial institution’s standard. So what you read below about qualifying FICO scores is the baseline score | more...

 
Is Now The Right Time To Buy Your First Home With An FHA Mortgage?

Is Now The Right Time To Buy Your First Home?

Is now the right time for a first-time home buyer to look at real estate listings and consider buying that first home? Is now a good time for those who have owned property before to examine their FHA mortgage loan options? In both cases, the answer may be yes. Recent headlines and reports by companies like Zillow and CNBC indicate rising optimism in the housing market in the first quarter of 2019; inventory is increasing and mortgage loan applications have gone up recently, too. Ask any real estate agent about the state of their market and you may learn that now is a good time to explore your home ownership options. Why choose an FHA mortgage in a climate like this? The low down payment requirement is a good start-you | more...

 
FHA Home Loans And Qualifying Income: Disability Benefits

FHA Home Loans And Qualifying Income: Disability Benefits

When you apply for an FHA home loan to buy real estate, your lender will need to verify your income and employment. Some borrowers may wish to submit disability income for consideration but aren’t sure if that income will qualify. FHA loan rules address these concerns; HUD 4000.1 instructs the lender how to verify disability income, and defines how disability income may qualify. According to HUD 4000.1, the lender is required to “verify and document the Borrower’s receipt of benefits from the SSA, VA, or private disability insurance provider. The Mortgagee must obtain documentation that establishes award benefits to the Borrower. “ What Disqualifies Disability Income From Consideration For An FHA Home Loan If the borrower’s disability income has an expiration date within three years from the date of the | more...

 
Buying A Home With An FHA Mortgage Versus Renting

Buying A Home With An FHA Mortgage Versus Renting

How much money do you spend renting a home instead of owning one? If you count the security deposit, any applicable pet deposit, and other expenses, the numbers can add up quickly. When you rent a home instead of buying real estate with a mortgage loan, you are also stuck with whatever appliances your landlord has seen fit to install in the home, regardless of quality. You have to live with someone else’s interior design and paint scheme preferences, and chances are the carpet is not what you would have chosen…at all. Renting A Home: Where Are The Long-Term Financial Benefits Compared to Home Ownership? When you rent, you get no equity, no cash-out refinance loan option, and no ability to sell the home at a higher price than you | more...

 
FHA loans

Happy Presidents’ Day 2019

Happy Presidents’ Day 2019! Today banks and markets are closed, and we pause from our usual schedule of writing posts and giving information about FHA home loans to observe the holiday. We return with our regular content schedule tomorrow. Thank you very much for reading!

 
What You Should Know About FHA Loan Rules And Down Payment Gifts

FHA Loan Policy Changes Regarding Income, Employment Verification

The FHA and HUD have issued a Mortgagee Letter explaining recent policy changes that affect how borrowers will have their income and employment verified, among other issues. Mortgagee Letter 19-01, issued February 15, 2019, announces the specific inclusion of third-party vendors (TPV) for the purpose of income and employment verification. The change is needed, according to the Department of Housing and Urban Development, because FHA home loan rules in HUD 4000.1 did not previously mention third party vendors specifically. “FHA allows for electronic verifications as an option to a written Verification of Employment but makes no specific reference to TPV services. TPV provides an alternative means for verifying a Borrower’s employment, income, and assets which would eliminate the requirement for a Mortgagee to collect pay stubs, W-2s, and bank statements”. | more...