August 17, 2018

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Articles in Category: FHA Requirements

FHA Home Loan Tips: What To Do And What NOT To Do

FHA Home Loan Tips: What To Do And What NOT To Do

If you are new to the home buying process, there are some definite things to do and things NOT to do when preparing for your mortgage. Some of these areas may seem obvious, but you might be surprised at the number of people who don’t give themselves enough planning and saving time ahead of the home loan process. FHA Loan Tips: DO Start Planning Early The moment you realize you want to purchase a home using an FHA mortgage, it is time to begin looking at your finances to see how a new budget can be made. This is because buying a home (no matter what kind of loan you are using) can be an expensive process. You want to start saving immediately for the down payment, but also for | more...

 
Why Get Pre-Approved For An FHA Home Loan?

Why Get Pre-Approved For An FHA Home Loan?

Why get pre-approved for an FHA mortgage? This is a question some first-time home buyers ask, and the answers can make a big difference in how you approach your home loan. FHA Home Loan Pre-Approval Does Not Commit You To A Mortgage When you fill out the forms to be pre-approved for a home loan, you are not committing to the transaction in the sense that you would be financially obligated to buy. The borrower is not legally committed to a purchase when getting pre-approved. Home loan pre-approval actually works to help you be taken seriously as a buyer when you do find a home you’re ready to commit to. The buyer takes a pre-approved borrower more seriously and you may find that a pre-approval letter (depending on the housing | more...

 
Are You Ready To Buy A Home With An FHA Mortgage?

Are You Ready To Buy A Home With An FHA Mortgage?

Are you ready to buy a home with an FHA mortgage? There are ways to tell how close you are to being ready to start house hunting and move out of the planning stages of your new home loan. Do You Know Your FHA Loan Limit? The FHA home loan limit varies depending on the housing market; some areas are more expensive than others and have a higher loan limit, others are “average” and conform to the median FHA loan limit nationwide. Some housing markets may be less expensive than others and feature a lower FHA loan limit, but the only way to tell is to either ask a lender what FHA mortgage loan limits are like or look the limits up for your area. Remember that FHA loan limits | more...

 
What To Do If Your Credit Score Isn't Perfect But You Are Still Buying A Home

What To Do If Your Credit Score Isn’t Perfect But You Are Still Buying A Home

Do you know what to do if your credit score isn’t perfect but you are still buying a home? There are some steps you can take that have nothing to do with paying a third party to try to fix your credit rating, or paying someone else to do things you should be doing for free where credit repair is needed. Start Reviewing Your Credit Rating Early In Your FHA Home Loan Process This means reviewing and working on your credit before you decide it’s time to fill out application paperwork for an FHA mortgage loan or FHA refinance loan. You need to know your credit scores long before you start house hunting. You can request free copies of your credit report (one per year from each of the major | more...

 
FHA Home Loans And First Time Home Buyers

FHA Home Loans And First Time Home Buyers

FHA home loans are perfect for many first time home buyers who are looking for low down payment requirements, forgiving credit score guidelines, and a home that features refinance options later down the line for cash-out, rehab and repair, etc. But does a house hunter have to be a first-time home buyer to qualify for an FHA mortgage? The short answer is no. FHA mortgage loans are for any financially qualified borrower, first time buyer or not. That said, first-time home buyers may find an advantage when it comes to local or state down payment assistance programs. FHA mortgages require the down payment to come from approved sources; those sources may include down payment assistance from agencies that provide such funds in accordance with FHA requirements. Down payment assistance must | more...

 
FHA Home Loan Advice: Wait Until After Your Closing Date For New Credit

How Many FHA Mortgages Can I Have?

How many FHA mortgages can I have? This question is often on the minds of those who are interested in buying an investment property using an FHA mortgage. Understanding the FHA loan rules in this area can save a potential borrower a lot of time. FHA Home Loans For Investment Property? FHA home loans cannot be used for investment properties. In this context, the phrase “investment property” refers to a single-family home with between one and four units that the borrower does not intend to personally occupy. It also refers to any type of intermittent-occupancy property such as a bed-and-breakfast, condohotel, or other property that is not primarily residential in nature and that the borrower won’t personally live in as her or his home. FHA Loan Rules For Occupancy and | more...

 
How Much Will My FHA Appraisal Cost?

How Much Will My FHA Appraisal Cost?

How much does an FHA appraisal cost? This is a common question, most often asked in conjunction with whether or not the FHA regulates this expense as part of the FHA home loan process. The Cost Of FHA Appraisals And Home Inspections The first thing to remember when you are budgeting for an FHA appraisal is that you will also need to set aside money for a home inspection. You should never rely on the appraisal alone to determine whether the home, condo unit, or mobile home or modular home is suitable to purchase. The FHA appraisal costs money, and the home inspection costs money too. Borrowers who balk at the idea of paying “twice” for a service that is mistakenly viewed as nearly identical (appraisals are NOT identical to | more...

 
How To Prepare For An FHA Mortgage: Check Your Spending

How To Prepare For An FHA Mortgage: Check Your Spending

Do you know how to prepare for an FHA mortgage? If you aren’t currently doing a check on your spending as part of your mortgage loan preparation stage, you may need to run some numbers on your personal finances before you commit to house hunting and an FHA mortgage application. How To Take A Realistic Look At Your Monthly Spending Habits To Prepare For An FHA Home Loan Consider pulling your bank statements for the last year to review your spending habits, and pay close attention to the habits you notice over the most recent three to six months. Your financial institution may have a spending tracker for personal accounts that may help, or you may wish to invest in a personal finance app or tracking software to help you | more...

 
FHA Home Loans And The Accuracy Of Your Credit Data

FHA Mortgage Loans And Your Monthly Mortgage Payment

What should all borrowers know about FHA mortgage loans and the monthly mortgage payment? Up to the time of FHA home loan approval, borrowers know they need 12 solid months of on-time payments on all financial obligations, avoid running up credit card debt, and avoid opening new lines of credit. But what happens after the home loan is approved? Borrowers are encouraged to be mindful of their mortgage payments on the FHA loan in the same way as they have been careful to make those on-time payments in the year leading up to FHA loan approval. Why is continuing to pay on time even after loan approval and the closing date so critical? In short it’s because a borrower may wish to refinance her mortgage loan at some point and | more...

 
Who Needs Credit Repair Before Applying For An FHA Mortgage?

Can I Use Gift Money For My FHA Home Loan Down Payment?

FHA home loans feature low down payment requirements; only 3.5% of the adjusted value of the home is required in many cases unless a borrower’s credit scores don’t meet FHA lender requirements and FHA single family home loan guidelines. But even these low down payments can be challenging for some FHA loan applicants, and many borrowers wonder what the allowable sources for FHA mortgage down payment funds might be. FHA mortgage loan rules state that a borrower’s minimum required investment (MRI) is completely separate from all other payments or fees for an FHA mortgage. And the source funds for the MRI must come from approved sources, which can and sometimes do include gift money. HUD 4000.1, the FHA loan handbook, states clearly that gift funds can only come from approved | more...