Articles in Category: FHA Requirements

August 23, 2021

FHA Home Loans: Why You Need To Review Your Credit Report Now

Why is it so important to review your credit report long before you apply for a mortgage? One important reason–the one you read in almost every article with advice on this topic–is to start reviewing your credit early in case you have to dispute an item on your report. But what happens in the event you find errors, outdated information, or evidence of identity theft? In the 21st century the likelihood of having any–or even all–of these in your credit report is elevated due to hackers, accidental breaches of personal data, or even mistaken identity. So what should a potential borrower do if they discover trouble with their credit reports? The first thing to do is to remember you’ll need to check all three credit reporting agencies to determine if | more...

August 17, 2021

Before You Apply For Your Mortgage Loan

By Joe Wallace

If you are concerned about your ability to qualify for a mortgage, before you get pre-qualified or pre-approved, it’s a good idea to add a few steps to your home loan prep checklist. These steps should be in addition to the usual things you need to do before you apply for the loan, seal pre-approval, approach a seller, or even start working with a real estate agent. One of those things is very important–you need to not only know the contents of your credit report (a Home Loans 101 type piece of advice) but also monitor your credit through the entire planning and purchase process of your home loan. Knowing your credit score is vital for a mortgage borrower and home buyer, but what happens if your credit report begins | more...

August 16, 2021

Rent Or Buy?

By Bruce Reichstein

Are you tired of paying rent, answering to landlords, and trying to maintain your living space while trying to be mindful of thin walls, sensitive neighbors, or other concerns associated with living in an apartment complex or other rental situations? One way to get closer to a decision is to use a rent vs. buy calculator or to run your own numbers using similar data. You’ll need a typical home price for the local area to calculate a mortgage payment (using principal, interest, property taxes and any applicable homeowners association fees) and compare it to how much you pay in rent, renter’s insurance, etc. You can use a rent vs. buy calculator to give yourself a good idea of how the basic numbers compare. But there are a few variables | more...

August 13, 2021

HUD and FHFA Announce Historic Partnership

By Joe Wallace

The Department of Housing and Urban Development has announced a major partnership with the Federal Housing Finance Agency (FHFA) to further the cause of fair housing and the enforcement of the federal law known as the Fair Housing Act. The FHFA is an important agency–it serves as the “primary regulator” for federal home loan banks. According to HUD.gov, FHFA has “broad statutory authority to supervise the regulated entities, including authority to monitor and gather information and conduct supervisory examinations, and enforce compliance with applicable law.” FHFA is responsible for oversight of: Fannie Mae Freddie Mac Federal Home Loan Banks The two agencies have agreed to a Memorandum of Understanding which has both HUD and FHFA working to “enhance” the enforcement of Fair Housing Act laws. This is intended to help | more...

August 12, 2021

What To Do When Morgage Rates Are Rising

By Joe Wallace

What do you need to know when mortgage rates start to climb? That depends greatly on whether you are interested in buying, refinancing, or even building a home from the ground up. Why? Because there are situational concerns that may affect your decision-making depending on what kind of home loan you need. Mortgage rates go higher for a variety of reasons. Borrowers should know that typically, what’s good for the economy can mean upward pressure on mortgage rates. Conversely, bad news for the economy can mean good news for mortgage loan interest rates. So what’s a borrower to do? If you seek an FHA refinance loan to get out of an adjustable-rate mortgage, your course of action might be as simple as comparing the rates your lender could offer you | more...

August 5, 2021

FHA Home Loans: Mistakes To Avoid When It’s Time To Close

By Bruce Reichstein

As you get closer to the day when you sign the paperwork, pay your closing costs, and take possession of your new home, there are some important mistakes to avoid. Do you know what they are? FHA home loan closing day is an important milestone; make sure you know what to expect leading up to the big day. Don’t Move The Same Day You Close Closing dates can change, circumstances may require a new closing date. If you hired movers or rented a truck on the same day that you are supposed to close the deal, you may be disappointed. Don’t Be In A Hurry Take the time to carefully read all documents you are required to sign, don’t skip the home inspection, and don’t give in to any kind | more...

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

July 29, 2021

How Much Do I Put Down On An FHA Home Loan?

By Joe Wallace

There are persistent myths and misunderstandings about home loans. One persistent myth is that FHA mortgages are only approved for first-time home buyers. Another is that FHA loans are only for low to moderate-income borrowers. And a third–and the focus of our article–is that you have to make a 20% down payment on a home loan. What’s the reality? FHA home loans do NOT require a 20% down payment, even if you are at the lower end of the qualifying credit score range. According to FHA loan rules, the most you are required to put down on an FHA mortgage (on paper, according to the FHA) is 10%. That is for borrowers who do not have FICO scores that qualify them for 3.5% down. So why do people think you | more...

July 28, 2021

FHA Loan Limits: Fact and Fiction

By Joe Wallace

When it’s time to commit to buying a home, you’ll need to know what the conforming loan limit for the county where you want to buy the home is for the current year. FHA loan limits in 2021 are determined annually and occasionally there is an update posted during the year when circumstances warrant. That’s one reason to investigate the loan limits early in the new year after they change–you don’t really know if they have changed or not until you check or are told by a lender or other authority what the going loan limits are. Fact: FHA Loan Limits Vary Depending On The Market Some counties are located in high-cost areas and have subsequently higher FHA loan limits than typical-cost or low-cost areas. Some housing markets have loan | more...

July 27, 2021

FHA Loans: Credit Score Tips

By Joe Wallace

What is a good FHA loan credit score? In general, the obvious advice is that you should try to come to the home loan process with as high a FICO score as you can for best results. But not everyone has the advantage of an Excellent credit rating. What do future homeowners need to know about FHA loan requirements and their credit score? To start, you should know that no two lenders are exactly alike and it is a bad idea to assume you will get the same results from all of them. Don’t assume you can’t qualify for a loan–have a loan officer help you determine what kind of mortgage is right for you. FHA Credit Score Tip: Shop Around Why do we say “shop around” when it comes | more...

July 23, 2021

How Early Should You Use A Mortgage Calculator?

By Joe Wallace

The short answer? The moment you think you want to commit to being a home owner, you should consider using an online mortgage calculator. A mortgage calculator can help you plan and save for your mortgage. The use of a mortgage calculator is something most real estate blogs and home loan websites encourage you to use. The most basic, entry-level finance blog advice includes “use a mortgage calculator”. But there are some things to keep in mind about using a mortgage calculator–you want to use one that includes more than just the principal and interest for your loan. If you use one that limits the input to just those two things, you won’t really get an estimate of your monthly mortgage payment. Why? Because you will need to factor in | more...