April 18, 2019

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Articles Tagged With: FHA Closing Costs

FHA Loans After Bankruptcy

FHA Home Loan Approval For First-Time Home Buyers

What should you know about FHA home loan approval? Buying a first home or a larger property after purchasing a starter home with an FHA mortgage can be less stressful if you remember a few important things right at the start. FHA Home Loans Require A (Lower) Down Payment FHA mortgage loans require a minimum of 3.5% down. Compare that with other mortgage loans such as a conventional mortgage, or other government backed mortgage loans such as the USDA program. Yes, when you do research on USDA loans, you will find a no-down payment option offered to some qualified borrowers. But USDA loans are need-based, and FHA home loans are not. Any financially qualified borrower can apply for an FHA loan if they intend to use the house they buy | more...

 
Five reasons to buy your first real estate with an FHA home loan.

Five Reasons To Buy Your First Real Estate With An FHA Home Loan

FHA home loans are a great way to make your first real estate purchase. Are you looking at homes for sale and trying to decide which is the best mortgage loan for you? If you are a first-time home buyer and feel a bit confused by what your real estate agent finds in MLS listing data while searching for “houses near me”, remember that the FHA mortgage loan option is available to anyone who financially qualifies. If you are talking to a real estate agent, do not forget that FHA loans are not restricted to first-time home buyers or those who have never owned property before. You can own other property and still buy a home to live in as your primary residence using an FHA loan whether you’ve purchased | more...

 
FHA Home Loans and Help With Down Payments

How Much Should I Put Down On A House?

Thinking about getting pre-qualified or pre-approved for a mortgage loan? FHA mortgages generally require a lower down payment and have more forgiving terms for loan approval, but the amount of money you put down isn’t just guided by your financial qualifications (see below), it also depends on your financial goals. A National Association of Realtors report from 2017 indicates that a large number of people put down less money than you might think to purchase their dream home. Some of the zero-money-down transactions are likely either VA loans (available for qualified veterans and dependent on serving a minimum amount of time in uniform) or USDA loans which also have a zero down payment option. But in some cases you may actually wish to make a larger down payment. Why? In | more...

 
Winter Vacation Homes And FHA Loans: What You Need To Know

What Do FHA Loan Closing Costs Include?

What do FHA loan closing costs include? There are a group of fees and expenses you will need to save up for during the planning stages of your FHA home loan. Remember that the less you have included in the loan amount (certain permitted closing costs may be added to the loan) the lower your mortgage payments potentially are. Closing costs are not standardized; your FHA loan may cost more in some housing markets than other depending on what is reasonable and customary in that market. It is important to know that in most cases the fees and expenses of your loan will be priced in a similar fashion. If you aren’t sure about a certain cost or fee, ask your lender to explain it and how it works. It | more...

 
Credit Advice For First Time Home Buyers

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

Why should borrowers wait until after the closing date to apply for new credit? This is a very important issue that FHA borrowers need to be aware of before applying for a new purchase loan, FHA construction loan, or even a refinance loan. What makes the credit issue so important once you have been pre-approved for a home loan and start house hunting? Why should you never apply for new credit once the loan application has been submitted and you await final loan approval and the closing date? Home loans require the lender to check more than once to make sure the borrower is credit-worthy and can afford the mortgage loan. These checks may be automated or may be done manually by the lender depending on circumstances. Just because your | more...

 
Rent Or Buy? FHA Loans Can Help You Own Your Home

What You Need To Know About Closing Your FHA Mortgage

What does an FHA borrower need to know about the closing date for an FHA mortgage? There are several issues to consider, especially when it comes to whether or not your transaction is occurring in a wet funding or dry funding state. Home Loan Closing Dates: The Difference Between Wet Funding And Dry Funding The terms “wet funding” and “dry funding” refer to states where requirements to close may require the loan to actually close and funds be disbursed on the closing date, and states where that does not specifically happen on the closing date. A wet funding state requires completion of the loan on the closing date or in a specified period of time after the closing date procedure. Dry funding means the paperwork for the mortgage is not | more...

 
FHA Home Loan Facts For First-Time Borrowers

Before Your FHA Home Loan Closing Date: What You Should Know

Before your FHA home loan closes and you sign on the dotted line, there are some things you should know. Home closing paperwork spells out the agreements you have made on the mortgage and these documents are legally binding. It’s a very good idea to be familiar with them and know their contents before you sign. What kind of paperwork will you get with a new purchase mortgage loan at or before your closing date? One very important document is known as the Closing Disclosure and it should be compared to another document you received earlier in the FHA loan process known as the Loan Estimate. The estimate is not an indication that your FHA loan has been turned down or approved, it is simply a way to add up | more...

 
FHA Home Loans For Homes Built Before 1978

Cash To Close An FHA Home Loan: What You Need To Know

What kind of cash to close do borrowers need with an FHA mortgage loan? The amount and nature of the cash to close the FHA loan will vary depending on several factors including the amount of your down payment, whether you have financed the Up Front Mortgage Insurance Premium or not, etc. FHA Loans Cash To Close: Your Down Payment For new purchase home loans, FHA loans cash requirements to close the deal will include the minimum 3.5% down payment for borrowers who qualify for that lowest down payment with FICO scores that meet both FHA minimums and lender requirements. 10% down is required for borrowers with FICO scores that don’t fall into the ranges specified by FHA loan rules and lender standards. But the exact amount of cash needed | more...

 
Home Renovation With An FHA Loan

Maximum Loan Amounts For FHA One-Time Close Construction Loans

What is the maximum loan amount you can borrow with an FHA One-Time Close / Single-Close construction loan? The actual dollar amount is not fixed, it depends on variables including the FHA loan limits in a given housing market and whether or not the borrower is buying land in conjunction with the project. Calculating the Maximum Loan Amount For An FHA One-Time Close / Single-Close Construction Loan The FHA loan rules for One-Time Close / Single-Close loans, also known as construction-to-permanent mortgages, are found in HUD 4000.1 and include a breakdown for lenders on how to calculate the maximum mortgage loan. The loan limit takes into account the borrower’s down payment and the Loan-To-Value ratio (LTV). HUD 4000.1, page 445 instructs the lender: “The maximum mortgage amount is calculated using | more...

 
Why You Could Buy A First Home With An FHA Mortgage

FHA One-Time Close Construction Loans: What’s Required At Closing Time

In addition to the usual requirements to close, FHA One-Time Close / Single-Close construction loans (FHA OTC) have some additional FHA documentation requirements borrowers should anticipate. One Time-Close construction loans are more complex than existing construction loans for a few obvious reasons-when a borrower has a home built from the ground with an OTC loan, builders must be paid, there are escrow requirements and procedures which must be followed, and there are unique requirements for this type of loan. Do you know what additional documentation may be required to close the deal? According to page 446 of HUD 4000.1, the FHA loan handbook, the additional documents to close include (but are not limited to) a construction rider, a disclosure agreement related to final inspections, a fully executed contract between the | more...