December 12, 2017

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Articles Tagged With: Credit Check

FHA Home Loans In 2018

FHA Home Loans In 2018

Any potential borrower examining options for FHA home loans in 2018 should keep in mind some very important factors that may affect your choices for a new loan. Do you know what they are? FHA Mortgage Loan Limits Have Increased for 2018 The average housing market (not a high-cost or low-cost area) will feature an FHA loan limit of $453,100 for a single-unit property. That is up from 2017’s limit for the same areas of $424,100. That increase might not make a huge difference to some, but the additional borrowing power may be helpful to others. The higher FHA loan limit applies to all FHA mortgages with case numbers assigned between January 1, 2018 and December 31, 2018. Check Your Credit Scores As Early As Possible There were many headlines | more...

 
FHA Home Loan Rules For Salary, Hourly, Part-Time Income

Do First Time Home Buyers Have Different FHA Loan Requirements?

Do first time home buyers have different FHA loan requirements? This question is tricky because it’s easy to forget that there are FHA loan requirements but lender standards, state law, and other factors will also have a say in how your home loan is handled. What follows is a discussion about FHA loan program requirements-you may find that your chosen participating lender has additional rules and procedures which also must be followed. FHA Home Loans Are Not Just For First-Time Home Buyers The FHA home loan program is not specifically designed for one type of borrower. That means that borrowers across a diverse range of home owning experience, income brackets, and careers may be eligible for an FHA mortgage, refinance loan, or reverse mortgage. The fact that you have owned | more...

 
What do I need to get FHA loan approval?

What Do I Need To Get FHA Loan Approval?

What do I need to get FHA loan approval? There are several areas that will factor into the lender’s decision to approve the loan, including credit history, time spent working overall, and the dependability of your income. In addition to your credit, employment, and other issues, the property itself must meet FHA loan standards. As you can tell, the issue of FHA loan approval is one that requires some planning and research for you as well as the lender. FHA Loan Approval Is Based On Financial Qualifications Where the borrower herself is concerned, getting an FHA loan approval hinges on three basic things. One is your current ability to afford the loan. Another is your past credit activity and your record as a good credit risk. And the third area | more...

 
FHA Home Loan Rules For Salary, Hourly, Part-Time Income

How Important Is My Credit Score For An FHA Home Loan?

How important is my credit score for an FHA home loan? It’s a question many ask, and it’s important to ask as early in the planning stages of your new home loan as possible. What do you need to know about credit scores and home loan approval? Credit Score Requirements Vary Depending On The Lender You will find that some lenders require certain credit score ranges while others have different standards. That’s a given-no two lenders are exactly the same. But did you know that even within a single financial institution there may be varying credit score requirements depending on the type of loan you seek? For example, FHA One-Time Close construction loans may require a different minimum credit score than an existing construction home loan. There are several reasons | more...

 
What are the lender requirements for an FHA loan?

What Are The Lender Requirements For An FHA Loan?

What are the lender requirements for an FHA loan? The answer to that question varies depending on the lender, but in general there are many areas the lender will examine to determine if you are able to afford an FHA home loan. FHA Lender Requirements For Employment And Income The FHA loan handbook, HUD 4000.1, requires  your chosen participating FHA lender to verify your most recent two years of employment history. Those two years do not have to be with the same employer, but the lender will be looking for patterns of reliability where income and employment are concerned. The lender wants to know that your current income is stable, reliable, and likely to continue. FHA loan rules provide for the fact that not all income is employment-based. You cannot | more...

 
Late or Missed Payments and FHA Loan Applications

Am I Eligible For An FHA Loan Even Though I Have Had Credit Problems?

Am I eligible for an FHA loan even though I have had credit problems? Borrowers often worry their credit scores or credit history aren’t good enough to qualify for an FHA mortgage loan, but what is the reality? What do FHA loan rules say about credit and your ability to borrow? FHA Loans For Borrowers After Bankruptcy FHA home loans are possible for those who have a bankruptcy on their credit history, but there is a mandatory waiting period and the duration of that wait depends on the nature of your filing. The mandatory waiting period begins when the bankruptcy is discharged, NOT when it is initially filed. FHA Loans For Borrowers After Foreclosure, Deed-In-Lieu Of Foreclosre, Or Short Sale Borrowers with foreclosure or short sale activity on their credit | more...

 
FHA Refinance Loan Options

How Can I Get Ready For An FHA Loan Application?

How can I get ready for an FHA loan application? The process includes some advice you’ve likely heard before (check your credit, make sure you have on-time payments, and avoid new credit applications before you apply for a home loan) but there are other steps to take in the earliest stages of your house hunting journey that can be very helpful. Home Economics Do you know how much it will cost to live in and maintain  your home? Utility bills for a house are likely to be higher than for a small apartment. It’s important to start learning what typical utility rates, commuting costs, and other expenses related to owning your home instead of renting. You’ll also want to investigate how much it may cost down the road to repair | more...

 
Late or Missed Payments and FHA Loan Applications

What Are The FHA Loan Credit Score Rules?

What are the FHA loan credit score rules? Do you know the difference between FHA loan standards and lender standards? First time home buyers should know what the rules are long before starting the search for a new home. FHA Loan Credit Score Standards FHA home loans require a FICO score minimum of 580 or better to qualify for the lowest down payment of 3.5%. FICO scores are not the only criteria for approving or denying the home loan, so if you know your FICO score but aren’t sure about the rest of the financial qualifications for FHA loan approval, you’ll definitely want to keep reading. Lender Credit Score Standards Lender FICO score standards can be (and often are) higher than FHA loan minimum requirements. That means that even though | more...

 
Credit Score Issues and FHA Loans

Credit Score Issues and FHA Loans

Do you know how credit score issues affect your FHA home loan application? For most borrowers, there’s no such thing as a new purchase loan with no credit check; The FHA loan handbook (HUD 4000.1) instructs the lender that credit score checks for FHA mortgage loan applications are mandatory except in certain instances such as for FHA Streamline Refinance loans, and other transactions as described on page 158: “The Mortgagee must review the credit report to determine the Borrower’s Minimum Decision Credit Score (MDCS), except for Mortgages to be insured under Section 247, Section 248, Streamline Refinances, and Assumptions. The MDCS will be used to determine the maximum insured financing available to a Borrower with traditional credit.” HUD 4000.1 adds that FHA loan applicants who have non-traditional or insufficient credit | more...

 
How Does My Credit Score Affect My FHA Mortgage Loan?

How Does My Credit Score Affect My FHA Mortgage Loan?

How does my credit score affect my FHA mortgage loan? There are several areas where FICO scores may affect how much a borrower pays including interest rates, down payment issues, and more. FHA Loan Credit Score Rules: Two Standards There are two basic sets of rules and requirements governing borrower credit scores. One set of rules is found in HUD 4000.1, and gives the FHA Single Family Home Loan program minimum requirements for credit scores and how they affect a borrower’s down payment requirements. The other set of rules and regulations are those of the individual participating lender. Your chosen lender may have higher standards than FHA minimums, and this is permitted by law as long as those higher standards conform to Fair Housing Act policies and other federal regulations. | more...