November 14, 2019

Vimeo Channel YouTube Channel

Articles Tagged With: Credit Check

Reasons You May Be Denied A Loan

Reasons You May Be Denied A Home Loan

Most borrowers are worried they may be denied a home loan for one reason or another. How much is the average house hunter in danger of getting turned down for a mortgage? That depends on the kind of real estate you are looking for, your recent credit activity, and other factors. In general, you’ll find it harder to get a loan approved if one or more of the following things apply to you (see below). You Have A Recent Adverse Credit Action On Your Credit Report You risk being turned down for an FHA home loan or any other major line of credit if you were declined credit, employment or insurance recently. You Have High Credit Card Balances Credit card balances above the 50% line (halfway to your credit limit) | more...

 
Important FHA Loan Options For Almost Any Mortgage

Important FHA Loan Options For Almost Any Mortgage

There are important FHA loan options you should know about that apply to practically any type of mortgage. No matter if you need a single-unit loan for a typical suburban home or you want to build a house on your own lot using an FHA One-Time Close construction loan, there are options you should consider to get the most mileage out of your loan. FHA Loan Options: Energy Efficient Add-Ons The FHA Energy Efficient Mortgage is an option you can use to add funds for approved energy-saving upgrades to the property. That much is more well-known than the fact that you can use this FHA loan option even if you are applying for an FHA Rehab loan which is already intended to provide funds to repair, renovate, or upgrade a | more...

 
FHA Loans For Buying, Building, Or Assembling A Home

FHA Loans For Buying, Building, Or Assembling A Home

Did you know that FHA home loans can help you buy an existing home as a first-time home buyer, but can also help a first-timer or experienced homeowner have a house built for them from the ground up on your own lot or a lot you purchase in connection with the mortgage. It’s also possible to have a manufactured home assembled for you on a lot you purchase or already own. These loans, especially the FHA One-Time Close mortgage for building a home from the ground up, are offered to both experienced borrowers and first time home buyers alike with no difference in the basic terms and conditions. That means that a first-time borrower is not penalized for being a first-timer; there are no elevated down payment requirements, no added | more...

 
Home Loan Advice: Top Reasons For Failed Loan Applications In 2018

Home Loan Advice: Top Reasons For Failed Loan Applications In 2018

– Did you know that a Realtor.com survey reveals that as few as 40% of all potential home buyers apply for their mortgage loan with confidence? As many as 60% of the home buyers in 2018 feared they would not be able to qualify for a mortgage loan. Another survey, issued in September of 2019 by the company CoreLogic, states that high debt and low credit scores were the leading causes of mortgage denials last year. In 2018 alone there were more than two hundred and sixty million loan applications for single-family housing. Those applications were for one-to-four unit properties, as well as a portion of the applications going toward manufactured housing. The CoreLogic report suggests an overall loan application denial rate of just under 25%. And of that 25%, | more...

 
Home Loan Credit Advice From Credit Bureaus

Home Loan Credit Advice From Credit Bureaus

We discuss FHA home loan credit issues here frequently, but our advice is only one source. What do the three major credit reporting agencies have to say about credit issues related to mortgage loans? Equifax, Experian, and TransUnion all have official sites with advice for consumers who want a fair and honest mortgage loan. Let’s examine some of the advice for potential home loan applicants. Mortgage Loan Credit Advice From Equifax The credit reporting agency Equifax has some advice for borrowers, including a very useful tip about how to do damage control on your credit report if a situation beyond your control resulted in late or missed payments. According to the Equifax official site, in such cases, “Consider adding a consumer statement to your credit reports.” Did you know you | more...

 
FHA Condo Loan Rule Changes

FHA Condo Loan Rule Changes

The FHA and HUD announced changes to FHA condo loan approval policy in August of 2019, opening the program up to condo loans in condominium projects that have not been added to the FHA approved list. A Final Rule detailing the program changes was published, but in the interim between revising the FHA Single-Family Home Loan program handbook, HUD 4000.1, the FHA and HUD have published rules to manage the new rules. According to an FHA mortgagee letter published on the FHA official site, “FHA systems will be enhanced in the future to permit the issuance of case numbers in unapproved projects” basically from the time the final rule became effective (mid-August 2019) until the FHA and HUD rules and systems are fully updated with the new changes. What is | more...

 
Do FHA loans have an income cap?

Do FHA Home Loans Have An Income Cap?

Some borrowers learn that FHA mortgage loans are government-backed and guaranteed by the FHA and HUD, which can lead to certain assumptions about the nature of a government-backed mortgage. One of the misconceptions about FHA home loans is that due to their government association have either an income limit, or are otherwise need-based. Some borrowers might be confusing the government-backed USDA loan program with the FAH loan rules. USDA loans ARE need based. However, FHA loan rules in HUD 4000.1 do not specify a maximum income and do not require a specific financial need to qualify. FHA loans do not have a low-income requirement, a household income cap, or a requirement that you be a first-time buyer. These loans are instead designed for those who want to purchase a home | more...

 
Real Estate, Millennials, And Down Payments

FHA Loan Down Payment Rules: When More Is Required

FHA home loan down payment rules allow for a low 3.5% down for borrowers who qualify with FICO scores in the 580-or-above category. FHA loan minimums do not address lender standards, which may be higher, but that is one reason why it’s important to shop around for the right FHA lender. The low FHA loan down payment is one reason why FHA mortgages can be so attractive, especially for first-time home buyers. But when will a borrower be required to put a higher amount down on the mortgage? There are several instances to be mindful of. FHA Loan Transactions That Require 15% Down: Identity Of Interest The FHA Single Family Loan Handbook, HUD 4000.1, says there are circumstances where 15% down is required; often when there is an identity of | more...

 
FHA Home Loans And The Biggest Credit Mistake You Can Make

FHA Home Loans And The Biggest Credit Mistake You Can Make

In this space, we discuss FHA home loans and how they get approved. And we talk a lot about the biggest credit mistake you can make leading up to your home loan application-missed payments. And we’re not just talking about missed payments on one type of credit, we discuss the effects of missing a payment no matter what it is or how important to your financial bottom line. But it is human nature to forget good advice when you only get it from one source, which is why we’re turning our attention today to the advice of one of the three biggest credit reporting agencies in existence: Experian. Experian is 125 years old and has a lot to say about how to manage credit, improve credit ratings, and how credit | more...

 
FHA Home Loan Down Payment Help For Borrowers

FHA Home Loans, Down Payments, And More: What You Need To Know Today

First-time borrowers have many questions about the FHA home loan process including the subjects of down payments, seller contributions, and down payment assistance. Borrowers need to know that there are certain federal laws that require FHA home loans to limit the contribution of any third party with a financial stake in the outcome of the mortgage, and it’s good to know how these rules work. Seller Contributions Versus Seller Downpayment Assistance FHA loan rules state clearly that the seller of the home may not contribute funds toward the borrower’s down payment. This is expressly forbidden in the FHA loan rulebook, HUD 4000.1. However, sellers are permitted to contribute toward the borrower’s closing costs, capped at a maximum of six percent of the adjusted price of the property. Contributions in excess | more...