June 27, 2022

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Articles Tagged With: Down Payment

FHA Mortgage Loan

Planning Your Home Loan

The planning stage of your home loan is extremely important. This is where you will determine what kind of home you might want, the price range you can afford, and how much down payment you need to save up to make. One big choice you face in the planning process? Decisions about issues related to long-term occupancy of the home, whether you plan to sell within a short or long amount of time and how you should arrange your financing to accommodate those needs. What kind of arrangements? Some borrowers don’t apply for a fixed-rate mortgage. They know they are not keeping the home for the long term and choose to take advantage of lower interest rates offered in the introductory period of an FHA Adjustable Rate Mortgage (ARM) instead | more...

 
FHA loans

Down Payment Help For FHA Mortgages

Who qualifies to get down payment assistance in order to buy a home? If you are using an FHA mortgage, your downpayment requirement is, at a minimum, 3.5%. And while that isn’t as large a down payment as you would make if you wanted to eliminate private mortgage insurance from a conventional home loan, some may struggle to come up with the money down. Buying a home can be expensive. There are inspection and appraisal fees, there may be pest control services to pay for, title searches, and more. Saving early is the key to making your down payment easier to manage in your budget. But even with saving early, extra help may be needed. That’s where down payment assistance programs can come in to help. But what does it | more...

 
FHA loans

Do You Need Down Payment Assistance For Your Mortgage?

If you want to buy a home and you worry about the down payment, you may be able to get help from a state or local down payment assistance program offered in your housing market.  If you are considering an FHA mortgage, you should know that the FHA itself does not offer down payment help, but does recommend borrowers seek such programs to help lower the overall upfront cost of the mortgage. What kinds of down payment help is available? There are many options depending on the state where you live and whether or not you have owned property recently.  One issue that is common for many state-level down payment assistance programs? Being either a first-time homebuyer who has never owned a home before, OR being a former homeowner who | more...

 
FHA Mortgage Loan

Important Issues About Buying A Home With An FHA Loan

What are your concerns about buying a home with an FHA home loan? For some, it’s about how much the loan will cost month-to-month, while for others the issue of the loan’s long-term cost can be a worry. If you aren’t sure how the FHA home loan program works, you’ll definitely want to read on. What You Can Buy With An FHA Mortgage In general, FHA home loans are for owner/occupiers who want to buy a home to use as their primary residence. You can buy a property with as many as four units as long as it meets FHA minimum standards and you are financially qualified for the mortgage loan. FHA loan applicants may apply for any type of FHA loan offered by a participating lender including mobile home | more...

 
Down payment

Buying A Home: Your Down Payment

What are the rules for FHA loan down payments? Some first-time homebuyers looking for a first home don’t realize you can’t just make the down payment by providing a check to your lender.  There are strict rules about down payments–they must come from approved sources, they must be accompanied by any supporting documentation showing where the money comes from, etc. You, the borrower, are allowed to apply for a home loan and make a down payment on the house you make an offer on, but when you make that down payment you must document the sourcing of the money. As in, where did it come from? A cashed-in investment? That’s permitted under FHA loan rules. Did your down payment money come from a pink slip loan or a credit card | more...

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

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

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...

 
FHA Home Loan

FHA Loan Down Payment Facts

Some borrowers get nervous about having to come up with a down payment. It is more than some have spent on one thing in their adult lives all at once, who can blame them for worrying? FHA home loans permit down payment gifts and grants and that can be a huge help for the first-time homebuyer. The rules for these programs must clearly explain the conditions of the grant or gift, under what conditions it might be required to be paid back–those payback terms of often triggered by violating the terms of the agreement. It can also happen when the home is sold, paid off, or no longer used as the primary residence.  Such gifts may come from state or local housing development agencies or other local entities–remember that the | more...

 
FHA loans

Down Payment Help For Your Home Loan

If you need a home loan but worry about the down payment, you may be able to take advantage of state-run or locally operated down payment assistance programs in your area. The FHA home loan program itself does not offer down payment assistance so you will need to find a local program that can help. What should you know about down payment assistance programs? For a start, these programs can be used with an FHA mortgage to purchase an owner-occupied single-family residence. In some cases you may be able to purchase a home with more than one living unit, but occupancy is a requirement both for the FHA loan program for single families as well as many down payment assistance options. For FHA loans, the minimum required 3.5% (of the | more...

 
FHA Home Loan Income Rules

What To Do If You Need Down Payment Assistance

Some borrowers worry that they can’t save up enough money for their home loan down payment. Fortunately, many states feature programs that can help these borrowers who may otherwise qualify for an affordable home loan but struggle with their down payment requirement. If you are considering an FHA mortgage but need down payment help, there are programs offered by state and local agencies that may be able to help you soften the economic blow of that 3.5% down payment requirement imposed by the FHA. Not all down payment assistance meets FHA loan guidelines–you’ll need to make sure that whatever the source of your down payment assistance, you meet the sourcing requirements for the money.  That means having a clear paper trail from the person providing your down payment assistance. Your | more...

 
FHA and HUD

FHA Home Loan Down Payment Assistance

Do you worry about making a down payment on a home loan? There are home loans that require higher down payments than others but the FHA loan program requires only 3.5% down for borrowers with qualifying FICO scores. FHA loan rules in HUD 4000.1 say: Borrowers with FICO scores at 580 or higher qualify for the lowest down payment. Borrowers with FICO scores between 500 and 579 are required to put 10% down. These are FHA guidelines, not individual lender standards. FHA home loans don’t have a zero down payment option, but FHA construction mortgages allow the borrower to use land equity as part of the down payment where applicable. But borrowers don’t always have to make the downpayment themselves thanks to down payment assistance programs that can help. Here | more...