January 23, 2020

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Articles Tagged With: FHA and HUD

Happy Martin Luther King, Jr. Day

Happy Martin Luther King, Jr. Day 2020! Banks and markets are closed today to observe the holiday and we too feel it’s very important to remember this important day. America owes a great deal to Dr. Martin Luther King, Jr. We are proud to observe this day dedicated to him and pause our regular coverage of FHA news and FHA loan topics to observe the holiday. We resume our usual schedule of posts tomorrow. Thanks for reading!

 
Buying A Home With An FHA Loan: Should You Skip The Home Appraisal?

Do You Need To Apply For An FHA Mortgage?

Do you need to apply for a home loan to buy real estate in 2020? FHA mortgages feature a low minimum down payment, allow seller contributions to closing costs, and even permit down payment assistance from approved sources. What does it take to apply for an FHA mortgage? You will need proof of income, tax records, and bank statements. Borrowers also need to have a credit history of some kind, even if non-traditional. FHA loan rules allow non-traditional credit, but lender standards will be very important. FHA Loan Approval Requirements FICO scores between 500 and 579 for a 10% down payment, or FICO scores at 580 or higher for the lowest down payment of 3.5%. You will also need 24 months of employment history as a general rule, and you | more...

 
The FHA One-Time Close Construction Loan: An Option In 2020

FHA Construction Loans Versus USDA Construction Loans

Why would borrowers choose to build a home on their own land using an FHA One-Time Close construction loan (which requires a down payment of 3.5%, minimum) instead of a no-money-down USDA home loan? There are several reasons why an FHA mortgage might be the better choice depending on circumstances, even with a required minimum down payment. That down payment is far less than some conventional loans require. USDA Mortgage or FHA Home Loan? USDA construction loans offer an advantage to eligible borrowers thanks to their zero down payment requirement. But a USDA mortgage is need-based, and these loans (even construction loans) have a household income cap. USDA loan rules state that in some cases, borrowers who have assets higher than the USDA limit “…may be required to use a | more...

 
How to get ready for an FHA home loan

How To Get Ready For Your Home Loan

Need to know how to get ready for an FHA home loan in 2020? There’s plenty of good advice out there, but what about from watchdog agencies like the Federal Trade Commission? Or USA.Gov? Starting early to plan your loan is the best advice, but what happens next? Reviewing your credit, saving up for your expenses for the loan, and learning your options are very important. FTC Credit Advice The FTC has a lot of consumer credit advice, some of which can apply to home loan transactions as well as other types of credit. The FTC official site warns consumers that when trying to get ready for your home loan. it’s best to review your credit reports BUT do not be taken in by third party credit repair agencies that | more...

 
FHA loans

Happy New Year 2020

Happy New Year 2020! We hope your holiday season has been safe and fun. We pause from our usual posts about FHA home loans to enjoy New Year’s Day 2020, and our regular posting schedule resumes on Thursday. Thanks for reading and have a great holiday.

 
FHA Loan Pre-Approval versus Home Loan Approval

FHA Home Loan Pre-Approval And Mortgage Loan Approval

We encourage potential FHA borrowers to get pre-approved for a home loan before house hunting. If you are new to the home loan process, you might not be sure what the difference is between FHA loan approval and getting pre-approved for an FHA mortgage. What is that difference? Getting through the initial pre-approval application does not mean you’ve been fully approved for the mortgage. But it IS an important tool for soon-to-be homeowners. Home loan pre-approval is a tool for both borrower and lender to determine if you’re ready to buy based on your income, debt to income ratio levels, the amount of down payment you have saved, etc. Think of pre-approval as the start of the loan process, but it is not a guarantee that you have an FHA | more...

 
FHA Home Loans and Your Income: 5 Tips

FHA Loan Credit Score Issues

If you do not know your credit score when you start reading this article, it’s best to plan to pull your credit reports as soon as possible after reading. If you want to get properly ready for a home loan application, you should know your credit score, the contents of your credit report, and whether you need to challenge or correct information on your credit reports. FHA Loan Credit Standards FHA loan rules for credit and FICO scores are minimum requirements. The minimums acceptable to the FHA are a baseline for the lender who may add higher credit score requirements depending on a variety of circumstances. What we’re discussing here are the FHA rules, lender requirements will vary. The FHA “Minimum Decision Credit Score” (MDCS) HUD 4000.1 is the FHA | more...

 
Build on your own lot. Construction loan basics

Build On Your Own Lot: Construction Loan Facts

If you are interested in building a home on your own lot instead of buying a house owned by someone else, the One-Time Close construction loan is an option worth considering. Facts about One-Time Close mortgages include your options–there are FHA, VA and USDA versions of the One-Time Close Construction (OTC) loan. With a VA OTC, there is an option to put 0% down, FHA construction loans feature a low down payment of 3.5% of the adjusted price of the home in most cases. Construction loans require you to work with an approved contractor so you should plan on spending some time searching for one. Construction loans are sometimes hard to come by because borrowers don’t know the right loan to ask for, or are working with a lender who | more...

 
Do you need to

Higher FHA Home Loan Limits For 2020

In 2019, the FHA and HUD announced higher loan limits, giving borrowers in most counties additional borrowing power to purchase, build, repair, or refinance an owner-occupied home. The uptick in FHA loan limits for 2019 led some to believe that it might be possible to see another year of higher loan limits, while others speculated that higher limits may not be a trend, but simply a typical course correction for home loan limits. Regardless of which camp 2020 borrowers were in back then, it seems there is another year to contemplate higher loan limits; the Department of Housing and Urban Development has released the FHA loan limits for 2020 and they are indeed higher in most areas. The HUD announcement discussing the overall increase in the FHA loan limit for | more...

 
How to Buy A Home in 2020

Applying For A Home Loan In 2020

Are you thinking about buying or building a home in 2020? Prepare for your dream home early and get ready to start the path to homeownership in the new year. Save Early What kind of expenses should you anticipate when saving for your home loan? It’s not just the down payment you’ll need to save for–here is a list of common home loan expenses: Title insurance Appraisal costs Pest inspection fees Origination fees Discount points Credit report fee Survey fee Property taxes Mold abatement (where applicable) Document prep Compliance inspections You will also want to save early for unexpected costs including contingencies where the appraised value of the property is lower than the asking price. Some borrowers like the home so much they are willing to pay the difference in | more...