August 20, 2019

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Articles Tagged With: FHA Condo Loan

The New FHA Condo Rules

The New FHA Condo Rules

The Department of Housing and Urban Development official site announced new FHA condo loan rules in August 2019 that make it easier to purchase a condo unit, especially for condo projects not added to the FHA approved list. October 15, 2019 is the start date for the new rules that allow FHA loan approval for mortgages to buy condo units in projects that are not on the FHA approved list. Not all condo units are eligible for this consideration, and the FHA and HUD have issued a list of “single unit approval” requirements that include the following as described on the HUD official site: The individual condominium unit must be located in a completed project that is not FHA-approved; Condo projects that have 10 or more units are limited to | more...

 
FHA Announces New Condo Loan Rules

FHA Announces New Condo Loan Rules

The Federal Housing Administration has announced changes to its’ condo approval policies that could make it easier for house hunters to find and purchase condo units with an FHA mortgage. The changes are intended to increase lender flexibility and to adapt to changing conditions in the housing market. The FHA and HUD issued a press release on the new rules which states that the new rules …“will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved.” Under the old rules, a condo project had to be on the FHA approved list or added to it. As of October 15, 2019, the new FHA policies will, according to the FHA official site, include the following changes to FHA condo | more...

 
Five FHA Loan Tips About Condo Loans

Five FHA Loan Tips About Condo Loans

Some borrowers, especially first-time home buyers, are surprised to learn that FHA loan options include loans to purchase condo units in FHA-approved condo projects. 5. FHA Condo Loans Are For Condos On The FHA Approved List Whether the condo you want to buy a unit in is already on the approved list, or needs to be added to it, the FHA condo loan is available to financially-qualified borrowers who have never owned a home before or are coming back to apply for a new home loan after purchasing in the past. Borrowers who need to have a condo project added to the FHA list will be required to work with a participating FHA lenders who can apply to have the condo project added to it. But there is one important | more...

 
FHA Loan Credit Advice

FHA Loan Credit Advice

First-time home buyers and experienced home owners alike sometimes need help understanding what it takes to be approved for a major line of credit like an FHA home loan. What does it take to financially qualify for the mortgage and get on the road to home ownership? Buying real estate with an FHA mortgage means making a serious investment of time and money. And that usually begins with budgeting, saving, and working on your credit. Preparing your credit a year in advance or more is a very good way to prepare for the home loan application process. Why? Your lender needs to see at least 12 months of on-time payments on ALL financial responsibilities prior to your applying for the home loan. Anything less than this can hurt your chances | more...

 
The Difference Between Homeowner's Insurance And Mortgage Insurance

FHA Loans For First-Time Borrowers: Debt Ratios

One area that is just as important as FICO scores and credit reports to first-time borrowers? The amount of debt versus the amount of monthly income. This is known as a debt-to-income ratio or debt ratio for short; this is just as crucial for a borrower as their FICO scores. Many borrowers already know this; they have spoken to a lender or a housing counselor, or they have done their research already and fully understand that if you have too much outgoing debt and not enough monthly income, your home loan chances are in jeopardy. But what is not as well-known? The fact that there are actually TWO debt ratios the lender will look at. Yes, there are two calculations and if you don’t anticipate the second one you may | more...

 
Can I Buy Investment Real Estate With An FHA Mortgage?

Fact And Fiction About FHA Home Loan Approval

First-time home buyers and experienced home owners alike may have misconceptions about what it means to get an FHA loan. Here are some of the most common facts and fictions about buying a house with an FHA loan. FHA Loan Fact: FHA Mortgages Have Lower Down Payments and Credit Score Requirements 3.5% down is all that is required for borrowers with qualifying FICO scores. FHA loan minimum standards are more forgiving that some conventional mortgages but you will need to see whether lender standards allow certain lower credit scores to get loan approval with a higher down payment. Lender standards apply in addition to FHA loan minimums. But the fact is, your lender has the ability to work with your FICO scores in many cases. FHA Loan Fiction: You Have | more...

 
First-Time Home Buyers and Finding A First Home

Do You Qualify For An FHA Mortgage As A First-Time Home Buyer?

Do you qualify for an FHA home loan as a first-time home buyer? There are several things you can check to see whether your credit and employment situations will allow a lender to justify approving your mortgage loan application. Buying real estate means making a major investment; potential borrowers who are not financially ready for this investment should take their time and prepare for it and commit when they are fully prepared. What does it take to get an FHA home loan approved? Stable Employment If you are considering applying for an FHA home loan without at least two years of work history, it may be a wise idea to consider delaying your application until you do have at least 24 months of work on your record. Anything less than | more...

 
5 Uses For An FHA Mortgage Loan

Which FHA Home Loan Do You Need?

First-time home buyers new to FHA home loans don’t always realize how many different FHA home loan options are available to them. You don’t have to buy a one-bedroom house in the suburbs; FHA mortgages are more flexible and offer many ways for you to find and buy a dream home. FHA Condo Loans Because of a long-time misconception held even today about FHA loans being need-based, having income caps, or intended only for low-income borrowers (none of those things actually apply to the FHA mortgage loan program) some are surprised to learn that there is such a thing as an FHA condo loan. Any qualified borrower (based on income, credit history, employment stability, and other financials) can apply for an FHA condo loan in a condominium project that meets | more...

 
FHA Home Loan Down Payment Rules: Cash To Close Sources

Different Types Of FHA Home Loans For First-Time Buyers

There are many different choices for home loans, and first-time home buyers should know their options before they decide on which loan to apply for. Do you know the difference between a rehab loan and a construction mortgage? Or a condo loan versus a mobile home loan? FHA One-Time Close Construction Mortgages These loans, also known as FHA Construction-to-Permanent loans, offer a single loan and closing date for borrowers who want to have a house built for them rather than buying an existing property. FHA construction loans can be more complex that loans for existing real estate but for many the additional effort is worth it to have a home that is built especially for them. First time home buyers can apply for these loans the same as any other | more...

 
How To Prepare Your Finances For A Home Loan

FHA Loans Versus Conventional Home Loans

If you are planning to look at real estate listings soon or use the help of a realtor to locate a new home, here are some questions to ask yourself about your new home loan; the answers will help you decide whether to pursue an FHA mortgage, a conventional loan, etc. FHA Mortgage Versus Conventional Home Loans: Compare Down Payments Make sure you know your FICO scores in advance of comparing down payment requirements since the amount of cash you will be required to put down is affected by credit scores when those scores are below a specific cutoff. There is more than one standard for FICO scores in this area-FHA loan minimums and lender requirements. Lender standards will apply no matter whether you are applying for FHA or conventional | more...