January 18, 2019

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Articles Tagged With: Credit History

Government First-Time Home Buyer Programs

Government First-Time Home Buyer Programs

Many first-time home buyers want to know if there are government programs for those who have never purchased a home before. FHA home loans often get included into this category and it’s true; FHA mortgages are good for those buying a first home. FHA loan limits have increased for two years in a row at the time of this writing, there are lower FHA FICO score requirements and lower down payment requirements for FHA loans that make them a good option to explore when shopping for your first home and your first real estate loan. But FHA mortgages are not specifically intended for first-time buyers. You do not have to be a new house hunter to apply. That said, FHA mortgages for a starter home, first home, or for a | more...

 
Buying A Home With An FHA Loan After A Short Sale

Buying A Home With An FHA Loan After A Short Sale

A short sale is essentially the sale of a home that is still being paid for, where the property sells for less than the amount owed. The lienholder(s) agree to write off the remainder and forgive the deficiency. Borrowers who sell short are often taking measures to avoid foreclosure on the mortgage, but not all of the short sale transactions that happen are on mortgages that have fallen into delinquency. Short sales happen in many circumstances but one common scenario involves a homeowner who is suffering from an underwater mortgage and is trying to cut their losses. Getting An FHA Loan After A Short Sale Is it possible to buy a home with an FHA mortgage loan after a short sale? The short answer is yes. Buying a home with | more...

 
FHA Loans Are Available In 2019

FHA Loans Are Available In 2019

Why do we announce that FHA loans are available in 2019? At the time of this writing, the government shutdown is still in effect, and many government websites including FHA.gov and HUD.gov (FHA.gov redirects to HUD.gov) have an announcement stating that the sites themselves are not open for business. Consider the quote from HUD.gov: “Due to the lapse in Congressional Appropriations for Fiscal Year 2019, the U.S. Department of Housing and Urban Development (HUD) is closed. HUD websites will not be updated until further notice. For more information, see HUD Contingency Plan for Possible Lapse in Appropriations. “ But that DOES NOT MEAN that FHA home loans are unavailable. FHA Forward Mortgage Purchase Loans Are Available In Spite Of The Government Shutdown FHA mortgages are generally processed and serviced by | more...

 
Getting A Mortgage With A Low Credit Score

Getting A Mortgage With A Low Credit Score

Lots of potential home owners want to know if it is possible to get a mortgage with a low credit score. The answer to this kind of question may surprise you, but much depends on both FHA loan rules AND participating lender standards. What do you need to know to get started looking for a home loan with a low credit score? Start Working On Credit Improvement Now What some borrowers don’t understand is that there are things you can do in the planning stages of your home loan journey to improve credit scores and they are steps you do not have to pay someone else to do for you. One of the first of these is to pull your credit report from the three major credit reporting agencies Equifax, | more...

 
Late Payments Can Hurt Your Home Loan Chances

Late Payments Can Hurt Your Home Loan Chances

When you apply for any kind of credit including an FHA home loan, the lender will check your payment history to see what kind of patterns are evident. Are you a responsible borrower? The lender wants to see indications that you are one. A Full Year Of On-Time Payments In general it’s recommended that house hunters come to the FHA loan process with 12 months of on-time payments on all financial obligations. A late or missed payment can require the lender to find reasons to justify the home loan, including making a determination that late or missed payments are not likely to happen be an ongoing problem. Borrowers sometimes make certain assumptions about their credit history that simply are not true. Some believe that if they do not report certain | more...

 
FHA Loan Down Payment Rules For 2019

FHA Home Loans For Families

FHA home loans for families offer advantages that go beyond the comparatively lower interest rates than for conventional loans (borrower financial qualifications will help determine the actual rate the applicant is able to get from the participating FHA lender). Those advantages are important to remember when comparing FHA loans to conventional equivalents or USDA and VA mortgage loans. What kinds of advantages? They include the ability to be considered for a second FHA mortgage later down the line if job or family requirements have the borrowers thinking they might be outgrowing their home or need to relocate to be closer to a new job. FHA Mortgage Loans Allow Financing And Seller Assistance For Certain Closing Costs Borrowers who need very low out-of-pocket expenses up front will be glad to learn | more...

 
Build Your Dream Home: FHA One-Time Close Construction Mortgages

Build Your Dream Home: FHA One-Time Close Construction Mortgages

FHA One-Time Close construction loans, also known as construction-to-permanent mortgages, are a way that borrowers who need a lower down payment and more flexible loan approval guidelines can apply for a home loan that allows the property to be built from scratch. One-Time Close loans, which are sometimes referred to as FHA OTC mortgages, require the borrower to qualify only once for both the construction portion and the mortgage loan. This type of FHA mortgage may vary more among participating lenders because of certain features of the loan including the type of property that can be built, and the loan approval process as it relates to getting construction permits for the project. Some Options Are Available With Some Lenders But Not Others: Shop Around! Your participating lender may not offer | more...

 
Rent Or Buy? FHA Loans Can Help You Own Your Home

Rent Or Buy? FHA Loans Can Help You Own Your Home

Is it wiser to rent or to buy your home? According to a  November 2018 National Apartment List Rent Report, rents are on their way up in a large number of cities nationwide. In areas where it makes just as much sense to make a mortgage payment as it does a monthly rental payment, borrowers should definitely explore their FHA home loan options. FHA Loans Can Help You To Stop Paying Rent Buying your home with an FHA mortgage means no more waiting for the landlord to repair crucial areas of the home. Home owners are free to schedule or make their own repairs or upgrades without having to wait for someone else to get around to scheduling those necessary appointments. Buying a home with an FHA mortgage means no | more...

 
Buying a First or Second Home With An FHA Mortgage

FHA Loan Approval And Your Credit Scores

What do you need to know about FHA loan approval and your credit scores? There are some important factors that can help you in the planning stages for your new mortgage loan. Don’t go into the mortgage application process without being armed with this information-you’ll be glad you know before you sign. FHA Minimum FICO Scores And Your FHA Lender FHA minimum FICO score requirements are not necessarily the same as your lender’s requirements. FHA Loan rules establish a minimum for credit scores (580 or higher for maximum financing) but your lender may require higher scores. An average is between 640 and 700, with scores between 640 and 680 being common requirements for the lowest down payment. FICO Score Requirements May Vary Depending On The Type Of FHA Loan Your | more...

 
FHA Loan Down Payment Rules For 2019

Don’t Apply For An FHA Home Loan And An Auto Loan At The Same Time

Plenty of websites, books, and financial podcasts warn about managing your credit properly during the home loan application process. One bit of advice from many of these sites? Don’t apply for a car loan at the same time or just before a home loan. Why? There are several reasons, one of the most important being that your debt-to-income ratio is negatively affected by any new line of credit and a home loan lender will be required to consider that when deciding whether or not to approve your mortgage loan. The minimum payment required each month on the car loan will be factored in with the rest of your debt, and if you significantly change your debt ratio during the home loan process-even if the loan is initially approved-it could affect | more...