October 26, 2021

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Articles Tagged With: Credit History

FHA Loan Approval: Credit Check Facts

Credit Scores For An FHA Home Loan: When Low Credit Is Not Bad Credit

Are you worried about your credit scores for an FHA home loan? When is a low credit score a reflection of bad credit behavior? FHA home loan rules specify that the lender must ensure a borrower as a 500 FICO score at the very minimum in order to qualify for an FHA mortgage, but your credit score numbers don’t tell the whole story. It’s true that FHA loan rule minimums for FICO scores do not always reflect the participating lender’s credit score requirements; borrowers are technically eligible for an FHA mortgage with the lowest possible down payment if they are applying with FICO scores at 580 or higher. The lender may require a credit score of 620 or higher for the same applicants. But your FICO scores only make up | more...

 
Will FHA Mortgage Loan Interest Rates Drop Even More?

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...

 
FHA Home Loan Resources

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...

 
New FHA Home Loan Guidelines Announced

FHA Loan Guidelines For Verifying Your Credit History

FHA loan rules have a lot to say about what the lender needs to look for to verify a potential FHA borrower’s creditworthiness. No matter if you are looking for a condo loan, a mobile home loan, or you want to build a house on your own land with an FHA construction loan, the requirements in the FHA Lender’s Handbook are identical. There are minimum FICO score requirements, instructions to the lender for reviewing the borrower’s record on-time payments (12 months of reliable payments on all financial obligations is strongly recommended), and much more. One area that is also covered in HUD 4000.1 is what the lender should do if collections are included in the borrower’s credit history. The presence of a collection action on a loan applicant’s record may | more...

 
Four Things to Remember About Home Loans and Credit Scores

What You Need To Know About FHA Home Loan Credit Checks

What do first-time home buyers need to understand about the credit check process for getting an FHA mortgage? There are many variables but one thing you can do to get a better understanding of what it takes to be approved for a loan is to start trying to think like a loan officer–their job depends on making sure that you are a good credit risk. How can you help the lender help you? What you don’t know can hurt you in the journey toward buying that first piece of real estate. Before you begin working with a realtor, you should know several things about the credit check process. Credit is a major part of home loan approval and you want to be able to convince your lender you are ready | more...

 
FHA Loan

Have You Checked Your Credit Score Lately?

When was the last time you checked your credit score? If you are thinking about applying for ANY line of credit (but especially home loans) you will want to be looking at your credit reports on a regular basis. There are good reasons to monitor your credit and keep track of updates to your report. What kind of reasons? Human error, for one. If your credit report has mistakes like an outdated home address, incorrect spellings of your name or addresses, or other problems those errors could make trouble for you later on. But errors aren’t the only issue to keep an eye on. Credit scores help determine your interest rate on a home loan, and they also help determine what size of down payment you may be required to | more...

 
FHA Condo Loan Basics You Should Know

What Can Kill An FHA Home Loan?

Those who want a home loan have to prepare for the new loan application in several ways–financially, through saving up for the down payment and closing costs, and with credit prep. That can mean working on your record of on-time payments, lowering your overall debt amounts, and avoiding new credit in the meantime. When applying for any large line of credit, there are some things that can stop your loan dead in its tracks. If you want a home loan and are worried about being approved for a home loan, add these issues to your mental not-to-do checklist and make sure you know how to avoid them. Avoid New Debt Your lender pulls your credit when you apply for your home loan–most people know that. But not as many know | more...

 
Buying a House

FHA Loan Approval: Credit Scores Are Just One Factor

Some house hunters worry that they don’t have credit scores good enough to qualify for the mortgage. But it’s easy to lose sight of the fact that FICO scores are not the single determining factor in home loan approval. There Are THREE Important Factors Some FHA loan applicants come to the process knowing that both FICO scores and your record of on-time payments are crucial for loan approval. But even this is an incomplete picture of what your lender is after when trying to approve your home loan application. By this point in our article, you are likely getting the hint that there is indeed a third factor that counts when applying for a mortgage loan, and that factor is your debt-to-income ratio. The participating FHA lender’s job is to | more...

 
Buying a House In the Era of COVID-19

Getting Credit Approved For A Home Loan

A lot of people don’t know how to approach a home loan–what does the average borrower need to know about your lender’s credit approval for a home loan? The things you should know that will help you understand the home loan process better have a lot to do with what the lender is required to do in order to declare you a good credit risk. For some future home owners, getting to “yes” for a home loan seems like a mystery; take some of the guesswork out of the home loan process by learning a few things about what the lender is required to do with your financial information. The first thing to know about getting a home loan approved? Perfect credit is NOT to be considered for an FHA | more...

 

FHA One Time Close Construction Loans Versus FHA Rehabilitation Mortgages

There are FHA home loans you can apply for that allow you to build or renovate existing construction. One type of home loan–one that lets you build instead of buying existing construction–is the FHA One-Time Close (OTC) construction loan. An alternative, known as the FHA 203(k) Rehabilitation mortgage and it is used to repair or renovate a home. One-Time Close construction loans and FHA 203(k) Rehab loans are similar–these two loans need approved builders to do the work, and they both require a minimum down payment unless you choose a VA or USDA OTC loan instead. One-Time Close Down Payment Rules FHA One-Time Close loans have a 3.5% down requirement for those with FICO scores within the qualifying range. Borrowers with lower credit scores may be required to put 10% | more...