Articles Tagged With: FHA Home Loan

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

June 15, 2023

FHA Loans and Interest Rates: The Interest Rate Lock

Under the rules of the FHA loan program, borrowers and lenders negotiate together on interest rates for the FHA loan. Part of those negotiations is the interest rate lock agreement. This can feel intimidating for some who aren’t used to the home-buying process, but it’s a common part of the home loan transaction. What do you need to know about FHA home loan rates and getting a rate lock commitment from your lender? The FHA does not set interest rates, and it’s also not responsible for regulating them aside from a general requirement that the rates be comparable to similar types of loans. Interest rates on mortgages and other high-value transactions are under more scrutiny in 2023 due to continued elevated mortgage rates. At the moment, it’s good to explore | more...

June 12, 2023

Is Summer The Best Time For House Hunting?

By Joe Wallace

When is the best time of year to search for your new home? Spring and summer are the most comfortable times to look, but those who put up with a little inconvenience from the cold and late-year inclement weather may save more than they realized thanks to a more eager seller. It always pays to look for a home when the buying season is in full swing, but you may have more options than you think by extending your house hunt into fall and winter if necessary. Buying A House During House Hunting Season (Spring and Summer) Yes, the weather is better, potential buyers can take a leisurely look around the property, and the overall experience may be more pleasant. But there is more competition for homes in the good | more...

June 2, 2023

FHA Home Loan Pre-Approval And Mortgage Loan Approval

By Bruce Reichstein

If you are considering an FHA home loan it is a smart idea to get pre-approved for a home loan before you start 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 | more...

May 30, 2023

FHA Home Loan Down Payment Rules in 2023

By Joe Wallace

What must you know about the down payment requirement for an FHA mortgage? FHA home loans have specific rules about the amount of your down payment and where it can come from. Knowing the down payment rules before you start saving for your home loan may make the entire process more efficient, especially if you know you’re required to give the lender the sources of your down payment money and document it accordingly. FHA Loan Rules: Down Payments Are Different From Other FHA Loan Costs Some want to know if their down payment requirement can include the money they pay toward closing costs, lender fees, or earnest money. But such costs do not count as part of your down payment amount; you must provide funds for your entire down payment | more...

May 25, 2023

Do FHA Loan Payments Increase Over Time?

By Joe Wallace

Could the monthly amount due on an FHA mortgage increase over time? If you want a fixed-rate mortgage, that may seem like a silly question. After all, isn’t the idea behind a fixed-rate home loan to provide predictability and stability in the payments? The short answer is yes, but there are still factors that could change the total amount of mortgage-related expenses over time. Depending on circumstances, the amount you owe each month may change depending on variables such as changes in your insurance, property taxes, and homeowner’s association fees. Adjustable Rate Mortgages Your monthly mortgage payment will change if you have an Adjustable Rate Mortgage or ARM loan. An ARM loan features an introductory period with a (typically lower) “teaser” rate, but once that introductory period ends? The home | more...

April 20, 2023

Five Things You Should Know About FHA Mortgages

By Joe Wallace

Many people still have misconceptions about the FHA home loan program. They might think they “earn too much money” to be a successful applicant (not true, FHA home loans are not need-based loans) or would not qualify because they want to build a home instead of buying an existing-construction house. This is also not true; FHA loans include those for building a home instead of buying one. They are called One-Time Close construction loans, and feature the same FHA FICO score and down payment requirements as other FHA mortgage options. What are the facts about FHA home loans you need to know to make a better-informed decision about your loan choices? FHA Loan Fact: FHA Mortgages Are For Any Financially Qualified Borrower Unlike the USDA home loan program, which DOES | more...

FHA Mortgage Rates and Refinance Options

April 19, 2023

FHA Home Loan Pre-Approval: Issues To Consider

By Joe Wallace

Getting mortgage pre-approval is an important step in the home buyer journey. It indicates to the seller and a lender that you are serious about your home loan and ready to commit to the right property and price. So what should you know about mortgage pre-approval before you apply? Before you start filling out the forms to get pre-approved, there are some basic questions to ask yourself. Getting pre-approved for an FHA home loan means asking yourself how good your credit score is and how high your credit card balances are. It also means looking at your savings and how much you will need to come up with to meet FHA minimum downpayment requirements. It’s best to start asking these questions far in advance of your home loan so that | more...

April 12, 2023

Preparing For Your FHA Home Loan Application

By Joe Wallace

Do you want to buy a house with an FHA mortgage loan? Don’t forget some important steps to take long before you fill out an application (see below.) Some borrowers don’t realize the planning stage for a home loan can be lengthy; you’ll need to save money for expenses above and beyond your down payment. And you’ll also need to work on your credit before applying for the mortgage. Borrowers should not consider applying for a home loan until they know three basic things-their FICO scores, how much down payment might be required on the home, and how much loan the borrower can afford. FICO Scores: A Great Place To Start The FICO score issue is the first one to tackle. Your lender won’t be able to work with you | more...

March 29, 2023

Watching Your Credit Before Applying For Your Home Loan

By Joe Wallace

If you are not monitoring your credit ahead of a credit application, especially a big one like an FHA mortgage or FHA refinance loan, you likely are not ready to apply for that credit. You want to know what’s in your credit reports along with your FICO scores, and you need to review the accuracy of your credit report before the lender sees it. Some believe this can be done by pulling annual credit reports. That snapshot of your credit picture isn’t necessarily what your loan officer will be reviewing at loan application time. The lender will see the most current data available to them, and it’s not wise to leave things to chance when applying for a home loan. Credit Monitoring Can Help Credit monitoring is an important tool | more...

what is mortgage insurance and how does it work?

March 22, 2023

FHA Loan Terms Defined

By Joe Wallace

If you are new to the home loan process, there are some vocabulary terms you’ll want to know as you start to plan and save for your FHA home loan in 2023. It pays to do your homework ahead of time in a housing market like the one we’re experiencing now. Every advantage helps. As you start to research your mortgage options and talk to industry professionals, you’ll likely hear or read some technical terms that may be confusing..at first. The farther you get in the home loan process, the more these new terms will become clear and make sense. Here are some terms you will likely learn more about in the coming months. Comparables You may not experience this loan jargon in the earlier part of the home loan | more...