Articles Tagged With: FHA Home Loans

September 26, 2018

FHA Loans And Your Credit Report: Check Ahead Of Time

It’s generally advised for borrowers to check their credit reports a year ahead of time before applying for a home loan. One of the reasons for the early start has to do with the amount of time it could take to dispute items on your report; outdated information, errors, evidence of stolen identity, etc. But when you are pulling your credit report, what should you be looking for? There are plenty of items you should compile a credit report checklist and include in that list. Check The Basics Before Applying For Your FHA Mortgage Or Refinance Loan The first thing to do when pulling your credit report is to make sure all of your vital information is accurate. Your name should be correctly spelled, your Social Security Number should be | more...

September 18, 2018

FHA Home Loan Rules For Sellers

By Joe Wallace

Much of our discussion here about FHA home loans is focused on the buyer; what the FHA borrower can and cannot do with an FHA mortgage or refinance loan, how occupancy rules may dictate whether a home loan is approved or not, etc. But there are some FHA mortgage loan rules that affect the seller, too. Not all the FHA loan guidelines concentrate on the lender or borrower. For example, the seller is allowed to contribute a certain amount of money toward the costs of the home loan, but those contributions cannot exceed FHA and lender limits. If the seller’s contribution DOES exceed the limit, the borrower’s loan must be reduced dollar-for-dollar for the full amount above the FHA limit. There is a list of things that can result in | more...

August 22, 2018

Choosing The Right Options For Your FHA Mortgage

By Bruce Reichstein

Which options should you choose for your FHA mortgage? There are some things that are not required to be done in connection with your home loan which SHOULD be done, and there are choices to make that have more to do with the borrower’s financial needs and goals. Making the right choices means making informed decisions about whether to commit to things like a home inspection, financing your Up Front Mortgage Insurance Premium, or entering into a mortgage rate lock commitment with your lender. FHA Loan Options That Shouldn’t Be Considered Optional By The Borrower There are two very important aspects of home loans that are technically optional but have the power to affect your home loan experience in very crucial ways. One is the home inspection-a procedure arranged and | more...

July 12, 2018

FHA Mortgage Loan Closing Day Tips

By Bruce Reichstein

Need some tips to help you navigate your closing date for your FHA home loan? There are some important things to do and things NOT to do on closing day. When your sale is final the seller or the real estate agent will give you the keys to your new home, but before you can get your hands on those keys, some important things must happen. Read All Home Loan Closing Documents Carefully FHA mortgage loans, like all other home loans, feature initial estimates of expenses and payments; the final numbers should be represented accurately at closing time and should not be estimates. If the numbers you were expecting don’t line up with what is in the closing documents, don’t let it go-ask for clarification. Don’t sign incomplete mortgage closing | more...

July 5, 2018

Cash To Close An FHA Home Loan: What You Need To Know

By Joe Wallace

What kind of cash to close do borrowers need with an FHA mortgage loan? The amount and nature of the cash to close the FHA loan will vary depending on several factors including the amount of your down payment, whether you have financed the Up Front Mortgage Insurance Premium or not, etc. FHA Loans Cash To Close: Your Down Payment For new purchase home loans, FHA loans cash requirements to close the deal will include the minimum 3.5% down payment for borrowers who qualify for that lowest down payment with FICO scores that meet both FHA minimums and lender requirements. 10% down is required for borrowers with FICO scores that don’t fall into the ranges specified by FHA loan rules and lender standards. But the exact amount of cash needed | more...

June 21, 2018

FHA Home Loan House Hunting Checklist

By Joe Wallace

Do you want to buy a new home? An FHA home loan, with its’ low down payment requirements for qualified borrowers is definitely an option to consider. With a low 3.5% down payment for qualified borrowers AND the ability to use approved down payment assistance and/or gift funds for potentially no money out of pocket for a down payment, FHA mortgages can have a lot of appeal. The house hunting process is an important part of any loan. When you are in the planning stages for your FHA mortgage, there are some big issues to consider before you launch into your search for the perfect home. Those issues can be covered by a checklist you can make and plan with, even house hunt with; when making your house hunting checklist, | more...

Four Reasons You Need A Home Inspection After The FHA Appraisal

June 18, 2018

FHA Loans: What Does It Mean To Be A First-Time Home Buyer?

By Joe Wallace

What does it mean to be a first-time home buyer when applying for an FHA home loan? Many borrowers want to know if there is an advantage to applying for an FHA mortgage if they have never borrower money for a home before. What is the reality? The FHA loan program itself does not give advantages to the first-time home buyer, nor does it penalize someone who has owned a home before. All financially qualified applicants are able to get an FHA loan even if they have purchased a home before. That does NOT mean first-time home buyers won’t get offered incentives from a participating FHA lender, but those incentives are offered by the lender and not via the FHA home loan program itself. Borrowers who are first-time home buyers | more...

June 15, 2018

HUD Settles Housing Discrimination Complaint Against San Francisco Real Estate Companies

By Bruce Reichstein

There are many types of housing discrimination; some occurs when a house hunter is searching for a home, trying to rent in the local area and encountering violations of the Fair Housing Act while trying to do so. Other types of housing discrimination can occur in the house hunting process itself. Housing discrimination may come from a variety of sources; including, in the case of a recent HUD Fair Housing settlement, real estate firms. The HUD official site announced a settlement in June in the case of two San Francisco-based real estate companies accused of Fair Housing Act violations. HUD approved “a Voluntary Compliance/Conciliation Agreement settling a complaint filed by a family whose infant has a disability against San Francisco, California-based John Stewart Company and Hunters Point East West, LP.” | more...

Will I Be Approved For An FHA Mortgage Loan?

June 14, 2018

Can I Use My GI Bill Housing Allowance For An FHA Home Loan?

By Bruce Reichstein

Military borrowers who are considering an FHA home loan may wonder if they are permitted to use their Post 9/11 GI Bill housing stipend as part of their qualifying income for an FHA mortgage. FHA loan rules found in HUD 4000.1 require the lender to verify all sources of income for the borrower; verifiable income that qualifies may be counted in the borrower’s debt-to-income ratio. This process is important because if a borrower’s debts exceed a certain ratio compared to the amount of income, it may be harder for the lender to justify approving the FHA mortgage. So it makes sense that a borrower who qualifies for Post 9/11 GI Bill benefits or Forever GI Bill benefits might want to have their housing stipend included in the income they submit | more...

May 22, 2018

Is U.S. Citizenship Required For An FHA One-Time Close Construction Loan?

By Bruce Reichstein

Is United States citizenship required for an FHA One-Time Close / Single-Close construction loan? This issue does not affect all potential FHA borrowers, but it’s a very important one to address, especially given controversy in the news over a variety of societal concerns. Before we get to the specifics of whether or not citizenship is required for an FHA One-Time Close / Single-Close mortgage or ANY type of FHA home loan, refinance loan, or FHA reverse mortgage, it must be noted that FHA home loans are approved on the basis of a borrower’s ability to financially qualify and afford the mortgage. The borrower must be able to legally commit to binding agreements including the loan contract itself, and be of sufficient legal age in the state the transaction is to | more...