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Articles Tagged With: FHA Lenders

FHA Home Loan

What To Know About FHA Loan Application Documents

There is documentation required to process your home loan application and knowing what you need to submit in advance will speed up your home loan application journey. Do you know what your home loan or refinance loan transaction requires of you? The lender requires tax documents, information about the sources of your down payment, access to your credit reports, and more. But there are rules about who provides these documents, and you’ll need to be aware of them when gathering your paperwork. FHA Loan Rules On Documentation Some of the information your lender needs comes from you personally. This includes your photo identification and proof of legal residence in the USA (which may be required where applicable). FHA loan rules say you do not have to be a citizen to | more...

 
Is your credit ready for an FHA loan?

First-Time Home Buyer Tools You Should Know

Are you buying a home for the first time? Are you buying a home after a long gap in home ownership? There are some consumer tools you should know about that can help you get closer to owning your dream home. Not all these tools are for the loan planning and saving stages. For example, when house hunting, if you find a home you want, do you know how much your monthly mortgage payment will be? You can use online mortgage calculators to help. But that’s a common mortgage tool–what about other options? Credit Issues Borrowers who need to work on their credit might be surprised to learn that they can repair their own credit AND get advice on improving credit on a do-it-yourself basis. Do you know the three | more...

 
FHA

Home Loan Rules New Buyers Should Know

Your participating lender will provide you with loan guidelines, including certain restrictions on the source of your down payment funds. Did you know that FHA loan rules forbid the seller of the home from contributing toward the borrower’s down payment? That is a very important rule a first-time homebuyer should know when thinking about applying for home loans. Seller Assistance With Closing Costs Your seller IS permitted to offer assistance with closing costs, and those funds will be applied to approved expenses related to your home loan. The seller is allowed to contribute up to six percent of the sale price of the home (this amount may be less for some mortgages, like VA loans) toward your closing costs. Incentives To Purchase? But the seller CANNOT provide money above and | more...

 
FHA Loan

Low Down Payment Home Loans

Many potential homeowners are intimidated by saving up for a down payment. But resources are available that make getting your down payment money together easier, including down payment grants and low down payment mortgages like the FHA home loan program. What do you need to know about low down payment loans? FHA Home Loan Down Payment Rules FHA loans only require a 3.5% down payment for borrowers who qualify with FICO scores of 580 or better (FHA standards; lender standards will also apply). Where Does Your Down Payment Money Come From? FHA loans allow you to pay your own down payment or receive help with a down payment grant or gift funds. FHA loan rules require the source of your down payment funds, including gift funds, to have proper sourcing, | more...

 
FHA loans

Home Loans: When To Get Pre-Approved

When should a house hunter choose to get pre-approved for a home loan? It’s a common question many borrowers ask. But this question can be confusing because some use the term “prequalify” interchangeably with “pre-approval”. But these two terms actually mean different things. Getting prequalified for a home loan is something you do early in the house-hunting stages. You are not ready to make any offers, but you want to let sellers know you are not window shopping. Prequalification means the borrower has filled out some basic paperwork with a lender while in house-hunting. It is not loan approval, and borrowers still, at this stage, have a ways to go before loan approval happens, including filling out basic loan application paperwork (not pre-qualification paperwork). Do You Always Need To Pre-Qualify? | more...

 
Do You Need Down Payment Help?

FHA Home Loan Down Payments

Most home buyers will make some form of down payment, with exceptions for those using VA mortgages with no money down for qualifying servicemembers, veterans, and surviving spouses. There is also no-money-down USDA loans, but these are need-based and have income caps. By comparison, FHA mortgages, with their low 3.5% down payment requirements, are attractive to many house hunters who want to save more money upfront on the mortgage. Do You Really Have To Put 20% Down? Some borrowers may hear stories of borrowers being required to pay 20% down. This would be true in cases where the home buyer wants to avoid mortgage insurance on a conventional mortgage. And while that is not the only down payment option offered in such cases the mere idea of paying 20% down | more...

 
Do You Need Down Payment Help?

FHA Home Loan Pre-Approval And Mortgage Loan Approval

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...

 
Construction Loan Advice For New Borrowers

Are You Ready For A Construction Loan in 2023?

You can use a One-Time Close construction loan to build a new home on your own land or land you buy in conjunction with the loan. This is a good option to think about if you want a house with designs you’ve approved instead of buying someone else’s house. Getting Your Loan Started Finding a participating FHA or VA lender, depending on the loan you choose is an integral part of the construction loan process. You should also know that construction loan mortgages require higher FICO scores and more time before move-in than a typical home purchase loan. But the end results are worth it. But just as important? Finding the right builder. One-Time Close loans don’t allow the borrower, builder, relatives of the buyer, etc . to act as | more...

 
FHA Fixed-Rate Mortgages Versus Adjustable Rate Mortgages

FHA Fixed-Rate Mortgages Versus Adjustable Rate Mortgages

What’s the difference between a fixed-rate mortgage and an adjustable-rate home loan? In 2023, you may find advantages in both types thanks to inflation and a recovering housing market. FHA single-family home loans come in a variety of types; both fixed-rate loans and those with adjustable rates. The rules for these loans, commonly referred to as FHA ARM loans, are spelled out in HUD 4000.1, the FHA Lender’s Handbook. Fixed rate home loans backed by the FHA are essentially what their name implies; a mortgage with a rate negotiated between the borrower and lender that does not change for the entire loan term. Borrowers who later want to apply for a lower rate can apply for FHA refinancing, including options such as the FHA Streamline Refinance loan program for FHA-to-FHA | more...

 
Home Loans For Building On Your Own Land

One-Time Close Construction Hints

One-Time Close (OTC) loans allow borrowers to build a house on their own lot instead of having to choose from existing properties. You can be a first-time home buyer and still be approved for a One-Time Close construction loan, also known as Single-Close loans or Single-Close construction mortgages. If you have never examined your options on the real estate market, it’s easy to assume you aren’t financially qualified for a construction loan. After all, that sounds like a very big undertaking, doesn’t it? Having a house built for you? That may sound like something that other people might qualify for, but the fact is that FHA and VA OTC loans have the same requirements as any other FHA or VA mortgage. These loans are designed to be more affordable, and that | more...