Articles Tagged With: FHA Loan Application

Build on your own lot. Construction loan basics

July 30, 2026

Build A House On Your Own Land With An FHA Mortgage

Some house hunters eventually stop looking at existing homes and start thinking about building one from the ground up. Others know from the beginning of their homeownership search that they want to build rather than buy. FHA loan rules include guidelines for lenders who want to help these borrowers get financing. The section of the rulebook covering this option is titled “Building on Own Land,” and it tells lenders how to proceed with this type of loan, including maximum loan amounts, who can act as the general contractor, and other requirements borrowers should know about before they start planning. Are you interested in having a house built for you on land you already own, rather than choosing from existing construction? Building on your own land may be the right move, | more...

July 22, 2026

FHA Loans And Surplus Land

By Bruce Reichstein

What do FHA loan rules say about surplus and excess land? For someone shopping for a condo unit, this issue typically won’t come up. But for buyers considering homes in rural areas or on larger lots, excess or surplus land can become an important detail once the appraisal is ordered. FHA guidelines address appraisals where surplus land or excess land may be present, and while the guidance is brief, it outlines what borrowers and appraisers can expect in these situations. The central question FHA rules focus on is how the extra land affects the appraised value of the property, and ultimately, how much of that land the lender can count toward the home’s value for mortgage purposes. What Is The FHA Definition Of Surplus Or Excess Land? FHA guidelines define | more...

July 1, 2026

FHA Home Loan Rules For Salary, Hourly, Part-Time Income

By Bruce Reichstein

Not every home loan applicant has the same type of employment, compensation, or schedule of compensation. That’s why FHA home loan rules include different instructions to the lender for a diverse range of income sources. FHA Loan Rules For “Primary Income” FHA loan rules have sections for hourly income, salary, and part-time income. The section that includes these guidelines states that the lender is responsible for examining earnings from the home loan applicant’s “primary employment” and defines it as follows: “Primary Employment is the Borrower’s principal employment, unless the income falls within a specific category identified below. Primary employment is generally full-time employment and may be either salaried or hourly.” “Current Pay” Versus “Projected Pay” According to FHA loan rules, applicants who earn a salary will generally have their current | more...

January 12, 2026

FHA Loan Rules: Title Issues For Non-Borrowing Co-Owners and Spouses

By Bruce Reichstein

FHA Loan Rules: Title Issues for Non-Borrowing Co-Owners FHA loan transactions do not always involve every property owner being a borrower on the mortgage. In many cases, two or more people may hold ownership interest (be on title) to a property purchased with an FHA-insured loan, even though only one of those individuals applies for and qualifies for the mortgage itself. FHA policy allows for these arrangements, provided certain conditions are met. Non-Borrowing Owners and the FHA Mortgage Note Under current FHA guidelines, if two or more parties have an ownership interest in a property but only one party applies for and independently qualifies for the FHA loan, the non-borrowing owner is not required to sign the mortgage Note. The borrower who applies for the FHA loan is the only | more...

June 25, 2025

FHA Loans: Credit Score Tips

By Joe Wallace

What is a good FHA loan credit score? In general, the obvious advice is to try to come to the home loan process with as high a FICO score as possible for best results. But not everyone has the advantage of an Excellent credit rating. What do future homeowners need to know about FHA loan requirements and their credit score? First, you should know that no two lenders are exactly alike, and it is a bad idea to assume you will get the same results from all of them. Don’t assume you can’t qualify for a loan–have a loan officer help you determine what kind of mortgage is right for you. FHA Credit Score Tip: Shop Around Why do we say “shop around” regarding FICO scores and FHA loans? Borrowers | more...

February 28, 2025

What Kind Of House Can I Buy With An FHA Mortgage?

By Joe Wallace

What kinds of homes can be purchased with an FHA mortgage loan? You can build a home from scratch using an FHA Construction mortgage, but may people want to buy existing property and what kinds. Eligible Property Types For FHA Mortgages FHA loan rules in HUD 4000.1 state clearly that certain kinds of property are permitted and certain kinds are not. These rules on eligible property types that can be purchased with an FHA mortgage loan are found in HUD 4000.1, and include the following guidance you should know: FHA programs “differ from one another primarily in terms of what types of Properties and financing are eligible. Except as otherwise stated in this SF Handbook, FHAs Single Family programs are limited to one- to four-family Properties that are owner-occupied Principal | more...

February 20, 2025

Why You Should Consider A Limited 203(k) Rehab Loan

By Bruce Reichstein

Do you want to buy or refinance a fixer-upper home? The FHA 203(k) Rehabilitation loan and the FHA 203(k) Rehabilitation Refinance loan can help if you would rather buy a fixer-upper or renovate an existing home you’re living in as your primary residence. You don’t have to buy a property to use the FHA 203(k) rehab loan; you can use it to refinance your current home and get money to accomplish FHA and lender-approved improvements or other projects associated with remodeling or renovation. That said, not every borrower needs to fully refinance a home to repair or improve it. Are you thinking of smaller projects that don’t require a huge sum of money? The Limited 203(k) Rehab loan lets you accomplish smaller projects without committing to a full refinance or | more...

August 8, 2024

Is There A Time Limit On FHA Loan Applications?

By Joe Wallace

When FHA loan applicants work on getting a mortgage and closing the deal, sometimes things don’t always go as smoothly or as quickly as planned. In cases where there is a delay for some reason, do FHA loan rules include built-in time limits on how long a borrower and seller can go between loan approval and closing? While a casual glance at the FHA loan rules may not turn up a specific rule that says “FHA loans must be closed in X number of days,” there are several requirements that add up to the need to get an FHA loan accomplished in a timely manner. One is the length of your interest rate lock-in period. Once it expires, you and the lender may need to renegotiate the rate, so it’s | more...

July 24, 2024

Budgeting And Saving For Your First FHA Mortgage

By Bruce Reichstein

When you decide to commit to buying a home or building one from the ground up using a one-time close construction loan, there are expenses you will need to save up for. If you haven’t started making a checklist of items you will need to pay for up front or choose to include in the loan amount, it’s a good idea to start making one as early as possible. Saving for your loan means identifying the expenses you will pay such as closing costs, appraisal fees, the home inspection fee, the FHA Up-Front Mortgage Insurance Premium, and of course the down payment. The down payment, which is a minimum of 3.5% of the adjusted value of the home, is one of the biggest expenses. That is one reason why it’s | more...

May 24, 2024

Commonly Asked Questions About Applying For An FHA Home Loan

By Joe Wallace

Are you ready to stop renting and start owning your own home? The FHA home loan program was designed to help borrowers get into affordable homes with a low down payment requirement. FHA loan rules feature more forgiving FICO score standards (lender standards will also apply), and first-time home buyers should know there are down payment assistance programs in many states that can help. What sort of questions are common for FHA home loans? Read below to learn some important details every new borrower should keep in mind. How Long Does It Take To Save And Prepare For A Mortgage Application? Start planning as early as possible. It’s good to give yourself a year or more to review your credit reports, start monitoring your credit, and work on getting your | more...