February 25, 2020

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Articles Tagged With: FHA Loan Application

FHA Mortgages: Great For First-Time Borrowers In 2020

FHA Mortgages For First-Time Borrowers In 2020

What makes FHA home loans a great option for first-time home buyers? Anyone purchasing their first real estate, working with a realtor, and getting their credit ready for a home loan for the first time should know about the FHA mortgage program and it’s lower interest rates and flexible income requirements. FHA Loan Guidelines Are More Flexible It’s true that FHA mortgages require a borrower to have two years of employment history. But that history requirement does not have to be with a single company or employer.  Borrowers should know that some frequent job changes are acceptable to FHA lenders, but overall your employment record is reviewed on a case-by-case basis when necessary. You may want to explain any unusual job circumstances to a loan officer up front to see | more...

 
Build on your own lot. Construction loan basics

Build A House On Your Own Land With An FHA Mortgage

Some house hunters decide to stop looking at existing construction homes and start thinking about building a house for themselves from the ground up. Other people know from the start of their homeownership journey that they want to build and not buy an existing home. FHA home loan rules in HUD 4000.1 include guidelines for lenders who want to help these borrowers. The section of the rulebook titled “Building on Own Land” tells lenders how to proceed with a construction loan including maximum loan amounts, who can act as the general contractor on the project, and more. Are you interested in having a house built for you on your own lot? Not interested in having to choose from existing construction housing? Building on your own land may be the right | more...

 
Do You Need Down Payment Help?

Do You Need Down Payment Help?

Saving for your down payment early is a great idea, and doing so can be easier when you have a clear goal in mind. But how much IS that down payment and when should I start doing the math? Some people are intimidated by the idea of saving up for and making the down payment. Even those who are disciplined and used to cutting corners for a bigger goal can need some outside help to find the down payment money down needed to buy a home. FHA Loans = Lower Money Down FHA mortgages have lower down payment requirements than conventional loans, especially if you want to avoid Private Mortgage Insurance on a conventional mortgage (20% is usually required in such cases). State agencies and other entities operating at the | more...

 
Income Rules For FHA Loan Approval: What You Need To Know Today

FHA Purchase and Refinance Loan Interest Rate Trends And Your New Home

FHA home loans have a low minimum required down payment of 3.5%, which makes them perfect for both experienced homeowners and first-time homebuyers alike. With an FHA mortgage it’s possible to purchase or refinance a fixer-upper (with an FHA 203(k) rehab loan), buy or refinance a condo, mobile home, existing construction houses, and you can even apply to have a home built for you on your own lot with an FHA One-Time Close construction loan. As we head into the second month of 2020, we are reminded that 2019 was the best year for mortgage loan interest rates in almost a decade and the trends that kept rates low last year continue to exert some influence as new issues also conspire to push mortgage rates lower. At least in the | more...

 
Build on your own land FHA One Time Close Construction Loan

Build On Your Own Land: The FHA One-Time Close Construction Loan

The FHA One-Time Close construction loan allows a borrower to build a home from the ground up, including loan applicants who want to build on their own land with an FHA construction loan. What do borrowers need to know about the FHA One-Time Close loan? To begin, this type of FHA home loan is available to all qualified borrowers who want to build approved properties; the first-time home buyer is just as welcome to apply for an FHA construction loan as an experienced borrower. For this type of loan, the time you would spend house hunting will be spent contracting with a builder (who must be a licensed general contractor), working with floor plans, and planning the construction of the home rather than going out to search for an existing | more...

 
How to Get A Loan Estimate

You Are Not Ready For An FHA Home Loan If…

How do you know you are truly ready for a home loan? There are many things to consider, including your finances, credit, and employment history. But there are other factors, too. You Are Not Ready For An FHA Mortgage If You Don’t Know How Much You Can Afford To Pay Each Month Do you know how much you can afford in a monthly mortgage payment? Don’t forget that calculating your payment isn’t as simple as doing the math on the sale price of the home compared to the length of the mortgage plus interest. You will also have to figure in property taxes, any applicable homeowners or condo owners association fees, mortgage insurance premiums, and other factors. Do not overlook these expenses when doing the mortgage math! You Are Not | more...

 
FHA Loans And Your Credit Report

Can I Buy Investment Real Estate With An FHA Mortgage?

This is a question on the minds of many and the issue definitely has some nuances. The FHA lender’s handbook HUD 4000.1 states “Investment Properties are not eligible for FHA insurance.” But what is the FHA definition of an investment property and how flexible are these guidelines? To understand what constitutes an investment property, we have to examine what the FHA considers as an acceptable purchase and what is considered an investment property. FHA mortgages are intended for owner-occupiers. At least one borrower obligated on the mortgage must live in the home as the principal residence. FHA loan rules require this to happen “within a reasonable time” after the loan closes and that time is often considered 60 days unless other arrangements are made. FHA loan rules do permit, if | more...

 
FHA Home Loan Rules For Verifying Your Credit History

Protect Yourself When Shopping For A New Home

A recently published report about home loans and credit checks advises, “Do not allow a credit pull by a lender you don’t know, especially if the offer is unsolicited”. This advice leads to a few other questions about the home loan process; how do you protect yourself against identity theft, fraud, scams, and unscrupulous vendors when you are trying to buy a home with an FHA mortgage? Consider Your Recent Activities When Shopping For A Home Loan What does this mean? When you want to buy a home with an FHA mortgage or any other kind of loan, consider that you may be signing up for accounts on real estate sites or other online resources and that you don’t always know what might become of your personal data with third | more...

 
Will FHA Mortgage Loan Interest Rates Drop Even More?

Why Do People Choose FHA Mortgages Instead Of USDA Home Loans?

Why do some borrowers choose FHA home loans instead of the no-money-down USDA home loan? There are several reasons why an FHA mortgage might be the better choice depending on circumstances. USDA Mortgages Versus FHA Home Loans: Down Payment Requirements USDA loans do offer an advantage to eligible borrowers with a zero down payment requirement. USDA loan rules state that in some cases, borrowers who have assets higher than the USDA limit “…may be required to use a portion of those assets”. FHA home loans require a minimum down payment of 3.5% of the adjusted value of the home. The down payment requirement may be higher if there are other factors to consider including a non-occupying co-borrower (depending on circumstances), FICO scores that are lower than the limit for maximum | more...

 
Top Tips For FHA One-Time Close Mortgages

Are You Ready To Buy A Home With An FHA Mortgage?

Are you ready to buy a home with an FHA mortgage? There are ways to tell how close you are to being ready to start house hunting and move out of the planning stages of your new home loan. Do You Know Your FHA Loan Limit? The FHA home loan limit varies depending on the housing market; some areas are more expensive than others and have a higher loan limit, others are “average” and conform to the median FHA loan limit nationwide. Some housing markets may be less expensive than others and feature a lower FHA loan limit, but the only way to tell is to either ask a lender what FHA mortgage loan limits are like or look the limits up for your area. Remember that FHA loan limits | more...