Articles Tagged With: FHA Loan Approval

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...

When Is An FHA Loan Better Than A Conventional Loan?

July 6, 2026

FHA Loans And Community Property States

By Bruce Reichstein

One of the most common questions we are asked about FHA mortgages involves state community property laws, non-borrowing spouses, and their credit issues. Does an FHA loan applicant have to include a non-borrowing spouse’s financial information when applying for an FHA mortgage? The answer depends on where the borrower resides and where the property is located. If either is in a community property state, the transaction may be affected because state law can make one spouse responsible for certain debts incurred by the other spouse. For FHA loan purposes, non-borrowing spouse debt generally means debt owed by a spouse that is not also owed by, or in the name of, the borrower. A spouse is not required to become a borrower or co-signer simply because the couple lives in a | more...

April 1, 2026

FHA Loan Options Are Available to Homebuyers?

By Bruce Reichstein

FHA loans remain one of the most popular mortgage options for homebuyers because they offer flexible qualification requirements and low down payment options. Many borrowers know about FHA purchase loans, but fewer realize that the Federal Housing Administration insures several different mortgage programs designed for a variety of financial situations. Whether you’re buying your first home, refinancing an existing mortgage, renovating a property, or accessing home equity, there may be an FHA loan option that meets your needs. Why Do Borrowers Choose FHA Loans? Many borrowers choose FHA financing because qualification requirements are often more flexible than those associated with some conventional loan programs. FHA loans also permit a down payment as low as 3.5% for borrowers who meet program requirements. Another advantage is that FHA allows borrowers to use | more...

If Your Home Was Damaged In A Federally Declared Disaster Area

January 2, 2026

FHA Loans For Your First Home Mortgage

By Bruce Reichstein

Why should first-time home buyers start thinking about their FHA refinance loan options sooner instead of later? It’s not because you are actively planning to refinance, but there are circumstances which may make you reconsider your refi loan options. As a millennial home buyer, first-time homeowner, or any other type of borrower, unforeseen events or situations may have you re-thinking your long-term financial plans. There are FHA refinance loan options for first-time home buyers and new homeowners, but some are more appropriate for certain needs than others. FHA Refinance Loans For Upgrades, Repairs, And Home Improvements If your home is damaged in a storm, you experience a fire or flood, or need to repair your roof, an FHA 203(k) rehabilitation loan is the refinance you should ask a participating FHA | more...

The FHA Loan That Helps You Build On Your Own Lot

January 1, 2026

FHA One-Time Close (OTC) Construction To Permanent Loan Limits Are Higher In 2026

By Bruce Reichstein

If you want to build a home from the ground up using an FHA One-Time Close Construction Loan, there’s good news for you in 2026. Your buying power has increased thanks to FHA loan limits published at the start of the new year. The Department of Housing and Urban Development issues updated FHA loan limits on an annual basis. The limits vary depending on whether the housing market in a given zip code is considered typical, high-cost, or low-cost. In 2026, the limits for all FHA forward mortgages (including FHA One-Time Close Construction Loans) increased in many areas across the USA. FHA loan limit calculations include a nationwide forward mortgage limit ‘floor’ and ‘ceiling’ for a one-unit property. If you want an FHA One-Time Close Construction Loan in 2026, the | more...

FHA Construction Loan Rule Changes In 2021

December 30, 2025

VA One-Time Close Construction Loans For Veterans in 2026

By Bruce Reichstein

What Is a VA One-Time Close Construction Loan? A VA One-Time Close (OTC) construction loan is a mortgage that finances both the construction of a home and the permanent VA loan in a single closing. Eligible veterans and active-duty service members can build a home with zero down payment, no monthly mortgage insurance, and one set of closing costs. Can Veterans Build a Home with a VA Loan? Yes. Veterans and active-duty military members can use a VA One-Time Close construction loan to build a new home instead of buying an existing one, as long as they meet VA eligibility and lender requirements and use a VA-approved builder. VA One-Time Close vs FHA One-Time Close VA One-Time Close / 0% down payment with full entitlement / No monthly mortgage insurance | more...

July 17, 2025

Buy Your First Home With An FHA Mortgage

By Joe Wallace

Do you want to purchase your first home? Borrowers looking for a starter home often turn to the FHA loan program because of its low 3.5% down payment requirement for borrowers with qualifying FICO scores. And thanks to protections for the borrower such as no penalty for early payoff of the loan and the ability to refinance the FHA mortgage into a new FHA loan that can result in a lower mortgage rate or monthly payment when using an FHA Streamline Refinance loan. Qualify For An FHA Mortgage What do you need to qualify for an FHA loan? For best results, at least two years in the job market and FICO scores that are in the 600s or better. FHA loan rules say you can technically qualify for an FHA | 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...

June 24, 2025

Comparing FHA Home Loan FICO Score Requirements

By Joe Wallace

If you’re thinking about buying your first home, you’ll want to consider your options carefully, compare lenders, and compare loan products. No two home loans are exactly alike, and many borrowers find that some mortgage loan options are better for their circumstances than others. We examine some of the similarities and differences between FHA loan FICO score requirements and other types of home loans. Is an FHA mortgage right for you? Or do you qualify for other options in addition to an FHA mortgage? True or false? Your credit score is usually the first thing lenders check when you’re buying your first home. True! Your credit score is often the first thing lenders check. This highlights the importance of your credit score in the initial stages of applying for a | more...