Articles Tagged With: FHA Loan Approval

January 2, 2024

FHA Refinance Options For 2024

Many expect home loan rates to start falling in 2024. Some potential FHA loan applicants want to know what kinds of refinance opportunities wait for them as the housing market recovery gets underway, however slowly. We explore some of the options below. FHA Refinance Loan Options You have multiple choices when it comes to FHA single-family home loan refinance options. They include FHA cash-out refinancing, FHA streamlines refinance loans, and no-cash-out FHA refinances loans. You can refinance an existing property with an FHA 203(k) rehab loan that lets you refinance and renovate simultaneously as an alternative option. Streamline Refinance Loan Option In Early 2024 Mortgage loan interest rates are too high at press time to consider using an FHA streamline refinance option. FHA streamline refi loans are for those who | more...

December 29, 2023

Home Buying Facts You Should Know

By Bruce Reichstein

Are you buying a home for the first time? Do you need answers to mortgage loan questions? You aren’t alone. We explore some important issues below. FHA Home Loans For First-Time Home Buyers Feature A Lower Down Payment Lower down payments mean more money freed up to pay closing costs and other expenses related to buying a home. But if you plan on keeping the home for a large portion of the loan term (or the entire loan term), a bigger down payment may be to your advantage. The smaller your principal loan amount, the less you will pay in interest over the lifetime of the loan. Home Loan Appraisals Should Not Be Used By The Borrower To Determine The Condition Of The Home Ask any realtor or lender what | more...

December 27, 2023

What To Ask A Lender When Shopping For A Mortgage in 2024

By Joe Wallace

First time home buyers often have plenty of questions to ask a lender. Below we examine some of the key issues to consider when you compare financial institutions. Shop Around For A Lender And The Right Loan Compare three lenders (more is better) and don’t shortchange yourself when you start the process of shopping around for the right lender. It’s better to take more time and find the right match for you. Remember, you don’t have to use your current lender even if you have other loans with them. Ask About FHA Loan Rates and Terms You want to know these long before you make offer on a house. You’ll want to get an early sense for how much your loan may cost so you can plan your loan. Ask | more...

December 22, 2023

FHA Loan Prep Versus Holiday Spending

By Joe Wallace

House hunters who want a home in the new year, have many financial issues to worry about. One seasonal issue is holiday spending, and if you overextend yourself in December it can lead to more than financial stress. Fortunately, there are things you can do to manage credit issues and keep them from being a liability at loan application time. Don’t Allow Missed Payments What makes a late or missed payment can vary depending on the creditor. Do you know the current due dates on your bills? Have you arranged to make a partial payment rather than miss the deadline if you can’t make the full payment? These are all steps that can help you get closer to a loan next year. Consider How You Pay In 2024 Paying with | more...

December 15, 2023

FHA Refinance Loans In 2024

By Bruce Reichstein

2023 was a tough year if you needed a refinance loan. Purchase loan interest rates and refinance loan rates saw the 8% range move into clear view in 2023. And that stopped some borrowers in their tracks, not wanting to refinance their home loan at a higher rate. Did it pay to hold off on a refinance in 2023? The short answer in this particular case is yes. Mortgage rates started moving lower in the final weeks of 2023, and financial pundits are hopeful that the new year will bring more recovery in mortgage rates suitable to tempt those interested in refinancing. October 2023 High Water Mark For Mortgage Rates? Rates began recovering from the October highs, recovering back down to numbers in 7% range. There are expectations of further | more...

December 12, 2023

FHA Home Loan Mistakes To Avoid

By Joe Wallace

Many people have checklists to help them shop for a home, apply for a mortgage loan, and close the deal. But is your house-hunting checklist really complete without adding a list of mistakes to avoid? Steer clear of these common errors some home buyers make, and you will save yourself time and money. FHA Loan Mistakes: Not Getting Pre-Approved For A Home Loan If you get pre-approved for a home loan, the seller of the property you decide to buy (or the real estate agent, or both) will know you are a serious buyer. Those who are in the window shopping phase of their home loan process aren’t take as seriously by a seller or RE agent, and in some cases not having pre-approval may exclude you from looking at | more...

December 8, 2023

Is The Housing Market Entering A Recovery Phase?

By Joe Wallace

After briefly approaching the 8% home loan interest rate range, sources (including real estate company Redfin and NBC.com) report December 2023 conditions might be an indication of a housing market recovery or turnaround. Both NBC and Redfin report home loan interest rates falling to just over the 7% mark after hitting 8% in October 2023. Rates had formerly not reached those highs over two decades. According to NBC News, “The interest rate on a 30-year fixed mortgage is down to 7.03%”, with mortgage applications up by roughly 15%. That after reaching major lows in the previous month. Housing Market Recovery Signs Home loan applications may rise in 2024. Consumers may feel freer to apply, based on a perception that things are improving. Another factor that could be informing higher application rates? | more...

December 5, 2023

How Long It Takes To Be Approved For A Mortgage

By Joe Wallace

Getting approved for a home loan can take a few weeks or months, depending on the borrower and the circumstances surrounding the loan. Receiving the FHA loan funds may take between four weeks and 90 days from start to finish, and there are milestones along the way, such as the appraisal process, which must be passed before loan funds can be released. Here is what you need to know about the time it takes to be approved for a mortgage. A Process With Multiple Stages Your FHA loan has more than one milestone to pass before you reach closing day and accept your keys. There’s the pre-approval stage, the appraisal, any required compliance inspections (where applicable) and getting the loan itself approved. Did you know your lender may check your | more...

December 4, 2023

Home Loans and Your Credit Scores

By Joe Wallace

FHA mortgages (including purchase loans, One-Time Close construction loans, and FHA condo loans) have more forgiving credit score requirements for loan approval than some conventional mortgages, but you still need to work on your credit at least 12 months ahead of your home loan application for best results. But some aren’t sure what scores to aspire to. Many finance blogs have varying advice on what to do about your FICO scores if they aren’t in the good or excellent range. But what do the major credit reporting agencies like TransUnion or Equifax say about “good” FICO scores? How do the bureaus interpret the numbers? Experian’s Good FICO Scores Experian notes, “To increase your odds of approval and qualify for a lower-rate mortgage, you should aim to have a credit score | more...

November 29, 2023

FHA Loan Limits For 2024

By Joe Wallace

In the last week of November 2023, new FHA loan limits were issued for 2024. Those new limits (see below) are for forward mortgages approved under the FHA Single Family Home Loan program. Higher FHA Loan Limits In 2024 FHA loan limits increase for a large number of applicants in 2024. HUD.gov says the limits will increase for most of the country, and a HUD press release says that FHA loan limits are increasing at least in part due to increases in property values in 2023. That’s according to Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. The changes to FHA loan limits are meant to help buyers to find affordable homes, “at a time when a lack of affordability threatens to shut well qualified borrowers out of | more...