January 24, 2022

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Articles Tagged With: FHA Loan

Planning To Buy A Home? Credit Resources You Need

Home Loan Myths: 20 Percent Down Payments

Why do people still believe you MUST make a 20% downpayment on a home loan? Like other persistent home loan myths (including the one that holds that FHA mortgages are ONLY for first-time homebuyers), the 20% issue has been passed along to unsuspecting first-time home buyers for decades. What is the reality? FHA mortgages require 3.5% down at a minimum. That’s for borrowers who financially qualify with FHA and lender credit score requirements.  FHA loan rules in HUD 4000.1, the FHA Single-Family Lender’s Handbook, says that 580 or better is the FHA standard.  You will need to ask the lender you choose whether there are higher FICO score requirements with that financial institution. (There often are.) With conventional mortgages, 20% down is typically required for borrowers who want to avoid | more...

 
Bad Credit Home Loans

Buying A Home: Credit Questions And More

There are plenty of questions first-time buyers ask about home loans and the credit requirements you need to get the best deal on your FHA mortgage. Here are some common questions you should know the answers to: I Have Multiple Credit Scores. Which One Gets Used? One of the more potentially confusing things to a new borrower? FICO scores. Most consumers will have three FICO scores, they may not match, and the lender may choose your middle score as “the one”. In cases where you only have two FICO scores, the lower one may be used. If you worry about FICO scores, be sure to take early steps to raise the score before applying for the loan. Start as early as possible and work on raising your scores by paying | more...

 
HUD

FHA And HUD Announce Disaster Relief For Arkansas and Colorado

The U.S. Department of Housing and Urban Development has announced federal disaster relief for portions of Arkansas and Colorado affected by natural disasters. In the case of the Arkansas declaration, the following counties are eligible for relief thanks to a Presidential major disaster area declaration: Craighead Jackson Mississippi Poinsett Woodruff These counties were hit by severe storms and tornadoes in December 2021. For the Colorado declaration, Boulder County has been declared a major disaster area due to wildfires that began in late December 2021 and into 2022. The declaration also means that FEMA funding is provided to the affected areas “on a cost-sharing basis for hazard mitigation measures”. If you live in any of the affected counties mentioned here, the following disaster relief options are available to you: Immediate Foreclosure | more...

 
what is mortgage insurance and how does it work?

FHA Loan Terms Defined

If you are new to the home loan process in 2022, there are some vocabulary terms you’ll want to know as you start to plan and save for your FHA home loan. As you start to research your mortgage options and talk to industry professionals, you’ll likely hear or read some technical terms that may be confusing..at first. The farther along you get in the home loan process, the more these new terms will start to become clear and make sense. Here are some of the terms you are likely to learn more about in the coming months. Comparables You may not experience this phrase in the earlier part of the home loan process but you may once you have found a property you want to buy.  A “comparable” is, | more...

 
Mortgage Rate Trends

Things To Consider: FHA Loans In 2022

What do you need to know about home loans in 2022? There are a few things to keep in mind that may affect your planning and choices about a new mortgage or refi loan. Here are some issues to think about going into the new year: FHA Loan Limits Are Higher In 2022 FHA loan limits go up in most markets, but there are some areas where the limits may not necessarily change. Keep in mind that there are high-cost markets AND low-cost housing markets. \Depending on where you are house hunting the limits may be different than what you are used to–it’s a great idea to check the limits ahead of time to get an idea of what to expect. Interest Rates May Rise In 2022 With the Fed | more...

 
FHA Home Loan Income Rules

Qualifying For An FHA Loan Or Refinance Loan

FHA home loans and refinance loans feature similar requirements in terms of FICO scores, credit history, and responsible credit use. When you want to refinance a home loan, it’s smart to treat the process exactly the same as you did when you applied for your first mortgage where applicable. But not all borrowers have the luxury of taking a year or more to plan and save for the loan. Some must act quickly because their homes have been damaged or destroyed in a natural disaster, or they have a job-related relocation or some other issue that requires a faster approach to the loan. Some borrowers need a new purchase loan; a job relocation or an increase in family size may warrant buying a larger home.  Knowing the FHA loan policy | more...

 
FHA Announces Updated COVID-19 Guidance For Participating Lenders

FHA Refinance Loan Options In 2022: FHA Cash-Out Refi

How prepared are you to apply for an FHA Cash-Out Refinance loan? Some borrowers don’t realize that some FHA refinance options require more preparation than others.  FHA Cash-Out loans have an FHA-required credit check and appraisal; saving for these expenses and your closing costs is a smart idea to maximize your borrowing power and keep your monthly payments lower.  Financing your allowable closing costs may hike your mortgage payments; smart borrowers try to decide in advance how high the payment can go before it is too high. What does it take to qualify for an FHA Cash-Out Refinance and get your application approved? Aside from the basics like FICO scores and your record of on-time payments, you will need to have lived in the home as your primary residence for | more...

 
Getting Ready For Your Home Loan

FHA Loan Applications In 2022

Are you one of the many house hunters planning on filling out FHA loan applications for 2022? Are you ready to apply? Here are some tips to help you determine how close you might be to the application stage of a new FHA mortgage. Credit Reports Do you know the contents of your credit reports? Do you know your FICO scores? If not, you’ll need some additional time before applying for your home loan to review your credit, see what the lender may see, and determine whether your credit history is free of errors or evidence of identity theft. If your credit report shows erroneous information or if you suspect identity theft based on questionable entries on your report, you will need additional time prior to your FHA loan application | more...

 
HUD

FHA And HUD Announce Disaster Relief For Alabama Counties

The Department of Housing and Urban Development has announced the availability of federal disaster relief in certain counties in Alabama affected by storms and flooding in October of 2021. A presidential major disaster declaration was placed into effect for the counties of Jefferson and Shelby. An FHA/HUD press release published at HUD.gov adds that there is also federal funding available from the Federal Emergency Management Agency or FEMA offered on a cost-sharing basis for hazard mitigation measures statewide, but this is not part of the relief offered directly to homeowners. What is available for them? HUD offers “immediate foreclosure relief” for FHA mortgages in the form of a 90-day moratorium “on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced on the date of the Presidential major disaster declaration, and | more...

 
FHA Home Loan Down Payment Rules: Cash To Close Sources

FHA Home Loan Approval Issues You Should Know

If you are planning to buy a home with an FHA mortgage but aren’t sure whether you will be approved for the loan, you might find some help with our list if important FHA loan issues to consider as you plan and save for your mortgage. How Much Time You’ve Spent Working Your participating lender will review your employment history. Basically, they want to see how much time you have in your current capacity as a full-time employee earning salary, commission, or a combination of those. If you are self-employed, how long have you been working in that capacity? That will be an important factor for the lender. Your loan officer must review the last two years of your work history. Does that require you to have two years of | more...