Articles Tagged With: FHA Loan

April 11, 2022

What Hurts Your Credit Ahead Of A Home Loan

Do you know why your credit score could drop ahead of a home loan application? If you are worried about your ability to qualify for the lowest down payment for a home loan with your FICO scores, it’s smart to know what can hurt your credit while you are in the planning stages of your FHA mortgage. There are three basic things that could affect your credit scores before you apply for a home loan. These issues are not the only ones, but they are some of the most common. You should anticipate these problems while you are planning and saving for your FHA home loan and take steps to ensure they do not become an issue. The first area to watch that potentially affects your credit scores? Your payment | more...

April 8, 2022

Fair Housing Month: HUD Pledges More Funds To Fight COVID-19 Discrimination

By Joe Wallace

April is Fair Housing Month, and it’s likely no coincidence that April is also the month HUD announced added funds from the American Rescue Plan to fund HUD Fair Housing actions to fight discrimination related to COVID-19. In a press release issued by the HUD official site, the agency announced an additional $3,285,353 in funding meant for organizations that qualify and can accept funding through the FHIP’s Private Enforcement Initiative. These added funds can be used for enforcement, awareness-raising, education, and outreach projects. This is the third time American Rescue Plan funds have been used to fight housing discrimination related to the Coronavirus pandemic. According to HUD, some $16 million has been distributed to more than sixty agencies working to fight this particular type of housing discrimination. “The COVID-19 pandemic | more...

April 6, 2022

Your First Home: Buying With An FHA Mortgage

By Joe Wallace

Buying your first home with an FHA mortgage is a good option if you want to save money on down payment expenses up front, if you want a loan with no early payoff penalty, and you want one that allows you to purchase a brand new home, a fixer-upper, or build one from the ground up on your own lot. What do you need to know about FHA loans as a first-time homebuyer? Down Payments Are Low FHA mortgages have a minimum down payment requirement of 3.5%. You are also required to pay for mortgage insurance, but the Up-Front Mortgage Insurance Premium (UFMIP) can be financed into the loan amount if you need to save money up front on the loan. Think About Where Your Down Payment Might Come From | more...

April 1, 2022

HUD Celebrates Fair Housing Month

By Joe Wallace

The Department of Housing and Urban Development observes Fair Housing Month in April each year. Fair Housing Month always features a theme. In 2022 that theme is Fair Housing: More Than Just Words. It’s meant to raise awareness of the federal government’s commitment to ensuring fair housing opportunities are available to all who want them. In a press release discussing Fair Housing Month, HUD notes that equal opportunity for housing isn’t simply about finding a place to live without unnecessary barriers to entry. “(W)here we live impacts nearly every part of our lives,” according to HUD Secretary Marcia L. Fudge, who is quoted in the press release. She adds, “Fair Housing Month is a time to recommit to our mission to promote fairness, inclusion, and justice in housing. This month | more...

March 22, 2022

FHA Home Loans And Closing Day Delays

By Joe Wallace

Getting to your closing day can be challenging. There are fees and expenses to pay for, credit checks to submit to, negotiations with the seller, and more. And on top of all those details, there are issues that could slow down your home loan, and may in some cases even affect your closing day. Don’t assume that such issues are always the borrower or seller’s fault. There are many reasons why your closing day could be delayed or otherwise affected by circumstances. What Can Delay Closing Day? Many issues can affect your ability to close the loan. For example, what if the appraisal comes back with corrections or with a value that is lower than the asking price of the home? Those things may or may not require a rethink | more...

March 17, 2022

FHA Home Loan Options You Should Know

By Joe Wallace

How many different FHA home loans are there? Some people assume there is only one loan program addressing a variety of different housing types. In many cases that is true. The FHA 203(b) loan is offered for a variety of different home loans including one-to-four unit homes that you would find in a typical suburban area. But that loan can also be used to purchase a condominium unit, a townhouse, duplex, or mixed-use properties which are primarily residential. Some borrowers want to know if they can use an FHA 203(b) mortgage to purchase a manufactured home or modular home. FHA loans under the 203(b) program are also known as Title II mortgages. The FHA home loan you need to purchase a manufactured home is called a Title I mortgage. FHA | more...

March 15, 2022

Fixing Your Credit Before Your FHA Home Loan

By Joe Wallace

If you are considering an FHA home loan, you’ll want to begin working on your credit as soon as possible. This is true even if you feel you have good credit–there are issues a lender sees on many credit reports that may complicate the loan approval process. These issues may or may not interfere with your credit score numbers but they could be a factor in the lender’s decision to approve the loan, offer a certain interest rate, etc. If the numbers aren’t the issue, some borrowers want to know what IS the issue? In some cases, there may be errors or information that should be disputed on the report because you don’t want your loan officer making decisions about your loan based on information that isn’t accurate. The credit | more...

March 11, 2022

Issues That May Complicate Your FHA Home Loan Application

By Joe Wallace

There is a lot of advice out there about starting early when it’s time to plan and save for your mortgage. When you are preparing for an FHA loan application you naturally want to check your credit, pay your bills on time, and reduce your credit card use. But even when you are busy with taking care of these things, there may be issues that can complicate the home loan process. Knowing these issues can help you navigate them if there is one that applies to you. It’s easy to assume you don’t have a hidden problem waiting to slow do your home loan process, but some of these issues are a surprise to future borrowers and they spend additional time sorting them out. Do You Owe Any Tax Liens? | more...

March 7, 2022

Answers To New House Hunter Questions

By Bruce Reichstein

What does it take to qualify for an FHA mortgage? That’s among the most common questions asked about FHA home loans. What is the answer? There are a variety of factors that go into your loan officer’s decision to approve or deny a home loan. Those factors include the number and amount of your monthly financial obligations, your FICO scores, how well you use the credit you have, and other variables. What credit score do you need to qualify? On paper, FHA loan rules say those with FICO scores in the 580 or above range qualify for the lowest down payment possible for an FHA mortgage (3.5%). Lender standards may require a higher FICO score range. Not all borrowers have the same kind of FICO scores. Some may have thin | more...

February 28, 2022

Are You Preparing For An FHA Mortgage?

By Joe Wallace

Getting your credit ready for a home loan application is one of the most important steps in the mortgage planning process. Do you know how to get your credit prepared before the lender pulls your reports and reviews your FICO scores? The first key to doing this right is time. Give yourself at least a year to save and plan for your mortgage. This also gives you enough time to work on your credit and lower the amount of monthly debt you carry. Lowering the balances on your credit cards not only improves your debt ratio, it also potentially enhances your credit card utilization ratio, too. A year of on-time, every time payments for all financial obligations is strongly recommended. This is the most basic credit repair advice you’ll find | more...