Articles Tagged With: FHA Mortgage Loan

November 15, 2023

When It’s Time To Close Your FHA Mortgage

Congratulations! You selected a home to buy with an FHA mortgage, your chosen FHA lender has approved your application, and the seller accepted your offer. Getting ready for closing is the next step in that process, and many newcomers ask what happens on Closing Day? Closing day is a huge milestone for both buyers and sellers. The seller moves out and surrenders the property per your sales agreement and the borrower accepts the keys to the home. On closing day, there is an update to the deed to the home, changed to be in the buyer’s name. You will also be expected to sign all the other paperwork needed to take possession of the home. Closing day typically happens within two months of making the deal, but much depends on | more...

November 14, 2023

How Much Should You Save For A Downpayment?

By Joe Wallace

How much should you save for a down payment on a home? It’s a common question that sounds like it should have a simple answer. The lowest down payment possible for an FHA mortgage is 3.5% of the price of the home. But how much should you aim for when setting your budget to save up for that downpayment? The short answer is no. But why? FHA Loan Down Payment Issues Consider a hypothetical that involves a home on sale that you buy with an FHA mortgage. The home sells for $150 thousand, and 3.5% of that amount is $5,250. That is not how much you’ll need to pay at closing time. You’ll also need to pay closing costs, which are separate from the down payment. Closing Costs A good rule | more...

November 8, 2023

Credit Scores For Home Loan Approval

By Joe Wallace

What credit score do you need to be approved to buy a home? The answer to that question can change depending on the type of home loan you seek and the options you want. For example, FICO score requirements to be approved for a manufactured home loan may be lower than those who want to build a home from the ground up using a One-Time Close construction loan due to elevated risk to the lender. Construction loans are higher-risk transactions for a participating lender than manufactured homes. That means the FICO score requirements from your lender are likely to be different than a government-backed home loan program’s minimums. What FICO scores do you need to be approved to buy a home? FHA FICO Score Requirements FHA loan guidelines say FICO | more...

FHA Mortgage Rates and Refinance Options

October 27, 2023

FHA First Time Home Buyer Loans

By Bruce Reichstein

How can the FHA home loan program help first-time home buyers? Some perks of an FHA mortgage are central to the home loan program itself, while others may be offered by lenders as an incentive to use that financial institution for your FHA home loan. FHA Home Loans For First-Time Buyers: Low Down Payments The FHA home loan program requires only 3.5% minimum for borrowers with qualifying FICO scores. FHA loan requirements say FICO scores as low as 580 can technically qualify for the lowest down payment, but you will need to check with a participating lender to see what standards may apply above the FHA minimums. Those with credit scores lower than 580 may still technically qualify for an FHA mortgage loan but at a higher down payment. FHA | more...

October 20, 2023

FHA Refinance Loans For Home Improvements

By Bruce Reichstein

FHA refinance loan options include the ability to apply for a refi loan to do home improvements–a very important option for those with existing FHA mortgages or non-FHA loans alike. That said, home loan interest rates are higher than they’ve been in a while at publication time and many think refinancing today isn’t a great option. But what about when interest rates and the economy in general begin to improve? You may not be considering a refinance loan today, but when mortgage rates begin to fall, the option becomes more viable for many. How can FHA refinance loans help a borrower make upgrades or improvements when the time is right? There’s more than one way to approach the refinance loan question if you want a refi AND funds to perform | more...

October 17, 2023

FHA Loan Down Payment Concerns

By Joe Wallace

Looking for a home to buy with an FHA mortgage? Planning and saving for the down payment or planning to have one provided for you (using approved sources ) is a big part of the early stages of your home loan process. You aren’t alone in this journey. You may qualify for help from a local down payment assistance program that meets FHA standards. You can also get down payment gift funds from friends and family. Accept a down payment gift before your closing date, and you have some steps to take before you pay the money. FHA loan rules, like many other home loan programs, have rules that govern the down payment. FHA Down Payments Are Regulated Your down payment is regulated by federal law to prevent a lender | more...

October 12, 2023

Optional And Mandatory FHA Home Loan Fees

By Joe Wallace

If you are new to house hunting or new to the FHA loan process and feel intimidated shopping around for a lender, realtor, or contractor, you may wonder whether certain third-party home loan services are worth the effort and expense. Borrowers need certain services like inspections and home appraisals, but for others, you may want to think a bit before committing. Realtors and Real Estate Agents Some mistakenly believe you MUST use an agent to buy a home. But what’s the reality? Hiring a realtor is 100% optional. That said, do you feel more comfortable with one instead of without? Using a realtor is not a waste of money if you are unfamiliar with the neighborhood, the city, or the state. It’s also a good move if you aren’t quite | more...

October 6, 2023

Buying A Home In A Difficult Housing Market

By Joe Wallace

Do you plan to buy a home in 2024? If you are currently planning and saving for your loan, you likely have seen headlines predicting a tough market in the coming months. According to a 2023 article published by CNBC, home prices are expected to keep rising in 2024. Those are observations based on real estate forecasts from the National Association of Realtors and federal agencies. What should you know about buying a home as we head into 2024? In some cases it may be a simple matter of adding extra time into your home loan process for planning and saving. For others, it may be a matter of choosing the right type of mortgage loan. For example, instead of competing for a limited inventory of existing homes, some applicants | more...

Home Buying, FHA Loans, And Mortgage Trends

October 2, 2023

Money, Planning, And Your FHA Mortgage

By Joe Wallace

Some borrowers need help getting ready for the unexpected during the home-buying process. The unexpected can come in the form of a seller deciding they no longer want to sell the property, the borrower losing a job while the loan is on the way to closing day, or other issues. But more mundane, unexpected things crop up along the way, such as certain fees and expenses situationally related to buying a home. Not all borrowers have to pay them, but when circumstances require it, paying for unexpected contingencies like compliance inspections or hazard insurance may require you to be more creative with your finances. Do you have a contingency plan for those compliance inspections, pest control, hazard insurance, or initial property taxes that need to be settled before the home | more...

September 19, 2023

How Much FHA Loan Do You Need?

By Joe Wallace

How much can you borrow with an FHA mortgage? If you are looking at FHA loan limits as a new home buyer, it’s easy to assume those numbers represent the total amount that the lender will offer once the loan application is approved. But should you expect to borrow that maximum loan amount? FHA Loan Limits 101 FHA loan limits vary. They are not identical for all housing markets or housing sizes. There is a maximum loan amount for high-cost counties, FHA loan limits are higher for multi-unit homes, and there is a lower FHA loan limit in areas that don’t cost as much as the most expensive housing markets. What To Know About FHA Loan Limits FHA loan limits have a maximum or “ceiling” for high-cost housing markets and | more...