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Articles Tagged With: FHA Mortgage Loans

FHA loans

FHA Home Loans And Occupancy: What You Can And Cannot Do

If you are buying an existing construction home with an FHA mortgage, or having one built for you using an FHA One-Time Close construction loan, you will notice some common requirements for these mortgages; one such requirement involves the borrower’s use of the property once the loan has closed. FHA new purchase mortgages, also known as forward mortgages, are intended for those who wish to occupy the home as their main address, or “primary residence”. Some borrowers may be confused by this requirement because they assume you can buy and rent out a home using an FHA mortgage without intending to occupy it. But the reality is that FHA mortgages actually require occupancy by at least one person obligated on the home loan, so how is it possible to purchase | more...

 
What is my FHA home loan down payment?

What Is An FHA Loan Rate?

What Is An FHA Loan Rate? The interest rate that is charged on your 15 or 30-year FHA mortgage. There are some facts you should know about FHA loan rates, discount points, and how the rates may vary. FHA Loan Rates Are Set By The Lender Technically speaking, the mortgage loan interest rate on your loan is something you negotiate with your loan officer. Your access to the most competitive FHA loan rates will be determined by your FICO scores and other financial qualifications. The better your FICO scores are, the more competitive the interest rate offered might be. If you are worried about your FICO scores ahead of your home loan application, begin credit monitoring and work to maintain or establish a record of on-time payments for all your | more...

 
Is your credit ready for an FHA loan?

Employment And Income Verification For FHA Loans

Here is a common variation on an FHA loan question we get frequently. “I have been employed for about two years, do I qualify for an FHA mortgage?” FHA loans require a variety of financial qualifications including FICO scores, your history of payments on financial obligations, your debt-to-income ratio, and other factors. Lender standards and FHA loan rules both apply, as do some state laws and other regulations. There’s no individual factor that determines a borrower’s ability to qualify for an FHA mortgage, a number of variables come into play as mentioned above. Sometimes one or more factors can disqualify a borrower, it’s true-a low FICO score, debt ratios that are too high, missed payments in the last 12 months leading up to the loan application, or major changes in | 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...

 
Higher FHA Loan Limits In 2021

When Is An FHA Loan Assumable?

When is an FHA loan assumable? Let’s start by examining what the FHA single-family home loan handbook, HUD 4000.1, defines as a loan assumption. “Assumption refers to the transfer of an existing mortgage obligation from an existing Borrower to the assuming Borrower.” An FHA loan assumption is generally possible-for most FHA loans closed today, the lender’s participation and approval will be required in order to carry out a loan assumption transaction. There are also occupancy requirements which may apply depending on what year the original mortgage was closed in. From HUD 4000.1: “If the original Mortgage was closed on or after December 15, 1989, the assuming Borrower must intend to occupy the Property as a Principal Residence or HUD-approved Secondary Residence. If the original Mortgage was closed prior to December | more...

 
FHA Home Loan

How Long Do You Have To Be At A Job To Get An FHA Loan?

How long do you have to be at one particular job to get an FHA loan? The employment issue is an important one, but some borrowers misunderstand the rules, thinking them to be more strict than they actually are. What is the reality of the FHA loan employment rules? FHA Loan Rules For Minimum Employment Standards The rules governing FHA loan employment standards are found in the FHA loan handbook, HUD 4000.1, which includes the following requirement on how the lender must verify the borrower’s employment history: “Mortgagees must not accept or use documents relating to the employment, income, assets, or credit of Borrowers that have been handled by, or transmitted from or through the equipment of unknown parties, or Interested Parties.” Furthermore, the lender “may not accept or use | more...

 
FHA Loans

How Much Will My FHA Home Loan Be?

How much will my FHA home loan be? That is a question many borrowers want to know, and the answer can be more complicated than just taking the sale price of the home and doing the math. FHA home loan maximum amounts are determined by factors including the maximum FHA loan guaranty for the housing market you are buying the home in, your credit history, the amount of your down payment, and more. The final amount of your FHA mortgage loan is affected by your down payment, the FHA loan limit in your area, and other factors. FHA Home Loan Limits FHA home loan limits are not the same in all housing markets. Some parts of the country are considered low-cost areas and have a lower FHA loan guaranty limit | more...

 
Mortgage Loan Approval

Learn More About Home Loans: Appraisals & Inspections

It’s important to learn as much as you can about the home loan process when planning and saving for your new mortgage. If you are a newcomer to the home loan process, there are some good resources that can help you be more informed borrower. The less informed you are, the more likely you are to have some kind of regret at the end of the home loan process. The more you know, the more confident you will feel about your choices along the way. One important issue for many borrowers is the FHA appraisal process. Are you in-the-know about what happens during the appraisal, what it is intended to do and why you should never trust the appraisal to provide you the information that only a complete home inspection | more...

 
Do You Need Down Payment Help?

FHA Home Loan Down Payments

Most home buyers will make some form of down payment, with exceptions for those using VA mortgages with no money down for qualifying servicemembers, veterans, and surviving spouses. There are also no money down USDA loans but these are need-based and have income caps. By comparison, FHA mortgages with their low 3.5% down payment requirements are attractive to many house hunters who want to save more money up front on the mortgage. Do You Really Have To Put 20% Down? Some borrowers may hear stories of borrowers being required to pay 20% down. This would be true in cases where the home buyer wants to avoid mortgage insurance on a conventional mortgage. And while that is not the only down payment option offered in such cases the mere idea of | more...

 
Buy or Build a House On Your Own Lot in 2020

FHA One-Time Close Construction Loan Advice: Hiring A Builder

If you want to build a dream home on your own lot instead of buying somebody else’s house, the One-Time Close construction mortgage is an option you should explore. These loans require you to hire a builder (more on that below) and this is a part of the process that can be a bit intimidating for some borrowers until they learn there are some basic steps to follow that will make your hiring process a lot more hassle-free. Why Hire A Builder? Why go thru the trouble to find a qualified and reputable contractor to do the construction work for you? Why doesn’t the borrower act as their own builder or hire friends and family to pitch in? The answer is simple. For a start, most borrowers likely don’t have | more...