November 17, 2017

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Articles Tagged With: FHA Requirements

Do First Time Home Buyers Have Different FHA Loan Requirements?

Do First Time Home Buyers Have Different FHA Loan Requirements? Part Two

Do first time home buyers have different FHA loan requirements than those who have owned a home before? The short answer is no-FHA mortgages do not have different terms or requirements for different types of borrowers. First time home buyers may find that an individual lender or financial institution offers incentives for first time buyers, but these programs are not mandated or regulated by the FHA. The FHA loan FICO score minimum requirements, appraisal rules, regulations governing verification of down payment funds and other requirements are identical no matter who is applying. That is not to say that FICO scores and other financial qualifications don’t change how an FHA mortgage loan is handled-in that area borrowers will find different requirements depending on whether the borrower is deemed a good credit | more...

 
How Does FHA Deal With A Borrower’s Financial Hardship?

How Does FHA Deal With A Borrower’s Financial Hardship? Part Two

How does FHA deal with a borrower’s financial hardship? That is a question we began addressing in a previous blog post, starting with an examination of the FHA attitude toward things like public assistance income, credit counseling programs, etc. In general, FHA loan rules do not allow borrowers to have public assistance income held against them as a liability, and participating in a credit counseling program is not grounds for denying an FHA mortgage loan. All income, including public assistance, must meet FHA loan standards for dependability and the likelihood of that income continuing. But just because the income is from public assistance, Social Security, etc. does not mean that income is not a valid means of financially qualifying for an FHA mortgage. Borrowers With Temporary Reductions of Income One | more...

 
How does FHA deal with a borrower’s financial hardship?

How Does FHA Deal With A Borrower’s Financial Hardship?

How does FHA deal with a borrower’s financial hardship? That is an important question, and the answers may surprise some who expect the same types of financial qualifications from FHA mortgages as from conventional loans. What is the reality? Basic FHA Loan Financial Requirements FHA loan FICO score minimums are 580 and higher for maximum financing and the lowest down payment. Lenders may have higher requirements, but the FHA minimum FICO score allows those who wouldn’t be considered for a conventional mortgage. Debt-to-income ratio requirements for FHA mortgage loans (which may vary depending on FICO scores) will vary some among lenders, too but you’ll find that your total payments must not (generally speaking) exceed 43% of your monthly income. How Does FHA Deal With Financial Hardship? Depending on the nature | more...

 
How do FHA loan requirements work?

How Do FHA Loan Requirements Work?

How do FHA loan requirements work? Do you know what you need in order to qualify for an FHA mortgage loan or FHA refinance loan? There are important details you should know about FHA mortgage loans that can help you make an informed decision about applying for one. FHA Loans Feature Lower Down Payment Requirements FHA loan down payment requirements include a minimum 3.5% down based on the adjusted value of the home. You won’t be able to get a zero-down payment FHA mortgage unless you are a qualified borrower applying for an FHA 203(h) mortgage for disaster victims in a federally-declared disaster area. 3.5% down is the minimum cash investment required. Some borrowers with low FICO scores may be required to put down 10% depending on their scores, lender | more...

 
HUD announces disaster relief priorities for survivors of Hurricane Harvey

How Do FHA Loan Appraisals Work?

How do FHA loan appraisals work? This question is a vital one because some get the appraisal process confused with a home inspection and the two are not the same. The importance of an FHA appraisal in your loan process has to do with the lender getting information that helps calculate the fair market value of the home, while the home inspection gives the borrower information needed to make an informed purchase. FHA appraisals are governed by the rules in the FHA loan handbook, HUD 4000.1, which says the lender is required to, “order an appraisal from an Appraiser who is listed on the FHA Appraiser Roster and is qualified and knowledgeable in the specific market area in which the Property is located. The Mortgagee must evaluate the Appraiser’s education, | more...

 
Can I Get An FHA Loan For A Mixed-Use Property?

Who Can Refinance An FHA Loan? Requirements You Should Know

Who Can Refinance An FHA Loan? We’ve been examining that question recently and according to HUD 4000.1, the FHA loan handbook, at least one borrower on the FHA refinance loan transaction must have legal title to the property. Under a section titled, “Borrower Eligibility”, we learn: “At least one Borrower on the refinancing Mortgage must hold title to the Property being refinanced prior to case number assignment.” But there is also, depending on the nature of the home to be refinanced, a requirement on the property type itself. HUD 4000.1 states: “For a transaction involving a Manufactured Home to be considered a refinance, the Manufactured Home must have been permanently erected on a site for more than twelve months prior to case number assignment.” What are some other FHA refinance | more...

 
what is mortgage insurance and how does it work?

What Is Mortgage Insurance And How Does It Work?

“What is mortgage insurance?” is a common question for those new to the home loan process. Do you understand how it works? It helps to define the two things referred to by industry professionals as mortgage insurance. There is mortgage insurance which the borrower pays for as a requirement of the FHA loan, then there is the “mortgage insurance” referred to in FHA loan rules which is something else entirely. Note: What we are discussing here is not hazard insurance, which may be a requirement on some, but not all FHA loans. FHA Mortgage Insurance For The Lender The FHA single family home loan handbook, HUD 4000.1, refers to “mortgage insurance” when discussing the FHA’s role in insuring the loan to reduce the risk for the participating lender. On page | more...

 
Can I get an FHA loan after foreclosure?

2017 FHA Loan Home Requirements

What are FHA loan home requirements? How can you tell if a property meets FHA loan minimum standards? These are important questions to ask when planning for your new home loan. FHA loan home requirements are found in HUD 4000.1, the FHA single-family home loan handbook. HUD 4000.1 states that while all homes to be purchased with an FHA mortgage must pass the FHA appraisal process, doing so in no way acts as a guarantee that the home is free of defects. A borrower should understand that the FHA appraisal is for the lender, while a home inspection (optional but extremely important) is for the borrower. In general, FHA loan home requirements include rules which state that the roof must be in good repair, that the electrical and plumbing system | more...

 
Do Section 8 Housing Vouchers Count For FHA Loans?

FHA Adjustable Rate Mortgages in 2017

Are you looking for an FHA adjustable rate mortgage in 2017? FHA single family home loans come in a variety of types including fixed-rate loans and FHA adjustable rate mortgages. The rules for these loans, commonly referred to as FHA ARM loans, are spelled out in HUD 4000.1, the FHA loan handbook. FHA adjustable rate loans can be different than their conventional counterparts, starting with certain restrictions on how often the interest rate may change. Before we dive into that issue, let’s examine how HUD 4000.1 defines the FHA ARM loan: “An Adjustable Rate Mortgage (ARM) refers to a Mortgage in which the interest rate can change annually based on an index plus a margin.” Your loan officer is required to provide a disclosure form, which must be signed, that | more...

 
Who can apply for an FHA mortgage?

FHA Loans and Your Credit

Lots of people want to know what credit issues will affect the approval of FHA loans. The shortest answer is that it’s a combination of FICO scores, your repayment habits on all financial obligations (not just credit cards or revolving debt), and the amount of debt you pay on each month versus how much income you have. But there are some hard numbers to look at, too. FHA minimum requirements for credit include FICO score requirements for maximum financing. If your FICO scores are 580 or above you technically qualify for maximum financing, which means only a 3.5% down payment. But FHA FICO minimums are not the only FICO score requirements you’ll need to meet. Credit requirements at your chosen lender can be, and often are, higher. You may find | more...