July 22, 2019

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Articles Tagged With: Mortgage Affordability

Who Can Apply For An FHA Reverse Mortgage?

What You Need To Know About FHA Loan Limits For 2019

FHA loan limits for 2019 will be higher than for 2018. We will cover the specifics of this news in another blog post, but there are some basics first-time home buyers should know about FHA loan limits that will help save time in the loan preparation process. FHA Home Loan Limits For 2019 Are Higher For Every Type Of Property Available To Buy With An FHA Mortgage Single family homes can be many things; condo units, duplexes, multi-unit properties, mobile homes, etc. No matter what property type you wish to purchase with an FHA mortgage loan, the FHA loan limits for 2019 have increased. One of the most important factors in determining your FHA loan limit in the new year is your location, rather than whether you want to buy | more...

 
How Much Home Can You Afford?

How Much Home Can You Afford?

How much home can you afford? If you’re looking for an FHA mortgage or any other type of home loan, one important factor both you and your lender will be concerned with involves the amount of current debt you have compared to how much you would need to pay if your mortgage loan is approved. Licensed lenders and competing banks don’t have identical requirements in this area, but in general you should plan on doing two basic types of mortgage loan calculations to determine how much home you can afford to buy. FHA Home Loans And Your Debt-To-Income Ratio One type of calculation involves the percentage of your gross income that the new loan would require each month on the mortgage payments. You will need the projected amount of a | more...

 
FHA Home Loans For Millennials

One-Time Close Mortgages: VA, FHA, And USDA Part Two

In our last blog post, we discussed how VA, USDA, and FHA One-Time Close mortgage loans differ. USDA One-Time Close construction loans have income limits and restrictions on certain property types, VA loans are similar to the FHA version except they are restriction to military members who have served a minimum amount of time in uniform (and certain qualifying military spouses). But what does the FHA One-Time Close construction loan have to offer? For starters, the FHA One-Time Close (OTC) loan is available to any financially qualified borrower who wants to build and buy a primary residence in an approved configuration. FHA loan rules require the home to be owner/occupied, not used as an investment property, and the home must conform to both FHA minimum standards once completed and the | more...

 
FHA Loan Credit Advice

What If I Miss A Mortgage Payment Before Applying For An FHA Refinance Loan?

What if I miss a mortgage payment before applying for an FHA refinance loan? That is a question on the minds of some borrowers going into the refinance loan planning stages. What should a borrower do if they are worried about a missed mortgage payment? The first thing to understand is that FHA home loan rules for credit-including on-time payment requirements for new mortgage loans, are not the only standards which will apply. We could quote line after line of FHA regulations pertaining to refinance loan approval and missed or late payments, but lender standards will also apply above and beyond FHA loan rules. In general, FHA loan rules prohibit new loans for any borrower currently delinquent on an FHA mortgage. A loss mitigation program designed to prevent foreclosure may | more...

 
FHA Home Loan Down Payment Assistance

Can I Use My GI Bill Housing Allowance For An FHA Home Loan?

Military borrowers who are considering an FHA home loan may wonder if they are permitted to use their Post 9/11 GI Bill housing stipend as part of their qualifying income for an FHA mortgage. FHA loan rules found in HUD 4000.1 require the lender to verify all sources of income for the borrower; verifiable income that qualifies may be counted in the borrower’s debt-to-income ratio. This process is important because if a borrower’s debts exceed a certain ratio compared to the amount of income, it may be harder for the lender to justify approving the FHA mortgage. So it makes sense that a borrower who qualifies for Post 9/11 GI Bill benefits or Forever GI Bill benefits might want to have their housing stipend included in the income they submit | more...

 
FHA Home Loans For Millennials

Do You Suffer From Home Loan Anxiety?

Do you suffer from home loan anxiety? There are many people who want to apply for an FHA mortgage loan, often first-time home buyers looking at an existing construction loan or an FHA One-Time Close construction loan, who begin to worry about getting their loan application approved. Are You Worried About Being Able To Afford Your FHA Mortgage? There is good news for those who are worried they might not be able to afford the FHA home loan and can’t decide whether or not to apply. But there are tools you can use to help get an estimate of how much your FHA mortgage payment might run every month in the form of online mortgage calculators. These tools ask you to input an estimated price of the home, potential down | more...

 
On Buying A First Home With An FHA Mortgage

FHA Loan Debt-To-Income Ratios Part Two

What is the debt-to- income ratio (DTI) for an FHA loan? We answered that question in a previous blog post, discussing the FHA loan rules for loan approval where loan affordability is concerned. In general, FICO scores and debt ratios are reviewed together. You may have a debt ratio that comes close to or exceeds the general standard for these limits, but compensating factors may apply to help the lender justify approving your home loan. What are these factors? FHA Loan Compensating Factors For Higher Debt-To-Income Ratios FICO scores play an important part in determining who must have compensating factors for a high DTI. As the FHA loan handbook states, borrowers who meet the FHA loan FICO score requirement for maximum financing (580 or above) can have a debt to | more...

 
FHA Home Loan Basics For First-Time Home Buyers

How Do I Know If An FHA Loan Is Right For Me?

How do I know if an FHA loan is right for me? If you aren’t sure, consider some of the most important features of an FHA mortgage while making up your mind about the right home loan for you. FHA Loans Have Low Down Payment Requirements FHA mortgage loans have lower down payments than many conventional or other non-government backed mortgages. The minimum down payment for an FHA mortgage is 3.5% of the adjusted value of the home, and FHA loan rules permit you to get down payment help from approved sources. Credit scores play an important part in setting the down payment amount, so you’ll need to discuss your circumstances with your loan officer if you aren’t sure whether you qualify for the lowest down payment, but in general | more...

 
FHA Home Loan Rules And Airbnb

How Do FHA Mortgage Loan-To-Value Limits Work?

How do FHA mortgage loan-to-value limits work? The loan-to-value (LTV) limit is an indicator of how much of a down payment you’ll be required to make on the FHA mortgage loan. There’s no such thing as a no-money-down FHA mortgage for new purchases, so the LTV is an important detail in your loan transaction. The rules covering FHA LTV ratios are found in HUD 4000.1, the FHA loan handbook. There we learn the following by way of introduction to the FHA requirements in this area: “The determination of the maximum LTV percentage available is influenced by…the particular mortgage insurance program (See Programs and Products); and the transaction type. The Mortgagee must apply the lowest applicable LTV percentage as determined under the requirements in this section.” Your LTV limits are determined, | more...

 
Will FHA Mortgage Loan Interest Rates Drop Even More?

Do FHA Home Loan Limits Change?

Do FHA home loan limits change? Borrowers who want to know what the FHA loan limits for a given housing market might be have to contend with the possibility of changing limits depending on what time of year they are house hunting. How FHA Loan Limits Work The Federal Housing Administration calculates new purchase mortgage loan limits based on “the median house prices in accordance with the National Housing Act” according to the FHA official site. “FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county and are published periodically.” FHA publishes updated home loan limits for forward mortgages and reverse mortgages on a yearly basis. The FHA official site states, “FHA sets these limits at or between the low cost area and high cost | more...