You’ve probably heard nightmare stories about how long the FHA loan takes to close. People claim they waited months for a closing. What they don’t tell you is the factors that delayed that closing. Most of the time, it has nothing to do with the FHA. Instead, it has something to do with the loan … [Read more...]
How to Buy HUD Homes with No Money Down
HUD homes are those that once had FHA financing on them, but the borrowers defaulted. The home is now in the possession of the FHA. The last thing they want is an inventory of homes. The FHA lists the home for sale in the hopes that someone will buy it. Usually, you can buy a HUD home for much … [Read more...]
Can the Borrower be the Contractor on an FHA Loan?
You want to build or renovate your own home, but need FHA financing. Will the FHA let you be your own contractor? It depends on the situation. Here we look at the construction-permanent loan as well as the FHA 203K loan. Read our guide below to help you decide if doing your own work is the right … [Read more...]
Net Tangible Benefit Requirements for the FHA Streamline
The FHA Streamline loan offers the chance to refinance without much verification at all. The largest issue is the net tangible benefit requirements. These are non-negotiable with the FHA. Everything else is fairly straightforward and even flexible. Without enough of a benefit, though, you’ll have to … [Read more...]
Debt Consolidation Options for Borrowers with Poor Credit
You are tired of the mound of debts sitting on your desk. Every month feels like a juggling act. You want to get out of debt, but you have bad credit. They often go hand-in-hand. How can you get help if your credit score is too low? No lender will give you a new loan, right? Luckily, there are … [Read more...]
What are the FHA Loan Employment Requirements?
Have you changed jobs and worry about your FHA eligibility? Do you think you need 2-years of employment before applying for an FHA loan? You aren’t alone. But, you may be in luck. The FHA has flexible guidelines when it comes to your job. They want consistency and reliability. You can demonstrate … [Read more...]
What are the Qualifying Ratios for FHA Loans?
Your eligibility for an FHA loan depends on your qualifying ratios. Just what are they and how do you check them? We’ll discuss them in detail below. One thing you should know upfront, though, is the FHA has lenient guidelines. They have higher maximum ratios and allow for certain compensating … [Read more...]
Are FHA Interest Rates Higher Than Conventional Rates?
Many borrowers concern themselves with the interest rate on a loan. They consider it the more important factor without looking at the big picture. The good news is FHA interest rates tend to be lower than conventional interest rates. But what does it mean for you? Let’s look at the details. The … [Read more...]
How to Maintain a Healthy Credit Score
A good credit score can help you in many ways. You can secure lower interest rates and terms on your loans. It may even help you get better rates on insurance. Your credit score changes quite often, though. Opening new credit, making payments, or racking up your credit card all affect your credit … [Read more...]
What are the Maximum Seller Concessions for FHA Loans?
FHA loans are among the few programs that allow seller concessions. The seller can contribute this money towards your closing costs. Right now, the seller can contribute up to 6% of the sales price of the home. The seller can’t contribute more than the cost of the closing costs, though. Below we … [Read more...]